Progressive Corp.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 15 April 2026: press release. The quarter’s numbers.

Key takeaways

Quarter net income rose 10%: Net income for the first quarter 2026 was $2,818 million against $2,567 million, up 10%. March net income was $712 million against $522 million. Source
Combined ratio up slightly for quarter: The quarter combined ratio was 86.4 against 86.0, up 0.4 points. March was 88.8 against 90.9, down 2.1 points. Source
Commercial Lines March combined ratio high: March Commercial Lines combined ratio was 93.5, with a loss and LAE ratio of 71.8 and an expense ratio of 21.7. Commercial Lines net premiums earned were flat at $935 million. Source
Prior-year reserves developed favorably: Prior accident years developed favorably by $451 million year to date: $122 million from actuarial adjustments and $329 million from other development. Source
Portfolio return negative in March: Total portfolio fully taxable equivalent return was (1.3)% in March and 0.1% year to date, against 2.2% a year earlier. Year-to-date fixed-income return was 0.3% and common stocks (4.1)%. Source
Book value per share $54.82: Book value per common share was $54.82 at March 31, up from $51.74 at December 31. Source
Debt-to-capital ratio rose to 20.7%: Debt-to-total capital ratio was 20.7%, up from 18.5% at December 31. Debt was $8,386 million, against $6,897 million. Fixed-income duration was 3.5 and credit quality AA-. Source
Buybacks of 768,273 shares in March: The company repurchased 768,273 common shares in March at an average cost of $204.48, against 49,100 shares at $227.55 in December. Common shares outstanding were 584.4 million. Source

“as a result of a nuance with our monthly closing process. Our first quarter 2026 growth rate is unaffected.”
Progressive Corp., press release

First-quarter results

Quarter net income rose 10%: Net income for the first quarter 2026 was $2,818 million against $2,567 million, up 10%. March net income was $712 million against $522 million. Source
Quarter diluted EPS $4.80: Per share available to common shareholders was $4.80 for the quarter against $4.37, and $1.21 for March against $0.89. Source
Combined ratio up slightly for quarter: The quarter combined ratio was 86.4 against 86.0, up 0.4 points. March was 88.8 against 90.9, down 2.1 points. Source
Premiums grew on quarter and March: Quarter net premiums written were $23,641 million, up 6%, and net premiums earned were $20,968 million, up 8%. March net premiums written rose 10% and earned premiums 11%. Source
Realized losses narrowed for quarter: Total pretax net realized losses on securities were $120 million for the quarter against $212 million. March realized losses were $218 million against $211 million. Source

Personal and Commercial Lines

Direct channel led March premium growth: March net premiums written were $4,094 million for Direct, up 13%, and $2,951 million for Agency, up 9%. Property net premiums written were $277 million, down 6%. Source
Commercial Lines March combined ratio high: March Commercial Lines combined ratio was 93.5, with a loss and LAE ratio of 71.8 and an expense ratio of 21.7. Commercial Lines net premiums earned were flat at $935 million. Source
Personal Lines year-to-date combined ratio: Year-to-date combined ratio was 86.0 for Personal Lines and 89.0 for Commercial Lines. Within Personal Lines, Agency was 82.8, Direct 88.9 and Property 78.3. Source
Commercial Lines premiums up 3% year to date: Year-to-date Commercial Lines net premiums written were $4,033 million, up 3%. Personal Lines were $19,605 million, up 7%, and Property was down 5%. Source

Policies in force and channels

Direct auto policies grew 12%: Direct auto policies in force were 16,572 thousand, up 12%, against Agency auto at 11,056 thousand, up 9%. Special lines policies were 7,101 thousand, up 7%. Source
Commercial policies up 3%: Commercial Lines policies in force were 1,196 thousand, up 3%. Total policies in force were 39,565 thousand, up 9% from 36,292 thousand a year earlier. Source
Transportation network renewal in March: March net premiums written include the renewal of transportation network company (TNC) policies effective March 1, 2026. Source

