(Investor's Business Daily) - S&P 500 component Progressive Insurance (PGR) reported Tuesday that third-quarter earnings grew more than 100% while net premiums written increased 25% compared to a year ago.
Progressive Insurance announced Tuesday Q3 earnings of $3.97 per share, up 110% compared to Q3 2023. Analyst consensus had quarterly EPS coming in at $3.83, according to FactSet. Meanwhile, the company also reported that net premiums written jumped 25% to $19.45 billion in the third quarter.
The Mayfield Village, Ohio-based S&P 500 giant added Tuesday that its net income for September was $584.6 million, with earnings per share of 99 cents. Meanwhile, Progressive Insurance had $6.57 billion in net premiums written and $6.26 billion in net premiums earned last month. Hurricane Helene tore through the U.S. in late September.
William Blair analyst Adam Klauber wrote Tuesday that Progressive's operating EPS in September came to 83 cents. Losses from Hurricane Helene representing about 75 cents of earnings per share in September, according to Klauber.
Progressive's companywide insurance lines jumped 14% to $33.87 billion. Total personal auto lines rose 17% from last year to $22.8 billion. The company also reported a 15% increase in total personal insurance lines to $29.28 billion. Commercial lines ticked up 2% to $1.13 billion.
"We continue to rate the stock outperform given its strong secular growth profile and ability to perform well in transitions," Klauber wrote Tuesday. "Risks to our rating include elevated catastrophe activity, material changes in claim trends, an increase in competitive levels, and a decline in interest rates."
S&P 500: Progressive Insurance Stock Performance
Progressive Insurance stock pared early gains falling 0.1% to 251.60, hitting an intraday high of 255.41, in market trade on Tuesday after falling 0.9% on Monday. The S&P 500 stock is finding support at 21-day and 10-week moving averages and could have a flat base after this week, according to MarketSurge chart analysis.
Progressive Insurance stock has gained 58% in 2024 but is down less than 1% in October heading into Tuesday's market open.
Last week, Bank of America raised its price target on Progressive to 319, up from 309, and maintained a buy rating on the shares Thursday. The firm wrote that Q3 catastrophe losses should be "manageable" for property and casualty insurers. Analysts have modeled "placeholder" Q4 losses for Hurricane Milton.
Insurers broadly battled back late last week after Hurricane Milton made landfall in Florida, bringing with it less damage than had been forecast.
The stock has a strong 94 Composite Rating out of a best-possible 99. PGR also has a 90 Relative Strength Rating and an 81 EPS Rating.
By Kit Norton
