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Progressive's Q2 Earnings and Revenues Beat on Higher Premiums
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Key Takeaways
PGR reported a 2Q25 EPS of $4.88 and sales of $42.2 billion, both surpassing estimates.
Net premiums written and net premiums earned increased 12% and 18% year over year, respectively.
Net realized gain on securities was $387 million.
The Progressive Corporation’s (PGR - Free Report) second-quarter 2025 earnings per share of $4.88 beat the Zacks Consensus Estimate by 10.1%. The bottom line increased 84.1% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Behind the Headlines
Net premiums written were $20 billion in the quarter, up 12% from $17.9 billion a year ago.
Net premiums earned grew 18% to $20.3 billion. The reported figure surpassed the Zacks Consensus Estimate of $20.1 billion.
Operating revenues increased 19.5% year over year to $42.2 billion, driven by 19% higher net premiums earned, a 29.3% increase in net investment income, an 18.9% rise in fees and 28% higher service revenues. The top line beat the Zacks Consensus Estimate by 96.4%.
The Progressive Corporation Price, Consensus and EPS Surprise
Total expenses increased 15.1% to $35.2 billion, attributable to 12% higher losses and loss adjustment expenses, a 17% increase in policy acquisition costs, a 31.5% surge in other underwriting expenses, and a 23.6% rise in service expenses.
Net realized gain on securities was $387 million versus a loss of $127 million in the year-ago quarter.
Combined ratio — the percentage of premiums paid out as claims and expenses — improved 570 basis points (bps) from the prior-year quarter’s level to 86.2.
June Policies in Force
Policies in force were solid in the Personal Lines segment, increasing 16% from the year-ago month’s figure to 36.1 million. Special Lines improved 9% to 6.8 million.
In the Personal Auto segment, Agency Auto increased 16% year over year to 10.4 million, while Direct Auto jumped 21% to 15.2 million.
Progressive’s Commercial Auto segment policies rose 6% year over year to 1.2 million. The Property business had 3.6 million policies in force, up 8%.
Financial Update
Progressive’s book value per share was $55.62 as of June 30, 2025, up 39.5% from $39.85 as of June 30, 2024.
Return on equity in June 2025 was 43.6%, up from 40.2% reported in the year-ago period. The total debt-to-total capital ratio improved 530 bps to 17.5.
RLI Corporation (RLI - Free Report) is set to report second-quarter 2025 results on July 21, after market close. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at 75 cents, suggesting a decrease of 12.7% from the year-ago quarter’s reported figure.
RLI’s earnings beat estimates in three of the last four quarters, while missing in one.
Chubb Limited (CB - Free Report) is slated to report second-quarter 2025 results on July 22, after market close. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $5.85 per share, indicating an increase of 8.7% from the year-ago quarter’s reported figure.
CB’s earnings beat estimates in each of the last four quarters.
W.R. Berkley Corporation (WRB - Free Report) is set to report second-quarter 2025 results on July 21, after market close. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $1.03, suggesting a decrease of 0.9% from the year-ago quarter’s reported figure.
WRB’s earnings beat estimates in three of the last four quarters, while matched in one.
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Progressive's Q2 Earnings and Revenues Beat on Higher Premiums
Key Takeaways
The Progressive Corporation’s (PGR - Free Report) second-quarter 2025 earnings per share of $4.88 beat the Zacks Consensus Estimate by 10.1%. The bottom line increased 84.1% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Behind the Headlines
Net premiums written were $20 billion in the quarter, up 12% from $17.9 billion a year ago.
Net premiums earned grew 18% to $20.3 billion. The reported figure surpassed the Zacks Consensus Estimate of $20.1 billion.
Operating revenues increased 19.5% year over year to $42.2 billion, driven by 19% higher net premiums earned, a 29.3% increase in net investment income, an 18.9% rise in fees and 28% higher service revenues. The top line beat the Zacks Consensus Estimate by 96.4%.
The Progressive Corporation Price, Consensus and EPS Surprise
The Progressive Corporation price-consensus-eps-surprise-chart | The Progressive Corporation Quote
Total expenses increased 15.1% to $35.2 billion, attributable to 12% higher losses and loss adjustment expenses, a 17% increase in policy acquisition costs, a 31.5% surge in other underwriting expenses, and a 23.6% rise in service expenses.
Net realized gain on securities was $387 million versus a loss of $127 million in the year-ago quarter.
Combined ratio — the percentage of premiums paid out as claims and expenses — improved 570 basis points (bps) from the prior-year quarter’s level to 86.2.
June Policies in Force
Policies in force were solid in the Personal Lines segment, increasing 16% from the year-ago month’s figure to 36.1 million. Special Lines improved 9% to 6.8 million.
In the Personal Auto segment, Agency Auto increased 16% year over year to 10.4 million, while Direct Auto jumped 21% to 15.2 million.
Progressive’s Commercial Auto segment policies rose 6% year over year to 1.2 million. The Property business had 3.6 million policies in force, up 8%.
Financial Update
Progressive’s book value per share was $55.62 as of June 30, 2025, up 39.5% from $39.85 as of June 30, 2024.
Return on equity in June 2025 was 43.6%, up from 40.2% reported in the year-ago period. The total debt-to-total capital ratio improved 530 bps to 17.5.
Zacks Rank
Progressive currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
RLI Corporation (RLI - Free Report) is set to report second-quarter 2025 results on July 21, after market close. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at 75 cents, suggesting a decrease of 12.7% from the year-ago quarter’s reported figure.
RLI’s earnings beat estimates in three of the last four quarters, while missing in one.
Chubb Limited (CB - Free Report) is slated to report second-quarter 2025 results on July 22, after market close. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $5.85 per share, indicating an increase of 8.7% from the year-ago quarter’s reported figure.
CB’s earnings beat estimates in each of the last four quarters.
W.R. Berkley Corporation (WRB - Free Report) is set to report second-quarter 2025 results on July 21, after market close. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $1.03, suggesting a decrease of 0.9% from the year-ago quarter’s reported figure.
WRB’s earnings beat estimates in three of the last four quarters, while matched in one.