Progressive

Progressive’s August results were solid. The firm reported $0.38 in operating EPS, up 11.6% YoY, and recorded a headline combined of 92.6% (down -0.8pts).

Since the start of the Covid-19 crisis, we have argued that the most likely outcome for P&C carriers is a get-out-of-jail-free card on loss trends due to lower frequency.

The “empty-street” economy has left auto exposed names in a relatively favorable position, highlighted by a second quarter of strong earnings growth and beats when compared to street estimates.

The carrier reported an even lower claims frequency for June.

Report claims insurers have underperformed the wider financial services industry in terms of total shareholder return during the pandemic.

Since the Covid-crisis began, we have argued that the most likely outcome for P&C carriers is a get out of jail free card on loss trends due to lower frequency.

The carrier’s May results continued to display the multiple moving pieces resulting from the Covid-19 crisis, with loss ratios low but appearing to be heading back up, but elevated expense offsets.

Chubb and CNA fell by 7 percent, while AIG closed the day down 10 percent.

The carrier’s April results displayed multiple moving pieces from the Covid-19 crisis, including lower loss ratios in personal and commercial auto, but also a higher expense ratio and lower growth.

The “empty-street” economy has left auto-exposed names in a relatively favorable position – so much so that they have been returning premiums to clients.

Two of the largest carriers’ Q1 calls highlighted significant declines in miles driven and accident frequency, in line with our previous findings.

Yesterday morning Progressive released its March results, giving a first look on the impact of the Covid-19 shutdown on insurance financials.