PGR · 10-Q · 2026Q3 · Full report

Catastrophe Reinsurance Program

PROGRESSIVE CORP/OH/ · 2026-11-02 · Importance 58 · Surprise 42 · In source text

In the second quarter of 2026, Progressive entered new per-occurrence excess-of-loss reinsurance contracts for personal property, with retentions of $300 million for a storm outside Florida and $75 million for a Florida storm. The program generally covers $1.9 billion of losses and allocated loss adjustment expenses, with additional coverage for a second or third hurricane; estimated Florida-specific coverage, including the Florida Hurricane Catastrophe Fund, reaches $2.2 billion. For claims occurring in 2026, the company also purchased a catastrophe aggregate excess-of-loss contract with a higher coverage limit than the 2025 program, covering named storms and other perils including wildfires, winter storms, and severe thunderstorms. Aggregate reinsurance program costs did not change materially year over year.

Key facts

• For 2026, Progressive entered a new catastrophe aggregate excess-of-loss contract for claims occurring in 2026, with a higher coverage limit than its 2025 program and coverage for named storms and other perils including wildfires, winter storms, and severe thunderstorms. source
• Progressive expects to remain a consistent purchaser of reinsurance as its business grows, although total coverage limits and per-event retentions will evolve. source
• Progressive’s per-occurrence personal-property catastrophe reinsurance has retention thresholds of $300 million for a storm outside Florida and $75 million for a storm in Florida. source
• Progressive’s personal-property per-occurrence reinsurance generally covers $1.9 billion in losses and ALAE, with additional substantial coverage for a second or third hurricane; coverage including Florida Hurricane Catastrophe Fund protection reaches an estimated $2.2 billion for Florida. source
• Progressive said the reinsurance types it purchased in the first half of 2026 were readily available and competitively priced, and aggregate reinsurance costs did not materially change year over year. source

Impact estimates