The Progressive Corporation reported another month of premium and policy growth in February 2026, but with a weaker underwriting margin than a year earlier.
For the month, net premiums written rose 5% year over year to $6.99 billion, from $6.68 billion in February 2025. Net premiums earned increased 8% to $6.53 billion, compared with $6.04 billion a year earlier, reflecting prior rate actions and expansion of the book.
Net income edged up 2% to $943 million, from $928 million in the prior‑year period. Earnings per share available to common shareholders rose to $1.61 from $1.58. Average diluted equivalent common shares were essentially unchanged at about 587 million.
On the investment side, Progressive reported total pretax net realized losses on securities of $5 million, a sharp improvement from a $110 million loss in February 2025, indicating a much smaller drag from market movements than in the prior period.
The combined ratio for February 2026 deteriorated to 85.7 from 82.6 a year earlier. While an 85.7 combined ratio remains favorable relative to a US property and casualty sector that only recently returned to underwriting profitability, the direction of travel will be of interest to analysts given the company's benchmark role in personal auto.
Industry data showed the broader US P&C market produced a $9.3 billion underwriting gain in Q1 2024, with the full‑year combined ratio expected to drop to about 98.5% as carriers recover from prior years of elevated loss costs.
Against that backdrop, Progressive’s sub‑90 combined ratio still marks outperformance, but the month‑on‑month softening suggests ongoing pressure from loss severity, weather or expense trends that will warrant further explanation in its full commentary.
Progressive continued to post strong volume gains across its core personal lines portfolio. Total policies in force as of Feb. 28, 2026, were 39.22 million, up 10% from 35.62 million a year earlier.
Personal lines policies in force rose to 38.03 million from 34.47 million, also a 10% increase. Within that, agency auto policies grew 10% to 10.96 million, up from 9.95 million, while direct auto policies climbed 14% to 16.38 million from 14.40 million, underscoring continued growth in the direct channel.
Special lines policies in force, covering segments such as motorcycles, boats and recreational vehicles, increased 7% to 7.04 million from 6.57 million. Property policies in force ticked up 3% to 3.65 million, compared with 3.56 million in February 2025.
Commercial lines also expanded, though at a slower pace, with policies in force up 3% to 1.19 million from 1.15 million.
Progressive's February figures come as US personal auto carriers continue to recalibrate after several years of elevated claim severities, supply chain disruption and inflation. Across the market, rate increases pushed through in 2022 to 2024 are now earning through, helping restore margins, but affordability and access remain pressure points for regulators and consumers, particularly in catastrophe- and litigation-exposed states.
For now, Progressive’s ability to grow policies in force at double‑digit rates while holding its combined ratio in the mid‑80s reinforces its position as one of the more profitable large US personal lines writers on a run‑rate basis. The higher combined ratio, however, indicates that even the sector’s better‑positioned carriers are not insulated from volatility in frequency and severity, and that further detail on loss trends, weather, and large‑loss experience will be key when Progressive releases its broader quarterly results.