Losses, reserves and catastrophes

Prior-year reserves developed favorably: Prior accident years developed favorably by $451 million year to date: $122 million from actuarial adjustments and $329 million from other development. Source
March development also favorable: March prior accident year development was favorable by $141 million: $85 million from actuarial adjustments and $56 million from other development. Source
Accident-year loss ratio 68.1: Year-to-date accident year loss and LAE ratio was 68.1, compared with 67.6 for full-year 2025 in the December release. Source
Catastrophe losses within loss ratios: The net catastrophe loss ratio includes catastrophe losses incurred in the period, development on prior events, and the effect of reinsurance, if any, as a share of net premiums earned. Source
Scheduled reviews drove reserve adjustments: Year-to-date calendar year actuarial adjustment was a reserve decrease of $151 million. Personal Lines property reviews include catastrophe losses, while personal and commercial vehicle reviews do not. Source

Costs, margins and expense ratio

Year-to-date expense ratio 20.5: Year-to-date expense ratio was 20.5 companywide, 20.4 for Personal Lines and 21.6 for Commercial Lines. March companywide expense ratio was 20.0. Source
Underwriting expenses rose year to date: Year-to-date other underwriting expenses were $3,048 million against $2,719 million. Policy acquisition costs were $1,538 million against $1,456 million. Source
Loss ratios by segment: Year-to-date loss and LAE ratio was 65.9 companywide, 65.6 for Personal Lines and 67.4 for Commercial Lines. March companywide loss and LAE ratio was 68.8. Source

Investment portfolio and returns

Portfolio return negative in March: Total portfolio fully taxable equivalent return was (1.3)% in March and 0.1% year to date, against 2.2% a year earlier. Year-to-date fixed-income return was 0.3% and common stocks (4.1)%. Source
Book yield edged up: Pretax annualized investment income book yield was 4.2% for March and for the year to date, against 4.1% a year earlier. Source
Net unrealized fixed-maturity losses: Net unrealized pretax losses on fixed-maturity securities were $578 million at March 31, against a gain of $148 million at December 31. The March monthly change was $1,297 million lower. Source
Hybrid securities realized gain: Hybrid securities held at March 31 produced a $2 million realized gain during the period the company held them. Source
Investments held in subsidiary: About $6 billion, net of unsettled transactions, of investments sat in a consolidated non-insurance subsidiary of the holding company. Source

Capital, debt and book value

Book value per share $54.82: Book value per common share was $54.82 at March 31, up from $51.74 at December 31. Source
Shareholders’ equity and total assets: Shareholders’ equity was $32,039 million at March 31, against $30,323 million at December 31. Total assets were $122,209 million. Source
Debt-to-capital ratio rose to 20.7%: Debt-to-total capital ratio was 20.7%, up from 18.5% at December 31. Debt was $8,386 million, against $6,897 million. Fixed-income duration was 3.5 and credit quality AA-. Source
Trailing return on equity 35.0%: Trailing 12-month return on average common shareholders’ equity was 35.0% on net income and 35.2% on comprehensive income, against 35.3% and 40.1% at December 31. Source

Share repurchases and shares outstanding

Buybacks of 768,273 shares in March: The company repurchased 768,273 common shares in March at an average cost of $204.48, against 49,100 shares at $227.55 in December. Common shares outstanding were 584.4 million. Source

Coming up, as management said on 15 April 2026

Form 10-Q filing on May 4: The company plans to file its Form 10-Q with the SEC on Monday, May 4, 2026. Source
First-quarter investor call May 5: Investor call on May 5, 2026, at 9:30 a.m. eastern, with CEO Tricia Griffith and CFO John Sauerland, lasting 60 minutes. Source
April results on May 20: The company plans to release April results on Wednesday, May 20, 2026, before the market opens. Source

Figures management reported

Figure	Reported
Combined ratio Source	86.4 (quarter); 88.8 (March)
Net premiums written Source	$23,641 million (quarter)
Prior-year reserve development Source	$451 million favorable (year to date)
Catastrophe losses Source	net catastrophe loss ratio 1.3 (year to date)
Investment income Source	$917 million (year to date)
Book value per share Source	$54.82

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

PROGRESSIVE REPORTS MARCH RESULTS

MAYFIELD VILLAGE, OHIO -- April 15, 2026 -- The Progressive Corporation (NYSE:PGR) today reported the following results for the month and quarter ended March 31, 2026:

