09/17/2021 | Press release | Distributed by Public on 09/17/2021 06:26
NEWS RELEASE |
The Progressive Corporation | Company Contact: |
6300 Wilson Mills Road | Douglas S. Constantine |
Mayfield Village, Ohio 44143 | (440) 910-3563 |
August | ||||||
(millions, except per share amounts and ratios; unaudited) | 2021 | 2020 | Change | |||
Net premiums written | $ | 3,890.9 | $ | 3,437.7 | 13 | % |
Net premiums earned | $ | 3,513.8 | $ | 3,088.9 | 14 | % |
Net income (loss) | $ | (6.6) | $ | 487.4 | (101) | % |
Per share available to common shareholders | $ | (0.02) | $ | 0.83 | (102) | % |
Total pretax net realized gains (losses) on securities | $ | 131.5 | $ | 330.9 | (60) | % |
Combined ratio | 105.3 | 92.6 | 12.7 pts. | |||
Average equivalent common shares | 584.8 | 587.7 | 0 | % |
August | |||
(thousands; unaudited) | 2021 | 2020 | Change |
Policies in Force | |||
Personal Lines | |||
Agency - auto | 8,013.3 | 7,487.0 | 7 % |
Direct - auto | 9,638.0 | 8,714.3 | 11 % |
Total personal auto | 17,651.3 | 16,201.3 | 9 % |
Total special lines | 5,272.5 | 4,891.1 | 8 % |
Total Personal Lines | 22,923.8 | 21,092.4 | 9 % |
Total Commercial Lines | 942.1 | 795.4 | 18 % |
Total Property business | 2,715.6 | 2,395.4 | 13 % |
Companywide Total | 26,581.5 | 24,283.2 | 9 % |
Current Month |
Comments on Monthly Results1
|
|
Net premiums written
|
$ | 3,890.9 |
Revenues:
|
||
Net premiums earned
|
$ | 3,513.8 |
Investment income
|
67.5 | |
Net realized gains (losses) on securities:
|
||
Net realized gains (losses) on security sales
|
1.9 | |
Net holding period gains (losses) on securities
|
130.0 | |
Net impairment losses recognized in earnings
|
(0.4) | |
Total net realized gains (losses) on securities
|
131.5 | |
Fees and other revenues
|
53.6 | |
Service revenues
|
23.6 | |
Total revenues
|
3,790.0 | |
Expenses:
|
||
Losses and loss adjustment expenses
|
3,041.2 | |
Policy acquisition costs
|
294.7 | |
Other underwriting expenses
|
418.3 | |
Investment expenses
|
1.9 | |
Service expenses
|
23.4 | |
Interest expense
|
18.3 | |
Total expenses
|
3,797.8 | |
Income (loss) before income taxes
|
(7.8) | |
Provision (benefit) for income taxes
|
(1.2) | |
Net income (loss)
|
(6.6) | |
Other comprehensive income (loss)
|
||
Changes in:
|
||
Total net unrealized gains (losses) on fixed-maturity securities
|
(68.2) | |
Net unrealized losses on forecasted transactions
|
0.1 | |
Foreign currency translation adjustment
|
(0.1) | |
Other comprehensive income (loss)
|
(68.2) | |
Total comprehensive income (loss)
|
$ | (74.8) |
Year-to-Date | |||||
2021 | 2020 | % Change | |||
Net premiums written | $ | 31,651.9 | $ | 27,558.3 | 15 |
Revenues: | |||||
Net premiums earned | $ | 29,229.8 | $ | 25,949.6 | 13 |
Investment income | 566.3 | 640.1 | (12) | ||
Net realized gains (losses) on securities: | |||||
Net realized gains (losses) on security sales | 586.8 | 737.1 | (20) | ||
Net holding period gains (losses) on securities | 717.8 | 264.4 | 171 | ||
Net impairment losses recognized in earnings | (3.3) | 0 | NM | ||
Total net realized gains (losses) on securities | 1,301.3 | 1,001.5 | 30 | ||
Fees and other revenues | 461.8 | 386.3 | 20 | ||
Service revenues | 179.6 | 152.4 | 18 | ||
Total revenues | 31,738.8 | 28,129.9 | 13 | ||
Expenses: | |||||
Losses and loss adjustment expenses | 21,905.0 | 16,116.5 | 36 | ||
Policy acquisition costs | 2,461.4 | 2,153.0 | 14 | ||
