Goldman Sachs Reiterates Buy on Progressive After Strong July Earnings
Goldman Sachs has reaffirmed its Buy rating for Progressive Corp., citing the insurance company's strong July operating results. The firm noted that Progressive's Personal Auto segment posted a combined ratio of 86.7%, beating Goldman Sachs' estimate of 89.7% by 3 percentage points.
The company reported net premiums written growth of 5.4%, exceeding Goldman Sachs' estimate of 3.8%. This growth was driven by the Personal Auto segment, which posted a 5.2% increase in net premiums written.
Progressive repurchased $136 million in shares during July, below Goldman Sachs' estimate of $250 million. The firm noted that the company's operating earnings per share of $1.71 beat its estimate of $1.41, driven by a favorable loss ratio and reserve development.