10-QPeriod: Q1 FY2026

PROGRESSIVE CORP/OH/ Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 4, 2026For Securities:PGR

Summary

The Progressive Corporation (PGR) reported solid financial results for the first quarter of 2026, showcasing strong growth in net premiums written and policies in force. The company achieved a companywide underwriting profit margin of 13.6%, driven by robust performance in both its Personal Lines and Commercial Lines segments, which reported margins of 14.0% and 11.0%, respectively. Net income saw a significant increase year-over-year, supported by improved underwriting profit and higher net investment income. Despite an increase in advertising spend, Progressive maintained profitability due to growth in net premiums earned. The company also reported a substantial increase in its investment portfolio's fair value, though total comprehensive income decreased due to net unrealized losses on fixed-maturity securities, contrasting with gains in the prior year. Progressive's capital position remains strong, with total capital increasing due to retained earnings and debt issuances, while maintaining a conservative debt-to-capital ratio.

Financial Highlights

30 data points
Beta

Revenue

$22.19B

Net Income

$2.82B

12.7% Net Margin

EPS (Diluted)

$4.80

Total Assets

$122.21B

Cash & Equivalents

$162.00M

Free Cash Flow

$4.30B

Financial Statements
Beta
Revenue$22.19B
Interest Expense$70.00M
Net Income$2.82B
EPS (Basic)$4.81
EPS (Diluted)$4.80
Shares Outstanding (Basic)585.60M
Shares Outstanding (Diluted)586.90M

Key Highlights

  • 1Net premiums earned increased by 8% to $20.97 billion compared to the prior year's first quarter.
  • 2Companywide underwriting profit margin was 13.6%, with Personal Lines at 14.0% and Commercial Lines at 11.0%.
  • 3Net income rose to $2.82 billion, up from $2.57 billion in the prior year's first quarter.
  • 4Policies in force grew by 9% year-over-year to 39.6 million.
  • 5The investment portfolio's fair value stood at $94.1 billion, an increase from $83.7 billion at the end of Q1 2025.
  • 6Favorable prior year reserve development of $451 million contributed positively to underwriting results.
  • 7Progressive issued $1.5 billion in senior notes in March 2026 to fund general corporate purposes.

Frequently Asked Questions

Progressive's revenue growth was primarily driven by an 8% increase in net premiums earned, reaching $20.97 billion. This was supported by a 6% increase in net premiums written and a 9% rise in policies in force, indicating strong demand for its insurance products across both Personal and Commercial Lines.

Progressive increased its advertising spend by 20% year-over-year, totaling $1.5 billion in Q1 2026. This increase was offset by the growth in net premiums earned, which helped maintain a stable underwriting expense ratio. The company stated it will continue to invest in advertising as long as it is efficient and supports its profitability goals.

The fair value of Progressive's investment portfolio was $94.1 billion at March 31, 2026. While investment income increased, the total comprehensive income decreased due to net unrealized losses on fixed-maturity securities, driven by rising interest rates. Key risks include interest rate sensitivity, credit risk, and concentration risk, though the company actively manages these through diversification and maintaining a conservative credit quality rating.

Progressive's total capital increased to $40.4 billion at March 31, 2026, driven by comprehensive income and recent debt issuances. The company maintained a debt-to-total capital ratio of 20.7%, well within its policy limit. Capital is returned to shareholders through common share dividends and opportunistic share repurchases, with $478 million spent on repurchases in Q1 2026 to neutralize dilution and invest in under-leveraged capital.