Progressive Reports Strong Q1 2025 Growth Despite March Income Dip

The Progressive Corporation reported first quarter 2025 net income of $2.57 billion, up 10% from $2.33 billion in Q1 2024, despite a 42% year-over-year decline in March net income to $522 million. Earnings per share for the quarter rose 11% to $4.37 from $3.94.

Net premiums written increased 17% to $22.2 billion for the quarter, and net premiums earned grew 20% to $19.4 billion. These gains were driven by strong policy growth across both personal and commercial lines, with total policies in force rising 18% to over 36.2 million. Notably, direct auto policies increased 25% year-over-year.

March's combined ratio rose to 90.9 from 84.3 in the prior year, reflecting higher loss costs and catastrophe losses. However, the quarterly combined ratio remained stable at 86.0. Catastrophe loss ratios were elevated in March due to widespread severe weather.

Investment income for the quarter rose to $814 million, but total realized losses on securities reached $212 million, contributing to volatility in monthly income. Progressive recorded a comprehensive income of $3.47 billion for Q1 2025, up from $2.12 billion a year earlier, benefiting from a $899 million improvement in unrealized gains on fixed-maturity securities.

Book value per share climbed to $49.39, and the return on average equity over the trailing 12 months was 34.2% for net income and 39.3% for comprehensive income. Progressive repurchased 2.24 million shares during the quarter at an average cost of $276.25.

The company will hold its Q1 investor call on May 6, 2025, and plans to release April results on May 21.