Name: Return on Equity (ROE)

Definition: ROE shows how much profit the company earns for its shareholders based on their invested equity. It’s one of the most watched profitability ratios. A consistently high ROE signals strong management and efficient use of shareholder capital. But artificially high ROE may sometimes be boosted by excessive debt.

Interpretation:
• In '2021', PGR's return on equity was 18.4%, measuring profitability for shareholders. Industry average for Property-Casualty Insurers in '2021' stood at 7.3%.
• In '2022', PGR's return on equity was 4.2%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Property-Casualty Insurers in '2022' stood at -6.3%. Industry average declined by 13.6% from previous year.
• In '2023', PGR's return on equity was 21.6%, measuring profitability for shareholders. The increase since '2022' reflects strengthening financial performance. Industry average for Property-Casualty Insurers in '2023' stood at 5.6%. Industry average increased by 11.9% compared to previous year.
• In '2024', PGR's return on equity was 37.0%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Property-Casualty Insurers in '2024' stood at 13.4%. Industry average increased by 7.8% compared to previous year.
Overall, PGR's return on equity has been volatile but showed an upward trend over the past 4 years.

Formula: ROE = Net Income / Shareholders' Equity

Good Range: 10%-20% desirable for many industries.