The Progressive Corporation 8K Progressive Reports November Results | PGR 13 Dec 24


									NEWS RELEASE



The Progressive Corporation									Company Contact:
300 North Commons Blvd.									Douglas S. Constantine
Mayfield Village, Ohio 44143									(440) 395-3707
http://www.progressive.com									investor_relations@progressive.com

PROGRESSIVE REPORTS NOVEMBER RESULTS

MAYFIELD VILLAGE, OHIO -- December 13, 2024 -- The Progressive Corporation (NYSE:PGR) today reported the following results for the month ended November 30, 2024:


	November
(millions, except per share amounts and ratios; unaudited)	2024		2023		Change
Net premiums written	$	5,563.3	$	4,725.1	18	%
Net premiums earned	$	6,040.4	$	5,079.0	19	%
Net income	$	1,005.8	$	680.6	48	%
Per share available to common shareholders	$	1.71	$	1.15	48	%
Total pretax net realized gains (losses) on securities	$	175.7	$	246.5	(29)	%
Combined ratio	85.6		91.1		(5.5)	pts.
Average diluted equivalent common shares	587.7		587.6		0	%


	November 30,
(thousands; unaudited)	2024	2023	% Change
Policies in Force
Personal Lines
Agency – auto	9,700.5	8,312.4	17
Direct – auto	13,863.6	11,129.5	25
Total personal auto	23,564.1	19,441.9	21
Total special lines	6,516.4	5,965.3	9
Total Personal Lines	30,080.5	25,407.2	18
Total Commercial Lines	1,143.6	1,104.7	4
Total Property business	3,515.1	3,070.9	14
Companywide Total	34,739.2	29,582.8	17

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, business-related general liability and property insurance predominantly for small businesses, and workers’ compensation insurance primarily for the transportation industry. Our Property business writes residential property insurance for homeowners, other property owners, and renters.

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THE PROGRESSIVE CORPORATION AND SUBSIDIARIES

COMPREHENSIVE INCOME STATEMENT

For the month ended November 30, 2024

(millions)

(unaudited)


	November 2024		Comments on Monthly Results1
Net premiums written	$	5,563.3

Revenues:
Net premiums earned	$	6,040.4
Investment income	262.4
Net realized gains (losses) on securities:
Net realized gains (losses) on security sales	(35.5)
Net holding period gains (losses) on securities	211.2
Total net realized gains (losses) on securities	175.7
Fees and other revenues	92.2
Service revenues	34.8
Total revenues	6,605.5

Expenses:
Losses and loss adjustment expenses	3,938.8
Policy acquisition costs	458.8
Other underwriting expenses	868.0
Investment expenses	3.1
Service expenses	37.2
Interest expense	23.2
Total expenses	5,329.1

Income before income taxes	1,276.4
Provision for income taxes	270.6
Net income	1,005.8

Other comprehensive income (loss)
Changes in:
Total net unrealized gains (losses) on fixed-maturity securities	199.4
Net unrealized losses on forecasted transactions	0.1
Foreign currency translation adjustment	(0.1)
Other comprehensive income (loss)	199.4
Total comprehensive income (loss)	$	1,205.2

1 See the Monthly Commentary at the end of this release for additional discussion. For a description of our financial reporting and accounting policies as it applies to information contained throughout this release, see Note 1 to our 2023 audited consolidated financial statements included in our 2023 Shareholders’ Report, which can be found at www.progressive.com/annualreport.

