Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

THE PROGRESSIVE CORPORATION

(PGR)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

Progressive : News release dated September 17, 2021, containing financial results of The Progressive Corporation and its consolidated subsidiaries for the month of, and year-to-date period ended, August 2021 (Form 8-K)

09/17/2021 | 08:32am EDT

NEWS RELEASE
The Progressive Corporation Company Contact:
6300 Wilson Mills Road Douglas S. Constantine
Mayfield Village, Ohio 44143 (440) 910-3563

PROGRESSIVE REPORTS AUGUST RESULTS

MAYFIELD VILLAGE, OHIO -- September 17, 2021 -- The Progressive Corporation (NYSE:PGR) today reported the following results for August 2021:
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 %
Progressive offers personal and commercial insurance throughout the United States. Our Personal Lines business writes insurance for personal autos and special lines products. Our Commercial Lines business writes auto-related liability and physical damage insurance, workers' compensation coverage primarily for the transportation industry, and business-related general liability and property insurance, predominantly for small businesses. Our Property business writes residential property insurance for homeowners, other property owners, and renters.

- 1 -

THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
COMPREHENSIVE INCOME STATEMENT
August 2021
(millions)
(unaudited)
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)
1 See the Monthly Commentary at the end of this release for additional discussion. For a description of our financial reporting and accounting policies, see Note 1 to our 2020 audited consolidated financial statements included in our 2020 Shareholders' Report, which can be found at www.progressive.com/annualreport.
- 2 -

THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
COMPREHENSIVE INCOME STATEMENTS
August 2021
(millions)
(unaudited)

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

- 3 -

THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
COMPUTATION OF NET INCOME AND COMPREHENSIVE INCOME PER SHARE
&
INVESTMENT RESULTS
August 2021
(millions - except per share amounts)
(unaudited)

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
1 Since we reported both a net loss and a comprehensive loss attributable to common shareholders for August 2021, the calculated diluted earnings per share was antidilutive; therefore, basic earnings per share is disclosed for the month.

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%

- 4 -

THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
August 2021
($ in millions)
(unaudited)

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
1Includes our other indemnity business results, which primarily consists of Protective Insurance Corporation and subsidiaries' run-off business operations.
2Included in both the expense ratio and combined ratio is 2.7 points of amortization expense predominately associated with the acquisition of a controlling interest in ARX. Excluding these additional expenses, the Property business would have reported an expense ratio of 25.6 and a combined ratio of 223.0.
3Represents catastrophe losses incurred during the period, including the impact of reinsurance, as a percent of net premiums earned. During the month, we incurred catastrophe losses primarily related to Hurricane Ida. See the Monthly Commentary at the end of this release for additional discussion.
4Represents adjustments solely based on our normally scheduled actuarial reviews. For our Property business, the actuarial reserving methodology includes changes to catastrophe losses, while the reviews in our vehicle businesses do not include catastrophes.
- 5 -

THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
August 2021
($ in millions)
(unaudited)

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
1Includes our other indemnity business results, which primarily consists of Protective Insurance Corporation and subsidiaries' run-off business operations.
2Included in both the expense ratio and combined ratio is 2.8 points of amortization expense predominately associated with the acquisition of a controlling interest in ARX. Excluding these additional expenses, the Property business would have reported an expense ratio of 26.4 and a combined ratio of 127.2.
3Represents catastrophe losses incurred during the period, including the impact of reinsurance, as a percent of net premiums earned.
4Represents adjustments solely based on our normally scheduled actuarial reviews. For our Property business, the actuarial reserving methodology includes changes to catastrophe losses, while the reviews in our vehicle businesses do not include catastrophes.

- 6 -

THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
BALANCE SHEET AND OTHER INFORMATION
(millions - except per share amounts)
(unaudited)
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-
1 As of August 31, 2021, we held certain hybrid securities and recognized a change in fair value of $16.5 million as a realized gain during the period we held these securities.
2 At August 31, 2021, we had $337.8 million of net unsettled security transactions classified in 'other liabilities.'
3 Our $500 million 3.75% Senior Notes matured in August 2021.
- 7 -


Monthly Commentary
•Included in August results is $341.9 million of catastrophe losses, or 9.7 loss ratio points, associated with Hurricane Ida. In our Property business, we retained $180 million of losses and $20 million of allocated loss adjustment expenses, with the excess covered under our occurrence excess of loss reinsurance program. Through September 15, 2021, we have incurred approximately $510 million in the aggregate for Hurricane Ida of reported and incurred but not reported losses in both the Gulf Coast and Northeast.

Events
We plan to release September results on Thursday, October 14, 2021, before the market opens.

About Progressive
The Progressive Group of Insurance Companies makes it easy to understand, buy and use auto insurance. Progressive offers choices so consumers can reach us whenever, wherever and however it's most convenient - online at progressive.com, by phone at 1-800-PROGRESSIVE, on a mobile device or in-person with a local agent.

Progressive provides insurance for personal and commercial autos and trucks, motorcycles, boats, recreational vehicles, and homes; it is the third largest auto insurer in the country, a leading seller of motorcycle and commercial auto insurance, and one of the top 15 homeowners insurance carriers.

Founded in 1937, Progressive continues its long history of offering shopping tools and services that save customers time and money, like Name Your Price®, Snapshot®, and HomeQuote Explorer®.

