Q3 2023 Results: Progressive Bucks the Trend with Higher Earnings

Progressive is one of the only insurers to issue its results on a monthly basis

Progressive, the third largest auto insurers in the U.S., after State Farm and GEICO, recently announced its third quarter 2023 financial results, showing an increase in earnings compared to the same period last year. These higher earnings contrasted favorably with other writers of personal lines reporting combined ratios of over 100%.

Some key takeaways from Progressive’s quarterly report are:

Net income was $1.07 billion, or $1.82 per share, in Q3 2023. This represents an increase from Q3 2022 when net income was $894.1 million, or $1.52 per share.

Net premiums written grew by 20% in Q3 2023 to $15.59 billion, ahead of analyst expectations. Premiums earned also increased 20% in the quarter.

Progressive’s combined ratio improved to 92.4% in Q3 2023 from 99.0 in Q3 2022. A lower combined ratio signals higher profitability for the insurer.

Policies in force were up 10% versus Q3 2022. Notably, the agency distribution channel increased policies by 14%, while the direct channel rose 10%.

Premiums written totaled $4.9 billion in September 2023, up from $4.01 billion in September 2022, continuing the growth trend.

The improved profitability and continued business growth for Progressive in Q3 reflects positive momentum for the insurer. Investors reacted favorably to the better-than-expected results, sending the company’s shares higher by 7.3% upon the midday announcement of Progressive results on October 13, 2022.