Progressive Issues Results on a Monthly Versus Quarterly Basis
Robust Premium Growth and Profitability
Progressive Corporation (NYSE: PGR) reported an 18% increase in net premiums written for January 2025, reaching $6.48 billion, compared to $5.50 billion in the prior-year period. Net premiums earned also saw a 22% jump to $6.59 billion.
The company posted a net income of $1.12 billion for the month, marking a 59% year-over-year increase. Earnings per diluted share rose to $1.90 from $1.18 in January 2024, while the combined ratio improved to 84.1%, down from 87.3% in the prior-year period.
Growth Across Business Segments
Progressive’s Personal Lines segment continued to drive overall growth, with policies in force increasing by 18% year-over-year to $34.2 million. The auto insurance segment experienced strong expansion, with Agency Auto policies rising by 18% and Direct Auto by 25%. The Special Lines and Property businesses also reported gains of 9% and 13%, respectively.
In the Commercial Lines segment, policies in force grew by 5% to $1.15 million. Net premiums written in Commercial Lines were flat at $769 million, impacted by a decline in transportation network company (TNC) business. Excluding TNC, the segment’s net premiums written would have increased by 2%.
Investment and Financial Performance
Investment income increased 35% year-over-year to $268 million, benefiting from higher yields and market conditions. The company recorded $109 million in net realized gains on securities, driven by a $115 million gain on holding period securities.
Comprehensive income for January totaled $1.28 billion, up 57% from the prior-year period, with an increase of $163 million in total net unrealized gains on fixed-maturity securities.
Underwriting and Loss Performance
Progressive’s loss and loss adjustment expense (LAE) ratio improved to 63.8%, compared to 65.5% in the prior year. The company reported a favorable development of $115 million on prior accident years. Catastrophe losses for January amounted to $43 million, primarily due to the California wildfires, with 72% of the losses attributed to personal property products.
The expense ratio improved to 20.3%, bringing the company’s combined ratio down to 84.1% from 87.3% a year earlier.
Balance Sheet and Capital Strength
Progressive ended January 2025 with $105.4 billion in total assets and shareholders’ equity of $26.8 billion. Book value per share increased to $45.75, reflecting strong earnings and investment performance. The company maintained a debt-to-total capital ratio of 20.4%, with a fixed-income portfolio duration of 3.3 years and an average credit quality of AA-.
