October | ||||||
(millions, except per share amounts and ratios; unaudited) | 2021 | 2020 | Change | |||
Net premiums written | $ | 4,346.6 | $ | 3,795.3 | 15 | % |
Net premiums earned | $ | 4,397.8 | $ | 3,893.8 | 13 | % |
Net income | $ | 373.8 | $ | 238.5 | 57 | % |
Per share available to common shareholders | $ | 0.63 | $ | 0.40 | 58 | % |
Total pretax net realized gains (losses) on securities | $ | 302.1 | $ | (40.3) | NM | |
Combined ratio | 97.2 | 92.6 | 4.6 pts. | |||
Average diluted equivalent common shares | 586.4 | 587.7 | 0 | % | ||
NM = Not Meaningful |
October | |||
(thousands; unaudited) | 2021 | 2020 | Change |
Policies in Force | |||
Personal Lines | |||
Agency - auto | 7,961.1 | 7,583.4 | 5 % |
Direct - auto | 9,628.3 | 8,840.1 | 9 % |
Total personal auto | 17,589.4 | 16,423.5 | 7 % |
Total special lines | 5,288.9 | 4,911.9 | 8 % |
Total Personal Lines | 22,878.3 | 21,335.4 | 7 % |
Total Commercial Lines | 964.3 | 815.4 | 18 % |
Total Property business | 2,750.2 | 2,443.1 | 13 % |
Companywide Total | 26,592.8 | 24,593.9 | 8 % |
Current Month |
Comments on Monthly Results1
| |
Net premiums written
| $ | 4,346.6 |
Revenues:
| ||
Net premiums earned
| $ | 4,397.8 |
Investment income
| 66.1 | |
Net realized gains (losses) on securities:
| ||
Net realized gains (losses) on security sales
| 0.4 | |
Net holding period gains (losses) on securities
| 302.2 | |
Net impairment losses recognized in earnings
| (0.5) | |
Total net realized gains (losses) on securities
| 302.1 | |
Fees and other revenues
| 66.4 | |
Service revenues
| 26.6 | |
Total revenues
| 4,859.0 | |
Expenses:
| ||
Losses and loss adjustment expenses
| 3,470.9 | |
Policy acquisition costs
| 362.6 | |
Other underwriting expenses
| 507.1 | |
Investment expenses
| 2.8 | |
Service expenses
| 23.7 | |
Interest expense
| 17.3 | |
Total expenses
| 4,384.4 | |
Income before income taxes
| 474.6 | |
Provision for income taxes
| 100.8 | |
Net income
| 373.8 | |
Other comprehensive income (loss)
| ||
Changes in:
| ||
Total net unrealized gains (losses) on fixed-maturity securities
| (198.5) | |
Net unrealized losses on forecasted transactions
| 0.1 | |
Foreign currency translation adjustment
| 0.4 | |
Other comprehensive income (loss)
| (198.0) | |
Total comprehensive income
| $ | 175.8 |
Year-to-Date | |||||
2021 | 2020 | % Change | |||
Net premiums written | $ | 40,002.5 | $ | 34,821.7 | 15 |
Revenues: | |||||
Net premiums earned | $ | 37,165.1 | $ | 32,946.6 | 13 |
Investment income | 705.9 | 788.7 | (10) | ||
Net realized gains (losses) on securities: | |||||
Net realized gains (losses) on security sales | 608.2 | 818.0 | (26) | ||
Net holding period gains (losses) on securities | 782.0 | 11.5 | NM | ||
Net impairment losses recognized in earnings | (4.2) | 0 | NM | ||
Total net realized gains (losses) on securities | 1,386.0 | 829.5 | 67 | ||
Fees and other revenues | 583.2 | 502.7 | 16 | ||
Service revenues | 228.7 | 189.9 | 20 | ||
Total revenues | 40,068.9 | 35,257.4 | 14 | ||
Expenses: | |||||
Losses and loss adjustment expenses | 28,238.5 | 21,007.9 | 34 | ||
Policy acquisition costs | 3,117.3 | 2,742.1 | 14 | ||
Other underwriting expenses | 4,813.1 | 4,703.7 | 2 | ||
Policyholder credit expense | 0 | 1,065.4 | (100) | ||
Investment expenses | 21.3 | 16.4 | 30 | ||
