We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Progressive's Q3 Earnings Top Estimates on Higher Premiums
Read MoreHide Full Article
Key Takeaways
Progressive's Q3 earnings rose 13.6% to $4.60 per share, beating estimates by 3.1% on higher premiums.
Net premiums written increased 4% to $22.3 billion, while the combined ratio improved 80 bps to 88.7.
September revenues grew 5.2% to $7.7 billion, while Personal Lines policies rose 6% to 39.2 million.
The Progressive Corporation’s (PGR - Free Report) third-quarter 2026 earnings per share of $4.60 beat the Zacks Consensus Estimate by 3.1%. The bottom line increased 13.6% year over year.
Behind the Headlines
Net premiums written were $22.3 billion in the quarter, up 4% from $21.4 billion a year ago.
Net premiums earned grew 5% to $21.9 billion. The reported figure met the Zacks Consensus Estimate.
Net realized loss on securities was $170 million, versus a $295 million gain in the year-ago quarter.
Combined ratio improved 80 basis points (bps) from the prior-year quarter’s level to 88.7. The Zacks Consensus Estimate was pegged at 89.4.
The Progressive Corporation Price, Consensus and EPS Surprise
Operating revenues grew 5.2% year over year to $7.7 billion, driven by 4.9% higher net premiums earned, a 13.2% increase in net investment income, a 5% rise in fees and other revenues and 6.7% higher service revenues.
Total expenses decreased 5.6% to $6.6 billion, largely attributable to the absence of policyholder credit expense in the current month.
September Policies in Force
Policies in force were strong in the Personal Lines segment, up 6% from 39.2 million in the year-ago month. Progressive’s Commercial Lines segment policies rose 5% year over year to 1.3 million.
In the Personal Lines segment, Agency Auto increased 7% year over year to 11.3 million, while Direct Auto increased 8% to 16.8 million. Special Lines improved 6% to 7.4 million.
The Property business had 3.6 million policies in force, flat year over year.
Financial Update
Progressive’s book value per share was $59.51 as of Sept. 30, 2026, down 1.6% from $60.45 as of Sept. 30, 2025.
Return on equity in June 2026 was 25.7%, down from 37.1% reported in the year-ago period. The total debt-to-total capital ratio deteriorated 330 bps to 19.6.
The Travelers Companies Inc. (TRV - Free Report) will report third-quarter 2026 results on Oct. 16, before market open. The Zacks Consensus Estimate for third-quarter earnings per share is pegged at $7.01, suggesting a decrease of 13.9% from the year-ago quarter’s reported figure.
TRV’s earnings beat estimates in the last four quarters.
Chubb Limited (CB - Free Report) will report third-quarter 2026 results on Oct. 20, after market close. The Zacks Consensus Estimate for third-quarter earnings per share is pegged at $6.42, indicating a decrease of 14.3% from the year-ago quarter’s reported figure.
CB’s earnings beat estimates in the last four quarters.
W.R. Berkley Corporation (WRB - Free Report) will report third-quarter 2026 results on Oct. 19, after market close. The Zacks Consensus Estimate for third-quarter earnings per share is pegged at $1.14, suggesting an increase of 3.6% from the year-ago quarter reported figure.
WRB’s earnings beat estimates in three of the last four reported quarters, while missing in one.
View the Zacks #1 Rank List
Image: Bigstock
Progressive's Q3 Earnings Top Estimates on Higher Premiums
Key Takeaways
The Progressive Corporation’s (PGR - Free Report) third-quarter 2026 earnings per share of $4.60 beat the Zacks Consensus Estimate by 3.1%. The bottom line increased 13.6% year over year.
Behind the Headlines
Net premiums written were $22.3 billion in the quarter, up 4% from $21.4 billion a year ago.
Net premiums earned grew 5% to $21.9 billion. The reported figure met the Zacks Consensus Estimate.
Net realized loss on securities was $170 million, versus a $295 million gain in the year-ago quarter.
Combined ratio improved 80 basis points (bps) from the prior-year quarter’s level to 88.7. The Zacks Consensus Estimate was pegged at 89.4.
The Progressive Corporation Price, Consensus and EPS Surprise
The Progressive Corporation price-consensus-eps-surprise-chart | The Progressive Corporation Quote
September Numbers in Details
Operating revenues grew 5.2% year over year to $7.7 billion, driven by 4.9% higher net premiums earned, a 13.2% increase in net investment income, a 5% rise in fees and other revenues and 6.7% higher service revenues.
Total expenses decreased 5.6% to $6.6 billion, largely attributable to the absence of policyholder credit expense in the current month.
September Policies in Force
Policies in force were strong in the Personal Lines segment, up 6% from 39.2 million in the year-ago month. Progressive’s Commercial Lines segment policies rose 5% year over year to 1.3 million.
In the Personal Lines segment, Agency Auto increased 7% year over year to 11.3 million, while Direct Auto increased 8% to 16.8 million. Special Lines improved 6% to 7.4 million.
The Property business had 3.6 million policies in force, flat year over year.
Financial Update
Progressive’s book value per share was $59.51 as of Sept. 30, 2026, down 1.6% from $60.45 as of Sept. 30, 2025.
Return on equity in June 2026 was 25.7%, down from 37.1% reported in the year-ago period. The total debt-to-total capital ratio deteriorated 330 bps to 19.6.
Zacks Rank
PGR currently carries 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) will report third-quarter 2026 results on Oct. 16, before market open. The Zacks Consensus Estimate for third-quarter earnings per share is pegged at $7.01, suggesting a decrease of 13.9% from the year-ago quarter’s reported figure.
TRV’s earnings beat estimates in the last four quarters.
Chubb Limited (CB - Free Report) will report third-quarter 2026 results on Oct. 20, after market close. The Zacks Consensus Estimate for third-quarter earnings per share is pegged at $6.42, indicating a decrease of 14.3% from the year-ago quarter’s reported figure.
CB’s earnings beat estimates in the last four quarters.
W.R. Berkley Corporation (WRB - Free Report) will report third-quarter 2026 results on Oct. 19, after market close. The Zacks Consensus Estimate for third-quarter earnings per share is pegged at $1.14, suggesting an increase of 3.6% from the year-ago quarter reported figure.
WRB’s earnings beat estimates in three of the last four reported quarters, while missing in one.