	March							Quarter
(millions, except per share amounts and ratios; unaudited)		2026		2025	Change				2026		2025	Change
Net premiums written	$9,911		$9,041		10%			$23,641		$22,206		6%
Net premiums earned	$7,519		$6,787		11%			$20,968		$19,409		8%
Net income	$712		$522		36%			$2,818		$2,567		10%
Per share available to common shareholders	$1.21		$0.89		37%			$4.80		$4.37		10%
Total pretax net realized gains (losses) on securities	$(218)		$(211)		3%			$(120)		$(212)		(43)%
Combined ratio		88.8		90.9	(2.1)		pts.		86.4		86.0	0.4		pts.
Average diluted equivalent common shares		586.2		587.7		0%			586.9		587.7		0%

	March 31,
(thousands; unaudited)	2026	2025	% Change
Policies in Force
Personal Lines
Agency - auto	11,056	10,146	9
Direct - auto	16,572	14,771	12
Special lines	7,101	6,637	7
Property	3,640	3,576	2
Total Personal Lines	38,369	35,130	9
Commercial Lines	1,196	1,162	3
Total	39,565	36,292	9

Progressive offers personal and commercial insurance throughout the United States. Our Personal Lines business writes insurance for personal vehicles (auto and special lines products) and personal property insurance for homeowners and renters. Our Commercial Lines business writes auto-related liability and physical damage insurance, business-related general liability and commercial property insurance predominantly for small businesses, and workers’ compensation insurance primarily for the transportation industry.

THE PROGRESSIVE CORPORATION AND SUBSIDIARIES

COMPREHENSIVE INCOME STATEMENT

For the month ended March 31, 2026

(millions)

	Current Month	Comments on Monthly Results
Net premiums written	$9,911
Revenues:
Net premiums earned	$7,519
Investment income	313
Net realized gains (losses) on securities:
Net realized gains (losses) on security sales	37
Net holding period gains (losses) on securities	(255)
Total net realized gains (losses) on securities	(218)
Fees and other revenues	103
Service revenues	46
Total revenues	7,763
Expenses:
Losses and loss adjustment expenses	5,179
Policy acquisition costs	548
Other underwriting expenses	1,054
Investment expenses	3
Service expenses	47
Interest expense	24
Total expenses	6,855
Income before income taxes	908
Provision for income taxes	196
Net income	712
Other comprehensive income (loss):
Change in total net unrealized gains (losses) on fixed-maturity securities	(1,025)
Total comprehensive income (loss)	$(313)

See the Monthly Commentary at the end of this release for additional discussion. For a description of our financial reporting and accounting policies as it applies to information contained throughout this release, see Note 1 to our 2025 audited consolidated financial statements included in our 2025 Shareholders’ Report, which can be found at www.progressive.com/annualreport.

THE PROGRESSIVE CORPORATION AND SUBSIDIARIES

COMPREHENSIVE INCOME STATEMENTS

For the year-to-date periods ended March 31,

(millions)

	Year-to-Date
	2026	2025
Net premiums written	$23,641	$22,206
Revenues:
Net premiums earned	$20,968	$19,409
Investment income	917	814
Net realized gains (losses) on securities:
Net realized gains (losses) on security sales	96	1
Net holding period gains (losses) on securities	(216)	(213)
Total net realized gains (losses) on securities	(120)	(212)
Fees and other revenues	297	287
Service revenues	126	111
Total revenues	22,188	20,409
Expenses:
Losses and loss adjustment expenses	13,827	12,804
Policy acquisition costs	1,538	1,456
Other underwriting expenses	3,048	2,719
Investment expenses	8	7
Service expenses	131	117
Interest expense	70	70
Total expenses	18,622	17,173
Income before income taxes	3,566	3,236
Provision for income taxes	748	669
Net income	2,818	2,567
Other comprehensive income (loss):
Change in total net unrealized gains (losses) on fixed-maturity securities	(574)	899
Total comprehensive income (loss)	$2,244	$3,466

