The Progressive Corporation (NYSE:PGR) reported higher first-quarter earnings, supported by continued expansion in premiums and a growing customer base.
The stock rose 0.6% in premarket trading on Wednesday.
Net premiums written reached $9.91 billion, marking a 10% year-on-year increase, driven by higher policy volumes and ongoing pricing adjustments. The growth highlights solid demand across the company’s insurance offerings.
The results come as Progressive faces increasing scrutiny over whether it can maintain its recent market share gains amid intensifying competition in the auto insurance sector.
The company posted quarterly net income of $2.82 billion, up 10% from a year earlier, with earnings per share of $4.80 compared with $4.37 in the same period last year. However, this fell slightly short of Wall Street expectations of $4.83 per share.
Progressive continued to grow its customer base, with policies in force rising 9% to 39.6 million, reinforcing its position as one of the largest personal auto insurers in the United States.
Profitability remained strong, with a combined ratio of 88.8 for March and 86.4 for the quarter. While both figures are well below 100—indicating underwriting profitability—they point to a modest increase in claims costs or operating expenses.
Results were partly weighed down by $218 million in pre-tax realized investment losses, reflecting ongoing volatility in financial markets.