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Jun 30, 2024

Progressive Q2 2024 Earnings Report

Progressive reported strong second-quarter results, marked by significant growth in net income and premiums earned.

Key Takeaways

Progressive reported a substantial increase in net income and net premiums earned for the second quarter of 2024. Net income increased by 322% compared to the same period last year, driven by strong underwriting performance. Net premiums earned also saw a significant rise of 19%.

Net income increased significantly by 322% year-over-year, reaching $1,458.7 million.

Net premiums earned grew by 19% year-over-year, totaling $17,209.5 million.

The combined ratio improved to 91.9 from 100.4 in the prior year, reflecting better underwriting results.

Earnings per share (EPS) available to common shareholders increased by 334% to $2.48.

Total Revenue
$17.2B
Previous year: $14.5B
+19.0%
EPS
$2.65
Previous year: $0.4
+562.5%
Underwriting Margin
86.2%
Previous year: 100.4%
-14.1%
Gross Profit
$17.8B
Previous year: $15.3B
+15.7%
Cash and Equivalents
$102M
Previous year: $180M
-43.3%
Free Cash Flow
$3.2B
Previous year: $2.25B
+42.3%
Total Assets
$93B
Previous year: $82.9B
+12.1%

Progressive

Progressive

Progressive Revenue by Segment

Forward Guidance

The second quarter Investor Relations conference call is scheduled for August 6, 2024, featuring a presentation on acquiring policies in the Direct channel, followed by a Q&A session with the CEO and CFO. July results are planned for release on August 14, 2024.

Positive Outlook

  • Focus on direct channel policy acquisition strategies.
  • Executive Q&A session for investors.
  • Planned release of July results on August 14, 2024.
  • Filing of Quarterly Report on Form 10-Q with the SEC on August 5, 2024.
  • Open communication channels via investor relations website.

Challenges Ahead

  • Events and dates are subject to change.
  • Potential challenges in estimating losses for storms occurring near the end of reporting periods.
  • Impact of reinsurance recoverable adjustments on reported results.
  • Uncertainties related to catastrophe aggregate excess of loss contracts.
  • Volatility in reported results due to reserve reviews and adjustments.

Revenue & Expenses

Visualization of income flow from segment revenue to net income