Progressive's August Profit Drops 22% Despite Premium Growth
PGR is trading near its 52-week low of $189.2 (13% above the low).
Summary
Progressive's August net income fell 22% year-over-year to $951 million, or $1.63 per share, from $1.22 billion, or $2.07 per share. Net premiums written rose 6% to $7.61 billion and net premiums earned rose 5% to $7.35 billion, but the profit decline signals margin pressure. This follows July's 12% drop in net income and a 31% June decline, extending a trend of weakening monthly profitability. The company's Q2 underwriting margin was 12.7%, and investors will watch whether the combined ratio deteriorates further in upcoming months.
At the time of this announcement, PGR was trading at $214.01 on NYSE in the Finance sector, with a market capitalization of approximately $125.7B. The 52-week trading range was $189.20 to $248.17. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.