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    Progressive Corp (PGR)

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    Business Description

    The Progressive Corporation operates primarily in the insurance industry, offering a diverse range of products through its three main segments: Personal Lines, Commercial Lines, and Property. The company provides insurance for personal autos, recreational vehicles, small businesses, and residential properties, making it a significant player in the insurance market. Progressive's offerings are structured to cater to both individual and business needs, with a focus on auto-related and property insurance .

    1. Personal Lines - Offers insurance for personal autos and recreational vehicles, divided into Agency and Direct businesses, with the Direct channel contributing a slightly higher percentage of net premiums written .

      • Agency - Provides insurance products through a network of independent agents.
      • Direct - Sells insurance products directly to consumers, primarily through online and phone channels.

    2. Commercial Lines - Provides auto-related liability and physical damage insurance, business-related general liability, and property insurance predominantly for small businesses, as well as workers' compensation insurance .

    3. Property - Includes residential property insurance for homeowners, other property owners, and renters .

    4. Service Businesses - Offers insurance-related services, representing less than 1% of total revenues .

    Key Metrics

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    Executive Team

    NamePositionStart DateShort Bio
    Susan Patricia GriffithPresident and Chief Executive Officer2016Susan Patricia Griffith has been with The Progressive Corporation since 1988 and became the President and CEO in 2016. She has held various executive roles, including Chief Human Resource Officer and Claims Group President .
    John P. SauerlandVice President and Chief Financial OfficerMay 17, 2024John P. Sauerland is the Vice President and CFO of The Progressive Corporation, serving in this role since at least May 17, 2024 .
    Karen B. BailoCommercial Lines PresidentOctober 2020Karen B. Bailo has been the Commercial Lines President since October 2020. She previously served as the Commercial Lines Acquisition and Small Business General Manager and as the Commercial Lines Controller .
    Jonathan S. BauerChief Investment OfficerJanuary 2020Jonathan S. Bauer has been the Chief Investment Officer since January 2020. Before this, he was a Portfolio Manager at Progressive .
    Steven A. BrozChief Information Officer2020Steven A. Broz is the Chief Information Officer at Progressive Corporation, holding this position since at least 2020 .
    Patrick K. CallahanPersonal Lines President2021Patrick K. Callahan has been the Personal Lines President since at least 2021. He has held various roles at Progressive, including as a named executive officer in 2020 and 2021 .
    William L. Clawson IIChief Human Resources OfficerDecember 2021William L. Clawson II has been the Chief Human Resources Officer since December 2021. He was previously the Compensation and Benefits Business Leader and a Product Manager .
    Remi KentChief Marketing OfficerNovember 2021Remi Kent has been the Chief Marketing Officer since November 2021. She was previously the Senior Vice President and Global Chief Marketing Officer of the Consumer Business Group at 3M Company .
    Mariann Wojtkun MarshallVice President and Chief Accounting OfficerMarch 2019Mariann Wojtkun Marshall has been the Vice President and Chief Accounting Officer since March 2019. She was formerly the Director of Financial Reporting – GAAP and holds the position of Assistant Secretary .
    John MurphyClaims PresidentDecember 2021John Murphy has been the Claims President since December 2021. He was previously the Customer Relationship Management President .
    Lori NiederstCustomer Relationship Management PresidentDecember 2021Lori Niederst has been the Customer Relationship Management President since December 2021. She previously served as the Chief Human Resources Officer at Progressive .
    David M. StringerVice President, Secretary, and Chief Legal OfficerJanuary 2024David M. Stringer has been the Vice President, Secretary, and Chief Legal Officer since January 2024. He was previously the Deputy General Counsel, Litigation and Employment at Progressive .
    Andrew J. QuiggChief Strategy OfficerJuly 2018Andrew J. Quigg has been the Chief Strategy Officer since July 2018. He previously served as the Customer Experience General Manager .

    Questions to Ask Management

    1. Given the record profits and high margins you're experiencing, could you elaborate on how you balance maintaining profitability with potential price cuts, especially in states where you're already highly competitive?
    2. With attorney representation rates and litigation costs rising in personal auto, how are you adjusting your claims handling and pricing strategies to mitigate the impact of social inflation on your loss ratios?
    3. Your Commercial Lines growth has been challenging due to softness in the trucking market; what specific actions are you taking to drive growth in this segment, and how confident are you about competitors catching up in rates impacting your future growth?
    4. Considering that two hurricanes struck Florida only a week apart, can you provide more details on how you are risk-adjusting your property business and what progress you've made in reducing exposure to volatile weather-related states?
    5. With a substantial increase of 4.2 million policies in force amid a tight labor market, how are you ensuring staffing levels keep pace without compromising service quality, and what role does technology and AI play in this effort?

