Progressive's Q2 net income more than doubles, combined ratio improves to 86.2%

By Ashish Tiwari

(The Insurer) - Progressive reported a 118% increase in its quarterly net profit on Wednesday, along with strong premium growth and a 5.2 percentage point improvement in its combined ratio to 86.2%.

Progressive’s net income for the second quarter increased to $3.18 billion, or $5.40 per share, from $1.46 billion, or $2.48 per share, a year earlier.

Its combined ratio improved to 86.2% from 91.9% in the second quarter of 2024.

Total net premiums written rose 12% to $20.08 billion, while net premiums earned jumped 18% to $20.31 billion. Both personal and commercial lines achieved broad-based growth, led by direct auto policies, which climbed 21% year on year to more than 15.2 million.

Investment income also provided a boost, rising to $1.69 billion from $1.30 billion a year earlier, thanks to higher yields across its portfolio. The total return on Progressive’s investment portfolio reached 4.3%, compared with 1.7% last year.

The insurer reported catastrophe losses accounting for 3.2% of net earned premiums during the quarter, with nearly half of those related to severe weather in Texas.

New York-listed Progressive's share price was up 0.5% on Wednesday as of 10:15 a.m. ET (1415 GMT) compared to the prevoius day's closing price of $242.20.