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THE PROGRESSIVE CORPORATION AND SUBSIDIARIES

COMPREHENSIVE INCOME STATEMENTS

For the year-to-date periods ended November 30,

(millions)

(unaudited)


	Year-to-Date
	2024		2023
Net premiums written	$	68,460.5	$	56,674.3

Revenues:
Net premiums earned	$	64,082.2	$	53,354.0
Investment income	2,563.3		1,750.1
Net realized gains (losses) on securities:
Net realized gains (losses) on security sales	(383.1)		7.3
Net holding period gains (losses) on securities	787.5		210.1
Net impairment losses recognized in earnings	0		(8.3)
Total net realized gains (losses) on securities	404.4		209.1
Fees and other revenues	969.6		814.3
Service revenues	378.9		286.1
Total revenues	68,398.4		56,413.6

Expenses:
Losses and loss adjustment expenses	44,733.7		42,079.8
Policy acquisition costs	4,872.3		4,252.7
Other underwriting expenses	8,558.1		5,722.7
Investment expenses	25.9		23.9
Service expenses	409.6		321.6
Interest expense	255.6		245.2
Total expenses	58,855.2		52,645.9

Income before income taxes	9,543.2		3,767.7
Provision for income taxes	2,005.7		766.5
Net income	7,537.5		3,001.2

Other comprehensive income (loss)
Changes in:
Total net unrealized gains (losses) on fixed-maturity securities	648.9		367.8
Net unrealized losses on forecasted transactions	0.4		0.5
Foreign currency translation adjustment	(0.4)		0.1
Other comprehensive income (loss)	648.9		368.4
Total comprehensive income (loss)	$	8,186.4	$	3,369.6

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THE PROGRESSIVE CORPORATION AND SUBSIDIARIES

COMPUTATION OF NET INCOME AND COMPREHENSIVE INCOME PER SHARE

INVESTMENT RESULTS

For the month and year-to-date periods ended November 30,

(millions – except per share amounts)

(unaudited)


The following table sets forth the computation of per share results:
	November		Year-to-Date
	2024		2024		2023

Net income	$	1,005.8	$	7,537.5	$	3,001.2
Less: Preferred share dividends and other1	0		17.0		34.1
Net income available to common shareholders	$	1,005.8	$	7,520.5	$	2,967.1
Per common share:
Basic	$	1.72	$	12.84	$	5.07
Diluted	$	1.71	$	12.80	$	5.05

Comprehensive income (loss)	$	1,205.2	$	8,186.4	$	3,369.6
Less: Preferred share dividends and other1	0		17.0		34.1
Comprehensive income (loss) attributable to common shareholders	$	1,205.2	$	8,169.4	$	3,335.5
Per common share:
Diluted	$	2.05	$	13.90	$	5.68

Average common shares outstanding - Basic	585.7		585.5		584.9
Net effect of dilutive stock-based compensation	2.0		2.2		2.6
Total average equivalent common shares - Diluted	587.7		587.7		587.5

1 Includes the underwriting discounts and commissions on issuance, initial issuance costs, and excise tax related to the preferred share redemption in February 2024.


The following table sets forth the investment results for the period:
	November	Year-to-Date
	2024	2024	2023
Fully taxable equivalent (FTE) total return:
Fixed-income securities	0.6%	4.3%	3.4%
Common stocks	6.3%	26.7%	20.9%
Total portfolio	0.9%	5.2%	4.2%

Pretax annualized investment income book yield	4.0%	3.9%	3.2%

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THE PROGRESSIVE CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

For the month ended November 30, 2024

($ in millions)

(unaudited)


November 2024
							Commercial
	Personal Lines Business						Lines		Property		Companywide
	Agency		Direct		Total		Business		Business		Total
Net Premiums Written	$	2,101.2	$	2,597.7	$	4,698.9	$	627.6	$	236.7	$	5,563.3
% Growth in NPW	16%		26%		21%		0%		5%		18%
Net Premiums Earned	$	2,191.1	$	2,731.4	$	4,922.5	$	866.3	$	251.6	$	6,040.4
% Growth in NPE	19%		25%		22%		3%		15%		19%

GAAP Ratios
Loss/LAE ratio	64.6		68.4		66.7		64.7		26.4		64.9
Expense ratio	18.7		21.8		20.4		19.8		28.6		20.7
Combined ratio	83.3		90.2		87.1		84.5		55.0		85.6
Net catastrophe loss ratio1					(0.1)		0.1		(5.4)		(0.3)

