Progressive Reports Bullish August Numbers

The Progressive Corporation (NYSE: PGR) reported 2010 EPS of $0.12 vs. Deutsche Bank's estimate of $0.11, and also reported $5.7B in revenues, a sign that surplus has returned to peak levels, according to Deutsche.

Deutsche Bank reports "Gainshare is Progressive's internal measure of the degree to which the company is experiencing profitable growth scaled to a number between 0 and 2 (the higher, the better). The number is cumulative throughout each calendar year. A jump from 1.58 to 1.65 this late in the year suggests the number exceeded 2 for the month of
August. The company uses this number to determine employee bonuses and the annual variable dividend, which are tracking to be 150% higher than in 2009."

Deutsche Bank maintains its Buy rating and has raised the price target to $24.

The Progressive Corporation closed Friday at $21.12.