Progressive Corp


SKU: PGR Category:


The Progressive Corporation delivered a disappointing set of results as the company was unable to meet the revenue and earnings expectations of Wall Street. The company’s performance throughout the first half of 2023 was far behind the 96 combined ratio goal. Losses from catastrophes made up a sizable portion of their profitability pressures. At the corporate level, these incidents have increased their combined ratio by 4.5 points, 1.7 points more than the impact catastrophe events had on their combined ratio in the first half of 2022. The lifetime loss and LAE ratio is 78%, with an anticipated policy life of six policy terms. Combining new and renewal performance and bringing all their spending categories together, the lifetime CR stands at 96%, meeting their goal. However, there are segmentation opportunities within the new-to-renewal loss ratio performance as not all policy characteristics at new businesses have the same predicted lifetime loss ratio performance. We give the company a ‘Hold’ rating with a revised target price.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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