Progressive's September Net Income Hits $630 Million, Up From $305 Million, As Quarter Profit Dips 3%
Third-quarter net income was $2,542 million versus $2,615 million, while policies in force rose 6% to 40.5 million.
Progressive's September net income more than doubled to $630 million from $305 million a year earlier, according to an 8-K filed Wednesday. For the full third quarter, net income slipped 3% to $2,542 million from $2,615 million.
What the results show
Per share, September earnings were $1.08 against $0.52. The quarter came in at $4.37 per share, versus $4.45 a year earlier, a 2% decline.
Underwriting stayed profitable. The combined ratio, where a reading under 100 means insurance operations made money, was 88.7 for the quarter against 89.5. September's was 90.0 against 100.4.
Pretax realized losses on securities were $170 million for the quarter, versus a $295 million gain a year earlier. For September alone, the line was a $231 million loss against a $138 million gain. The release does not tie the quarterly profit decline to those figures.
Net premiums written rose 4% in the quarter to $22,301 million, and net premiums earned rose 5% to $21,869 million.
Growth, investments and the balance sheet
Total policies in force reached 40.5 million at September 30, up 6% from 38.1 million. Direct auto grew 8% to 16.8 million policies, agency auto rose 7% to 11.3 million, and property was flat at 3.7 million.
The company's total investment portfolio returned negative 1.5% in September, and 0.3% negative for the first nine months of 2026, versus a 6.1% gain in the same period of 2025. For those nine months, net income was $8,671 million against $8,357 million.
Shareholders' equity was $34,485 million, and book value was $59.51 per common share. Progressive repurchased 969,262 shares in September at an average cost of $207.92.
Shares traded 4.89% lower at $211.98 in Wednesday pre-market trading, versus Tuesday's close of $222.88.
What to watch
Progressive plans to file its 10-Q on Monday, November 2. Its third-quarter investor call, with CEO Tricia Griffith and CFO Andrew Quigg, is scheduled for Tuesday, November 3, at 9:30 a.m. Eastern.
October results are due Wednesday, November 18, before the market opens.
