Progressive Smashes Q2 Earnings Estimates

Progressive (NYSE:PGR) reported a blowout second quarter, significantly surpassing Wall Street expectations on earnings and delivering robust policy growth across its key segments.

The company posted adjusted earnings per share of $5.40 for the quarter, topping analyst estimates by more than a dollar. The consensus had called for $4.36. Revenue came in slightly below expectations at $20.08 billion, compared to the forecasted $20.48 billion, but still reflected strong 12% growth from the same period last year.

A major highlight of the quarter was Progressive’s underwriting performance. The combined ratio improved to 86.2%, down sharply from 91.9% a year ago, signaling substantial gains in profitability. Net income more than doubled year-over-year, rising 118% to $3.18 billion from $1.46 billion in the second quarter of 2024.

Policy growth remained robust, particularly in the personal auto segment. Agency auto policies grew 16% to 10.42 million, while direct auto policies jumped 21% to 15.25 million. Across all business lines, Progressive’s total policies in force climbed 15% year-over-year to 37.32 million.