PGR Earnings Prediction
The chart below shows how PGR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PGR sees a -0.38% change in stock price 10 days leading up to the earnings, and a +1.63% change 10 days following the report. On the earnings day itself, the stock moves by -0.33%. This data can give you a slight idea of what to expect for the next quarter's release.
PGR Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
20.27B
20.04%
2.82%
Gross Margin
--
--
--
Operating Margin
14.99%
-1.64%
-1.96%
Net Margin
11.63%
-1.19%
-1.77%
EPS
4.01
18.99%
1.01%
No Data Available
PGR Earnings Analysis
Progressive Corp Corporation (PGR.N) Earnings Conference Call
Positive
Premium Growth Surge: Net premiums written grew approximately 21% year over year, finishing the year at $74.4 billion, with a nearly $13 billion increase in premium, equivalent to adding the eighth largest auto insurer's premium in 2023.
Policy Growth Surge: Active policies increased by more than 5 million in 2024, more than doubling the previous highest annual rate of policy growth in the company's history.
Strong Profitability Achievement: Achieved a combined ratio of 88.8 in 2024, significantly below the stated goal of 96, indicating strong profitability alongside growth.
Employee Engagement and Satisfaction: Employee engagement and satisfaction reached record levels, with Progressive ranking in the 98th percentile for engagement and 99th percentile for overall satisfaction according to Gallup.
Claims Organization Success: The claims organization achieved the highest engagement and lowest loss adjustment expense ratio in its history, alongside improved accuracy and customer satisfaction.
Claims Process Efficiency Gains: Investments in technology and data analytics have led to significant efficiency gains in the claims process, including a 2.5x increase in productivity for photo estimating.
Claims Accuracy Enhancement: The company has successfully leveraged machine vision and advanced data science techniques to enhance claims accuracy and efficiency, resulting in better customer experiences and lower costs.
Negative
Moderating Pricing Increases: Pricing increases have moderated, with low single digits expected, raising concerns about future combined ratios.
Retention Rate Decline: Retention rates have dipped due to previous rate increases, which may impact overall growth and profitability.
Decreasing Policy Life Expectancy: The policy life expectancy has continued to decrease, indicating potential challenges in retaining customers.
Tariff Impact on Margins: Concerns about the impact of tariffs on loss costs, which could affect margins in the second half of the year.
Cost Efficiency Concerns: The cost per claim and efficiency improvements are not clearly quantified, raising questions about the effectiveness of current strategies.
PGR FAQs
How does PGR typically perform around its earnings report dates?
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PGR Earning Call Sentiment
Earnings call transcript: Progressive’s Q4 2024 performance shines
PGR.N
-0.24%Positive
The earnings call highlights strong financial performance with a record low combined ratio, significant policy growth, and increased premiums. Management's optimistic guidance for 2025, despite competitive and economic challenges, contributes positively. Analysts' questions reveal some concerns about pricing impacts and retention, but management's flexible strategies and focus on cost efficiency mitigate these risks. The lack of a shareholder return plan is a minor drawback. Overall, the positive financial metrics and guidance suggest a positive stock price movement in the short term.
