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Progressive's Q4 Earnings & Revenues Beat Estimates on Higher Premiums
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Key Takeaways
PGR posted Q4 2025 EPS of $4.67, beating estimates, as operating revenues climbed 10.6% to $22.49B.
Progressive saw net premiums written rise 8% and realized investment gains of $257M versus a loss a year ago.
PGR ended December with solid policy growth, led by an 11% rise in Personal Lines and higher auto policies.
The Progressive Corporation’s (PGR - Free Report) fourth-quarter 2025 earnings per share of $4.67 beat the Zacks Consensus Estimate by 5.2%. The bottom line increased 14.4% year over year.
Operating revenues increased 10.6% year over year to $22.49 billion and beat the consensus estimate by 2.5%.
The Progressive Corporation Price, Consensus and EPS Surprise
Net premiums written were $19.5 billion in the quarter, up 8% from $18.1 billion a year ago.
Net premiums earned grew 10% to $21 billion. The reported figure surpassed the Zacks Consensus Estimate of $20.9 billion.
Net realized gain on securities was $257 million versus a loss of $53 million in the year-ago quarter.
Combined ratio — the percentage of premiums paid out as claims and expenses — deteriorated 10 basis points (bps) from the prior-year quarter’s level to 88.
Full-Year Highlights
Operating revenues grew 15.7% year over year to $86.9 billion, driven by 15.3% higher net premiums earned, a 26.5% increase in net investment income, a 12.4% rise in fees and other revenues, and 22% higher service.
Total expenses rose 13.5% to $73.4 billion, attributable to 10% higher losses and loss adjustment expenses, a 13.2% increase in policy acquisition costs, a 19.7% rise in other underwriting expenses, an 18.3% jump in service expenses, a 17.2% improvement in investment expenses, and a policyholder credit expense.
Combined ratio improved 140 bps to 87.4.
December Policies in Force
Policies in force were solid in the Personal Lines segment, increasing 11% from the year-ago month’s figure to 37.4 million. Special Lines improved 7% to 6.9 million.
In the Personal Auto segment, Direct Auto increased 14% year over year to 16 million, while Agency Auto increased 10% to 10.8 million.
Progressive’s Commercial Auto segment rose 4% year over year to 1.2 million. The Property business had 3.6 million policies in force, up 4%.
Financial Update
Progressive’s book value per share was $51.74 as of Dec. 30, 2025, up 18.4% from $43.67 as of Dec. 30, 2024.
Return on equity in December 2025 was 40.1%, up from 36.4% reported in the year-ago period. The total debt-to-total capital ratio improved 270 bps to 18.5.
Zacks Rank
Progressive currently has a Zacks Rank #5 (Strong Sell).
The Travelers Companies, Inc. (TRV - Free Report) reported fourth-quarter 2025 core income of $11.13 per share, which beat the Zacks Consensus Estimate by 32% and improved 22% year over year. Travelers’ total revenues increased 3.2% from the year-ago quarter to $12.4 billion, primarily driven by higher premiums, net investment income, and other revenues. The top line beat the Zacks Consensus Estimate by 0.08%.
Net written premiums increased 1% year over year to a record $10.8 billion. Net investment income increased 10.3% year over year to $1 billion. The figure matched the Zacks Consensus Estimate. Travelers witnessed an underwriting gain of $1.7 billion, up 21.7% year over year. The consolidated underlying combined ratio of 82.2 improved 180 bps year over year.
RLI Corp. (RLI - Free Report) reported fourth-quarter 2025 operating earnings of 94 cents per share, which beat the Zacks Consensus Estimate by 23.6%. The bottom line increased 80.8% from the prior-year quarter. Operating revenues for the reported quarter were $449 million, up 3% year over year. The top line missed the Zacks Consensus Estimate by 0.4%.
Gross premiums written decreased 2.1% year over year to $463.2 million. This can be attributed to the poor performance of the Property Segment. Our estimate was $505.2 million. Net investment income increased 9.2% year over year to $42.3 million. The Zacks Consensus Estimate was $42.9 million, while our estimate for the metric was pegged at $44.5 million. The investment portfolio’s total return was 1.5% in the quarter.
W.R. Berkley Corporation’s (WRB - Free Report) fourth-quarter 2025 operating income of $1.13 per share missed the Zacks Consensus Estimate by 0.9%. The bottom line remained flat year over year. W.R. Berkley’s net premiums written were $3 billion, up 2.1% year over year. The figure was lower than our estimate of $3.2 billion. Operating revenues came in at $3.7 billion, up 5.9% year over year. However, the top line missed the consensus estimate by 0.9%.
