MAYFIELD VILLAGE, Ohio – The Progressive Corporation (NYSE:) reported third-quarter earnings that surpassed analyst expectations, driven by strong premium growth and improved profitability.
Progressive’s stock edged up 0.87% following the earnings release.
The insurance giant posted adjusted earnings per share of $3.97 for the quarter, beating the analyst consensus of $3.54 by $0.43. Revenue came in at $19.46 billion, topping estimates of $19 billion and marking a 25% increase YoY.
Progressive’s combined ratio, a key measure of underwriting profitability, improved to 89.0% in the third quarter, down from 92.4% in the same period last year. A lower combined ratio indicates better profitability.
The company saw significant growth in its personal lines business, with personal auto policies in force increasing 17% YoY to 22.8 million. Total policies in force across all segments grew 14% to 33.9 million.
“Our strong results reflect our continued focus on profitable growth and operational efficiency,” said Tricia Griffith, CEO of Progressive. “We’re pleased with the momentum we’re seeing across our business lines.”
Net income for the quarter more than doubled to $2.33 billion, compared to $1.12 billion in the same quarter last year. The company also reported $287.4 million in pretax net realized gains on securities, a significant improvement from the $149 million loss in the prior-year period.
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