The Progressive Corporation (PGR) Q3 2025 Financial Results Summary
The Progressive Corporation (NYSE:PGR) released its financial results for the third quarter ended September 30, 2025, on October 15, 2025. The results indicated various changes in key metrics compared to the same quarter of the previous year.
Key Financial Metrics
- Net Premiums Written:
- Q3 2025: $7,128 million, up 8% from $6,570 million in Q3 2024.
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Year-to-date 2025: $21,384 million, up 10% from $19,455 million in 2024.
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Net Premiums Earned:
- Q3 2025: $6,827 million, up 9% from $6,263 million in Q3 2024.
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Year-to-date 2025: $20,849 million, up 14% from $18,297 million in 2024.
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Net Income:
- Q3 2025: $305 million, a decrease of 48% from $585 million in Q3 2024.
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Year-to-date 2025: $2,615 million, up 12% from $2,334 million in 2024.
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Earnings Per Share:
- Q3 2025: $0.52, down 48% from $0.99 in Q3 2024.
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Year-to-date 2025: $4.45, up 12% from $3.97 in 2024.
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Total Pretax Net Realized Gains (Losses):
- Q3 2025: $138 million, up 14% from $121 million in Q3 2024.
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Year-to-date 2025: $295 million, up 2% from $288 million in 2024.
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Combined Ratio:
- Q3 2025: 100.4%, an increase of 7.0 percentage points from 93.4% in Q3 2024.
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Year-to-date 2025: 89.5%, a slight increase of 0.5 percentage points from 89.0% in 2024.
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Policies in Force (thousands):
- Personal Lines: 36,880, an increase of 13% from 32,738 in Q3 2024.
- Commercial Lines: 1,198, an increase of 6% from 1,131 in Q3 2024.
- Companywide Total: 38,078, an increase of 12% from 33,869 in Q3 2024.
Additional Information
- Monthly Results (September 2025):
- Net Premiums Written: $7,128 million.
- Net Premiums Earned: $6,827 million.
- Total Revenues: $7,421 million.
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Total Expenses: $7,029 million, leading to Net Income of $305 million.
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Investment Performance:
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Total Portfolio Return:
- Fixed-income securities: 0.3% in September 2025, up from 5.1% in 2024.
- Common stocks: 3.6% in September 2025, down from 20.3% in 2024.
- Overall portfolio: 0.4% in September 2025, up from 5.7% in 2024.
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Share Repurchase:
- Progressive repurchased 14,587 common shares during the month at an average cost of $242.04 per share.
Outlook and Future Events
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The company anticipates continuing impacts from Florida insurance reforms which could affect future profitability. A significant policyholder credit expense of $950 million has been recorded due to expected profits exceeding state-imposed profit limits.
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The next Investor Relations conference call is scheduled for November 4, 2025, at 9:30 a.m. ET, with a subsequent release of October results on November 19, 2025.
In summary, despite achieving growth in premiums and year-to-date income, Progressive has reported a significant decline in quarterly net income and earnings per share relative to the previous year, alongside increased operational costs as reflected in the combined ratio.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Income Statement)
(amounts in millions)
| Item | September 2025 | September 2024 | Change (%) | Quarter 2025 | Quarter 2024 | Change (%) |
|---|---|---|---|---|---|---|
| Net premiums written | $7,128 | $6,570 | 8 | $21,384 | $19,455 | 10 |
| Net premiums earned | $6,827 | $6,263 | 9 | $20,849 | $18,297 | 14 |
| Net income | $305 | $585 | -48 | $2,615 | $2,334 | 12 |
| Per share available to common shareholders | $0.52 | $0.99 | -48 | $4.45 | $3.97 | 12 |
| Total pretax net realized gains (losses) on securities | $138 | $121 | 14 | $295 | $288 | 2 |
| Combined ratio | 100.4 | 93.4 | 7.0 pts | 89.5 | 89.0 | 0.5 pts |
| Average diluted equivalent common shares | 588.2 | 587.7 | 0 | 588.2 | 587.6 | 0 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Balance Sheet)
(amounts in millions)
| Item | September 30, 2025 |
|---|---|
| Investments, at fair value: | |
| Available-for-sale securities: | |
| Fixed maturities (amortized cost: $88,247) | $88,509 |
| Short-term investments (amortized cost: $1,515) | 1,515 |
| Total available-for-sale securities | 90,024 |
| Equity securities: | |
| Nonredeemable preferred stocks (cost: $454) | 438 |
| Common equities (cost: $808) | 4,047 |
| Total equity securities | 4,485 |
| Total investments | 94,509 |
| Net premiums receivable | 16,519 |
| Reinsurance recoverables | 4,107 |
| Deferred acquisition costs | 2,164 |
| Other assets | 4,236 |
| Total assets | $121,535 |
| Unearned premiums | 26,822 |
| Loss and loss adjustment expense reserves | 42,105 |
| Other liabilities | 10,267 |
| Debt | 6,896 |
| Total liabilities | 86,090 |
| Shareholders’ equity | 35,445 |
| Total liabilities and shareholders’ equity | $121,535 |
| Common shares outstanding | 586.4 |
| Common shares repurchased in the current month | 14,587 |
| Average cost per common share | $242.04 |
| Book value per common share | $60.45 |
| Trailing 12-month return on average | |
| common shareholders’ equity | |
| Net income | 35.9% |
| Comprehensive income | 37.1% |
| Net unrealized pretax gains (losses) on | $249 |
| fixed-maturity securities | |
| Increase (decrease) from the previous month | $-40 |
| Increase (decrease) from December 2024 | $2,039 |
| Debt-to-total capital ratio | 16.3% |
| Fixed-income portfolio duration | 3.4 |
| Weighted average credit quality | AA- |
