June | Quarter | |||||||||||
(millions, except per share amounts and ratios; unaudited) | 2022 | 2021 | Change | 2022 | 2021 | Change | ||||||
Net premiums written | $ | 3,877.1 | $ | 3,627.3 | 7 | % | $ | 12,422.1 | $ | 11,480.3 | 8 | % |
Net premiums earned | $ | 3,770.2 | $ | 3,459.9 | 9 | % | $ | 12,147.9 | $ | 10,982.3 | 11 | % |
Net income (loss) | $ | (436.7) | $ | 132.8 | (429) | % | $ | (542.9) | $ | 790.1 | (169) | % |
Per share available to common shareholders1
| $ | (0.75) | $ | 0.22 | (438) | % | $ | (0.94) | $ | 1.34 | (170) | % |
Total pretax net realized gains (losses) on securities | $ | (564.2) | $ | 124.2 | (554) | % | $ | (1,177.7) | $ | 461.8 | (355) | % |
Combined ratio | 94.7 | 100.5 | (5.8) pts. | 95.6 | 96.5 | (0.9) pts. | ||||||
Average equivalent common shares1
| 584.3 | 586.8 | 0 | % | 584.3 | 586.8 | 0 | % |
June | |||
(thousands; unaudited) | 2022 | 2021 | Change |
Policies in Force | |||
Personal Lines | |||
Agency - auto | 7,619.5 | 8,014.2 | (5) % |
Direct - auto | 9,557.0 | 9,581.3 | 0 % |
Total personal auto | 17,176.5 | 17,595.5 | (2) % |
Total special lines | 5,485.0 | 5,211.7 | 5 % |
Total Personal Lines | 22,661.5 | 22,807.2 | (1) % |
Total Commercial Lines | 1,024.6 | 916.6 | 12 % |
Total Property business | 2,823.0 | 2,655.5 | 6 % |
Companywide Total | 26,509.1 | 26,379.3 | 0 % |
Current Month |
Comments on Monthly Results1
| |
Net premiums written
| $ | 3,877.1 |
Revenues:
| ||
Net premiums earned
| $ | 3,770.2 |
Investment income
| 111.6 | |
Net realized gains (losses) on securities:
| ||
Net realized gains (losses) on security sales
| 196.7 | |
Net holding period gains (losses) on securities
| (760.2) | |
Net impairment losses recognized in earnings
| (0.7) | |
Total net realized gains (losses) on securities
| (564.2) | |
Fees and other revenues
| 55.9 | |
Service revenues
| 25.4 | |
Total revenues
| 3,398.9 | |
Expenses:
| ||
Losses and loss adjustment expenses
| 2,894.9 | |
Policy acquisition costs
| 263.8 | |
Other underwriting expenses
| 466.8 | |
Investment expenses
| 1.7 | |
Service expenses
| 26.0 | |
Interest expense
| 21.0 | |
Goodwill impairment | 224.8 | Reflects partial write down of goodwill associated with the ARX Holding Corp. acquisition. |
Total expenses
| 3,899.0 | |
Income (loss) before income taxes
| (500.1) | |
Provision (benefit) for income taxes
| (63.4) | |
Net income (loss)
| (436.7) | |
Other comprehensive income (loss)
| ||
Changes in:
| ||
Total net unrealized gains (losses) on fixed-maturity securities
| (309.7) | |
Net unrealized losses on forecasted transactions
| 0 | |
Foreign currency translation adjustment
| (0.2) | |
Other comprehensive income (loss)
| (309.9) | |
Total comprehensive income (loss)
| $ | (746.6) |
Year-to-Date | |||||
2022 | 2021 | % Change | |||
Net premiums written | $ | 25,603.1 | $ | 23,209.4 | 10 |
Revenues: | |||||
Net premiums earned | $ | 23,950.8 | $ | 21,402.5 | 12 |
Investment income | 534.6 | 430.9 | 24 | ||
Net realized gains (losses) on securities: | |||||
Net realized gains (losses) on security sales | 492.1 | 553.9 | (11) | ||
Net holding period gains (losses) on securities | (2,110.8) | 495.7 | NM | ||
Net impairment losses recognized in earnings | (4.3) | (2.5) | 72 | ||
Total net realized gains (losses) on securities | (1,623.0) | 1,047.1 | (255) | ||
Fees and other revenues | 350.5 | 341.9 | 3 | ||
Service revenues | 147.8 | 128.3 | 15 | ||
Total revenues | 23,360.7 | 23,350.7 | 0 | ||
Expenses: | |||||
Losses and loss adjustment expenses | 18,279.5 | 15,516.9 | 18 | ||
