Progressive Q3 Earnings Skyrocket as Combined Ratio Gets Closer to Goal

Progressive Corp. posted significant improvement in third quarter earnings late last week – with net income of $1.12 billion compared to $124.1 million a year ago during the same period.

Progressive gave a snapshot of it’s Q3 earnings in announcing September results. Net income for the month was $369.3 million, reversing a loss of $684.4 million during September 2022. The Mayfield Village, Ohio-based insurer has a scheduled earnings call on Nov. 1.

In September, Progressive’s combined ratio improved drastically to 89.7 from an unprofitable 116.2 during the month a year ago. The third quarter combined ratio stood at 92.4 from 99.2 in 2022, Progressive said, as net premiums written and earned each increased 20% to $15.6 billion and $14.9 billion, respectively.

Progressive President and CEO Tricia Griffith has said the company’s combined ratio goal is 96 for 2023.

The year-to-date net income was about $1.9 billion compared to a loss of about $105 million a year ago. Compared to the first none months of 2022, net premiums grew 20% to $46.4 billion. The combined ratio as of the end of September was 97.2.

Third quarter results build upon the insurer’s second quarter, when net income at Progressive Corp. was $345.4 million, reversing a loss of nearly $543 million during the same quarter in 2022.

According to a report from S&P Global Market Intelligence, since 2018 Progressive has raised homeowners rates 52% – more than any other top homeowners insurer.

At the start of the year, Griffith said Progressive started enacted rate increases quicker than competitors and “prioritized profit over growth with a focus on expense management, primarily our media budget, and continued rate level management.”

Topics Profit Loss