Progressive's Third-Quarter Profit Turns Lower
Net income in the September quarter was $2.54 billion, down 3% from a year earlier, as the combined ratio slipped to 88.7.
The Progressive Corporation (PGR) reported net income of $2.54 billion for the quarter ended September 30, 2026, down 3% from a year earlier, after two quarters of year-over-year profit growth.
The Mayfield Village, Ohio-based personal and commercial insurer had pretax net realized losses on securities of $170 million for the quarter, versus $295 million of gains a year earlier. The company earned $3.31 billion in the June quarter, up 4% from a year earlier, and $2.82 billion in the March quarter, up 10%.
The combined ratio for the September quarter was 88.7, 0.8 points better than 89.5 a year earlier. That underwriting result was 1.4 points worse than the 87.3 combined ratio in the June quarter and 2.3 points worse than 86.4 in the March quarter.
Net premiums written were $22.30 billion for the quarter, up 4% from a year earlier. Growth slowed from 5% in the June quarter and 6% in the March quarter. Net premiums earned were $21.87 billion, up 5%, after 6% growth in the June quarter and 8% in the March quarter.
For the month ended September 30, net premiums written were $7.26 billion, up 2% from a year earlier. Personal Lines net premiums written were $6.46 billion, up 1%, and Commercial Lines net premiums written were $797 million, up 6%. Personal Lines net premiums earned were $6.20 billion, up 4%, and Commercial Lines net premiums earned were $959 million, up 8%.
The companywide combined ratio for September was 90.0. Personal Lines posted an 89.8 combined ratio and Commercial Lines a 90.8 combined ratio. The companywide loss and loss adjustment expense ratio was 69.2 and the expense ratio was 20.8. The net catastrophe loss ratio was 1.4.
Policies in force totaled 40.49 million at September 30, up 6% from a year earlier. Personal Lines policies in force were 39.24 million, up 6%, and Commercial Lines policies in force were 1.25 million, up 5%. Agency auto policies were 11.35 million, direct auto policies were 16.85 million, special lines policies were 7.39 million, and property policies were 3.65 million.
For the year-to-date period ended September 30, net premiums written were $67.02 billion, up 5%. Personal Lines net premiums written were $58.08 billion, up 5%, and Commercial Lines net premiums written were $8.93 billion, up 5%. The year-to-date combined ratio was 87.5, with Personal Lines at 87.2 and Commercial Lines at 89.0. Year-to-date net income was $8.67 billion.
Total pretax net realized losses on securities for the month were $231 million, versus $138 million of gains in September 2025. Investment income for the month was $352 million. Fully taxable equivalent total return on the total portfolio was down 1.5% for the month; the pretax annualized investment income book yield was 4.3%.
Total investments were $99.20 billion at September 30. Shareholders’ equity was $34.49 billion, and common shares outstanding were 579.5 million. The company repurchased 969,262 shares in the current month at an average cost of $207.92 a share. Trailing 12-month return on average common shareholders’ equity was 34.4% on net income. The debt-to-total capital ratio was 19.6%.
Average diluted equivalent common shares were 582.2 million for the September quarter. The company had no additional commentary regarding September’s results. It plans to file its Quarterly Report on Form 10-Q on November 2, 2026, and to hold its third-quarter investor conference call on November 3. October results are scheduled for November 18.