Progressive's August Earnings Increase Y/Y on Higher Premiums

The Progressive Corporation PGR reported earnings per share of $2.07 for August 2025, which jumped 30% year over year. The improvement stemmed from higher revenues and a rise in investment income, partially offset by an increase in expenses.

August Numbers in Detail

Progressive recorded net premiums written of $7.2 billion, up 11% from $6.5 billion in the year-ago month. Net premiums earned were about $7 billion, up 18% from $5.9 billion reported in the year-ago month.

Net realized income on securities was $78 million, which declined 25% from the year-ago month.

Combined ratio — the percentage of premiums paid out as claims and expenses — improved 240 basis points (bps) year over year to 83.1.
PGR’s operating revenues were $7.5 billion, up 18% year over year, owing to a 17.8% increase in premiums, a 24% jump in investment income, a 13.2% rise in fees and other revenues and 19.1% higher service revenues.

Total expenses increased 14.4% to $6 billion, mainly due to higher losses and loss adjustment expenses, policy acquisition costs, other underwriting expenses, investment expenses, and service expenses.

In August 2025, policies in force (PIF) were impressive for both Vehicle and Property businesses. In the Vehicle business, the Personal Auto segment recorded an 18% year-over-year increase to 15.5 million policies. Special Lines policies increased 8% from the year-earlier month to 6.9 million.

In Progressive’s Personal Auto segment, Agency Auto PIF increased 14% to 10.5 million, while Direct Auto improved 18% to 15.5 million.
PGR’s Commercial Auto segment policies rose 26% year over year to 1.2 million.

The Property business had 3.6 million policies in force in the reported month, up 6% year over year.

The company’s book value per share was $59.97 as of Aug. 31, 2025, up 34.1% from $44.71 on Aug. 31, 2024.

In the trailing 12 months, the return on equity was 40.4%, having contracted 770 bps from 48.1% in August 2024. The debt-to-total-capital ratio improved 440 bps year over year to 16.4 as of Aug. 31, 2025.

Price Performance

Progressive shares have gained 1.7% year to date, compared with the industry’s growth of 7.1%.

Zacks Rank

Progressive currently carries a Zacks Rank #2 (Buy).

Stocks to Consider

Some better-ranked stocks from the insurance industry are Heritage Insurance Holdings, Inc. HRTG, The Travelers Companies, Inc. TRV and The Hanover Insurance Group, Inc. THG. While HRTG sports a Zacks Rank #1 (Strong Buy), TRV and THG carry a Zacks Rank #2 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Heritage Insurance’s earnings surpassed estimates in each of the last four quarters, the average surprise being 360.66%. Shares of HRTG have jumped 105.6% in the year to date. The Zacks Consensus Estimate for HRTG’s 2025 and 2026 earnings implies year-over-year growth of 103.98% and 1.22%, respectively. 

The Travelers’ earnings surpassed estimates in each of the last four quarters, the average surprise being 89.97%. Shares of TRV have jumped 14.2% in the year to date. The Zacks Consensus Estimate for TRV’s 2025 and 2026 revenues implies year-over-year growth of 15.3% and 4.8%, respectively.

The Hanover Insurance’s earnings surpassed estimates in each of the last four quarters, the average surprise being 29.77%. Shares of THG have jumped 13.1% in the year to date. The Zacks Consensus Estimate for THG’s 2025 and 2026 earnings implies year-over-year growth of 17.5% and 3.7%, respectively.

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

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