Progressive Reports 42% Profit Drop, 17% Premium Rise for March

Progressive Corporation reported strong growth in net premiums written and policies in force for both March and the first quarter of 2025, with premiums up 17% year-over-year and an 18% increase in total policies. Despite this growth, the company experienced a 42% decline in net income for March, totaling $522 million, largely attributed to higher claims and significant pretax net realized losses on securities. However, quarterly net income rose by 10% to $2.57 billion compared to the previous year, and earnings per share increased by 11% to $4.37. The combined ratio, a key measure of insurance profitability, worsened to 90.9 in March, indicating higher expenses relative to earned premiums, though the quarterly figure showed slight improvement. Analysts have revised their earnings estimates upward, suggesting positive expectations for the company's future performance. Progressive continues to expand its market presence across both personal and commercial lines, maintaining strong profitability metrics amid a challenging operating environment.