Progressive reports third-quarter profit down 3% YoY to $2.54 billion; Stock tanks -9%

The Progressive Corporation (PGR) said Wednesday in a regulatory filing that net income for September was $630 million, up from $305 million a year earlier.

Net income for the quarter ended Sept. 30 was $2.54 billion, down from $2.62 billion a year earlier. The stock declined over 9% in early trade on Wednesday.

Here's how the company did:

• Net income: $630 million for September vs. $305 million a year earlier; $2,542 million for the quarter vs. $2,615 million
• Earnings per share: $1.08 for September vs. $0.52 a year earlier; $4.37 for the quarter vs. $4.45
• Net premiums earned: $7,160 million for September vs. $6,827 million; $21,869 million for the quarter vs. $20,849 million
• Combined ratio: 90.0 for September vs. 100.4; 88.7 for the quarter vs. 89.5
• Total revenues, year to date: $68,989 million vs. $64,925 million a year earlier

The combined ratio measures losses and expenses against premiums earned, so a figure under 100 points to an underwriting profit.

Net premiums written rose 4% in the quarter to $22.3 billion from $21.4 billion a year earlier.

In September alone, net premiums written rose 2% to $7,255 million from $7,128 million.

Year-to-date net income was $8,671 million, up from $8,357 million a year earlier.

The 2025 year-to-date period included $950 million of policyholder credit expense. The 2026 period included none.

Pretax net realized losses on securities were $231 million in September, against gains of $138 million a year earlier.

For the quarter, pretax net realized losses on securities were $170 million, against gains of $295 million a year earlier.

The year-to-date net catastrophe loss ratio was 2.2. Total prior accident years development for the year to date was $1,536 million, according to the supplemental tables.

Policies in force totaled 40.5 million at the end of September, up 6% from 38.1 million a year earlier. Personal Lines accounted for 39.2 million of them.

By segment, the direct auto business posted a September combined ratio of 92.7. Agency auto was 88.6, and Commercial Lines was 90.8.

The total investment portfolio returned negative 1.5% in September and negative 0.3% year to date, against 6.1% for the same year-to-date period a year earlier.

Year-to-date common stock returns were 13.0%, against 13.8% a year earlier.

In September the company repurchased 969,262 common shares at an average cost of $207.92 per share, the release shows.

Book value per common share was $59.51 at Sept. 30. Shareholders' equity was $34,485 million, and the debt-to-total capital ratio was 19.6%.

The release contains no financial guidance for future results. The company said it has no additional commentary on September's results.

The company plans to file its quarterly report on Form 10-Q on Monday, Nov. 2. Its third-quarter investor conference call is scheduled for Tuesday, Nov. 3, at 9:30 a.m. Eastern, with CEO Tricia Griffith and CFO Andrew Quigg.

The company plans to release October results on Wednesday, Nov. 18, before the market opens.