Actuarial Adjustments2
Reserve Decrease/(Increase)
Prior accident years											$	(28.2)
Current accident year											32.8
Calendar year actuarial adjustment	$	24.9	$	(4.4)	$	20.5	$	(21.3)	$	5.4	$	4.6

Prior Accident Years Development
Favorable/(Unfavorable)
Actuarial adjustment											$	(28.2)
All other development											31.9
Total development											$	3.7

Calendar year loss/LAE ratio											64.9
Accident year loss/LAE ratio											65.0

1 Represents catastrophe losses incurred during the period, including development on prior events and the impact of reinsurance, as a percent of net premiums earned. The negative catastrophe loss ratios in our Personal Lines and Property businesses were primarily due to favorable development attributable to Hurricanes Helene and Milton, in excess of current month storm losses.

2 Represents 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.

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THE PROGRESSIVE CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

For the year-to-date period ended November 30, 2024

($ in millions)

(unaudited)


Year-to-Date
							Commercial
	Personal Lines Business						Lines		Property		Companywide
	Agency		Direct		Total		Business		Business		Total
Net Premiums Written	$	24,683.0	$	30,601.4	$	55,284.4	$	10,327.1	$	2,848.4	$	68,460.5
% Growth in NPW	21%		27%		24%		9%		10%		21%
Net Premiums Earned	$	23,195.2	$	28,395.0	$	51,590.2	$	9,754.7	$	2,736.7	$	64,082.2
% Growth in NPE	20%		25%		23%		8%		18%		20%

GAAP Ratios
Loss/LAE ratio	68.1		70.0		69.1		70.6		74.8		69.6
Expense ratio	18.4		19.9		19.2		19.3		28.9		19.7
Combined ratio	86.5		89.9		88.3		89.9		103.7		89.3
Net catastrophe loss ratio1					3.3		0.8		28.9		4.0

Actuarial Adjustments2
Reserve Decrease/(Increase)
Prior accident years											$	(145.5)
Current accident year											449.1
Calendar year actuarial adjustment	$	69.4	$	33.0	$	102.4	$	(193.6)	$	394.8	$	303.6

Prior Accident Years Development
Favorable/(Unfavorable)
Actuarial adjustment											$	(145.5)
All other development											505.0
Total development											$	359.5

Calendar year loss/LAE ratio											69.6
Accident year loss/LAE ratio											70.2

1 Represents catastrophe losses incurred during the period, including the impact of reinsurance, as a percent of net premiums earned.

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THE PROGRESSIVE CORPORATION AND SUBSIDIARIES

BALANCE SHEET AND OTHER INFORMATION

(millions - except per share amounts and common shares repurchased)

(unaudited)


	November 30, 2024
CONDENSED GAAP BALANCE SHEET:
Investments, at fair value:
Available-for-sale securities:
Fixed maturities1 (amortized cost: $76,895.9)	$	75,681.6
Short-term investments (amortized cost: $223.2)	223.2
Total available-for-sale securities	75,904.8
Equity securities:
Nonredeemable preferred stocks (cost: $756.4)	729.0
Common equities (cost: $733.8)	3,668.2
Total equity securities	4,397.2
Total investments2	80,302.0
Net premiums receivable	14,987.7
Reinsurance recoverables (including $4,592.4 on unpaid loss and LAE reserves)	4,881.6
Deferred acquisition costs	2,021.1
Other assets2	4,375.4
Total assets	$	106,567.8

Unearned premiums	$	24,642.9
Loss and loss adjustment expense reserves	38,667.4
Other liabilities	8,579.4
Debt	6,892.5
Total liabilities	78,782.2
Shareholders’ equity	27,785.6
Total liabilities and shareholders’ equity	$	106,567.8


Common shares outstanding	585.8
Common shares repurchased - actual	51
Average cost per common share	$	244.21
Book value per common share	$	47.43
Trailing 12-month return on average common shareholders’ equity
Net income	36.3		%
Comprehensive income	42.6		%
Net unrealized pretax gains (losses) on fixed-maturity securities	$	(1,213.1)
Increase (decrease) from October 2024	$	252.5
Increase (decrease) from December 2023	$	821.5
Debt-to-total capital ratio	19.9		%
Fixed-income portfolio duration	3.3
Weighted average credit quality	AA- .

