Financial Data and Key Metrics Changes - Total revenues increased to $17.3 billion for the fourth quarter and $67.7 billion for the year [4] - Net income applicable to common shareholders was $3.8 billion for the quarter and $10.2 billion for the year [4] - Adjusted net income was $3.8 billion, or $14.31 per common share for the fourth quarter, and $9.3 billion for 2025, $34.83 per share [4] Business Line Data and Key Metrics Changes - Premiums earned increased 4.4% in auto insurance and 15% in homeowners insurance [17] - Auto policy growth was 2.3% and homeowners policy growth was 2.5% [17] - The auto combined ratio improved by 10 points compared to the prior year, while the homeowners insurance combined ratio was 84.4 [17][21] Market Data and Key Metrics Changes - The Protection Services segment grew policies in force by 3.3% to 172 million, while revenue increased 11.7% to $3.3 billion for the year [15] - Domestic revenue in the Protection Services segment increased 8.1% over the prior year quarter, while international revenue increased 39.7% [15] Company Strategy and Development Direction - Allstate's strategy focuses on increasing personal property-liability market share and expanding protection provided to customers [3] - The Transformative Growth initiative has lowered expenses and improved pricing models, allowing for competitive pricing [11] - New products like Affordable, Simple, Connected auto insurance are being rolled out to enhance customer value [12] Management's Comments on Operating Environment and Future Outlook - Management emphasized the need for regulatory changes to improve affordability for consumers, particularly regarding bodily injury claims [8][28] - The company is optimistic about its competitive position in both auto and homeowners insurance markets, citing growth potential [33] - Management highlighted the importance of maintaining strong underwriting performance and cost control to support future profitability [19][21] Other Important Information - Allstate returned $2.2 billion to shareholders through dividends and share repurchases in 2025, with a new $4 billion share repurchase program announced [24] - The company has increased its quarterly stock dividend by 8% to $1.08 per share [24] Q&A Session Summary Question: Regulatory and legislative changes regarding rate relief - Management acknowledged the complexity of predicting regulatory changes but expressed hope for improvements in affordability through legislative action [27][28] Question: Competitive landscape in auto and home insurance - Management noted that competition remains strong, with key players like Progressive, GEICO, and State Farm, but emphasized Allstate's differentiated products and pricing strategies [31][32] Question: Impact of legacy policies on auto PIF - Management confirmed that the reported figures include inactive brands and are focused on overall growth, not just active brands [44][45] Question: New business penalty trends - Management indicated that increased pricing sophistication has reduced the new business penalty, allowing for better profitability [54][56] Question: Growth in independent agents channel - Management highlighted significant growth in both direct and independent agent channels, driven by the Transformative Growth initiative [58][60] Question: Autonomous driving technology impact - Management views autonomous driving as a long-term trend that could reduce frequency of accidents but may increase severity due to higher repair costs [68][70]

