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NEW YORK - The Progressive Corporation (NYSE:PGR), a $155.8 billion market cap insurance giant, reported a 353% increase in net income to $1.07 billion for the month ended May 31, 2025, compared to $235 million in the same period last year, according to a company press release. According to InvestingPro data, the company’s stock appears undervalued based on its Fair Value analysis, with 14 analysts recently revising their earnings estimates upward.
The insurance provider’s net premiums written rose 11% to $6.63 billion, while net premiums earned increased 15% to $6.72 billion compared to May 2024.
Earnings per share available to common shareholders reached $1.81, up 352% from $0.40 in the prior-year period.
The company’s combined ratio, a measure of profitability in the insurance industry where lower numbers indicate better performance, improved significantly to 86.9 from 100.4 a year earlier, representing a 13.5 percentage point improvement.
Progressive also reported growth across its policy portfolio, with personal lines policies increasing 16% to 35.8 million. The company’s direct auto policies showed the strongest growth at 22%, while agency auto policies grew 17%. Commercial lines policies increased 6% to 1.18 million.
Total pretax net realized gains on securities were $211 million, 79% higher than the $118 million reported in May 2024.
Progressive, based in Mayfield Village, Ohio, is the second largest personal auto insurer in the United States and offers insurance products for personal and commercial vehicles, motorcycles, boats, recreational vehicles, and homes. The company maintains an overall "GREAT" financial health score according to InvestingPro, which offers a comprehensive analysis of over 1,400 US stocks through its Pro Research Reports, helping investors make informed decisions with expert insights and detailed metrics.
In other recent news, Progressive Corporation reported strong financial results for April 2025, with net premiums written increasing by 11% year-over-year to $6.837 billion, and net premiums earned rising 19% to $6.641 billion. The company’s net income more than doubled to $986 million, marking a 134% increase from the previous year. Progressive’s combined ratio improved to 84.9, indicating enhanced underwriting profitability. Analysts from Raymond James maintained an Outperform rating on Progressive, citing confidence in the company’s combined ratio and setting a price target of $305. Meanwhile, Keefe, Bruyette & Woods retained a Market Perform rating with a price target of $288, noting an upward revision in earnings per share estimates for 2025. Progressive also renewed its share repurchase program, authorizing the buyback of up to 25 million common shares, and declared a quarterly dividend of $0.10 per share. The company’s Q1 2025 earnings call revealed record growth, although earnings per share of $4.37 fell short of the forecasted $4.74, while revenue exceeded expectations at $22.21 billion.
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