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Progressive Stock Advances on 2Q15 Earnings

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Beats the estimates

Progressive Corporation (PGR) reported its second-quarter earnings on July 17. The company beat Wall Street analysts’ EPS (earnings per share) estimates of $0.54, posting EPS of $0.62.

Progressive reported net income of $363 million for the quarter and revenues of $5.25 billion, up by 13.4% over 2Q14. The company’s strong quarter follows its expansion into the housing insurance market with the purchase of ARX Holding.

Progressive paid $875 million for a majority stake in ARX Holding in April. The company wanted to diversify its insurance offerings so it could compete with other insurers that offer bundled services.

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Insurance giant

Progressive, along with its insurance subsidiaries and mutual insurance company affiliate, provides personal auto insurance, commercial auto, and truck insurance, principally for small businesses. It also provides other specialty property and casualty insurance and related services.

The company’s property and casualty insurance products protect customers against losses caused by collisions and any physical damage to their motor vehicles. These products also protect against uninsured and underinsured bodily injury, as well as liability for personal injury or property damage arising out of insured vehicle use.

Its non-insurance subsidiaries and limited partnership investment affiliate support its insurance and investment operations.

Progressive achieved revenue growth of 6.72% over the past twelve months. Here’s how some of its competitors compare:

  • American International Group (AIG)– -6.49%
  • Mercury General (MCY) – 6.76%
  • Ace (ACE) – -0.47%
  • Allstate (ALL) – 2.12%
  • Travelers Companies (TRV) – 3.71%

Together, these companies form 5.47% of the Financial Select Sector SPDR Fund (XLF).

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