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Mar 31, 2025
Progressive Q1 2025 Earnings Report
Progressive posted solid first-quarter results with net income growth, despite investment losses.
Key Takeaways
Progressive reported strong Q1 results with solid underwriting profitability and growth in premiums across both personal and commercial lines. While investment losses dragged on total income, the company still achieved EPS of $4.37 and Adjusted EPS of $4.66.
Net income reached $2.567 billion, a 10% increase from the prior year.
EPS came in at $4.37, with adjusted EPS of $4.66 after accounting for investment losses.
Combined ratio remained strong at 86.0, showing solid underwriting discipline.
Net premiums written grew 17% YoY to $22.206 billion, driven by personal and commercial line expansion.
Revenue by Geographic Location
Forward Guidance
The company did not issue formal forward guidance but highlighted strong policy growth and underwriting stability despite investment volatility.
Positive Outlook
- Strong growth in personal auto policies, especially direct channel (+25% YoY).
- Combined ratio held steady at a strong 86.0%.
- Net income grew 10% year-over-year.
- Book value per share increased to $49.39.
- Return on equity remains robust at 34.2% TTM.
Challenges Ahead
- Realized investment losses of $212 million negatively impacted GAAP earnings.
- Equity portfolio return down -6.1% for the quarter.
- Commercial lines net premiums would have declined 1% without TNC contract renewal.
- Catastrophe losses increased in direct auto segment (net CAT ratio of 4.8%).
Historical Earnings Impact
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Avg. Return Before/After Earnings
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