February 16, 2022 9:26 AM EST

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The Progressive CorporationCompany Contact:
6300 Wilson Mills RoadDouglas S. Constantine
Mayfield Village, Ohio 44143(440) 910-3563


MAYFIELD VILLAGE, OHIO -- February 16, 2022 -- The Progressive Corporation (NYSE:PGR) today reported the following results for January 2022:
(millions, except per share amounts and ratios; unaudited)20222021Change
Net premiums written$4,585.2 $4,104.2 12  %
Net premiums earned$4,474.8 $3,947.8 13  %
Net income$25.8 $557.5 (95) %
  Per share available to common shareholders$0.04 $0.95 (96) %
Total pretax net realized gains (losses) on securities$(347.9)$108.2 (422) %
Combined ratio92.986.36.6 pts.
Average diluted equivalent common shares586.2587.2 %

(thousands; unaudited)20222021Change
Policies in Force
Personal Lines
Agency – auto7,833.57,696.72 %
Direct – auto9,556.29,022.76 %
Total personal auto17,389.716,719.44 %
Total special lines5,299.64,936.27 %
Total Personal Lines22,689.321,655.65 %
Total Commercial Lines979.9833.418 %
Total Property business2,783.42,505.211 %
Companywide Total26,452.624,994.26 %
Progressive offers personal and commercial insurance throughout the United States. Our Personal Lines business writes insurance for personal autos and special lines products. Our Commercial Lines business writes auto-related liability and physical damage insurance, workers’ compensation coverage primarily for the transportation industry, and business-related general liability and property insurance, predominantly for small businesses. Our Property business writes residential property insurance for homeowners, other property owners, and renters.

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January 2022

20222021% Change
Net premiums written$4,585.2 $4,104.2 12
Net premiums earned$4,474.8 $3,947.8 13
Investment income72.4 67.0 8
Net realized gains (losses) on securities:
Net realized gains (losses) on security sales(21.9)86.8 (125)
Net holding period gains (losses) on securities(325.3)21.4 NM
Net impairment losses recognized in earnings(0.7)NM
Total net realized gains (losses) on securities(347.9)108.2 (422)
Fees and other revenues65.1 58.7 11
Service revenues23.8 20.1 18
Total revenues4,288.2 4,201.8 2
Losses and loss adjustment expenses3,283.9 2,595.8 27
Policy acquisition costs365.6 330.5 11
Other underwriting expenses574.5 539.9 6
Investment expenses2.0 2.1 (5)
Service expenses21.9 17.7 24
Interest expense17.1 18.8 (9)
Total expenses4,265.0 3,504.8 22
Income before income taxes23.2 697.0 (97)
Provision (benefit) for income taxes2
(2.6)139.5 (102)
Net income25.8 557.5 (95)
Other comprehensive income (loss)
Changes in:
Total net unrealized gains (losses) on fixed-maturity securities(397.1)(97.9)306
Net unrealized losses on forecasted transactions0.1 0.1 0
Foreign currency translation adjustment(0.1)NM
Other comprehensive income (loss)(397.1)(97.8)306
Total comprehensive income (loss)$(371.3)$459.7 (181)
NM = Not Meaningful
1 See the Monthly Commentary at the end of this release for additional discussion. For a description of our financial reporting and accounting policies, see Note 1 to our 2020 audited consolidated financial statements included in our 2020 Shareholders’ Report, which can be found at
2 Includes tax benefit of $7.4 million related to the vesting of employee equity awards and distributions of deferred compensation.
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January 2022
(millions – except per share amounts)

The following table sets forth the computation of per share results:
Net income
$25.8 $557.5 
Less: Preferred share dividends
2.2 2.2 
Net income available to common shareholders
$23.6 $555.3 
Per common share:
$0.04 $0.95 
$0.04 $0.95 
Comprehensive income (loss)
Less: Preferred share dividends
2.2 2.2 
Comprehensive income (loss) attributable to common shareholders
Per common share:
Average common shares outstanding - Basic
Net effect of dilutive stock-based compensation
Total average equivalent common shares - Diluted

The following table sets forth the investment results for the period:
Fully taxable equivalent (FTE) total return:
Fixed-income securities
Common stocks
     Total portfolio
Pretax annualized investment income book yield

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January 2022
($ in millions)