Other underwriting expenses | 3,866.6 | 3,729.2 | 4 | ||
Policyholder credit expense | 0 | 1,059.3 | (100) | ||
Investment expenses | 16.4 | 13.0 | 26 | ||
Service expenses | 166.1 | 139.0 | 19 | ||
Interest expense | 149.9 | 142.0 | 6 | ||
Total expenses | 28,565.4 | 23,352.0 | 22 | ||
Income before income taxes | 3,173.4 | 4,777.9 | (34) | ||
Provision for income taxes | 654.5 | 989.0 | (34) | ||
Net income | 2,518.9 | 3,788.9 | (34) | ||
Other comprehensive income (loss) | |||||
Changes in:
|
|||||
Total net unrealized gains (losses) on fixed-maturity securities | (381.9) | 668.3 | (157) | ||
Net unrealized losses on forecasted transactions | 0.6 | 0.5 | 20 | ||
Foreign currency translation adjustment | (0.5) | 0 | NM | ||
Other comprehensive income (loss) | (381.8) | 668.8 | (157) | ||
Total comprehensive income | 2,137.1 | 4,457.7 | (52) | ||
NM = Not Meaningful |
The following table sets forth the computation of per share results: | ||||||
Current | Year-to-Date | |||||
Month | 2021 | 2020 | ||||
Net income (loss)
|
$ | (6.6) | $ | 2,518.9 | $ | 3,788.9 |
Less: Preferred share dividends
|
2.2 | 17.9 | 17.9 | |||
Net income (loss) available to common shareholders
|
$ | (8.8) | $ | 2,501.0 | $ | 3,771.0 |
Per common share:
|
||||||
Basic
|
$ | (0.02) | $ | 4.28 | $ | 6.45 |
Diluted1
|
$ | (0.02) | $ | 4.26 | $ | 6.42 |
Comprehensive income (loss)
|
$ | (74.8) | $ | 2,137.1 | $ | 4,457.7 |
Less: Preferred share dividends
|
2.2 | 17.9 | 17.9 | |||
Comprehensive income (loss) attributable to common shareholders
|
$ | (77.0) | $ | 2,119.2 | $ | 4,439.8 |
Per common share:
|
||||||
Diluted1
|
$ | (0.13) | $ | 3.61 | $ | 7.56 |
Average common shares outstanding - Basic
|
584.8 | 584.7 | 584.9 | |||
Net effect of dilutive stock-based compensation
|
2.3 | 2.6 | 2.7 | |||
Total average equivalent common shares - Diluted
|
587.1 | 587.3 | 587.6 | |||
The following table sets forth the investment results for the period:
|
|||
Current
|
Year-to-Date
|
||
Month
|
2021 | 2020 | |
Fully taxable equivalent (FTE) total return:
|
|||
Fixed-income securities
|
(0.1)% | 0.7% | 5.8% |
Common stocks
|
3.0% | 26.8% | 10.1% |
Total portfolio
|
0.2% | 2.9% | 6.0% |
Pretax annualized investment income book yield
|
1.7% | 1.9% | 2.5% |
Current Month | ||||||||||||
Commercial | ||||||||||||
Personal Lines Business | Lines | Property | Companywide | |||||||||
Agency | Direct | Total | Business | Business |
Total1
|
|||||||
Net Premiums Written | $ | 1,374.2 | $ | 1,521.7 | $ | 2,895.9 | $ | 781.6 | $ | 213.1 | $ | 3,890.9 |
% Growth in NPW | 5% | 5% | 5% | 57% | 17% | 13% | ||||||
Net Premiums Earned | $ | 1,313.0 | $ | 1,441.4 | $ | 2,754.4 | $ | 581.7 | $ | 176.7 | $ | 3,513.8 |
% Growth in NPE | 6% | 8% | 7% | 55% | 17% | 14% | ||||||
GAAP Ratios | ||||||||||||
Loss/LAE ratio | 82.2 | 82.3 | 82.3 | 73.2 | 197.4 | 86.5 | ||||||
Expense ratio | 18.2 | 18.1 | 18.1 | 18.9 |
28.32
|
18.8 | ||||||
Combined ratio | 100.4 | 100.4 | 100.4 | 92.1 |
225.72
|
105.3 | ||||||
Net catastrophe loss ratio3
|
7.2 | 0.3 | 130.8 | 12.3 | ||||||||
Actuarial Adjustments4
|
||||||||||||
Reserve Decrease/(Increase) | ||||||||||||
Prior accident years | $ | 8.8 | ||||||||||
Current accident year | 1.2 | |||||||||||
Calendar year actuarial adjustment | $ | 18.2 | $ | 19.2 | $ | 37.4 | $ | (0.4) | $ | (27.0) | $ | 10.0 |
