Progressive's Q2 Earnings Beat Estimates, Premiums Rise Y/Y
The Progressive Corporation’s PGR second-quarter 2026 earnings per share of $4.85 beat the Zacks Consensus Estimate by 3.2%. The bottom line, however, decreased 6.1% year over year.
Behind the Headlines
Net premiums written were $21.1 billion in the quarter, up 5% from $20.1 billion a year ago.
Net premiums earned grew 6% to $21.6 billion. The reported figure met the Zacks Consensus Estimate.
Net realized gains on securities were $604 million, up 56% year over year.
Combined ratio — the percentage of premiums paid out as claims and expenses — deteriorated 110 basis points (bps) from the prior-year quarter’s level to 87.1.
The Progressive Corporation Price, Consensus and EPS Surprise
The Progressive Corporation price-consensus-eps-surprise-chart | The Progressive Corporation Quote
June Numbers in Details
Operating revenues grew 2.5% year over year to $7.6 billion, driven by 2.1% higher net premiums earned, a 11.5% increase in net investment income, a 2% rise in fees and other revenues, and 6.7% higher service revenues. The top line missed the Zacks Consensus Estimate by 1.2%.
Total expenses rose 6.1% to $6.6 billion, attributable to 5.3% higher losses and loss adjustment expenses, a 0.6% increase in policy acquisition costs, a 12.5% rise in other underwriting expenses, and a 8.5% increase in service expenses.
June Policies in Force
Policies in force were solid in the Personal Lines segment, up 8% from the year-ago month’s figure to 38.9 million. Special Lines improved 7% to 7.3 million.
In the Personal Auto segment, Agency Auto increased 8% year over year to 11.2 million, while Direct Auto increased 10% to 16.7 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 1%.
Financial Update
Progressive’s book value per share was $59.05 as of June 30, 2026, up 6.2% from $55.62 as of June 30, 2025.
Return on equity in June 2026 was 32.5%, down from 43.6% reported in the year-ago period. The total debt-to-total capital ratio deteriorated 210 bps to 19.6.
Zacks Rank
PGR currently carries 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 will report second-quarter 2026 results on July 17, before market open. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $5.16, suggesting a decrease of 20.7% from the year-ago quarter’s reported figure.
TRV’s earnings beat estimates in the last four quarters.
Chubb Limited CB will report second-quarter 2026 results on July 21, after market close. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $6.60 per share, indicating an increase of 7.5% from the year-ago quarter’s reported figure.
CB’s earnings beat estimates in the last four quarters.
W.R. Berkley Corporation WRB will report second-quarter 2026 results on July 20, after market close. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $1.09, suggesting an increase of 3.8% from the year-ago quarter’s reported figure.
WRB’s earnings beat estimates in three of the last four reported quarters, while missing in one.
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The Progressive Corporation (PGR): Free Stock Analysis Report
The Travelers Companies, Inc. (TRV): Free Stock Analysis Report
Chubb Limited (CB): Free Stock Analysis Report
W.R. Berkley Corporation (WRB): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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