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Progressive's Q1 Earnings Beat Estimates on Higher Premiums
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Key Takeaways
PGR Q1 EPS of $4.96 beat estimates, rising 6.7% YoY as net premiums written grew 6.5%.
PGR revenues rose 8.2% on higher premiums and investment income, while total expenses climbed 8.4%.
PGR policies in force grew across segments, while the combined ratio worsened to 86.4, and ROE declined.
The Progressive Corporation’s (PGR - Free Report) first-quarter 2026 earnings per share of $4.96 beat the Zacks Consensus Estimate by 2.5%. The bottom line increased 6.7% year over year.
The Progressive Corporation Price, Consensus and EPS Surprise
Net premiums written were $23.6 billion in the quarter, up 6.5% from $22.2 billion a year ago.
Net premiums earned grew 8% to $20.9 billion. The reported figure beat the Zacks Consensus Estimate by 1.5%.
Operating revenues grew 8.2% year over year to $22.3 billion, driven by 8% higher net premiums earned, a 12.7% increase in net investment income, a 3.5% rise in fees and other revenues, and 13.5% higher service revenue. The top line missed the Zacks Consensus Estimate by 1.2%.
Total expenses rose 8.4% to $18.6 billion, attributable to 8% higher losses and loss adjustment expenses, a 5.6% increase in policy acquisition costs, a 12.1% rise in other underwriting expenses, and a 12% increase in service expenses.
Net realized loss on securities was $120 million, narrower than the loss of $212 million in the year-ago quarter.
Combined ratio — the percentage of premiums paid out as claims and expenses — deteriorated 40 basis points (bps) from the prior-year quarter’s level to 86.4.
March Policies in Force
Policies in force were solid in the Personal Lines segment, up 9% from the year-ago month’s figure to 38.3 million. Special Lines improved 7% to 7.1 million.
In the Personal Auto segment, Agency Auto increased 9% year over year to 11 million, while Direct Auto increased 12% to 16.5 million.
Progressive’s Commercial Auto segment policies rose 3% year over year to 1.2 million. The Property business had 3.6 million policies in force, up 2%.
Financial Update
Progressive’s book value per share was $54.82 as of March 30, 2026, up 11% from $49.39 as of March 30, 2025.
Return on equity in March 2026 was 35.2%, down from 39.3% reported in the year-ago period. The total debt-to-total capital ratio deteriorated 150 bps to 20.7.
The Travelers Companies, Inc. (TRV - Free Report) is scheduled to report first-quarter 2025 results on April 16, before market open. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $6.89, suggesting an increase of 260.7% from the year-ago quarter’s reported figure.
TRV’s earnings beat estimates in each of the last four reported quarters.
RLI Corp. (RLI - Free Report) is slated to report first-quarter 2025 results on April 22, after market close. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at 85 cents, suggesting a decrease of 7.6% from the year-ago quarter’s reported figure.
RLI’s earnings beat estimates in each of the last four reported quarters.
W.R. Berkley Corporation (WRB - Free Report) is set to report first-quarter 2025 results on April 21, after market close. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $1.13, suggesting an increase of 11.8% from the year-ago quarter’s reported figure.
WRB’s earnings beat estimates in three of the last four quarters, while missing in one.
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Progressive's Q1 Earnings Beat Estimates on Higher Premiums
Key Takeaways
The Progressive Corporation’s (PGR - Free Report) first-quarter 2026 earnings per share of $4.96 beat the Zacks Consensus Estimate by 2.5%. The bottom line increased 6.7% year over year.
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 $23.6 billion in the quarter, up 6.5% from $22.2 billion a year ago.
Net premiums earned grew 8% to $20.9 billion. The reported figure beat the Zacks Consensus Estimate by 1.5%.
Operating revenues grew 8.2% year over year to $22.3 billion, driven by 8% higher net premiums earned, a 12.7% increase in net investment income, a 3.5% rise in fees and other revenues, and 13.5% higher service revenue. The top line missed the Zacks Consensus Estimate by 1.2%.
Total expenses rose 8.4% to $18.6 billion, attributable to 8% higher losses and loss adjustment expenses, a 5.6% increase in policy acquisition costs, a 12.1% rise in other underwriting expenses, and a 12% increase in service expenses.
Net realized loss on securities was $120 million, narrower than the loss of $212 million in the year-ago quarter.
Combined ratio — the percentage of premiums paid out as claims and expenses — deteriorated 40 basis points (bps) from the prior-year quarter’s level to 86.4.
March Policies in Force
Policies in force were solid in the Personal Lines segment, up 9% from the year-ago month’s figure to 38.3 million. Special Lines improved 7% to 7.1 million.
In the Personal Auto segment, Agency Auto increased 9% year over year to 11 million, while Direct Auto increased 12% to 16.5 million.
Progressive’s Commercial Auto segment policies rose 3% year over year to 1.2 million. The Property business had 3.6 million policies in force, up 2%.
Financial Update
Progressive’s book value per share was $54.82 as of March 30, 2026, up 11% from $49.39 as of March 30, 2025.
Return on equity in March 2026 was 35.2%, down from 39.3% reported in the year-ago period. The total debt-to-total capital ratio deteriorated 150 bps to 20.7.
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
The Travelers Companies, Inc. (TRV - Free Report) is scheduled to report first-quarter 2025 results on April 16, before market open. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $6.89, suggesting an increase of 260.7% from the year-ago quarter’s reported figure.
TRV’s earnings beat estimates in each of the last four reported quarters.
RLI Corp. (RLI - Free Report) is slated to report first-quarter 2025 results on April 22, after market close. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at 85 cents, suggesting a decrease of 7.6% from the year-ago quarter’s reported figure.
RLI’s earnings beat estimates in each of the last four reported quarters.
W.R. Berkley Corporation (WRB - Free Report) is set to report first-quarter 2025 results on April 21, after market close. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $1.13, suggesting an increase of 11.8% from the year-ago quarter’s reported figure.
WRB’s earnings beat estimates in three of the last four quarters, while missing in one.