Progressive's Q2 Earnings and Revenues Beat on Higher Premiums

Core Insights - The Progressive Corporation (PGR) reported a second-quarter 2025 earnings per share (EPS) of $4.88, exceeding the Zacks Consensus Estimate by 10.1% and reflecting an 84.1% year-over-year increase [1][8] - Operating revenues rose 19.5% year over year to $42.2 billion, driven by higher net premiums earned and significant increases in net investment income and service revenues [2] - The company achieved a net realized gain on securities of $387 million, a significant improvement from a loss of $127 million in the same quarter last year [3][8] Premiums and Policies - Net premiums written reached $20 billion, marking a 12% increase from $17.9 billion a year ago, while net premiums earned grew 18% to $20.3 billion, surpassing the Zacks Consensus Estimate of $20.1 billion [1][8] - Policies in force in the Personal Lines segment increased 16% year over year to 36.1 million, with notable growth in the Personal Auto segment [4] Financial Metrics - Progressive's book value per share was $55.62 as of June 30, 2025, up 39.5% from $39.85 a year earlier, and the return on equity improved to 43.6% from 40.2% [5] - The total debt-to-total capital ratio improved by 530 basis points to 17.5 [5] Expense Overview - Total expenses increased by 15.1% to $35.2 billion, driven by higher losses, policy acquisition costs, and other underwriting expenses [2]