Progressive Q1 Earnings Show 10% Profit Growth and Strong Auto Premium Gains

Progressive reported a 10% increase in net income for Q1 2025 compared to the same period in 2024, reaching nearly $2.6 billion. Earnings per share rose by 43 cents, reflecting solid profitability. The company’s direct personal lines auto insurance revenue increased by 25%, totaling nearly $14.8 million, signaling strong growth in this segment.

The insurer’s combined ratio improved slightly to 86%, down from 86.1% in Q1 2024, indicating that premiums collected exceeded claims and operating costs. Progressive’s premiums earned increased 20%, with written premiums up 17%, demonstrating expansion in its underwriting activity. Despite higher expenses from technology and AI investments, the company maintained operational efficiency.

Progressive has been investing heavily in technology and AI to enhance claims automation and risk pricing accuracy. These efforts led to a 41% increase in underwriting expenses, reaching $2.7 billion, which outpaced premium growth. Consequently, the expense ratio rose to 20.2% from 18.3% in the prior year. However, the improved loss performance offset these costs, sustaining overall profitability.

In the U.S. auto insurance market, Progressive remains the second-largest personal auto insurer. According to the National Association of Insurance Commissioners (NAIC), the top 10 private passenger auto insurers commanded nearly 76% of the market with $865.5 billion in direct premiums earned for 2024.

NAIC’s market share data includes countrywide direct written premiums for the top 25 groups, based on filings made by March 31. More detailed 2024 market share reports are expected to be released by NAIC during the summer.

Progressive has scheduled a Q1 investor event for May 6, with an annual shareholders’ meeting set for May 9. These events will likely provide further insights into the company’s performance and strategic direction.