THE PROGRESSIVE CORPORATION AND SUBSIDIARIES

COMPUTATION OF NET INCOME AND COMPREHENSIVE INCOME PER SHARE

INVESTMENT RESULTS

For the month and year-to-date periods ended March 31,

(millions - except per share amounts)

	March		Year-to-Date
	2026		2026		2025
The following table sets forth the computation of per share results:
Net income	$712		$2,818		$2,567
Per common share:
Basic	$1.22		$4.81		$4.38
Diluted	$1.21		$4.80		$4.37
Comprehensive income (loss)	$(313)		$2,244		$3,466
Per common share:
Diluted	$(0.54)		$3.82		$5.90
Average common shares outstanding - Basic		585.0		585.6		586.0
Net effect of dilutive stock-based compensation		1.2		1.3		1.7
Total average equivalent common shares - Diluted		586.2		586.9		587.7

Basic earnings per share is disclosed where a comprehensive loss is reported since diluted comprehensive earnings per share are antidilutive.

	March	Year-to-Date
	2026	2026	2025
The following table sets forth the investment results for the period:
Fully taxable equivalent (FTE) total return:
Fixed-income securities	(1.1)%	0.3%	2.5%
Common stocks	(5.0)%	(4.1)%	(5.0)%
Total portfolio	(1.3)%	0.1%	2.2%
Pretax annualized investment income book yield	4.2%	4.2%	4.1%

THE PROGRESSIVE CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

For the month ended March 31, 2026

($ in millions)

	Personal Lines Business								Commercial
	Vehicles								Lines		Companywide
	Agency		Direct		Property		Total		Business		Total
Current Month
Net Premiums Written	$2,951		$4,094		$277		$7,322		$2,588		$9,911
% Growth in NPW		9%		13%		(6)%		10%		7%		10%
Net Premiums Earned	$2,670		$3,646		$268		$6,584		$935		$7,519
% Growth in NPE		9%		16%		0%		13%		0%		11%
GAAP Ratios
Loss/LAE ratio	67.8		69.4		59.5		68.4		71.8		68.8
Expense ratio	18.0		20.3		29.5		19.7		21.7		20.0
Combined ratio	85.8		89.7		89.0		88.1		93.5		88.8
Net catastrophe loss ratio				2.0	21.3		2.8		0.2		2.4
Actuarial Adjustments
Reserve Decrease/(Increase)
Prior accident years											$85
Current accident year											14
Calendar year actuarial adjustment	$35		$62		$(1)		$96		$3		$99
Prior Accident Years Development
Favorable/(Unfavorable)
Actuarial adjustment											$85
All other development											56
Total development											$141
Calendar year loss/LAE ratio											68.8
Accident year loss/LAE ratio											70.7

Net premiums written include the March 1, 2026, renewal of our transportation network company (TNC) policies.

Represents catastrophe losses incurred during the period, including development on prior events and the impact of reinsurance, if any, as a percent of net premiums earned.

Represents adjustments solely based on our normally scheduled actuarial reviews. For our Personal Lines property business, the actuarial reserving methodology includes changes to catastrophe losses, while the reviews in our personal and commercial vehicle businesses do not include catastrophes.

THE PROGRESSIVE CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

For the year-to-date period ended March 31, 2026

($ in millions)

	Personal Lines Business								Commercial
	Vehicles								Lines		Companywide
	Agency		Direct		Property		Total		Business		Total
Year-to-Date
Net Premiums Written	$7,827		$11,085		$693		$19,605		$4,033		$23,641
% Growth in NPW		5%		10%		(5)%		7%		3%		6%
Net Premiums Earned	$7,480		$10,134		$770		$18,384		$2,583		$20,968
% Growth in NPE		6%		14%		(1)%		10%		(4)%		8%
GAAP Ratios
Loss/LAE ratio	64.6		67.6		49.0		65.6		67.4		65.9
Expense ratio	18.2		21.3		29.3		20.4		21.6		20.5
Combined ratio	82.8		88.9		78.3		86.0		89.0		86.4
Net catastrophe loss ratio				0.9	12.5		1.4		0.2		1.3
Actuarial Adjustments
Reserve Decrease/(Increase)
Prior accident years											$122
Current accident year											29
Calendar year actuarial adjustment	$49		$83		$(7)		$125		$26		$151
Prior Accident Years Development
Favorable/(Unfavorable)
Actuarial adjustment											$122
All other development											329
Total development											$451
Calendar year loss/LAE ratio											65.9
Accident year loss/LAE ratio											68.1

Represents catastrophe losses incurred during the year, including development on prior events and the impact of reinsurance, as a percent of net premiums earned.

