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Progressive net income fell 12% in July despite higher premiums
July net premiums rose 5% year over year to $7.44 billion, but a 1.5-point worsening in the combined ratio to 86.8 cut net income to $961 million.
Progressive reported July net premiums written of $7.44 billion, up 5% from $7.06 billion a year earlier, but net income fell 12% to $961 million, extending a decline for a second consecutive month, according to Insurance Business.
The insurer attributed the drop to underwriting performance, with the combined ratio rising to 86.8, a 1.5-point deterioration versus 85.3 in the same month last year. Earnings per share available to common shareholders also declined 11% to $1.65 from $1.85.
Progressive said its total policies in force reached 40.3 million as of July 31, up 7% year over year. Personal lines policies grew 7% to 39.07 million, led by direct auto policies up 9% to 16.8 million, while agency auto rose 7% to 11.28 million and commercial lines policies increased 4% to 1.24 million.
The company also reported a $47 million pretax net realized loss on securities in July, compared with a $79 million gain in July 2025, a swing that alone accounted for about $126 million of the year over year net income decline. The results include Progressive’s first full reporting period without personal lines president Pat Callahan, who announced his retirement in June after nearly 24 years in the role.