Progressive Points Outcomes on a Month-to-month Versus Quarterly Foundation
Strong Premium Progress and Profitability
Progressive Company (NYSE: PGR) reported an 18% enhance in web premiums written for January 2025, reaching $6.48 billion, in comparison with $5.50 billion within the prior-year interval. Web premiums earned additionally noticed a 22% bounce to $6.59 billion.
The corporate posted a web earnings of $1.12 billion for the month, marking a 59% year-over-year enhance. Earnings per diluted share rose to $1.90 from $1.18 in January 2024, whereas the mixed ratio improved to 84.1%, down from 87.3% within the prior-year interval.
Progress Throughout Enterprise Segments
Progressive’s Private Strains phase continued to drive general development, with insurance policies in power growing by 18% year-over-year to 34.2 million. The auto insurance coverage phase skilled sturdy enlargement, with Company Auto insurance policies rising by 18% and Direct Auto by 25%. The Particular Strains and Property companies additionally reported features of 9% and 13%, respectively.
Within the Business Strains phase, insurance policies in power grew by 5% to 1.15 million. Web premiums written in Business Strains had been flat at $769 million, impacted by a decline in transportation community firm (TNC) enterprise. Excluding TNC, the phase’s web premiums written would have elevated by 2%.
Funding and Monetary Efficiency
Funding earnings elevated 35% year-over-year to $268 million, benefiting from greater yields and market situations. The corporate recorded $109 million in web realized features on securities, pushed by a $115 million acquire on holding interval securities.
Complete earnings for January totaled $1.28 billion, up 57% from the prior-year interval, with a rise of $163 million in whole web unrealized features on fixed-maturity securities.
Underwriting and Loss Efficiency
Progressive’s loss and loss adjustment expense (LAE) ratio improved to 63.8%, in comparison with 65.5% within the prior yr. The corporate reported a positive improvement of $115 million on prior accident years. Disaster losses for January amounted to $43 million, primarily because of the California wildfires, with 72% of the losses attributed to non-public property merchandise.
The expense ratio improved to twenty.3%, bringing the corporate’s mixed ratio right down to 84.1% from 87.3% a yr earlier.
Steadiness Sheet and Capital Energy
Progressive ended January 2025 with $105.4 billion in whole belongings and shareholders’ fairness of $26.8 billion. E-book worth per share elevated to $45.75, reflecting sturdy earnings and funding efficiency. The corporate maintained a debt-to-total capital ratio of 20.4%, with a fixed-income portfolio period of three.3 years and a median credit score high quality of AA-.
