© Reuters.
Progressive Corporation (NYSE:), the Ohio-based property and casualty insurer, on Friday reported a 233% year-over-year (year-over-year) increase in third-quarter earnings per share, reaching $1.64, although it fell short of $1. $.72 expected. This is the first increase in profits for the company after three unprofitable quarters.
The insurer also reported significant 20% year-over-year growth in net premiums written in September and the third quarter, totaling $15.594 million. At the same time, Progressive’s share price saw a 7.2% increase to $153.55, surpassing the $144.31 buy point, as indicated by MarketSmith chart analysis.
Unlike previous reports, Progressive’s third-quarter 2023 earnings came in at $2.09 per share, surpassing the Zacks Consensus Estimate of $1.71 and marking a four-fold year-over-year improvement in the bottom line. triggered a share price rise of 3.9% pre-market.
Net securities losses also decreased to $149 million from $216.4 million year-on-year, while the combined ratio improved by 680 basis points to 92.4%. Operating income in September reached around $4.9 billion, up 20.4% year-over-year, driven by higher premiums (20.2%), fees and other income (19.3%), and investment income (33 ,3%).
Additionally, total expenses fell 6.7% year-over-year to $4.3 billion due to lower losses and underwriting expenses. Policies in force saw significant growth across all segments: Personal Autos up 12% to 19.5 million, Specialty Lines up 7% to 6 million, Real Estate Businesses up 7% to 3 million, Direct Auto Policies up 14% YoY to 11.2 million, Agency Auto Policies by 10% to 8.4 million, and the commercial automobile segment by 7% year-on-year to 1.1 million.
Book value per share was $28.29 as of September 30, 2023, compared to $24.41 on September 30, 2022. Return on equity for September was positive at 17.4%, compared to (15.9%) last year, with the total debt over the total. The capital ratio improved 180 basis points to 28.4%.
Progressive operates in a competitive landscape with industry leaders such as Berkshire Hathaway (NYSE and Allstate (NYSE ). Other companies such as The Travelers Companies Inc (NYSE ), WR Berkley Corporation and RLI (NYSE Corporation are due to report earnings results soon. third trimester.
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