Big Banks Still a Force in Insurance Industry
5. Progressive Corp.
Shares of Progressive Corp. of Mayfield Village, Ohio closed at $20.75 Wednesday, up 16% year-to-date.
The company reported second-quarter net income of $211.9 million or 32 cents a share, down from $295.6 million or 44 cents the previous quarter and $250.1 million or 37 cents a share a year earlier.
During the second quarter, Progressive reported $32.4 million in losses on securities, including impairment mark-downs.
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SNL said that, according to combined statutory filings for the company's insurance subsidiaries, the first-quarter ROE before policyholder dividends and income taxes was 31.54% and the ROA was 8.62%.
According to SNL, cash and invested assets for Progressive's combined insurance subsidiaries increased at an annualized rate of 21% during the first quarter.
Progressive's shares were trading for 2.2 times tangible book value and 13.2 times the consensus earnings estimate for 2011, according to SNL.
Among 23 analysts covering Progressive, 9 recommend buying the shares, while 14 recommend holding. The mean 12-month price target among analysts polled by Thomson Reuters is $21.94, which would be a 6% increase from Wednesday's close.
