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Investing.com -- Progressive Corporation reported third-quarter earnings and revenue that fell short of analyst expectations, sending shares down 4.3% in premarket trading as investors reacted to the insurance giant’s disappointing results.
The Ohio-based insurer posted adjusted earnings per share of $4.45 for the quarter ended September 30, missing the analyst consensus of $5.05 by a significant margin. Revenue came in at $21.38 billion, below the $21.8 billion analysts had expected, though it represented a 10% increase from the $19.46 billion reported in the same quarter last year.
Progressive’s combined ratio deteriorated to 89.5% for the quarter, up 0.5 percentage points from 89.0% in the year-ago period. The September monthly combined ratio was 100.4%.
The company reported growth in policies in force, with personal auto policies increasing 13% in its agency channel and 17% in its direct channel compared to the same period last year. Total policies in force grew 12% year-over-year to 38.1 million.
Net income for the quarter rose 12% YoY to $2.62 billion, despite the September monthly net income dropping 48% compared to the same month last year. The company’s special lines and property segments showed modest growth, with policies increasing 8% and 6% respectively.
Progressive’s commercial lines segment, which includes business auto insurance, saw a 6% increase in policies in force compared to the third quarter of 2024.