arumyid's picture
From arumyid rss RSS  subscribe Subscribe

progressive mreport-10/05 

 

 
 
Tags:  insurance auto florida  earnings  statement  management  500  finance  progressive  earning  balance  sheet  income  quarterly  financial  business  l  results 
Views:  242
Published:  December 02, 2010
 
0
download

Share plick with friends Share
save to favorite
Report Abuse Report Abuse
 
Related Plicks
Auto Insurance

Auto Insurance

From: dehu
Views: 1410 Comments: 0
Auto Insurance
 
Auto Car Insurance Quote

Auto Car Insurance Quote

From: JennyJ
Views: 1895 Comments: 0
Car Insurance Quote, Auto car Insurance, Auto Car Insurance Quote
 
See all 
 
More from this user
Research Brief: Massage Therapy and Sickle Cell

Research Brief: Massage Therapy and Sickle Cell

From: arumyid
Views: 2008
Comments: 1

Auto and home insurance quotes

Auto and home insurance quotes

From: arumyid
Views: 281
Comments: 0

Marketing & Communications:  Right On and Relevant - nSight Marketing

Marketing & Communications: Right On and Relevant - nSight Marketing

From: arumyid
Views: 325
Comments: 0

RESUME WORLD INC.

RESUME WORLD INC.

From: arumyid
Views: 211
Comments: 0

Progressive 2006_noart

Progressive 2006_noart

From: arumyid
Views: 454
Comments: 0

 
See all 
 
 
 URL:          AddThis Social Bookmark Button
Embed Thin Player: (fits in most blogs)
Embed Full Player :
 
 

Name

Email (will NOT be shown to other users)

 

 
 
Comments: (watch)
 
 
Notes:
 
