Progressive Corporation (NYSE:PGR) saw its stock slide 4.3% in premarket trading on Wednesday after reporting third-quarter earnings and revenue that missed Wall Street expectations, dampening investor sentiment toward the insurer.
The Ohio-based company posted adjusted earnings of $4.45 per share for the quarter ended September 30, well below the analyst consensus of $5.05. Revenue came in at $21.38 billion, shy of the expected $21.8 billion but still up 10% from the $19.46 billion reported a year earlier.
Progressive’s combined ratio worsened slightly to 89.5%, compared to 89.0% in the same period last year. The September monthly combined ratio hit 100.4%, reflecting higher claims costs during the month.
The company did, however, continue to see policy growth. Total policies in force rose 12% year-over-year to 38.1 million, with personal auto policies increasing 13% through its agency channel and 17% through its direct channel.
Net income climbed 12% year-over-year to $2.62 billion, even as monthly net income in September dropped 48% from the prior year. Special lines and property insurance policies rose 8% and 6%, respectively, while the commercial lines segment — which includes business auto insurance — posted a 6% increase in policies compared to the third quarter of 2024.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Some portions of this content may have been generated or assisted by artificial intelligence (AI) tools and been reviewed for accuracy and quality by our editorial team.