Progressive earnings jump 36% on premium growth
The insurer posted $2.47 a share in May, up from $1.81 a year earlier.
The auto and property insurer Progressive (PGR) reported a 36% surge in net income for May 2026, reaching $1.445 billion as premium growth accelerated and underwriting margins tightened. Earnings per share climbed to $2.47 from $1.81 a year earlier, marking the sharpest year-over-year increase in five quarters.
The results reflected a turn in underwriting discipline after a volatile start to the year. Net premiums earned rose 10% to $7.361 billion, outpacing the 6% growth in premiums written, as the company retained more business. The combined ratio improved 4.8 points to 82.1, reversing a deterioration in April that had pushed the measure to 90.2.
Direct auto drove the top line, with net premiums written up 9% after languishing near 3% growth in January. Policies in force for the segment grew 11% to 16.7 million, matching April’s pace. Personal Lines overall saw 8% growth in total policies, though property premiums slowed to 1% as catastrophe losses spiked. The net catastrophe loss ratio for Personal Lines Property jumped to 3.4 from 0.5 in April.
Commercial Lines softened, with net premiums written up just 3% and earned premiums falling 3% after a flat March. The segment’s combined ratio still improved to 75.7 from 90.4 in April, aided by lower loss ratios.
Investment results were mixed. Net unrealized losses on fixed-maturity securities widened to $901 million as of May 31, reversing gains from prior months. Book value per share rose to $58.11, up from $56.29 at the end of April, supported by a rebound in common-stock returns to 5.1%. The company repurchased 1.27 million shares at an average cost of $198.42, accelerating from 957,000 shares in April.
Progressive did not update full-year guidance. The company said it expects continued pressure in property lines but sees runway for auto pricing and retention.
Return on average common shareholders’ equity rose to 36.0% for the trailing 12 months, up from 35.1% at the end of April.