PGR · 10-Q · 2026Q2 · Full report

Competition and Customer Retention

PROGRESSIVE CORP/OH/ · 2026-08-03 · Importance 25 · Surprise 32

Progressive’s agency auto policy life expectancy declined year over year at the end of the second quarter of 2026, primarily because of increased customer shopping and marketplace competition, with billing-plan changes and business mix also contributing. In personal auto direct, new applications grew in 19 states, including five of the 10 largest direct states, while policies in force increased 6% to 11% across each consumer segment. Direct quote volume fell 7% in the quarter and 6% year to date, but conversion increased 9% in both periods, which management attributed primarily to marketplace competitiveness. Personal auto rates were relatively stable, producing minimal changes in written premium per policy, while direct policy life expectancy also shortened year over year.

Key facts

• Trailing 12-month total personal auto policy life expectancy decreased 8% year over year and trailing 3-month decreased 9% for the second quarter 2026. source
• Trailing 12-month policy life expectancy for personal property was down 8% year over year for the second quarter 2026. source
• Core commercial auto trailing 12-month policy life expectancy increased 2% year over year as of second quarter 2026. source
• During the second quarter and first six months of 2026, direct personal auto rate of conversion increased 9% in both periods, compared to the same periods last year. source
• For the second quarter and first six months of 2026, all consumer segments experienced a decline in quote volume and an increase in conversion, compared to the same periods in the prior year. source