Question

Using the Internet, obtain the income statement for the insurance company where you insure your automobile (casualty insurance company) and perform a vertical analysis of this company. My company of insurance is Progressive.

Answer 1

PROGRESSIVE CORP (PGR) CashFlowFlag INCOME STATEMENT
Fiscal year ends in December. USD in millions except per share data.	2016-12	2017-12	TTM
Revenues
Premiums	95.88%	95.86%	96.17%
Service fees and commissions	1.86%	1.38%	1.39%
Investment income, net	2.04%	1.86%	1.92%
Realized capital gains (losses), net	0.22%	0.43%	0.05%
Other income (loss)		0.47%	0.47%
Total revenues	100.00%	100.00%	100.00%
Benefits, claims and expenses
Policyholder benefits and claims incurred	72.11%	70.16%	69.56%
Policy acquisition and other expenses	7.95%	7.92%	7.94%
Selling, general and administrative	0.39%	0.41%	0.40%
Interest expense	0.60%	0.57%	0.55%
Other expenses	12.67%	12.97%	12.94%
Total benefits, claims and expenses	93.73%	92.03%	91.38%
Income before income taxes	6.27%	7.97%	8.62%
Income tax (expense) benefit	-1.76%	-2.01%	-1.83%
Other income (expense)	-0.11%	-0.02%	-0.04%
Net income	4.40%	5.93%	6.75%
Preferred dividend			0.00%
Net income available to common shareholders	4.40%	5.93%	6.74%