Progressive's Q1 Earnings Beat Estimates on Higher Premiums

The Progressive Corporation’s PGR first-quarter 2026 earnings per share of $4.96 beat the Zacks Consensus Estimate by 2.5%. The bottom line increased 6.7% year over year.

Behind the Headlines

Net premiums written were $23.6 billion in the quarter, up 6.5% from $22.2 billion a year ago. 

Net premiums earned grew 8% to $20.9 billion. The reported figure beat the Zacks Consensus Estimate by 1.5%. 

Operating revenues grew 8.2% year over year to $22.3 billion, driven by 8% higher net premiums earned, a 12.7% increase in net investment income, a 3.5% rise in fees and other revenues, and 13.5% higher service revenue. The top line missed the Zacks Consensus Estimate by 1.2%.

Total expenses rose 8.4% to $18.6 billion, attributable to 8% higher losses and loss adjustment expenses, a 5.6% increase in policy acquisition costs, a 12.1% rise in other underwriting expenses, and a 12% increase in service expenses.

Net realized loss on securities was $120 million, narrower than the loss of $212 million in the year-ago quarter.

Combined ratio — the percentage of premiums paid out as claims and expenses — deteriorated 40 basis points (bps) from the prior-year quarter’s level to 86.4.

March Policies in Force

Policies in force were solid in the Personal Lines segment, up 9% from the year-ago month’s figure to 38.3 million. Special Lines improved 7% to 7.1 million.

In the Personal Auto segment, Agency Auto increased 9% year over year to 11 million, while Direct Auto increased 12% to 16.5 million.

Progressive’s Commercial Auto segment policies rose 3% year over year to 1.2 million. The Property business had 3.6 million policies in force, up 2%.

Financial Update

Progressive’s book value per share was $54.82 as of March 30, 2026, up 11% from $49.39 as of March 30, 2025.

Return on equity in March 2026 was 35.2%, down from 39.3% reported in the year-ago period. The total debt-to-total capital ratio deteriorated 150 bps to 20.7.

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

The Travelers Companies, Inc. TRV is scheduled to report first-quarter 2025 results on April 16, before market open. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $6.89, suggesting an increase of 260.7% from the year-ago quarter’s reported figure.

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

RLI Corp. RLI is slated to report first-quarter 2025 results on April 22, after market close. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at 85 cents, suggesting a decrease of 7.6% from the year-ago quarter’s reported figure.

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

W.R. Berkley Corporation WRB is set to report first-quarter 2025 results on April 21, after market close. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $1.13, suggesting an increase of 11.8% from the year-ago quarter’s reported figure.

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

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research

Source Zacks-com