Progressive Corp. Swings To Profit In Q3 - Update

Wed. October 14, 2009; Posted: 10:34 AM

Look up the PowerRating of PGR and see how it has performed over the past week as well as the current proprietary PowerRating.

(RTTNews) - Auto insurance group Progressive Corp. (PGR | Quote | Chart | News | PowerRating) reported Wednesday a profit for the third quarter, compared to a loss in the same period last year, following a modest 1% rise in net premiums written and net premiums earned.

The Mayfield Village, Ohio-based company posted third-quarter net income of $269.9 million or $0.40 per share, compared to a net loss of $684.2 million or $1.03 per share in the prior-year quarter.

According to the company, for 2009, amounts disclosed are diluted earnings per share, while in 2008, due to the net loss reported in the month, quarter, and year-to-date periods, the calculated diluted earnings per share was antidilutive and therefore, basic earnings per share is disclosed. On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $0.33 per share for the quarter. Analysts' estimates typically exclude special items.

Net premiums earned for the quarter increased 1% to $3.44 billion from $3.42 billion in the same quarter last year. Nine analysts had a consensus revenue estimate of $3.55 billion for the quarter. Net premiums written were $3.55 billion, up 1% from $3.51 billion in the comparable quarter a year ago.

For the month of September, Progressive posted net income of $100 million or $0.15 per share, compared to a net loss of $630.8 million or $0.95 per share in the same month last year. In August, the company had reported net income of $55 million or $0.08 per share, compared to a loss of $135.2 million or $0.20 per share in the year earlier period.

Net premiums earned for the month of September increased 1% to $1.06 billion from $1.05 billion in the prior-year period. Net premiums written were $1.04 billion, compared to $1.02 billion in the same month in 2008. Total revenues for the month were $1.11 billion, the company said. Total expenses for the month of September were $993.5 million. Year-to-date, the company posted net income of $752.5 million or $1.12 per share, compared to a net loss of $229.3 million or $0.34 per share in the previous year.

In its second quarter, Progressive had posted an increase in profit from the prior year, with 1% rise in net premiums written and premiums earned. Meanwhile, profit surged 190% for the month of June. Net income for the second quarter advanced 16% to $250.1 million or $0.37 per share from the previous year's income of $215.5 million or $0.32 per share. Second-quarter results included $15.9 million of pre-tax investment gains, compared with a prior year loss of $44.6 million. Net premiums written for the second quarter totaled $3.53 billion, up 1% from $3.51 billion in the same quarter of last year and net premiums earned edged up 1% to $3.44 billion from $3.41 billion generated in the comparable quarter a year ago. The company is scheduled to release October results on Tuesday, November 10, after the market closes. PGR is currently trading at $16.73, up $0.28 or 1.7%, on a volume of 952 thousand shares. In the past 52 weeks, the shares have been trading in the range of $9.76 - $17.50 on the NYSE.

For full details on Progressive Corp (PGR) click here. Progressive Corp (PGR) has Short Term PowerRatings of 6. Details on Progressive Corp (PGR) Short Term PowerRatings is available at This Link.

More News: Market Updates | Stock Alerts | All Trading News | Stock Index

Archives

Feedback

Email Article Link

Close X

RELATED SITES

Please call 1-213-955-5858 ext. 1

Tax Relief Bank Levy Wage Garnishment

Disclaimer:

The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.

It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302

All analyst commentary provided on TradingMarkets.com is provided for educational purposes only. The analysts and employees or affiliates of TradingMarkets.com may hold positions in the stocks or industries discussed here. This information is NOT a recommendation or solicitation to buy or sell any securities. Your use of this and all information contained on TradingMarkets.com is governed by the Terms and Conditions of Use. Please click the link to view those terms. Follow this link to read our Editorial Policy.