Personal Lines BusinessLinesPropertyCompanywide
AgencyDirectTotalBusiness BusinessTotal
Net Premiums Written$1,630.7 $1,921.9 $3,552.6 $877.0 $155.5 $4,585.2 
% Growth in NPW3%7%5%52%14%12%
Net Premiums Earned$1,657.7 $1,831.6 $3,489.3 $793.7 $191.6 $4,474.8 
% Growth in NPE6%9%7%48%19%13%
GAAP Ratios
Loss/LAE ratio73.7 77.6 75.7 68.8 
49.5 .
Expense ratio17.8 20.6 19.3 18.8 
Combined ratio91.5 98.2 95.0 87.6 
Net catastrophe loss ratio2
0.3 0.2 
2.8 .
Actuarial Adjustments3
Reserve Decrease/(Increase)
Prior accident years$10.3 
Current accident year(1.0)
Calendar year actuarial adjustment$(3.2)$(1.5)$(4.7)$(0.8)$14.8 $9.3 
Prior Accident Years Development
Actuarial adjustment$10.3 
All other development(193.6)
Total development$(183.3)
Calendar year loss/LAE ratio73.3 
Accident year loss/LAE ratio69.2 
1Included in both the expense ratio and combined ratio is 2.5 points of amortization expense predominately associated with the acquisition of a controlling interest in ARX. Excluding these additional expenses, the Property business would have reported an expense ratio of 25.0 and a combined ratio of 74.5.
2Represents catastrophe losses incurred during the period, including the impact of reinsurance, as a percent of net premiums earned.
3Represents adjustments solely based on our normally scheduled actuarial reviews. For our Property business, the actuarial reserving methodology includes changes to catastrophe losses, while the reviews in our vehicle businesses do not include catastrophes.

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(millions - except per share amounts)
January 2022
December 2021 (adjusted)1
Investments, at fair value:
Available-for-sale securities:
Fixed maturities2 (amortized cost: $45,584.3 and $43,794.2)
$45,148.0 $43,873.1 
Short-term investments (amortized cost: $571.6 and $942.6)571.6 942.6 
Total available-for-sale securities45,719.6 44,815.7 
Equity securities:
Nonredeemable preferred stocks (cost: $1,544.4 and $1,571.8)
1,582.2 1,639.9 
Common equities (cost: $1,261.4 and $1,264.1)4,773.2 5,058.5 
Total equity securities6,355.4 6,698.4 
Total investments3
52,075.0 51,514.1 
Net premiums receivable9,507.2 9,399.5 
Reinsurance recoverables (including $4,754.0 and $4,733.6 on unpaid loss and LAE reserves)4,999.1 4,980.5 
Deferred acquisition costs1,356.8 1,355.6 
Goodwill and intangible assets565.1 570.0 
Other assets3,320.4 3,312.6 
Total assets$71,823.6 $71,132.3 
Unearned premiums$15,666.4 $15,615.8 
Loss and loss adjustment expense reserves26,393.7 26,164.1 
Other liabilities3
7,022.9 6,222.0 
Debt4,899.1 4,898.8 
Total liabilities53,982.1 52,900.7 
Shareholders’ equity
17,841.5 18,231.6 
Total liabilities and shareholders’ equity
$71,823.6 $71,132.3 
Common shares outstanding584.8 
Common shares repurchased - January 0.26 
Average cost per common share$102.29 
Book value per common share$29.66 
Trailing 12-month return on average common shareholders’ equity
Net income 15.6  %
Comprehensive income8.9  %
Net unrealized pretax gains (losses) on fixed-maturity securities$(431.4)
Increase (decrease) from December 2021$(502.8)
Debt-to-total capital ratio21.5 %
Fixed-income portfolio duration3.1 
Weighted average credit qualityAA-
1 Based on guidance issued in early February 2022 from the Michigan Department of Insurance and Financial Services, our December 2021 balance sheet has been adjusted to reflect a $541.5 million increase in both our other assets and our other liabilities. The equal and offsetting increases in the asset and liability accounts relate to a refund that we will receive from the surplus of the Michigan Catastrophic Claims Association (MCCA) and are required to pass through to the applicable Michigan policyholders. This transaction has no effect on our liquidity, financial condition, cash flows, or results of operations.
2 As of January 31, 2022, we held certain hybrid securities and recognized a change in fair value of $4.9 million as a realized loss during the period we held these securities.
3 At January 31, 2022, we had $855.8 million of net unsettled security transactions classified in other liabilities.

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Monthly Commentary
In January, we experienced unfavorable prior accident year development of 4.1 points. Our personal auto products incurred about 80% of the unfavorable development, primarily reflecting the continued increase in the cost to repair vehicles and higher severity in our physical damage, collision, and comprehensive coverages.

