PGR · 10-Q · 2026Q3 · Full report

Combined Ratio Performance

PROGRESSIVE CORP/OH/ · 2026-11-02 · Importance 37 · Surprise 32 · In source text

The companywide underwriting profit margin increased to 11.3% in third-quarter 2026 from 10.5% a year earlier, and the combined ratio improved 0.8 points to 88.7%. The 4.5-point decline in the underwriting expense ratio primarily reflected the absence of $950 million of Florida policyholder credits recorded in third-quarter 2025, which had added 4.6 points to that period’s expense ratio. The improvement was partly offset by a 3.7-point increase in the loss and LAE ratio, primarily from higher severity; catastrophe losses were also higher for the quarter. Personal Lines’ margin rose to 12.0% from 10.5%, while Commercial Lines’ margin fell to 7.4% from 10.8% as its loss and LAE ratio increased 4.5 points.

Key facts

• During the first nine months of 2026, Progressive experienced $1.3 billion of favorable personal-auto reserve development, primarily from lower-than-anticipated bodily-injury severity. source
• Progressive recorded $950 million of Florida policyholder credits in third quarter 2025; the credits contributed 4.6 points to the three-month and 1.6 points to the nine-month 2025 underwriting expense ratio. source
• Progressive’s companywide underwriting profit margin was 11.3% in third quarter 2026, above its 4% calendar-year underwriting profit goal. source
• Florida policyholder credits added 4.6 points to the third quarter 2025 underwriting expense ratio. source
• Companywide loss and LAE ratio increased 3.7 points for the third quarter and 1.5 points for the first nine months of 2026, primarily due to higher severity and, for the quarter, higher catastrophe losses, partly offset by greater favorable prior-year reserve development. source
• Progressive’s accident-year loss and LAE ratio was 3.9 points higher in third quarter 2026 and 2.1 points higher for the first nine months than in the comparable 2025 periods. source
• Progressive’s companywide underwriting profit margin was 11.3% in third quarter 2026 versus 10.5% in third quarter 2025; underwriting profit was $2,473 million versus $2,190 million. source
• Companywide underwriting profit margin in third quarter 2026 was 0.8 points higher year over year, reflecting a 4.5-point decrease in the underwriting expense ratio, partly offset by a 3.7-point increase in the loss and LAE ratio. source

Impact estimates