Net investment income grew 6.6% to $338.2 million. Total expenses increased 7.2% to $3.1 billion, driven by higher losses and loss expenses. This was quite close to our estimate of $3.2 billion.
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Progressive's Q4 Earnings & Revenues Beat Estimates on Higher Premiums
Key Takeaways
The Progressive Corporation’s (PGR - Free Report) fourth-quarter 2025 earnings per share of $4.67 beat the Zacks Consensus Estimate by 5.2%. The bottom line increased 14.4% year over year.
Operating revenues increased 10.6% year over year to $22.49 billion and beat the consensus estimate by 2.5%.
The Progressive Corporation Price, Consensus and EPS Surprise
The Progressive Corporation price-consensus-eps-surprise-chart | The Progressive Corporation Quote
Behind the Headlines
Net premiums written were $19.5 billion in the quarter, up 8% from $18.1 billion a year ago.
Net premiums earned grew 10% to $21 billion. The reported figure surpassed the Zacks Consensus Estimate of $20.9 billion.
Net realized gain on securities was $257 million versus a loss of $53 million in the year-ago quarter.
Combined ratio — the percentage of premiums paid out as claims and expenses — deteriorated 10 basis points (bps) from the prior-year quarter’s level to 88.
Full-Year Highlights
Operating revenues grew 15.7% year over year to $86.9 billion, driven by 15.3% higher net premiums earned, a 26.5% increase in net investment income, a 12.4% rise in fees and other revenues, and 22% higher service.
Total expenses rose 13.5% to $73.4 billion, attributable to 10% higher losses and loss adjustment expenses, a 13.2% increase in policy acquisition costs, a 19.7% rise in other underwriting expenses, an 18.3% jump in service expenses, a 17.2% improvement in investment expenses, and a policyholder credit expense.
Combined ratio improved 140 bps to 87.4.
December Policies in Force
Policies in force were solid in the Personal Lines segment, increasing 11% from the year-ago month’s figure to 37.4 million. Special Lines improved 7% to 6.9 million.
In the Personal Auto segment, Direct Auto increased 14% year over year to 16 million, while Agency Auto increased 10% to 10.8 million.
Progressive’s Commercial Auto segment rose 4% year over year to 1.2 million. The Property business had 3.6 million policies in force, up 4%.
Financial Update
Progressive’s book value per share was $51.74 as of Dec. 30, 2025, up 18.4% from $43.67 as of Dec. 30, 2024.
Return on equity in December 2025 was 40.1%, up from 36.4% reported in the year-ago period. The total debt-to-total capital ratio improved 270 bps to 18.5.
Zacks Rank
Progressive currently has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
The Travelers Companies, Inc. (TRV - Free Report) reported fourth-quarter 2025 core income of $11.13 per share, which beat the Zacks Consensus Estimate by 32% and improved 22% year over year. Travelers’ total revenues increased 3.2% from the year-ago quarter to $12.4 billion, primarily driven by higher premiums, net investment income, and other revenues. The top line beat the Zacks Consensus Estimate by 0.08%.
Net written premiums increased 1% year over year to a record $10.8 billion. Net investment income increased 10.3% year over year to $1 billion. The figure matched the Zacks Consensus Estimate. Travelers witnessed an underwriting gain of $1.7 billion, up 21.7% year over year. The consolidated underlying combined ratio of 82.2 improved 180 bps year over year.
RLI Corp. (RLI - Free Report) reported fourth-quarter 2025 operating earnings of 94 cents per share, which beat the Zacks Consensus Estimate by 23.6%. The bottom line increased 80.8% from the prior-year quarter. Operating revenues for the reported quarter were $449 million, up 3% year over year. The top line missed the Zacks Consensus Estimate by 0.4%.
Gross premiums written decreased 2.1% year over year to $463.2 million. This can be attributed to the poor performance of the Property Segment. Our estimate was $505.2 million. Net investment income increased 9.2% year over year to $42.3 million. The Zacks Consensus Estimate was $42.9 million, while our estimate for the metric was pegged at $44.5 million. The investment portfolio’s total return was 1.5% in the quarter.
W.R. Berkley Corporation’s (WRB - Free Report) fourth-quarter 2025 operating income of $1.13 per share missed the Zacks Consensus Estimate by 0.9%. The bottom line remained flat year over year. W.R. Berkley’s net premiums written were $3 billion, up 2.1% year over year. The figure was lower than our estimate of $3.2 billion. Operating revenues came in at $3.7 billion, up 5.9% year over year. However, the top line missed the consensus estimate by 0.9%.
Net investment income grew 6.6% to $338.2 million. Total expenses increased 7.2% to $3.1 billion, driven by higher losses and loss expenses. This was quite close to our estimate of $3.2 billion.