Progressive (PGR) Sees Strong Premium Growth in Q3
Key Points
- Net premiums written: $21.4 billion, up 10% year over year.
- Net premiums earned: $20.8 billion, up 14% year over year.
- Net income: $2.6 billion, up 12% year over year; EPS: $4.45 (vs. $3.97 a year ago).
- Combined ratio: 89.5%, essentially flat (+0.5 pts YoY).
- Policyholder credit: Recorded a $950 million liability for Florida auto profit limit credit.
- Personal Lines: Policies in force up 13%; Auto up 15%, Property up 6%.
- Commercial Lines: Policies in force up 6% YoY.
- Book value per share: $60.45, up from $52.36 a year ago.
Quarter Highlights
- Total revenues: $21.3 billion (+14%).
- Investment income: $311 million for September (+52% YoY); year-to-date $2.6 billion (+28%).
- Pretax realized gains on securities: $295 million year-to-date (+2%).
- Loss and LAE ratio: 65.7%; expense ratio 34.7%; combined ratio 100.4% for September due to Florida credit.
- Excluding policyholder credit, combined ratio would have been approximately 86.5%.
- Favorable prior-year reserve development: $156 million for the month; $1.07 billion year to date.
- Catastrophe loss ratio: 0.9% for September; 2.3% YTD.
CEO Statement and Outlook
“Progressive delivered double-digit premium growth and solid underwriting results through the third quarter. We recorded a policyholder credit related to our Florida auto profit limit, but our underlying performance remains strong across personal and commercial lines,” said Tricia Griffith, President and CEO.
“We expect continued profitable growth into year-end, supported by rate adjustments, improved loss trends, and continued customer growth in auto and property.”
Financial Summary
Metric | Q3 2025 | Q3 2024 |
---|---|---|
Net Premiums Written | $21.38 B | $19.46 B |
Net Premiums Earned | $20.85 B | $18.30 B |
Net Income | $2.62 B | $2.33 B |
Diluted EPS | $4.45 | $3.97 |
Combined Ratio | 89.5% | 89.0% |
Policies in Force (Personal Lines) | 36.9 M | 32.7 M |
Book Value per Share | $60.45 | $52.36 |
Return on Equity (TTM) | 35.9% | 32.4% |
Capital Return
- No dividend or repurchase program changes disclosed for Q3 2025.
- Company repurchased approximately 14.6 K shares in September at an average price of $242 per share.
- Debt-to-capital ratio: 16.3%.
About Progressive
The Progressive Corporation (NYSE: PGR) is one of the largest auto and property-casualty insurers in the United States, providing personal and commercial auto, property, and specialty insurance products nationwide. Founded in 1937 and headquartered in Mayfield Village, Ohio, Progressive serves over 38 million policies in force across personal and commercial segments.