Service expenses | 213.7 | 172.2 | 24 | ||
Interest expense | 184.3 | 179.6 | 3 | ||
Total expenses | 36,588.2 | 29,887.3 | 22 | ||
Income before income taxes | 3,480.7 | 5,370.1 | (35) | ||
Provision for income taxes | 718.3 | 1,111.3 | (35) | ||
Net income | 2,762.4 | 4,258.8 | (35) | ||
Other comprehensive income (loss) | |||||
Changes in:
| |||||
Total net unrealized gains (losses) on fixed-maturity securities | (776.8) | 461.6 | (268) | ||
Net unrealized losses on forecasted transactions | 0.7 | 0.7 | 0 | ||
Foreign currency translation adjustment | (0.3) | 0 | NM | ||
Other comprehensive income (loss) | (776.4) | 462.3 | (268) | ||
Total comprehensive income | $ | 1,986.0 | $ | 4,721.1 | (58) |
NM = Not Meaningful |
The following table sets forth the computation of per share results: | ||||||
Current | Year-to-Date | |||||
Month | 2021 | 2020 | ||||
Net income
| $ | 373.8 | $ | 2,762.4 | $ | 4,258.8 |
Less: Preferred share dividends
| 2.3 | 22.4 | 22.4 | |||
Net income available to common shareholders
| $ | 371.5 | $ | 2,740.0 | $ | 4,236.4 |
Per common share:
| ||||||
Basic
| $ | 0.64 | $ | 4.69 | $ | 7.24 |
Diluted
| $ | 0.63 | $ | 4.67 | $ | 7.21 |
Comprehensive income
| $ | 175.8 | $ | 1,986.0 | $ | 4,721.1 |
Less: Preferred share dividends
| 2.3 | 22.4 | 22.4 | |||
Comprehensive income attributable to common shareholders
| $ | 173.5 | $ | 1,963.6 | $ | 4,698.7 |
Per common share:
| ||||||
Diluted
| $ | 0.30 | $ | 3.34 | $ | 8.00 |
Average common shares outstanding - Basic
| 584.0 | 584.7 | 584.9 | |||
Net effect of dilutive stock-based compensation
| 2.4 | 2.5 | 2.8 | |||
Total average equivalent common shares - Diluted
| 586.4 | 587.2 | 587.7 | |||
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
| (0.4)% | (0.1)% | 5.6% |
Common stocks
| 6.8% | 29.2% | 3.0% |
Total portfolio
| 0.2% | 2.3% | 5.3% |
Pretax annualized investment income book yield
| 1.6% | 1.9% | 2.4% |
Current Month | ||||||||||||
Commercial | ||||||||||||
Personal Lines Business | Lines | Property | Companywide | |||||||||
Agency | Direct | Total | Business | Business | Total | |||||||
Net Premiums Written | $ | 1,632.6 | $ | 1,743.6 | $ | 3,376.2 | $ | 788.6 | $ | 181.6 | $ | 4,346.6 |
% Growth in NPW | 8% | 13% | 10% | 38% | 9% | 15% | ||||||
Net Premiums Earned | $ | 1,648.8 | $ | 1,817.1 | $ | 3,465.9 | $ | 755.2 | $ | 176.2 | $ | 4,397.8 |
% Growth in NPE | 6% | 8% | 7% | 48% | 13% | 13% | ||||||
GAAP Ratios | ||||||||||||
Loss/LAE ratio | 79.6 | 82.6 | 81.2 | 74.9 | 51.2 | 78.9 | ||||||
Expense ratio | 18.1 | 17.3 | 17.7 | 18.6 |
28.41
| 18.3 | ||||||
Combined ratio | 97.7 | 99.9 | 98.9 | 93.5 |
79.61
| 97.2 | ||||||
Net catastrophe loss ratio2
| (0.1) | 0.2 | 2.0 | 0 | ||||||||
Actuarial Adjustments3
| ||||||||||||
Reserve Decrease/(Increase) | ||||||||||||
Prior accident years | $ | (9.7) | ||||||||||
Current accident year | 43.8 | |||||||||||
Calendar year actuarial adjustment | $ | 12.4 | $ | 15.3 | $ | 27.7 | $ | (1.2) | $ | 7.6 | $ | 34.1 |
Prior Accident Years Development | ||||||||||||
Favorable/(Unfavorable) | ||||||||||||
Actuarial adjustment | $ | (9.7) | ||||||||||
All other development | 66.5 | |||||||||||
Total development | $ | 56.8 | ||||||||||
Calendar year loss/LAE ratio | 78.9 | |||||||||||
Accident year loss/LAE ratio | 80.2 | |||||||||||