THE PROGRESSIVE CORPORATION AND SUBSIDIARIES

BALANCE SHEET AND OTHER INFORMATION

(millions - except per share amounts and common shares repurchased)

	March 31, 2026
CONDENSED GAAP BALANCE SHEET:
Investments, at fair value:
Available-for-sale securities:
Fixed maturities(amortized cost: $88,408)	$87,832
Short-term investments (amortized cost: $2,126)	2,126
Total available-for-sale securities	89,958
Equity securities:
Nonredeemable preferred stocks (cost: $259)	240
Common equities (cost: $839)	3,933
Total equity securities	4,173
Total investments2, 3	94,131
Net premiums receivable	17,614
Reinsurance recoverables (including $3,748 on unpaid loss and LAE reserves)	4,003
Deferred acquisition costs	2,131
Other assets	4,330
Total assets	$122,209
Unearned premiums	$27,893
Loss and loss adjustment expense reserves	44,377
Other liabilities	9,514
Debt	8,386
Total liabilities	90,170
Shareholders’ equity	32,039
Total liabilities and shareholders’ equity	$122,209
Common shares outstanding	584.4
Common shares repurchased in the current month	768,273
Average cost per common share	$204.48
Book value per common share	$54.82
Trailing 12-month return on average common shareholders’ equity
Net income	35.0%
Comprehensive income	35.2%
Net unrealized pretax gains (losses) on fixed-maturity securities	$(578)
Increase (decrease) from the previous month	$(1,297)
Increase (decrease) from December 2025	$(726)
Debt-to-total capital ratio	20.7%
Fixed-income portfolio duration	3.5
Weighted average credit quality	AA- .

As of March 31, 2026, we held certain hybrid securities and recognized a change in fair value of $2 million as a realized gain during the period we held these securities.

Includes $443 million of net unsettled security transactions classified in “other liabilities.”

Includes $6 billion, net of unsettled transactions, of investments in a consolidated, non-insurance subsidiary of the holding company.

Monthly Commentary

The companywide net premiums written growth rate for March is higher by about 3 percentage points due to February 28 being reported in March 2026, compared to February 2025, as a result of a nuance with our monthly closing process. Our first quarter 2026 growth rate is unaffected.

Events

Our first quarter Investor Relations conference call is currently scheduled to be held on Tuesday, May 5, 2026, at 9:30 a.m. eastern time. This conference call, which will consist of both a conference call and audio-only webcast, is scheduled to last 60 minutes and will consist of a question and answer session with Tricia Griffith, our CEO, and John Sauerland, our CFO. We plan to file our

Quarterly Report on Form 10-Q with the SEC on Monday, May 4, 2026. If the dates of our events, which are always subject to change, are rescheduled, we will announce the change in a press release as soon as practical and publish it on our investor website.

Details regarding access to the conference call, or any event changes, will be available at: https://investors.progressive.com/events.

We plan to release April results on Wednesday, May 20, 2026, before the market opens.

About Progressive

Progressive Insurance® makes it easy to understand, buy and use car insurance, home insurance, and other protection needs. Progressive offers choices so consumers can reach us however it’s most convenient for them - online at progressive.com, by phone at 1-800-PROGRESSIVE, via the Progressive mobile app, or in-person with a local agent.

Progressive provides insurance for personal and commercial autos and trucks, motorcycles, boats, recreational vehicles, and homes; it is the second largest personal auto insurer in the country, a leading seller of commercial auto, motorcycle, and boat insurance, and one of the top 15 homeowners insurance carriers.

Founded in 1937, Progressive continues its long history of offering shopping tools and services that save customers time and money, like Name Your Price®, Snapshot®, and HomeQuote Explorer®.

