Progressive's Q2 Earnings and Revenues Beat on Higher Premiums

The Progressive Corporation’s PGR second-quarter 2025 earnings per share of $4.88 beat the Zacks Consensus Estimate by 10.1%. The bottom line increased 84.1% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Behind the Headlines

Net premiums written were $20 billion in the quarter, up 12% from $17.9 billion a year ago. 

Net premiums earned grew 18% to $20.3 billion. The reported figure surpassed the Zacks Consensus Estimate of $20.1 billion. 

Operating revenues increased 19.5% year over year to $42.2 billion, driven by 19% higher net premiums earned, a 29.3% increase in net investment income, an 18.9% rise in fees and 28% higher service revenues. The top line beat the Zacks Consensus Estimate by 96.4%.

The Progressive Corporation Price, Consensus and EPS Surprise

The Progressive Corporation price-consensus-eps-surprise-chart | The Progressive Corporation Quote

Total expenses increased 15.1% to $35.2 billion, attributable to 12% higher losses and loss adjustment expenses, a 17% increase in policy acquisition costs, a 31.5% surge in other underwriting expenses, and a 23.6% rise in service expenses.

Net realized gain on securities was $387 million versus a loss of $127 million in the year-ago quarter.

Combined ratio — the percentage of premiums paid out as claims and expenses — improved 570 basis points (bps) from the prior-year quarter’s level to 86.2.

June Policies in Force

Policies in force were solid in the Personal Lines segment, increasing 16% from the year-ago month’s figure to 36.1 million. Special Lines improved 9% to 6.8 million.

In the Personal Auto segment, Agency Auto increased 16% year over year to 10.4 million, while Direct Auto jumped 21% to 15.2 million.

Progressive’s Commercial Auto segment policies rose 6% year over year to 1.2 million. The Property business had 3.6 million policies in force, up 8%.

Financial Update

Progressive’s book value per share was $55.62 as of June 30, 2025, up 39.5% from $39.85 as of June 30, 2024.

Return on equity in June 2025 was 43.6%, up from 40.2% reported in the year-ago period. The total debt-to-total capital ratio improved 530 bps to 17.5.  

Zacks Rank

Progressive currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

RLI Corporation RLI is set to report second-quarter 2025 results on July 21, after market close. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at 75 cents, suggesting a decrease of 12.7% from the year-ago quarter’s reported figure.

RLI’s earnings beat estimates in three of the last four quarters, while missing in one.

Chubb Limited CB is slated to report second-quarter 2025 results on July 22, after market close. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $5.85 per share, indicating an increase of 8.7% from the year-ago quarter’s reported figure.

CB’s earnings beat estimates in each of the last four quarters.

W.R. Berkley Corporation WRB is set to report second-quarter 2025 results on July 21, after market close. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $1.03, suggesting a decrease of 0.9% from the year-ago quarter’s reported figure.

WRB’s earnings beat estimates in three of the last four quarters, while matched in one.

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This article originally published on Zacks Investment Research (zacks.com).

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