Year-to-Date | ||||||||||||
Commercial | ||||||||||||
Personal Lines Business | Lines | Property | Companywide | |||||||||
Agency | Direct | Total | Business | Business | Total | |||||||
Net Premiums Written | $ | 14,889.6 | $ | 16,315.3 | $ | 31,204.9 | $ | 6,943.1 | $ | 1,850.1 | $ | 40,002.5 |
% Growth in NPW | 7% | 10% | 9% | 54% | 15% | 15% | ||||||
Net Premiums Earned | $ | 14,235.2 | $ | 15,572.9 | $ | 29,808.1 | $ | 5,672.2 | $ | 1,677.5 | $ | 37,165.1 |
% Growth in NPE | 7% | 10% | 9% | 40% | 15% | 13% | ||||||
GAAP Ratios | ||||||||||||
Loss/LAE ratio | 75.6 | 76.9 | 76.4 | 69.6 | 91.2 | 76.0 | ||||||
Expense ratio | 18.5 | 20.0 | 19.2 | 19.7 |
29.11
| 19.8 | ||||||
Combined ratio | 94.1 | 96.9 | 95.6 | 89.3 |
120.31
| 95.8 | ||||||
Net catastrophe loss ratio2
| 2.3 | 0.4 | 33.7 | 3.4 | ||||||||
Actuarial Adjustments3
| ||||||||||||
Reserve Decrease/(Increase) | ||||||||||||
Prior accident years | $ | (99.4) | ||||||||||
Current accident year | 82.7 | |||||||||||
Calendar year actuarial adjustment | $ | 27.0 | $ | 28.5 | $ | 55.5 | $ | (29.0) | $ | (43.2) | $ | (16.7) |
Prior Accident Years Development | ||||||||||||
Favorable/(Unfavorable) | ||||||||||||
Actuarial adjustment | $ | (99.4) | ||||||||||
All other development | (0.6) | |||||||||||
Total development | $ | (100.0) | ||||||||||
Calendar year loss/LAE ratio | 76.0 | |||||||||||
Accident year loss/LAE ratio | 75.7 | |||||||||||
October 2021 | ||
CONDENSED GAAP BALANCE SHEET: | ||
Investments, at fair value: | ||
Available-for-sale securities: | ||
Fixed maturities1 (amortized cost: $45,345.2)
| $ | 45,580.5 |
Short-term investments (amortized cost: $739.6) | 739.6 | |
Total available-for-sale securities | 46,320.1 | |
Equity securities: | ||
Nonredeemable preferred stocks(cost: $1,567.3)
| 1,647.1 | |
Common equities (cost: $1,251.4) | 4,911.7 | |
Total equity securities | 6,558.8 | |
Total investments2
| 52,878.9 | |
Net premiums receivable | 10,102.4 | |
Reinsurance recoverables (including $4,825.8 on unpaid loss and LAE reserves) | 5,031.8 | |
Deferred acquisition costs | 1,424.1 | |
Goodwill and intangible assets | 579.7 | |
Other assets | 2,883.0 | |
Total assets | $ | 72,899.9 |
Unearned premiums | $ | 16,543.5 |
Loss and loss adjustment expense reserves | 26,051.6 | |
Other liabilities2
| 6,718.7 | |
Debt | 4,898.4 | |
Total liabilities | 54,212.2 | |
Shareholders' equity | 18,687.7 | |
Total liabilities and shareholders' equity | $ | 72,899.9 |
Common shares outstanding | 584.4 | |
Common shares repurchased - October | 0.61 | |
Average cost per common share | $ | 90.96 |
Book value per common share | $ | 31.13 |
Trailing 12-month return on average common shareholders' equity | ||
Net income | 23.5 | % |
Comprehensive income | 19.9 | % |
Net unrealized pretax gains (losses) on fixed-maturity securities | $ | 223.3 |
Increase (decrease) from September 2021 | $ | (251.2) |
Increase (decrease) from December 2020 | $ | (983.3) |
Debt-to-total capital ratio | 20.8 | % |
Fixed-income portfolio duration | 3.0 | |
Weighted average credit quality | AA- |
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Disclaimer
Progressive Corporation published this content on 17 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 November 2021 17:59:26 UTC.