PGR · 10-Q · 2026Q2 · Full report

Loss Severity and Frequency

PROGRESSIVE CORP/OH/ · 2026-08-03 · Importance 49 · Surprise 32

Total incurred losses and loss adjustment expenses increased 7% year over year to $14.6 billion in the second quarter of 2026 and increased 8% to $28.4 billion for the first six months. Personal auto incurred severity increased 7% year over year for bodily injury claims in both the quarter and year-to-date period. Total personal auto incurred frequency declined 2% in the quarter and 1% year to date, partially offsetting severity pressure. Trailing 12-month core commercial auto severity increased 5%, while frequency decreased 8%, compared with the prior-year period.

Key facts

• Strong underwriting profit margin in personal property was primarily driven by a low level of incurred catastrophe losses, lower loss frequency, and increased rates. source
• Change in total personal auto incurred severity: bodily injury +7% quarter and year-to-date; total severity increases shown as stable during first six months. source
• Trailing 12-month incurred severity in core commercial auto products increased 5% compared to the same period last year as of end of Q2 2026. source
• Change in total personal auto incurred frequency: total -2% quarter and -1% year-to-date; bodily injury -2% quarter and -2% year-to-date; collision -3% quarter and -1% year-to-date; property damage -3% quarter and -2% year-to-date. source
• Total loss and LAE ratio increased 0.6 points and 0.4 points for the three and six months ended June 30, 2026, respectively, versus same periods last year, primarily due to higher severity. source
• Accident year loss and LAE ratio was 1.6 points higher for Q2 2026 and 1.3 points higher for the first half of 2026 versus same periods last year. source