PGR · 8-K · 20261014PR000367
Operating Expense Trends
PROGRESSIVE CORP/OH/ · 2026-10-14 · Importance 42 · Surprise 40 · No source text
Year-to-date other underwriting expenses increased 10% year over year to $9,253 million from $8,423 million, an $830 million increase exceeding the materiality threshold. Year-to-date policy acquisition costs increased 4% to $4,712 million from $4,522 million, while service expenses increased 9% to $437 million from $400 million. Interest expense increased 17% to $245 million from $209 million. Year-to-date policyholder credit expense fell to zero from $950 million in 2025.
Key facts
- For the month ended September 30, 2026, losses and loss adjustment expenses were $4,959 million, policy acquisition costs $528 million, and other underwriting expenses $1,066 million. source
- For September 2026, GAAP expense ratios by channel: Agency 19.2, Direct 22.2, Property 29.5, Personal Lines total 21.3, Commercial Business 17.8, Company total 20.8. source
- September 2026 companywide expense ratio: 20.8. source
- Year-to-date through September 30, 2026 companywide expense ratio: 20.3. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -21.0% | For the month ended September 30, 2026, losses and loss adjustment expenses were $4,959 million, policy acquisition costs $528 million,… |
| operating_income | negative | realized | -4.5% | For the month ended September 30, 2026, losses and loss adjustment expenses were $4,959 million, policy acquisition costs $528 million,… |
| operating_income | negative | realized | -2.2% | For the month ended September 30, 2026, losses and loss adjustment expenses were $4,959 million, policy acquisition costs $528 million,… |