> ## Content Index > Fetch the complete content index at: https://www.bullished.co/llms.txt > Use this file to discover other available public pages before exploring further. # Progressive's Margin Rises To 11.3%, But A Year-Ago Florida Charge Does Much Of The Work - URL: https://www.bullished.co/progressives-margin-rises-to-11-3-but-a-year-ago-florida-charge-does-much-of-the-work-568700f3/ - Published: 2026-11-02T15:36:10.000Z - Updated: 2026-11-02T15:36:10.000Z - Description: Claim severity climbed and personal auto customers stayed 9% less time than a year earlier, even as the underwriting margin improved. - Author: Matteo Parrino - Tags: SEC Filings, PGR, Industry: Financials Progressive, the insurance holding company behind personal and commercial auto, home and recreational-vehicle coverage, posted a third-quarter underwriting margin of [11.3%, up from 10.5%](https://www.sec.gov/Archives/edgar/data/0000080661/000008066126000379/pgr-20260930.htm?ref=bullished.co) a year earlier. Its 10-Q, filed Monday, says the gain came partly from a $950 million Florida policyholder credit that depressed last year's base, while claims costs rose and customers left faster. ## A year-ago charge flatters the comparison The company's underwriting expense ratio fell 4.5 points, and the filing says that drop mainly reflects the Florida personal auto credits booked in the third quarter of 2025\. That expense added 4.6 points to last year's expense ratio. The loss and loss adjustment expense ratio rose 3.7 points to 68.1 from 64.4, which the company attributes mainly to higher severity, meaning the average cost per claim. Net income slipped $73 million from a year earlier, to $2.54 billion, and the combined ratio improved to 88.7 from 89.5. Severity in personal auto rose 4% for the quarter, with personal injury protection up 16%. ## Commercial margin drops 3.4 points Commercial Lines earned a 7.4% underwriting margin, down from 10.8% a year earlier. A 9% rise in net premiums written followed rate cuts in select states plus heavier advertising and agent incentives. Personal Lines margin rose to 12.0% from 10.5%. Policies in force reached 40.5 million, up 6%. ## Customers stay shorter, ad bill grows Both trailing three-month and 12-month personal auto policy life expectancy, the company's estimate of how long a new policy stays in force, fell 9% year over year. The [prior filing](https://www.sec.gov/Archives/edgar/data/0000080661/000008066126000308/pgr-20260630.htm?ref=bullished.co) showed an 8% decline on the 12-month measure. Progressive blames more shopping and competition, and to a lesser extent its business mix. Advertising spend was $1.6 billion, up 18%, and added 0.8 points to the expense ratio. Average written premium per policy fell 2% in personal auto because of rate decreases over the past year. The company calls retention one of its most important priorities. ## The $1.2 billion cash hit Operations generated $12.5 billion in cash for the first nine months, against $14.4 billion a year earlier. The company ties the decline mainly to the $1.2 billion of Florida policyholder credits paid in the first quarter of 2026. Progressive holds its third-quarter conference call Tuesday and plans to release October results on November 18, before the market opens. ### Sources - [10-Q Filing — Progressive (PGR)](https://www.sec.gov/Archives/edgar/data/0000080661/000008066126000379/pgr-20260930.htm?ref=bullished.co) — SEC EDGAR - [10-Q Filing — Progressive (PGR), Q2 FY2026 filed 2026-08-03 (comparison basis)](https://www.sec.gov/Archives/edgar/data/0000080661/000008066126000308/pgr-20260630.htm?ref=bullished.co) — SEC EDGAR - [Earnings release (8-K Item 2.02, pgr202609ex99earningsrelea.htm) — Progressive, filed 2026-10-14](https://www.sec.gov/Archives/edgar/data/0000080661/000008066126000367/pgr202609ex99earningsrelea.htm?ref=bullished.co) — SEC EDGAR - [The Progressive Corporation (PGR) Seasonal returns chart - Yahoo Finance](https://uk.finance.yahoo.com/quote/PGR/seasonality/?ref=bullished.co) — Yahoo Finance - [PROG Holdings, Inc. Q3 2026 Earnings Call Summary](https://finance.yahoo.com/markets/stocks/articles/prog-holdings-inc-q3-2026-170618253.html?ref=bullished.co) — Yahoo Finance - [Progressive Leasing LLC : Articles :: Law360](https://www.law360.com/companies/progressive-leasing-llc?ref=bullished.co) — law360.com - [PROG Holdings Stock Has Strong Quarter But Cuts Outlook And Expands Buyback](https://sg.finance.yahoo.com/news/prog-holdings-stock-strong-quarter-091735009.html?ref=bullished.co) — Yahoo Finance - [Brush Clearer Utility Right Of Way | SeasonalJobs.dol.gov](https://seasonaljobs.dol.gov/jobs/H-400-26294-315036?ref=bullished.co) — seasonaljobs.dol.gov ### More on Progressive - [Progressive's September Net Income Hits $630 Million, Up From $305 Million, As Quarter Profit Dips 3%](https://www.bullished.co/progressives-september-net-income-hits-630-million-up-from-305-million-as-quarter-profit-7951368c/) [All Progressive (PGR) coverage →](https://www.bullished.co/tag/pgr/)