PGR · 10-Q · 2026Q2 · Full report

Commercial Auto Pricing Mix

PROGRESSIVE CORP/OH/ · 2026-08-03 · Importance 31 · Surprise 32

Core commercial auto written premium per policy declined year over year as the impact of prior rate increases was offset by a shift in business mix and a greater proportion of six-month policies in contractor and business auto BMTs. Six-month policies produce about half the net premiums written of 12-month policies. Rates were relatively stable in the second quarter, resulting in a 1% aggregate rate increase year to date, and Progressive continues to evaluate rate needs. Policy life expectancy improved in for-hire specialty and for-hire transportation, supported by a mix shift toward BMTs with historically higher retention, moderation of rate increases, and payment and renewal reminders.

Key facts

• In core commercial auto (excluding TNC, FSP, and BOP), there was a shift to a greater mix of business market targets (BMT) with lower average written premiums and a greater mix of policies with 6-month terms in contractor and business auto BMTs, which negatively affected average premiums since 6-month policies have about half the amount of net premiums written as 12-month policies. source
• Core commercial auto products accounted for about 80% of our Commercial Lines segment net premiums written on a trailing 12-month basis, as of the end of the second quarter 2026. source