1 As of November 30, 2024, we held certain hybrid securities and recognized a change in fair value of $1.2 million as a realized loss during the period we held these securities.

2 At November 30, 2024, we had $137.2 million of net unsettled security transactions classified in “other assets.”

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Monthly Commentary

•As previously disclosed, in December 2024, the Board of Directors declared an annual common share dividend of $4.50 per share and a quarterly common share dividend of $0.10 per share. The annual dividend amount for 2024 was determined by the Board based on our capital position, existing capital resources, and expected current and future capital needs. Both the annual and quarterly dividends are payable January 16, 2025, to shareholders of record on the close of business on January 9, 2025. There was no financial impact related to the declaration in November 2024.

Events

We plan to release December results on Wednesday, January 29, 2025, before the market opens.

About Progressive

Progressive Insurance® makes it easy to understand, buy and use car insurance, home insurance, and other protection needs. Progressive offers choices so consumers can reach us however it’s most convenient for them — online at progressive.com, by phone at 1-800-PROGRESSIVE, via the Progressive mobile app, 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 second largest personal auto insurer in the country, a leading seller of commercial auto, motorcycle, and boat 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.

Regulation FD Disclosure Outlets

The Company disseminates information to the public about the Company, its products, services and other matters through various outlets in order to achieve broad, non-exclusionary distribution of information to the public. These outlets include the Company’s website (progressive.com) and its investor relations website (investors.progressive.com). We encourage investors and others to review the information the Company makes public through these outlets, as such information distributed through these outlets may be considered to be material information.

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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,” “goal,” “target,” “anticipate,” “will,” “could,” “likely,” “may,” “should,” 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 not guarantees of future performance, 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 and the continued availability of reinsurance and performance by reinsurers;

•the secure and uninterrupted operation of the systems, facilities, and business functions and the operation of various third-party systems that are critical to our business;

•the impacts of a security breach or other attack involving our technology systems or the systems of one or more of our vendors;

•our ability to maintain a recognized and trusted brand and reputation;

•whether we innovate effectively and respond to our competitors’ initiatives;

•whether we effectively manage complexity as we develop and deliver products and customer experiences;

•our ability to attract, develop, and retain talent and maintain appropriate staffing levels;

•the impact of misconduct or fraudulent acts by employees, agents, and third parties to our business and/or exposure to regulatory assessments;

•the highly competitive nature of property-casualty insurance markets;

•whether we adjust claims accurately;

•compliance with complex and changing laws and regulations;

•litigation challenging our business practices, and those of our competitors and other companies;

•the success of our business strategy and efforts to acquire or develop new products or enter into new areas of business and our ability to navigate the related risks;

•how intellectual property rights affect our competitiveness and our business operations;

•the success of our development and use of new technology and our ability to navigate the related risks;

•the performance of our fixed-income and equity investment portfolios;

•the impact on our investment returns and strategies from regulations and societal pressures relating to environmental, social, governance and other public policy matters;

•our continued ability to access our cash accounts and/or convert investments 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;

•our ability to obtain capital when necessary to support our business and potential growth;

•evaluations and ratings 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;

•the impacts of epidemics, pandemics, or other widespread health risks; 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, 2023.

Any forward-looking statements are made only as of the date presented. Except as required by applicable law, we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or developments or otherwise.

In addition, investors should be aware that accounting principles generally accepted in the United States 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.

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The Progressive Corporation (PGR) 8-KProgressive Reports November Results