Slide 1: NEWS RELEASE The Progressive Corporation 6300 Wilson Mills Road Mayfield Village, Ohio 44143 http://www.progressive.com Company Contact: Thomas A. King (440) 395-2260 FOR IMMEDIATE RELEASE MAYFIELD VILLAGE, OHIO -- November 17, 2005 -- The Progressive Corporation today reported the following results for October 2005: (millions, except per share amounts and ratios) October 2005 $1,328.1 1,340.0 75.4 .38 94.2 October 2004 $1,279.8 1,275.2 140.2 .66 87.0 Change 4% 5% (46)% (42)% (7.2) pts. Net premiums written Net premiums earned Net income Per share Combined ratio See the “Income Statements” for further month and year-to-date information and the monthly commentary at the end of this release for additional discussion. The Company offers insurance to personal and commercial auto drivers throughout the United States. The Company’s Personal Lines business units write insurance for private passenger automobiles and recreation vehicles. The Company’s Commercial Auto business unit writes primary liability, physical damage and other auto-related insurance for automobiles and trucks owned by small businesses. See “Supplemental Information” for month and year-to-date results. -1-
Slide 2: THE PROGRESSIVE CORPORATION AND SUBSIDIARIES INCOME STATEMENT October 2005 (millions – except per share amounts) (unaudited) Current Month Comments on Monthly Results1 Direct premiums written Net premiums written Revenues: Net premiums earned Investment income Net realized gains (losses) on securities Service revenues Total revenues Expenses: Losses and loss adjustment expenses Policy acquisition costs Other underwriting expenses Investment expenses Service expenses Interest expense Total expenses Income before income taxes Provision for income taxes Net income COMPUTATION OF EARNINGS PER SHARE Basic: Average shares outstanding Per share Diluted: Average shares outstanding Net effect of dilutive stock-based compensation Total equivalent shares Per share $1,350.7 $1,328.1 $1,340.0 45.4 (6.6) 3.5 1,382.3 978.0 138.9 145.3 1.4 2.3 6.8 1,272.7 109.6 34.2 $75.4 Includes $84.4 million, or 6.3 combined ratio points, of catastrophic losses related to Hurricanes Wilma and Katrina. 195.7 $.39 195.7 2.9 198.6 $.38 1 See the Monthly Commentary at the end of this release for additional discussion. For a description of the Company’s reporting and accounting policies, see Note 1 to the Company’s 2004 audited consolidated financial statements included in the Company’s 2004 Shareholders’ Report, which can be found at progressive.com/annualreport. ________________________________________________________________________________ The following table sets forth the investment results for the month: Fully taxable equivalent total return: Fixed-income securities Common stocks Total portfolio Pretax recurring investment book yield (.3)% (1.7)% (.5)% 4.0% -2-
Slide 3: THE PROGRESSIVE CORPORATION AND SUBSIDIARIES INCOME STATEMENTS October 2005 Year-to-Date (millions – except per share amounts) (unaudited) Year-to-Date 2005 $12,334.0 $12,083.9 2004 $11,571.9 $11,305.6 % Change 7 7 Direct premiums written Net premiums written Revenues: Net premiums earned Investment income Net realized gains (losses) on securities Service revenues Total revenues Expenses: Losses and loss adjustment expenses Policy acquisition costs Other underwriting expenses Investment expenses Service expenses Interest expense Total expenses Income before income taxes Provision for income taxes Net income $11,622.7 433.6 (4.3) 34.7 12,086.7 7,879.0 1,225.9 1,123.1 10.2 20.7 69.0 10,327.9 1,758.8 571.1 $1,187.7 $10,880.4 402.1 94.2 40.5 11,417.2 7,078.9 1,173.1 1,021.8 12.0 20.3 67.0 9,373.1 2,044.1 668.7 $1,375.4 7 8 NM (14) 6 11 5 10 (15) 2 3 10 (14) (15) (14) COMPUTATION OF EARNINGS PER SHARE Basic: Average shares outstanding Per share Diluted: Average shares outstanding Net effect of dilutive stock-based compensation Total equivalent shares Per share 197.1 $6.03 197.1 2.9 200.0 $5.94 215.6 $6.38 215.6 3.4 219.0 $6.28 (9) (6) (9) (15) (9) (5) The following table sets forth the investment results for the year-to-date period: 2005 Fully taxable equivalent total return: Fixed-income securities Common stocks Total portfolio Pretax recurring investment book yield 2.3% 2.9% 2.4% 4.0% 2004 4.0% 3.0% 3.9% 3.8% -3-
Slide 4: THE PROGRESSIVE CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION October 2005 ($ in millions) (unaudited) Current Month Personal Lines Agency Direct Total Net Premiums Written % Growth in NPW Net Premiums Earned % Growth in NPE GAAP Ratios Loss/LAE ratio2 Expense ratio Combined ratio Actuarial Adjustments3 Reserve Decrease/(Increase) Prior accident years Current accident year Calendar year actuarial adjustment Prior Accident Years Development Favorable/(Unfavorable) Actuarial adjustment All other development Total development Calendar year loss/LAE ratio Accident year loss/LAE ratio Statutory Ratios Loss/LAE ratio Expense ratio Combined ratio $746.2 --% $768.7 1% $392.7 9% $401.8 11% $1,138.9 3% $1,170.5 4% Commercial Auto Business $186.7 11% $166.9 11% Other Businesses1 $2.5 NM $2.6 NM Companywide Total $1,328.1 4% $1,340.0 5% 73.5 21.2 94.7 72.5 21.0 93.5 73.2 21.1 94.3 71.5 20.9 92.4 NM NM NM 73.0 21.2 94.2 $11.5 $6.4 $17.9 $2.2 $.1 $13.1 7.1 $20.2 $13.1 4.8 $17.9 73.0 74.3 73.0 20.3 93.3 NM = Not Meaningful Amounts primarily include professional liability insurance for community banks and the Company’s run-off businesses. The other businesses generated an underwriting loss of $1.3 million for the month. 2 Hurricane Wilma contributed 5.7 points to the loss/LAE ratio for Personal Lines (5.9 points for Agency and 5.4 points for Direct) and 3.3 points to Commercial Auto results. 3 Represents adjustments solely based on the Company’s corporate actuarial review. 1 -4-
