Progressive shares rise on strong November results

On Friday, The Progressive Corporation (NYSE:PGR ) experienced a 3.8% increase in its stock price following the release of its November financial results. The company reported significant year-over-year growth in several key financial metrics, including net premiums written, net premiums earned, net income, and earnings per share.

Progressive's net premiums written in November 2024 reached $5.56 billion, marking an 18% increase from the $4.73 billion reported in November 2023. Net premiums earned also saw a notable rise to $6.04 billion, up 19% from the previous year's $5.08 billion. Net income surged by 48%, from $680.6 million in November 2023 to $1.01 billion in November 2024, while earnings per share available to common shareholders grew similarly, from $1.15 to $1.71.

The company's combined ratio, a key measure of profitability in the insurance industry, improved by 5.5 points, dropping from 91.1% to 85.6%. This improvement indicates a more efficient balance between money spent on claims and expenses and the income from premiums during the month.

In terms of policies in force (PIF), Progressive showed robust growth across various lines. The total personal auto segment saw a 21% increase year-over-year, with agency auto policies growing by 17% and direct auto policies by 25%. The total number of personal lines policies rose by 18%, commercial lines by 4%, and property business by 14%, contributing to a companywide total growth of 17%.

Analysts have responded positively to Progressive's performance. Comments from industry experts highlight the company's "very strong underwriting results" and "still-accelerating year-over-year PIF growth rate," which are expected to "boost the shares today." Additionally, Progressive's November operating earnings per share (EPS) outpaced estimates, contributing to the optimistic outlook for the company's stock performance.

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Source: Investing.com