Policy acquisition costs | 1,897.0 | 1,803.2 | 5 | ||
Other underwriting expenses | 2,937.5 | 2,921.6 | 1 | ||
Investment expenses | 11.6 | 11.9 | (3) | ||
Service expenses | 138.7 | 117.2 | 18 | ||
Interest expense | 117.3 | 112.8 | 4 | ||
Goodwill impairment | 224.8 | 0 | NM | ||
Total expenses | 23,606.4 | 20,483.6 | 15 | ||
Income (loss) before income taxes | (245.7) | 2,867.1 | (109) | ||
Provision (benefit) for income taxes | (16.7) | 597.0 | (103) | ||
Net income (loss) | (229.0) | 2,270.1 | (110) | ||
Other comprehensive income (loss) | |||||
Changes in:
| |||||
Total net unrealized gains (losses) on fixed-maturity securities | (2,249.7) | (448.5) | 402 | ||
Net unrealized losses on forecasted transactions | 0.2 | 0.5 | (60) | ||
Foreign currency translation adjustment | (0.2) | (0.5) | (60) | ||
Other comprehensive income (loss) | (2,249.7) | (448.5) | 402 | ||
Total comprehensive income (loss) | $ | (2,478.7) | $ | 1,821.6 | (236) |
NM = Not Meaningful |
The following table sets forth the computation of per share results: | ||||||
Current | Year-to-Date | |||||
Month | 2022 | 2021 | ||||
Net income (loss)
| $ | (436.7) | $ | (229.0) | $ | 2,270.1 |
Less: Preferred share dividends
| 2.2 | 13.4 | 13.4 | |||
Net income (loss) available to common shareholders
| $ | (438.9) | $ | (242.4) | $ | 2,256.7 |
Per common share:
| ||||||
Basic
| $ | (0.75) | $ | (0.41) | $ | 3.86 |
Diluted1
| $ | (0.75) | $ | (0.41) | $ | 3.85 |
Comprehensive income (loss)
| $ | (746.6) | $ | (2,478.7) | $ | 1,821.6 |
Less: Preferred share dividends
| 2.2 | 13.4 | 13.4 | |||
Comprehensive income (loss) attributable to common shareholders
| $ | (748.8) | $ | (2,492.1) | $ | 1,808.2 |
Per common share:
| ||||||
Diluted1
| $ | (1.28) | $ | (4.27) | $ | 3.08 |
Average common shares outstanding - Basic
| 584.3 | 584.3 | 584.7 | |||
Net effect of dilutive stock-based compensation
| 2.2 | 2.1 | 2.1 | |||
Total average equivalent common shares - Diluted
| 586.5 | 586.4 | 586.8 | |||
The following table sets forth the investment results for the period:
| |||
Current
|
Year-to-Date
| ||
Month
| 2022 | 2021 | |
Fully taxable equivalent (FTE) total return:
| |||
Fixed-income securities
| (1.1)% | (5.9)% | 0.2% |
Common stocks
| (8.3)% | (20.4)% | 20.7% |
Total portfolio
| (1.6)% | (7.2)% | 1.9% |
Pretax annualized investment income book yield
| 2.5% | 2.1% | 2.0% |
Current Month | ||||||||||||
Commercial | ||||||||||||
Personal Lines Business | Lines | Property | Companywide | |||||||||
Agency | Direct | Total | Business | Business | Total | |||||||
Net Premiums Written | $ | 1,380.5 | $ | 1,544.4 | $ | 2,924.9 | $ | 736.0 | $ | 216.1 | $ | 3,877.1 |
% Growth in NPW | 5% | 10% | 8% | 6% | 2% | 7% | ||||||
Net Premiums Earned | $ | 1,348.4 | $ | 1,522.3 | $ | 2,870.7 | $ | 719.5 | $ | 179.7 | $ | 3,770.2 |
% Growth in NPE | 3% | 6% | 5% | 32% | 6% | 9% | ||||||
GAAP Ratios | ||||||||||||
Loss/LAE ratio | 77.7 | 78.1 | 78.0 | 69.0 | 85.1 | 76.6 | ||||||
Expense ratio | 16.0 | 18.6 | 17.3 | 18.8 | 26.9 | 18.1 | ||||||
Combined ratio | 93.7 | 96.7 | 95.3 | 87.8 | 112.0 | 94.7 | ||||||
Net catastrophe loss ratio1
| 2.0 | 0.5 | 24.5 | 2.8 | ||||||||
Actuarial Adjustments2
| ||||||||||||
Reserve Decrease/(Increase) | ||||||||||||
Prior accident years | $ | (10.1) | ||||||||||
Current accident year | (16.3) | |||||||||||
Calendar year actuarial adjustment | $ | (16.6) | $ | (7.4) | $ | (24.0) | $ | (0.2) | $ | (2.2) | $ | (26.4) |
Prior Accident Years Development | ||||||||||||