Slide 5: THE PROGRESSIVE CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION October 2005 Year-to-Date ($ in millions) (unaudited) Year-to-Date Personal Lines Agency Direct Total Net Premiums Written % Growth in NPW Net Premiums Earned % Growth in NPE GAAP Ratios Loss/LAE ratio Expense ratio Combined ratio Actuarial Adjustments2 Reserve Decrease/(Increase) Prior accident years Current accident year Calendar year actuarial adjustment Prior Accident Years Development Favorable/(Unfavorable) Actuarial adjustment All other development Total development Calendar year loss/LAE ratio Accident year loss/LAE ratio Statutory Ratios Loss/LAE ratio Expense ratio Combined ratio Statutory surplus3 October 2005 4,511 2,313 2,684 9,508 467 October 2004 4,265 2,071 2,356 8,692 418 $6,918.7 3% $6,770.4 4% $3,591.1 12% $3,430.2 12% $10,509.8 6% $10,200.6 6% Commercial Auto Business $1,554.3 14% $1,399.2 12% Other Businesses1 $19.8 NM $22.9 NM Companywide Total $12,083.9 7% $11,622.7 7% 68.6 20.4 89.0 68.0 20.0 88.0 68.4 20.3 88.7 63.3 20.0 83.3 NM NM NM 67.8 20.2 88.0 $103.5 $45.0 $148.5 $24.8 $(2.4) $111.7 59.2 $170.9 $111.7 202.6 $314.3 67.8 70.5 67.8 19.3 87.1 $5,022.2 Policies in Force (in thousands) Agency – Auto Direct – Auto Other Personal Lines4 Total Personal Lines Commercial Auto Business NM = Not Meaningful 1 2 Change 6% 12% 14% 9% 12% The other businesses generated an underwriting profit of $6.2 million. Represents adjustments solely based on the Company’s corporate actuarial review. 3 During October, the insurance subsidiaries paid cash dividends of $537.2 million to the parent company. 4 Includes insurance for motorcycles, recreation vehicles, mobile homes, watercraft, snowmobiles and similar items. -5-
Slide 6: THE PROGRESSIVE CORPORATION AND SUBSIDIARIES BALANCE SHEET AND OTHER INFORMATION (millions– except per share amounts) (unaudited) October 2005 CONDENSED GAAP BALANCE SHEET:1 Investments - Available-for-sale, at market: Fixed maturities (amortized cost: $10,580.4) Equity securities: Preferred stocks (cost: $1,248.2) Common equities (cost: $1,413.3) Short-term investments (amortized cost: $2,149.1) Total investments2 Net premiums receivable Deferred acquisition costs Other assets Total assets Unearned premiums Loss and loss adjustment expense reserves Other liabilities2 Debt Shareholders’ equity Total liabilities and shareholders’ equity $10,482.5 1,248.7 1,979.4 2,149.4 15,860.0 2,605.0 474.3 1,567.0 $20,506.3 $4,559.2 5,716.7 3,126.5 1,284.8 5,819.1 $20,506.3 Common Shares outstanding Shares repurchased – October Average cost per share Book value per share Trailing 12-month return on average shareholders’ equity Net unrealized pre-tax gains on investments Increase (decrease) from September 2005 Increase (decrease) from December 2004 Debt to total capital ratio Fixed-income portfolio duration Weighted average credit quality 197.3 -$-$29.49 27.0% $469.0 $(117.3) $(200.4) 18.1% 2.9 Years AA+ 1 Pursuant to SFAS 113, “Accounting and Reporting for Reinsurance of Short-Duration and LongDuration Contracts,” loss and loss adjustment expense reserves are stated gross of reinsurance recoverables on unpaid losses of $344.5 million. 2 Amounts include net unsettled security acquisitions, including repurchase commitments, of $1,614.7 million. -6-
Slide 7: Monthly Commentary • The Company’s exposure for Hurricane Wilma, which hit Florida during the month, is estimated at $72.4 million, including both reported and incurred but not reported claims. Through November 15, 2005, nearly 19,400 claims were incurred by the Company relating to Hurricane Wilma; 66% of these incurred claims have been settled. • In October, the Company’s estimate increased an additional $12.0 million related to Hurricane Katrina, bringing total estimated losses to $185.6 million. Through mid-November, the Company incurred about 24,500 claims and settled 94% of all claims. The Progressive Group of Insurance Companies, in business since 1937, ranks third in the nation for auto insurance based on premiums written and provides drivers with competitive rates and 24/7, in-person and online service. The companies that offer insurance directly (by phone at 1-800-PROGRESSIVE and online at progressivedirect.com) market their products and services under the Progressive DirectSM brand, while the companies that offer insurance through more than 30,000 independent insurance agencies market their products and services under the Drive® Insurance from Progressive brand. The Common Shares of The Progressive Corporation, the Mayfield Village, Ohio-based holding company, are publicly traded at NYSE:PGR. More information can be found at progressive.com, including a guide to interpreting the monthly reporting package. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in this release that are not historical fact are forward-looking statements that are subject to certain risks and uncertainties that could cause actual events and results to differ materially from those discussed herein. These risks and uncertainties include, without limitation, uncertainties related to estimates, assumptions and projections generally; inflation and changes in economic conditions (including changes in interest rates and financial markets); the accuracy and adequacy of the Company’s pricing and loss reserving methodologies; pricing competition and other initiatives by competitors; the Company’s ability to obtain regulatory approval for requested rate changes and the timing thereof; the effectiveness of the Company’s advertising campaigns; legislative and regulatory developments; disputes relating to intellectual property rights; the outcome of litigation pending or that may be filed against the Company; weather conditions (including the severity and frequency of storms, hurricanes, snowfalls, hail and winter conditions); changes in driving patterns and loss trends; acts of war and terrorist activities; the Company’s ability to maintain the uninterrupted operation of its facilities, systems (including information technology systems) and business functions; court decisions and trends in litigation and health care and auto repair costs; and other matters described from time to time by the Company in releases and publications, and in periodic reports and other documents filed with the United States Securities and Exchange Commission. In addition, investors should be aware that generally accepted accounting principles prescribe when a company may reserve for particular risks, including litigation exposures. Accordingly, results for a given reporting period could be significantly affected if and when a reserve is established for one or more contingencies. Reported results, therefore, may appear to be volatile in certain accounting periods. -7-

   
Time on Slide Time on Plick
Slides per Visit Slide Views Views by Location