Progressive Keeps Beating the Insurance Industry at Its Own Game. Can It Last?

Progressive continued to report strong underwriting margins and growth through Q1 2026.

As seen in the property and casualty insurer's April 2026 financials, a softening auto-insurance pricing cycle appears to be taking hold.

With shares still trading at a premium, it may be best to wait on the sidelines until green shoots of growth and Progressive's combined ratio emerge again.

Property and casualty (P&C) insurer Progressive (NYSE: PGR) continued to knock it out of the park in the first quarter. So, then, why has it underperformed other insurance stocks ? For instance, while Progressive shares are down over 23% in the last 12 months, Allstate shares are up nearly 12%.

While revenue and earnings growth has continued, it has slowed in recent quarters. There are also lingering concerns that a softening insurance market with increased competition, relaxed underwriting standards, and lower premiums, will eventually affect quarterly results.

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

For the first quarter, Progressive reported total revenue of $22.2 billion and net income of $2.8 billion, or around $4.81 per share. Underwriting margins came in at 13.6% . The company's combined ratio, which represents the percentage of premiums spent on claims and underwriting expenses, was 86.4. For comparison, most P&C insurers have combined ratios exceeding 90.

Progressive managed to deliver strong margins while continuing to grow its total number of policies in force. Over the past year, policies in force increased 9%, from 36.3 million to 39.6 million.