The Progressive Corporation PGR reported earnings per share of $2.47 for May 2026, which jumped 36% year over year. The improvement stemmed from higher revenues and an increase in investment income, partially offset by a rise in expenses.
May Numbers in Detail
Progressive recorded net premiums written of $7 billion, up 6% from $6.6 billion in the year-ago month. Net premiums earned were about $7.3 billion, up 10% from $6.7 billion reported in the year-ago month.
Net realized income on securities was $215 million, which increased 2% from the year-ago month.
Combined ratio — the percentage of premiums paid out as claims and expenses — improved 480 basis points (bps) year over year to 82.1.
PGR’s total revenues were $8 billion, up 9.4% year over year, owing to a 9.6% increase in premiums, a 13.2% jump in investment income, a 2% increase in fees and other revenues, and 11.3% higher service revenues.
Total expenses increased 3.6% to $6.2 billion, mainly due to higher losses and loss adjustment expenses, policy acquisition costs, other underwriting expenses, service expenses and interest expense.
In May 2026, policies in force (PIF) were impressive for both Vehicle and Property businesses. In the Vehicle business, the Personal Auto segment recorded an 8% year-over-year increase to 38.7 million policies. Special Lines policies increased 7% from the year-earlier month to 7.2 million.
In Progressive’s Personal Auto segment, Agency Auto PIF increased 8% to 11.1 million, while Direct Auto improved 11% to 16.7 million.
PGR’s Commercial Auto segment policies rose 3% year over year to 1.2 million.
The Property business had 3.6 million policies in force in the reported month, up 1% year over year.
The company’s book value per share was $58.11 as of May 30, 2026, up 10.1% from $52.77 on May 30, 2025.
In the trailing 12 months, the return on equity was 35.4%, having contracted 770 bps from 43.1% in May 2025. The debt-to-total-capital ratio deteriorated 170 bps year over year to 19.9 as of May 30, 2026.
Price Performance
Progressive shares have lost 21.5% in the past year against the industry’s growth of 0.9%.
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Zacks Rank
Progressive currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks from the insurance industry are First American Financial Corporation FAF, Mercury General Corporation MCY and The Hanover Insurance Group, Inc. THG. While FAF and MCY sport a Zacks Rank #1 (Strong Buy) each, THG carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
First American’s earnings surpassed estimates in each of the last four quarters, with an average surprise of 22.01%. Shares of FAF have jumped 17.3% in the past year. The Zacks Consensus Estimate for FAF’s 2026 and 2027 earnings implies year-over-year growth of 12.5% and 5.4%, respectively.
Mercury General’s earnings surpassed estimates in each of the last four quarters, the average surprise being 61.76%. Shares of MCY have jumped 61.4% in the past year. The Zacks Consensus Estimate for MCY’s 2026 earnings implies year-over-year growth of 44%.
The Hanover Insurance’s earnings surpassed estimates in each of the last four quarters, the average surprise being 28.54%. Shares of THG have jumped 19.6% in the past year. The Zacks Consensus Estimate for THG’s 2026 and 2027 revenues implies year-over-year growth of 4.7% and 4.8%, respectively.
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The Progressive Corporation (PGR): Free Stock Analysis Report
First American Financial Corporation (FAF): Free Stock Analysis Report
The Hanover Insurance Group, Inc. (THG): Free Stock Analysis Report
Mercury General Corporation (MCY): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).