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Investing.com -- Progressive Corp. (NYSE:PGR) reported second quarter earnings that significantly exceeded analyst expectations, driving shares up 4.3% as investors responded positively to the company’s strong profitability.
The insurance giant posted adjusted earnings per share of $5.40 for the quarter ended June 30, 2025, handily beating the analyst estimate of $4.36 by $1.04. Revenue came in at $20.08 billion, slightly below the consensus estimate of $20.48 billion, but representing a 12% increase YoY from $17.90 billion in the same quarter last year.
Progressive’s combined ratio, a key measure of underwriting profitability where lower numbers indicate better performance, improved significantly to 86.2% for the quarter, down 5.7 percentage points from 91.9% in the same period last year.
The company reported net income of $3.18 billion for the quarter, more than doubling the $1.46 billion reported in the second quarter of 2024, representing a 118% increase.
Progressive’s policy growth remained robust across all segments, with personal auto policies showing particularly strong gains. Agency auto policies increased 16% to 10.42 million, while direct auto policies grew 21% to 15.25 million compared to the prior year. Total (EPA:TTEF) policies in force across all lines increased 15% YoY to 37.32 million.
The company also reported $387 million in pretax net realized gains on securities for the quarter, compared to a loss of $127 million in the same period last year.
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