    Share Repurchase Program

    Program DetailsProgram 1
    Approval DateMay 2024
    End Date/DurationNo expiration
    Total additional amount25 million shares
    Remaining authorization amount24,576,264 shares
    DetailsNeutralizing dilution from equity-based compensation and effectively using under-leveraged capital

    Debt Maturity Schedule

    YearAmount Due (in millions)Debt TypeInterest Rate (%)% of Total Debt
    20271,000.0 2.45% Senior Notes 2.45 14.5% = (1,000.0 / 6,891.8) * 100
    20271,000.0 2.50% Senior Notes 2.50 14.5% = (1,000.0 / 6,891.8) * 100
    2029850.0 6 5/8% Senior Notes 6.625 12.3% = (850.0 / 6,891.8) * 100
    2029850.0 4.00% Senior Notes 4.00 12.3% = (850.0 / 6,891.8) * 100
    2030500.0 3.20% Senior Notes 3.20 7.3% = (500.0 / 6,891.8) * 100
    2032900.0 3.00% Senior Notes 3.00 13.1% = (900.0 / 6,891.8) * 100
    2032900.0 6.25% Senior Notes 6.25 13.1% = (900.0 / 6,891.8) * 100
    2033500.0 4.95% Senior Notes 4.95 7.3% = (500.0 / 6,891.8) * 100
    2044350.0 4.35% Senior Notes 4.35 5.1% = (350.0 / 6,891.8) * 100
    2045400.0 3.70% Senior Notes 3.70 5.8% = (400.0 / 6,891.8) * 100
    2047850.0 4.125% Senior Notes 4.125 12.3% = (850.0 / 6,891.8) * 100
    2048600.0 4.20% Senior Notes 4.20 8.7% = (600.0 / 6,891.8) * 100
    2050500.0 3.95% Senior Notes 3.95 7.3% = (500.0 / 6,891.8) * 100
    2052500.0 3.70% Senior Notes 3.70 7.3% = (500.0 / 6,891.8) * 100

    Auditor

    NameStart DateEnd DateReason for Change
    PricewaterhouseCoopers LLP1984 PresentCurrent auditor

    Latest news

    Recent developments and announcements about PGR.

    Financial Reporting

      Earnings Report

      ·
      7 days ago

      The Progressive Corporation (NYSE: PGR) has released its earnings results for December 2024 and the full year 2024. Below are the key highlights:

      December 2024 Results

      • Net Premiums Written: $5,964 million, a 22% increase compared to December 2023.
      • Net Premiums Earned: $6,717 million, a 26% increase year-over-year.
      • Net Income: $942 million, reflecting a 5% growth compared to December 2023.
      • Combined Ratio: 84.1%, a slight increase of 0.7 points from December 2023.

      Full Year 2024 Results

      • Net Premiums Written: $74,424 million, a 21% increase from 2023.
      • Net Premiums Earned: $70,799 million, a 21% increase year-over-year.
      • Net Income: $8,480 million, a 117% increase compared to 2023.
      • Investment Income: $2,832 million, up from $1,892 million in 2023.
      • Combined Ratio: 88.8%, a slight improvement from 88.9% in 2023.

      Significant Trends and Observations

      1. Strong Growth in Personal Lines:

        • Personal Lines net premiums written grew by 23% year-over-year, driven by a 27% increase in direct vehicle premiums and an 8% increase in property premiums.
        • Policies in force for personal auto (agency and direct) increased by 17% and 25%, respectively, compared to December 2023.

      2. Commercial Lines Performance:

        • Commercial Lines net premiums written grew by 8% year-over-year, with a combined ratio of 89.4%.

      3. Investment Portfolio:

        • The total portfolio return for 2024 was 4.6%, with fixed-income securities yielding 3.8% and common stocks yielding 22.9%.

      4. Catastrophe Losses:

        • The net catastrophe loss ratio for the year was 3.6%, reflecting favorable development from prior events.

      Upcoming Events

      Progressive will host its fourth-quarter Investor Relations conference call on March 4, 2025, at 9:30 a.m. ET. The 2024 Shareholders’ Report will be posted online on March 3, 2025.

      For more details, visit Progressive's investor relations website: Progressive Investor Relations.

      Sources: , , , , ,