One of the largest U.S. auto and home insurers, Progressive sells policies like car, motorcycle, and renters insurance both through tens of thousands of independent agents and directly online or by phone. Founded in 1937 by two Cleveland lawyers who spotted an opening while investigating door-to-door insurance salesmen, the company pioneered usage-based coverage with its Snapshot device that tracks driving habits to set rates.
Q2 2026 revenue rose 7.3% to $23.6B with diluted EPS of $5.67 as underwriting margin eased to 12.7%
slipped to 12.7% as higher severity and ad spend offset premium growth. rose 7.3% to $23.6B, rose 5.0% to $5.67, and rose 5.7% to $4,209.0M, with passing 40 million. The core franchise is still compounding, but margin pressure from loss costs is now visible.
Key takeaways
Companywide fell 1.1 points to 12.7% as the rose to 87.3%, driven by a 0.6-point loss-ratio increase from higher severity and a 0.5-point expense-ratio rise from a 16% increase in advertising spend.
rose 5% to $21.1B and surpassed 40 million, up 2.8 million from June 2025.
rose 7.3% to $23.6B and rose 4.3% to $3,311.0M, with at $5.67, up 5.0% and 18.1% from Q1 2026.
Section summaries
Management's Discussion and Analysis
Progressive's Q2 2026 underwriting margin was 12.7%, down 1.1 points YoY, driven by higher severity and ad spend, while net premiums written grew 5% to $21.1B.
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Companywide rose 5% to $21.1B, with surpassing 40 million, up 2.8 million from June 2025.
Personal Lines fell to 12.4% from 14.0% as a 5% premium increase was offset by higher loss costs, while Commercial Lines margin improved to 14.7% from 13.2% on a 3.6-point drop in its .
Total capital grew to $42.7B, boosted by $5.2B in and a $1.5B issuance, partially offset by $1.1B in ; rose 0.4% to $7,758.0M from Q1 2026.
Total fell $669M due to net on versus gains a year earlier, a non-cash swing outside underwriting.
What changed
FY2025 flagged Commercial Lines premium declines and Q1 2026 showed a 3% rise; Q2 2026 Commercial Lines margin improved to 14.7% from 13.2% with premium growth of 4%, reversing the prior softness.
FY2025 and Q1 2026 flagged after a 23.7% Q1 rise to $7,728.0M; Q2 2026 long-term debt was $7,758.0M, up 0.4% from Q1 and 23.3% , after another $1.5B issuance.
Q1 2026 flagged Q2 as ad spend reached $1.5B quarterly; Q2 rose 0.5 points on a 16% ad increase, with underwriting margin at 12.7% versus 13.8% a year earlier.
FY2025 watched 2026 hurricane-season property ratio after Q3 2025's 36.5% property margin; Q2 2026 MD&A notes personal property profitability improved on lower catastrophe losses, though no combined-ratio figure is given.
Risk factors restated the 2025 annual list with no material changes, so no new company-specific threat emerged this quarter.
What to watch
Q3 2026 as advertising spend stays elevated and higher severity continues to pressure the .
Commercial Lines premium growth after the 4% Q2 increase to see if the renewal timing reversal holds.
trajectory after two straight $1.5B issuances lifted it to $7,758.0M.
2026 hurricane-season Property after Q2's lower catastrophe losses and improved personal property profitability.
The increased 1.1 points to 87.3%, reflecting a 0.6-point rise in the loss ratio from higher severity and a 0.5-point rise in the expense ratio from a 16% increase in advertising spend.
Personal Lines' underwriting margin fell to 12.4% from 14.0%, as a 5% premium increase was offset by higher loss costs, while personal property profitability improved sharply on lower catastrophe losses.
Commercial Lines' margin improved to 14.7% from 13.2%, aided by a 3.6-point drop in its loss ratio, though premium growth was a modest 4%.
rose $136M on higher investment income, but total fell $669M due to on fixed-maturity securities versus gains last year.
Total capital grew to $42.7B, boosted by $5.2B in and a $1.5B senior note issuance, partially offset by $1.1B in share repurchases.
Quantitative and Qualitative Disclosures About Market Risk
The duration of the financial instruments held in our portfolio that are subject to interest rate risk was 3.5 years at June 30, 2026, compared to 3.4 years at June 30, 2025 and December 31, 2025. The weighted average beta of the equity portfolio was 1.1 at June 30, 2026 and 202…
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The duration of the financial instruments held in our portfolio that are subject to interest rate risk was 3.5 years at June 30, 2026, compared to 3.4 years at June 30, 2025 and December 31, 2025. The weighted average beta of the equity portfolio was 1.1 at June 30, 2026 and 2025, and December 31, 2025. We have not experienced a material impact when compared to the tabular presentations of our interest rate and market risk sensitive instruments in our Annual Report on Form 10-K for the year ended December 31, 2025.
There have been no material changes in the risk factors from those discussed in Item 1A, Risk Factors included in our Annual Report on Form 10-K for the year ended December 31, 2025.
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There have been no material changes in the risk factors from those discussed in Item 1A, Risk Factors included in our Annual Report on Form 10-K for the year ended December 31, 2025.