The Common Shares of The Progressive Corporation, the Mayfield Village, Ohio-based holding company, trade publicly at NYSE: PGR.

Regulation FD Disclosure Outlets

The Company disseminates information to the public about the Company, its products, services and other matters through various outlets in order to achieve broad, non-exclusionary, distribution of information to the public. These outlets include the Company’s website (progressive.com) and its investor relations website (investors.progressive.com). We encourage investors and others to review the information the Company makes public through these outlets, as such information distributed through these outlets may be considered to be material information.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Investors are cautioned that certain statements in this report not based upon historical fact are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements often use words such as “estimate,” “expect,” “intend,” “plan,” “believe,” “goal,” “target,” “anticipate,” “will,” “could,” “likely,” “may,” “should,” and other words and terms of similar meaning, or are tied to future periods, in connection with a discussion of future operating or financial performance. Forward-looking statements are not guarantees of future performance, are based on current expectations and projections about future events, and are subject to certain risks, assumptions and uncertainties that could cause actual events and results to differ materially from those discussed herein. These risks and uncertainties include, without limitation, uncertainties related to:

our ability to underwrite and price risks accurately and to charge adequate rates to policyholders;
our ability to establish accurate loss reserves;
the impact of severe weather, other catastrophe events, and climate change;
the effectiveness of our reinsurance programs and the continued availability of reinsurance and performance by reinsurers;
the secure and uninterrupted operation of the systems, facilities, and business functions and the operation of various third-party systems that are critical to our business;
the impacts of a security breach or other attack involving our technology systems or the systems of one or more of our vendors;
our ability to maintain a recognized and trusted brand and reputation;
whether we innovate effectively and respond to our competitors’ initiatives;
whether we effectively manage complexity as we develop and deliver products and customer experiences;
the highly competitive nature of property-casualty insurance markets;
whether we adjust claims accurately;
compliance with complex and changing laws and regulations;
the impact of misconduct or fraudulent acts by employees, agents, and third parties to our business and/or exposure to regulatory assessments;
our ability to attract, develop, and retain talent and maintain appropriate staffing levels;
litigation challenging our business practices, and those of our competitors and other companies;
the success of our business strategy and efforts to acquire or develop new products or enter into new areas of business and our ability to navigate the related risks;
how intellectual property rights affect our competitiveness and our business operations;
the success of our development and use of new technology and our ability to navigate the related risks;
the performance of our fixed-income and equity investment portfolios;
the impact on our investment returns and strategies from regulations and societal pressures relating to sustainability and other public policy matters;
our continued ability to access our cash accounts and/or convert investments into cash on favorable terms;
the impact if one or more parties with which we enter into significant contracts or transact business fail to perform;
legal restrictions on our insurance subsidiaries’ ability to pay dividends to The Progressive Corporation;
our ability to obtain capital when necessary to support our business, our financial condition, and potential growth;
evaluations and ratings by credit rating and other rating agencies;
the variable nature of our common share dividend policy;
whether our investments in certain tax-advantaged projects generate the anticipated returns;
the impact from not managing to short-term earnings expectations in light of our goal to maximize the long-term value of the enterprise;
the impacts of epidemics, pandemics, or other widespread health risks; and
other matters described from time to time in our releases and publications, and in our periodic reports and other documents filed with the United States Securities and Exchange Commission, including, without limitation, the Risk Factors section of our Annual Report on Form 10-K for the year ending December 31, 2025.

Any forward-looking statements are made only as of the date presented. Except as required by applicable law, we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or developments or otherwise.

In addition, investors should be aware that accounting principles generally accepted in the United States prescribe when a company may reserve for particular risks, including litigation exposures. Accordingly, results for a given reporting period could be significantly affected if and when we establish reserves for one or more contingencies. Also, our regular reserve reviews may result in adjustments of varying magnitude as additional information regarding claims activity becomes known. Reported results, therefore, may be volatile in certain accounting periods.

Contacts
The Progressive Corporation · 300 North Commons Blvd. · Mayfield Village, Ohio 44143 · http://www.progressive.com
Company Contact: Douglas S. Constantine · (440) 395-3707 · investor_relations@progressive.com