PGR · 10-Q · 2026Q3 · Full report

Advertising Investment Strategy

PROGRESSIVE CORP/OH/ · 2026-11-02 · Importance 48 · Surprise 40

Companywide advertising costs were $1.6 billion in third-quarter 2026 and $4.5 billion for the first nine months, up 18% year over year in both periods. Advertising added 0.8 points to the third-quarter underwriting expense ratio and 0.7 points to the nine-month ratio, with premium growth partly offsetting the quarterly impact. The third-quarter non-acquisition expense ratio decreased 0.6 points in personal vehicle products, excluding policyholder credit expense, but increased 1.0 point in personal property and 0.7 points in core commercial auto. Management said it would continue advertising while customer acquisition remains at or below its target cost and the company remains on track for its profitability goal.

Key facts

• Progressive said it would continue investing in advertising to maximize growth while spending remains efficient and it remains on track to achieve its calendar-year profitability goal. source
• Companywide advertising costs were $1.6 billion for third quarter 2026 and $4.5 billion for the first nine months of 2026; advertising spend increased 18% for both periods and added 0.8 and 0.7 points to the expense ratio, respectively. source
• Third quarter 2026 advertising expense was $1.6 billion, 18% above third quarter 2025; higher spending added 0.8 points to the underwriting expense ratio year over year, partly offset by growth in net premiums earned. source
• Progressive said it would continue advertising to maximize growth while on track to achieve its profitability goal and acquiring customers at or below its target acquisition cost. source