The Common Shares of The Progressive Corporation, the Mayfield Village, Ohio-based holding company, trade publicly at NYSE:PGR.
- 8 -



Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995:Investors are cautioned that certain statements in this report not based upon historical fact are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements often use words such as 'estimate,' 'expect,' 'intend,' 'plan,' 'believe,' and other words and terms of similar meaning, or are tied to future periods, in connection with a discussion of future operating or financial performance. Forward-looking statements are based on current expectations and projections about future events, and are subject to certain risks, assumptions and uncertainties that could cause actual events and results to differ materially from those discussed herein. These risks and uncertainties include, without limitation, uncertainties related to:

•our ability to underwrite and price risks accurately and to charge adequate rates to policyholders;
•our ability to establish accurate loss reserves;
•the impact of severe weather, other catastrophe events and climate change;
•the effectiveness of our reinsurance programs;
•the highly competitive nature of property-casualty insurance markets;
•whether we innovate effectively and respond to our competitors' initiatives;
•whether we effectively manage complexity as we develop and deliver products and customer experiences;
•how intellectual property rights could affect our competitiveness and our business operations;
•whether we adjust claims accurately;
•our ability to maintain a recognized and trusted brand;
•our ability to attract, develop and retain talent and maintain appropriate staffing levels;
•compliance with complex laws and regulations;
•litigation challenging our business practices, and those of our competitors and other companies;
•the impacts of a security breach or other attack involving our computer systems or the systems of one or more of our vendors;
•the secure and uninterrupted operation of the facilities, systems, and business functions that are critical to our business;
•the success of our efforts to develop new products or enter into new areas of business and navigate related risks;
•our continued ability to send and accept electronic payments;
•the possible impairment of our goodwill or intangible assets;
•the performance of our fixed-income and equity investment portfolios;
•the potential elimination of, or change in, the London Interbank Offered Rate;
•our continued ability to access our cash accounts and/or convert securities into cash on favorable terms;
•the impact if one or more parties with which we enter into significant contracts or transact business fail to perform;
•legal restrictions on our insurance subsidiaries' ability to pay dividends to The Progressive Corporation;
•limitations on our ability to pay dividends on our common shares under the terms of our outstanding preferred shares;
•our ability to obtain capital when necessary to support our business and potential growth;
•evaluations by credit rating and other rating agencies;
•the variable nature of our common share dividend policy;
•whether our investments in certain tax-advantaged projects generate the anticipated returns;
•the impact from not managing to short-term earnings expectations in light of our goal to maximize the long-term value of the enterprise;
•impacts from the outbreak of the novel coronavirus, or COVID-19, and the restrictions put in place to help slow and/or stop the spread of the virus; and
•other matters described from time to time in our releases and publications, and in our periodic reports and other documents filed with the United States Securities and Exchange Commission, including, without limitation, the Risk Factors section of our Annual Report on Form 10-K for the year ending December 31, 2020.

In addition, investors should be aware that generally accepted accounting principles prescribe when a company may reserve for particular risks, including litigation exposures. Accordingly, results for a given reporting period could be significantly affected if and when we establish reserves for one or more contingencies. Also, our regular reserve reviews may result in adjustments of varying magnitude as additional information regarding claims activity becomes known. Reported results, therefore, may be volatile in certain accounting periods.

- 9 -

Disclaimer

Progressive Corporation published this content on 17 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 September 2021 12:31:06 UTC.


ę Publicnow 2021
All news about THE PROGRESSIVE CORPORATION
11:53aProgressive Announces Investor Relations Conference Call
GL
11:53aProgressive Announces Investor Relations Conference Call
GL
10/26Progressive Insurance(SM) and Fidelity Life Launch One-Year, Short-Term Life Insurance
PR
10/26Progressive Insurance and Fidelity Life Launch One-Year, Short-Term Life Insurance
CI
10/25INSIDER SELL : Progressive
MT
10/18INSIDER SELL : Progressive
MT
10/14PROGRESSIVE : REPORTS SEPTEMBER RESULTS - Form 8-K
PU
10/14PROGRESSIVE CORP/OH/ : Results of Operations and Financial Condition, Financial Statements..
AQ
10/14The Progressive Corporation Reports Earnings Results for the Nine Months Ended Septembe..
CI
10/14PROGRESSIVE : Q3 Net Premiums Written Rise
MT
More news
Analyst Recommendations on THE PROGRESSIVE CORPORATION
More recommendations
Financials (USD)
Sales 2021 46 218 M - -
Net income 2021 3 027 M - -
Net Debt 2021 - - -
P/E ratio 2021 18,8x
Yield 2021 3,92%
Capitalization 56 306 M 56 306 M -
Capi. / Sales 2021 1,22x
Capi. / Sales 2022 1,11x
Nbr of Employees 43 326
Free-Float 73,1%
Chart THE PROGRESSIVE CORPORATION
Duration : Period :
The Progressive Corporation Technical Analysis Chart | PGR | US7433151039 | MarketScreener
Technical analysis trends THE PROGRESSIVE CORPORATION
Short TermMid-TermLong Term
TrendsBullishBearishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 15
Last Close Price 96,25 $
Average target price 94,85 $
Spread / Average Target -1,46%
EPS Revisions
Managers and Directors
Susan Patricia Griffith President, Chief Executive Officer & Director
John P. Sauerland Chief Financial Officer & Vice President
Lawton Wehle Fitt Chairman
Steven A. Broz Chief Information Officer
Jonathan Bauer Chief Investment Officer
Sector and Competitors
1st jan.Capi. (M$)
THE PROGRESSIVE CORPORATION-2.66%56 306
PICC PROPERTY AND CASUALTY COMPANY LIMITED25.04%21 369
TRYG A/S3.07%15 697
ADMIRAL GROUP PLC4.85%12 232
MERCURY GENERAL CORPORATION8.91%3 123
PORTO SEGURO S.A.-4.00%2 696