Progressive has announced plans to distribute up to $950 million in credits to Florida personal automobile policyholders, citing an absence of hurricane activity in 2025 and the effects of insurance reform enacted in 2023.
The insurer, which is the largest private passenger auto carrier in Florida, said it expects to notify eligible policyholders by the end of February. Credits will be issued shortly after notifications are sent.
The announcement follows signals from the company last year. During its second-quarter earnings report, Progressive's CFO cautioned that personal auto profits could exceed Florida's statutory limits in 2023, 2024, and 2025 if the Atlantic hurricane season remained quiet.
The company said at the time it had already developed an internal estimate of a potential refund.
The company said it is distributing the credits ahead of the timeline required under Florida's personal auto excess profits law. The amount is based on Progressive's personal auto profits in Florida from 2023 through 2025.
Policyholders who held active policies at year end will qualify for prorated credits based on premiums paid in 2025. Progressive said credits will first be applied to any outstanding balances on policyholder accounts.
For policies that are paid in full, the insurer said it would apply credits toward renewal offers. Any remaining balance would be directed to the policyholder's last payment source on file.
Progressive said it set aside $950 million for the expense during the third quarter of 2025. Despite the reserve, the company's net income rose 12% year-over-year to $2.62 billion.
The insurer noted that it had already reduced Florida personal auto rates in 2025 and could make additional adjustments going forward. In a statement, the company said it aims to align pricing with risk based on product characteristics and geography.
"Progressive strives to match rate to risk as closely as possible, specific to the characteristics of each product we offer and geography we serve," the carrier said.
Florida law requires private passenger auto insurers to report premiums, losses, adjustment expenses, loss development, and profits for each of the three most recent calendar accident years.
The state's enabling statute specifies that insurance rates "shall not be excessive, inadequate or unfairly discriminatory" and is intended to encourage reasonable price competition.