Prior Accident Years Development | ||||||||||||
Favorable/(Unfavorable) | ||||||||||||
Actuarial adjustment | $ | 8.8 | ||||||||||
All other development | 18.6 | |||||||||||
Total development | $ | 27.4 | ||||||||||
Calendar year loss/LAE ratio | 86.5 | |||||||||||
Accident year loss/LAE ratio | 87.3 | |||||||||||
Year-to-Date | ||||||||||||
Commercial | ||||||||||||
Personal Lines Business | Lines | Property | Companywide | |||||||||
Agency | Direct | Total | Business | Business |
Total1
|
|||||||
Net Premiums Written | $ | 11,863.2 | $ | 13,015.5 | $ | 24,878.7 | $ | 5,292.7 | $ | 1,476.3 | $ | 31,651.9 |
% Growth in NPW | 7% | 10% | 9% | 58% | 16% | 15% | ||||||
Net Premiums Earned | $ | 11,270.9 | $ | 12,309.7 | $ | 23,580.6 | $ | 4,316.4 | $ | 1,326.3 | $ | 29,229.8 |
% Growth in NPE | 7% | 11% | 9% | 37% | 15% | 13% | ||||||
GAAP Ratios | ||||||||||||
Loss/LAE ratio | 74.3 | 74.9 | 74.6 | 68.7 | 100.8 | 74.9 | ||||||
Expense ratio | 18.6 | 20.5 | 19.6 | 19.9 |
29.22
|
20.1 | ||||||
Combined ratio | 92.9 | 95.4 | 94.2 | 88.6 |
130.02
|
95.0 | ||||||
Net catastrophe loss ratio3
|
2.2 | 0.3 | 42.5 | 3.8 | ||||||||
Actuarial Adjustments4
|
||||||||||||
Reserve Decrease/(Increase) | ||||||||||||
Prior accident years | $ | (63.5) | ||||||||||
Current accident year | 30.4 | |||||||||||
Calendar year actuarial adjustment | $ | 17.8 | $ | 13.3 | $ | 31.1 | $ | (19.5) | $ | (44.7) | $ | (33.1) |
Prior Accident Years Development | ||||||||||||
Favorable/(Unfavorable) | ||||||||||||
Actuarial adjustment | $ | (63.5) | ||||||||||
All other development | (117.2) | |||||||||||
Total development | $ | (180.7) | ||||||||||
Calendar year loss/LAE ratio | 74.9 | |||||||||||
Accident year loss/LAE ratio | 74.3 | |||||||||||
August 2021 | ||
CONDENSED GAAP BALANCE SHEET: | ||
Investments, at fair value: | ||
Available-for-sale securities: | ||
Fixed maturities1 (amortized cost: $43,293.1)
|
$ | 44,032.8 |
Short-term investments (amortized cost: $1,638.8) | 1,638.8 | |
Total available-for-sale securities | 45,671.6 | |
Equity securities: | ||
Nonredeemable preferred stocks(cost: $1,509.8)
|
1,614.1 | |
Common equities (cost: $1,240.2) | 4,807.3 | |
Total equity securities | 6,421.4 | |
Total investments2
|
52,093.0 | |
Net premiums receivable | 9,859.3 | |
Reinsurance recoverables (including $4,755.6 on unpaid loss and LAE reserves) | 5,008.7 | |
Deferred acquisition costs | 1,403.6 | |
Goodwill and intangible assets | 589.5 | |
Other assets | 2,903.6 | |
Total assets | $ | 71,857.7 |
Unearned premiums | $ | 16,214.9 |
Loss and loss adjustment expense reserves | 25,403.7 | |
Other liabilities2
|
6,429.1 | |
Debt3
|
4,898.0 | |
Total liabilities | 52,945.7 | |
Shareholders' equity | 18,912.0 | |
Total liabilities and shareholders' equity | $ | 71,857.7 |
Common shares outstanding | 585.3 | |
Common shares repurchased - August | 0 | |
Average cost per common share | $ | 0 |
Book value per common share | $ | 31.47 |
Trailing 12-month return on average common shareholders' equity | ||
Net income | 24.9 | % |
Comprehensive income | 22.3 | % |
Net unrealized pretax gains (losses) on fixed-maturity securities | $ | 723.2 |
Increase (decrease) from July 2021 | $ | (86.3) |
Increase (decrease) from December 2020 | $ | (483.4) |
Debt-to-total capital ratio | 20.6 | % |
Fixed-income portfolio duration | 3.0 | |
Weighted average credit quality | AA- |