Question

what is the financial position of progressive corporation. it is an insurance company in USA
explain your answers

Answer 1

During the last three years the Company has seen a good rise in the value of earnings by Investment income as well as by way of Premiums. There is almost 20% rise in the total revenues of the Company as compared to the last year ended in 2018.

Along with revenues, there is a rise in expenses also. Continuously from three years, there is a rise in the amount of expenses which rose about 17% approx in comparison to the last year.

As the revenues and expenses both has shown a good rise which led to put great amount of Impact on the profitability of the Company which has shown a rise of 50% if we keep year 2018 as the base year.

As the company has experienced the profits, the Company has declared Dividends for its shareholders too. The Company has declared interim as well as final dividends almost 4-5 times in a year which has shown the Company’s focus upon the maximization of wealth of shareholders. Over the last three year, approximately $2.7 billion has distributed as dividends for both common as well as preferred shares. At the end of the year the Company has offered $6.72 earnings per share.

One of the major changes which can be noticed is the liquidity of the Company, the Company has not only maintained its liquidity but has increased it upto 200%.

If we compare on year over year basis, the size of investments has increased by 17%.

The Company has experienced a good growth in terms of both premiums and policies. At the end of the year, the Company has 2 million more customers as compared to last year which remarks the profitability and growth. Along with the new customers, focus of company on the existing clients has made company successful.