Favorable/(Unfavorable) | ||||||||||||
Actuarial adjustment | $ | (10.1) | ||||||||||
All other development | 45.3 | |||||||||||
Total development | $ | 35.2 | ||||||||||
Calendar year loss/LAE ratio | 76.6 | |||||||||||
Accident year loss/LAE ratio | 77.5 | |||||||||||
Year-to-Date | ||||||||||||
Commercial | ||||||||||||
Personal Lines Business | Lines | Property | Companywide | |||||||||
Agency | Direct | Total | Business | Business | Total | |||||||
Net Premiums Written | $ | 9,010.0 | $ | 10,181.4 | $ | 19,191.4 | $ | 5,234.5 | $ | 1,175.7 | $ | 25,603.1 |
% Growth in NPW | 3% | 6% | 5% | 38% | 10% | 10% | ||||||
Net Premiums Earned | $ | 8,689.8 | $ | 9,699.5 | $ | 18,389.3 | $ | 4,431.6 | $ | 1,128.6 | $ | 23,950.8 |
% Growth in NPE | 4% | 7% | 6% | 46% | 16% | 12% | ||||||
GAAP Ratios | ||||||||||||
Loss/LAE ratio | 76.3 | 77.5 | 76.9 | 70.6 | 86.4 | 76.2 | ||||||
Expense ratio | 17.4 | 18.9 | 18.2 | 19.3 | 26.8 | 18.8 | ||||||
Combined ratio | 93.7 | 96.4 | 95.1 | 89.9 | 113.2 | 95.0 | ||||||
Net catastrophe loss ratio1
| 1.8 | 0.3 | 29.5 | 2.8 | ||||||||
Actuarial Adjustments2
| ||||||||||||
Reserve Decrease/(Increase) | ||||||||||||
Prior accident years | $ | (50.4) | ||||||||||
Current accident year | (53.2) | |||||||||||
Calendar year actuarial adjustment | $ | (16.5) | $ | 6.6 | $ | (9.9) | $ | (60.8) | $ | (32.9) | $ | (103.6) |
Prior Accident Years Development | ||||||||||||
Favorable/(Unfavorable) | ||||||||||||
Actuarial adjustment | $ | (50.4) | ||||||||||
All other development | (94.5) | |||||||||||
Total development | $ | (144.9) | ||||||||||
Calendar year loss/LAE ratio | 76.2 | |||||||||||
Accident year loss/LAE ratio | 75.6 | |||||||||||
June 2022 | ||
CONDENSED GAAP BALANCE SHEET: | ||
Investments, at fair value: | ||
Available-for-sale securities: | ||
Fixed maturities1 (amortized cost: $46,028.8)
| $ | 43,172.5 |
Short-term investments (amortized cost: $4,611.8) | 4,611.8 | |
Total available-for-sale securities | 47,784.3 | |
Equity securities: | ||
Nonredeemable preferred stocks(cost: $1,522.5)
| 1,360.5 | |
Common equities (cost: $783.6) | 2,784.7 | |
Total equity securities | 4,145.2 | |
Total investments2,3
| 51,929.5 | |
Net premiums receivable | 10,561.8 | |
Reinsurance recoverables (including $4,684.6 on unpaid loss and LAE reserves) | 4,961.2 | |
Deferred acquisition costs | 1,498.4 | |
Goodwill and intangible assets4
| 325.1 | |
Other assets | 3,781.2 | |
Total assets | $ | 73,057.2 |
Unearned premiums | $ | 17,274.8 |
Loss and loss adjustment expense reserves | 27,812.0 | |
Other liabilities2
| 5,931.2 | |
Debt | 6,386.5 | |
Total liabilities | 57,404.5 | |
Shareholders' equity
| 15,652.7 | |
Total liabilities and shareholders' equity
| $ | 73,057.2 |
Common shares outstanding | 584.9 | |
Common shares repurchased - June | 0 | |
Average cost per common share | $ | 0 |
Book value per common share | $ | 25.92 |
Trailing 12-month return on average common shareholders' equity
| ||
Net income | 4.7 | % |
Comprehensive income | (10.7) | % |
Net unrealized pretax gains (losses) on fixed-maturity securities | $ | (2,776.4) |
Increase (decrease) from May 2022 | $ | (392.0) |
Increase (decrease) from December 2021 | $ | (2,847.8) |
Debt-to-total capital ratio | 29.0 | % |
Fixed-income portfolio duration | 2.8 | |
Weighted average credit quality | AA- |
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Disclaimer
Progressive Corporation published this content on 15 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 July 2022 12:43:09 UTC.