Our fourth quarter Investor Relations conference call is currently scheduled to be held on Tuesday, March 1, 2022, at 9:30 a.m. eastern time. The call and live webcast is scheduled to last 90 minutes and will begin with an approximate 45-minute presentation on managing rate levels, followed by a question and answer session with Tricia Griffith, our CEO, and John Sauerland, our CFO. We plan to post our 2021 Shareholders’ Report online and file our Annual Report on Form 10-K with the SEC on Monday, February 28, 2022. If the dates of our events, which are always subject to change, are rescheduled, we will announce the change in a press release as soon as practical and publish it on our investor website. Details regarding access to the teleconference, or any event changes, will be available at:

We plan to release February results on Wednesday, March 16, 2022, before the market opens.

About Progressive
Progressive InsuranceSM makes it easy to understand, buy and use car insurance, home insurance, and other protection needs. Progressive offers choices so consumers can reach us whenever, wherever and however it’s most convenient - online at, by phone at 1-800-PROGRESSIVE, on a mobile device or in-person with a local agent.

Progressive provides insurance for personal and commercial autos and trucks, motorcycles, boats, recreational vehicles, and homes; it is the third largest car insurer in the country, a leading seller of motorcycle and commercial auto insurance, and one of the top 15 homeowners insurance carriers.

Founded in 1937, Progressive continues its long history of offering shopping tools and services that save customers time and money, like Name Your Price®, Snapshot®, and HomeQuote Explorer®.

The Common Shares of The Progressive Corporation, the Mayfield Village, Ohio-based holding company, trade publicly at NYSE: PGR.

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Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Investors are cautioned that certain statements in this report not based upon historical fact are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements often use words such as “estimate,” “expect,” “intend,” “plan,” “believe,” and other words and terms of similar meaning, or are tied to future periods, in connection with a discussion of future operating or financial performance. Forward-looking statements are based on current expectations and projections about future events, and are subject to certain risks, assumptions and uncertainties that could cause actual events and results to differ materially from those discussed herein. These risks and uncertainties include, without limitation, uncertainties related to:

our ability to underwrite and price risks accurately and to charge adequate rates to policyholders;
our ability to establish accurate loss reserves;
the impact of severe weather, other catastrophe events and climate change;
the effectiveness of our reinsurance programs;
the highly competitive nature of property-casualty insurance markets;
whether we innovate effectively and respond to our competitors’ initiatives;
whether we effectively manage complexity as we develop and deliver products and customer experiences;
how intellectual property rights could affect our competitiveness and our business operations;
whether we adjust claims accurately;
our ability to maintain a recognized and trusted brand;
our ability to attract, develop and retain talent and maintain appropriate staffing levels;
compliance with complex laws and regulations;
litigation challenging our business practices, and those of our competitors and other companies;
the impacts of a security breach or other attack involving our computer systems or the systems of one or more of our vendors;
the secure and uninterrupted operation of the facilities, systems, and business functions that are critical to our business;
the success of our efforts to develop new products or enter into new areas of business and navigate related risks;
our continued ability to send and accept electronic payments;
the possible impairment of our goodwill or intangible assets;
the performance of our fixed-income and equity investment portfolios;
the potential elimination of, or change in, the London Interbank Offered Rate;
our continued ability to access our cash accounts and/or convert securities into cash on favorable terms;
the impact if one or more parties with which we enter into significant contracts or transact business fail to perform;
legal restrictions on our insurance subsidiaries’ ability to pay dividends to The Progressive Corporation;
limitations on our ability to pay dividends on our common shares under the terms of our outstanding preferred shares;
our ability to obtain capital when necessary to support our business and potential growth;
evaluations by credit rating and other rating agencies;
the variable nature of our common share dividend policy;
whether our investments in certain tax-advantaged projects generate the anticipated returns;
the impact from not managing to short-term earnings expectations in light of our goal to maximize the long-term value of the enterprise;
impacts from the outbreak of the novel coronavirus, or COVID-19, and the restrictions put in place to help slow and/or stop the spread of the virus; and
other matters described from time to time in our releases and publications, and in our periodic reports and other documents filed with the United States Securities and Exchange Commission, including, without limitation, the Risk Factors section of our Annual Report on Form 10-K for the year ending December 31, 2020.

In addition, investors should be aware that generally accepted accounting principles prescribe when a company may reserve for particular risks, including litigation exposures. Accordingly, results for a given reporting period could be significantly affected if and when we establish reserves for one or more contingencies. Also, our regular reserve reviews may result in adjustments of varying magnitude as additional information regarding claims activity becomes known. Reported results, therefore, may be volatile in certain accounting periods.

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