PGR · 10-Q · 2026Q2 · Full report
Catastrophe Reinsurance
PROGRESSIVE CORP/OH/ · 2026-08-03 · Importance 58 · Surprise 42 · In source text
During the second quarter of 2026, Progressive entered new per-occurrence excess-of-loss reinsurance contracts for its personal property business. The program retains $300 million for a storm outside Florida and $75 million for a storm in Florida, generally providing $1.9 billion of loss and allocated loss-adjustment-expense coverage, rising to an estimated $2.2 billion when Florida-specific coverage is included. Progressive also purchased a 2026 catastrophe aggregate excess-of-loss contract with multiple layers, a higher limit than the 2025 program, and coverage for named storms, wildfires, winter storms, and severe thunderstorms. Management expects to remain a consistent reinsurance purchaser and said the coverage was readily available and competitively priced in the first half of 2026.
Key facts
- Entered into new reinsurance contracts under per occurrence excess of loss program for personal property during Q2 2026. source
- Entered into a new catastrophe aggregate excess of loss reinsurance contract for claims occurring in 2026 that has multiple layers and provides a higher coverage limit than the 2025 program and covers named storms and other perils. source
- Progressive does not have catastrophe-specific reinsurance for personal auto or core commercial auto businesses. source
- Per occurrence excess of loss reinsurance program for personal property has retention threshold of $300 million for a storm outside Florida and $75 million for a storm in Florida, and generally includes coverage for $1.9 billion with estimated $2.2 billion coverage specific to Florida including FL Hurricane Catastrophe Fund. source
- Total net catastrophe losses incurred were $3.6 million (point 3.5?) and showed point impacts in tables — specifically total net catastrophe losses incurred $3.6 and point 3.5 for three months ended June 30. source
- On a year-over-year basis Progressive did not incur a material change in the aggregate costs of its reinsurance programs for the first half of 2026. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | committed | — | Entered into new reinsurance contracts under per occurrence excess of loss program for personal property during Q2 2026. |
| operating_income | positive | committed | — | Entered into a new catastrophe aggregate excess of loss reinsurance contract for claims occurring in 2026 that has multiple layers and… |
| operating_income | negative | contingent | — | Progressive does not have catastrophe-specific reinsurance for personal auto or core commercial auto businesses. |
| liability | positive | committed | — | Per occurrence excess of loss reinsurance program for personal property has retention threshold of $300 million for a storm outside… |