Progressive (PGR) investor relations material

Executive summary

• Q1 2026 delivered extraordinary growth and profitability, with a companywide combined ratio of 86.4, a 13.6% underwriting margin, and net premiums written up 6% year-over-year.

• Personal auto market share rose 1.9 points to 18.6% in 2025, with policies in force up 9% and nearly one million new policies added in Q1 2026.

• Both Personal Lines and Commercial Lines segments delivered robust profitability, with Personal Lines achieving an 86.0 combined ratio and Commercial Lines at 89.0.

• Net income increased by $251 million year-over-year to $2.82B, and EPS rose to $4.80.

• The company is investing in technology, media, and product innovation to sustain growth and efficiency, while remaining vigilant about macroeconomic uncertainties and evolving industry dynamics.

Financial highlights

• Net premiums written reached $23.6B, up 6% year-over-year; net premiums earned were $21.0B, up 8%.

• Net income was $2.82B, up from $2.57B in Q1 2025; EPS was $4.80, up from $4.37.

• Book value per share increased to $54.82, and return on average common shareholders’ equity was 35.0%.

• Comprehensive income was $2.24B, down from $3.47B in Q1 2025 due to net unrealized losses on fixed-maturity securities.

• In Q1 2026, media spend increased by 20% year-over-year, the highest ever for a quarter, driving robust new business and higher conversion rates.

Outlook and guidance

• The company aims to continue rapid, profitable growth, targeting further market share gains and focusing on expanding in both personal and commercial lines.

• Expect continued investment in advertising and agent incentives to drive growth as long as media spend remains efficient.

• Plan to selectively increase availability of personal property products while maintaining disciplined risk selection.

• Anticipate modest rate increases in personal property through 2026; personal auto and commercial auto rates expected to remain stable.

• The macroeconomic environment, including fuel prices and inflation, is being closely monitored for potential impacts on loss costs and pricing.