Financial Data and Key Metrics Changes - Total revenues increased to $17.3 billion for Q4 2025 and $67.7 billion for the year, with net income applicable to common shareholders at $3.8 billion for the quarter and $10.2 billion for the year [4] - Adjusted net income was $3.8 billion, or $14.31 per common share for Q4, and $9.3 billion, or $34.83 per share for 2025, compared to $1.9 billion in 2024 [4] - The primary drivers of increased income included better underwriting losses, lower catastrophes, and reserve releases from prior years [4] Business Line Data and Key Metrics Changes - The Property-Liability business generated strong results, with premiums earned increasing by 4.4% in auto insurance and 15% in homeowners insurance [15] - Auto policy growth was 2.3% and homeowners policy growth was 2.5%, with the auto combined ratio improving by 10 points compared to the prior year [15] - Homeowners insurance recorded a combined ratio of 84.4, reflecting strong underlying performance and lower catastrophe losses [16] Market Data and Key Metrics Changes - The protection services segment grew policies in force by 3.3% to 172 million, with revenue increasing by 11.7% to $3.3 billion for the year [13] - Domestic revenue in the protection services segment increased by 8.1% year-over-year, while international revenue surged by 39.7% [14] - The auto insurance growth accelerated geographically, with 20 states growing policies by at least 4% and representing over 70% of countrywide written premium [18] Company Strategy and Development Direction - The company aims to increase personal property-liability market share and expand customer protection, focusing on affordability and operational excellence [3] - The Transformative Growth initiative has reduced the adjusted expense ratio by 6.6 points since 2018, allowing for competitive pricing while maintaining margins [10] - New products like the Affordable, Simple, Connected auto insurance have been introduced in multiple states to enhance customer value [11] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of addressing insurance affordability through cost reductions rather than profit increases, emphasizing the need for legislative changes to control costs [5][6] - The competitive landscape remains challenging, with key competitors being Progressive, GEICO, and State Farm, but the company believes its Transformative Growth strategy is effective in gaining market share [30][31] - Management expressed optimism about the future, citing strong growth potential in homeowners insurance and the effectiveness of new product offerings [32] Other Important Information - The company returned $2.2 billion to shareholders in 2025 through dividends and share repurchases, with a new $4 billion share repurchase program authorized [22] - The investment portfolio performed well, with net investment income rising to $3.4 billion, reflecting strong risk discipline and higher fixed income yields [20] Q&A Session Summary Question: Regulatory and legislative changes regarding rate relief - Management acknowledged the complexity of predicting regulatory changes but emphasized the need for cost reductions to improve affordability for consumers [25][26] Question: Competitive landscape in auto and home insurance - Management noted that competition is intense but believes their differentiated products and pricing strategies position them well in the market [28][30] Question: Impact of legacy policies on auto PIF - Management confirmed that the slide includes inactive brands and is focused on overall growth rather than just active brands [43][44] Question: New business penalty and its impact on margins - Management indicated that increased pricing sophistication has reduced the new business penalty, allowing for growth while maintaining target margins [53][54] Question: Capital priorities and share repurchase program - Management stated that the priority is to maximize shareholder returns through organic growth and share repurchases, with M&A being a secondary consideration [81][84] Question: Premium per policy trends and retention - Management clarified that while price impacts retention, they do not consider their retention weak and are actively working to improve it through initiatives like the SAVE program [91][92]

Group 1 - The article discusses an investigation opportunity for customers of State Farm, Travelers, and Progressive Homeowners Insurance [1] - Customers are encouraged to join the investigation into the practices of these insurers [1] - The investigation may reveal potential issues related to insurance claims and customer service [1]

Core Viewpoint - Progressive Corp reported better-than-expected fourth-quarter financial results, with earnings and sales surpassing analyst estimates [1] Financial Performance - Quarterly earnings were $4.67 per share, exceeding the analyst consensus estimate of $4.41 per share [1] - Quarterly sales reached $21.093 billion, surpassing the analyst consensus estimate of $20.101 billion [1] - Following the earnings announcement, Progressive shares rose 0.1% to $212.76 in pre-market trading [1] Analyst Ratings and Price Targets - BMO Capital analyst Michael Zaremski maintained a Market Perform rating on Progressive and lowered the price target from $239 to $232 [2] - Wells Fargo analyst Elyse Greenspan maintained an Equal-Weight rating and cut the price target from $240 to $220 [2]

Progressive Corp (NYSE:PGR) reported better-than-expected fourth-quarter financial results on Wednesday.Progressive reported quarterly earnings of $4.67 per share which beat the analyst consensus estimate of $4.41 per share. The company reported quarterly sales of $21.093 billion which beat the analyst consensus estimate of $20.101 billion.Progressive shares rose 0.1% to $212.76 in pre-market trading.These analysts made changes to their price targets on Progressive following earnings announcement.BMO Capita ...

Core Insights - Progressive Corporation reported strong financial results for the December quarter, with net income reaching $2.95 billion and earnings per share at $5.02, leading to a more than 2% increase in share price intraday following the announcement [1] Group 1: Financial Performance - Net premiums written increased to $19.51 billion for the quarter, indicating ongoing growth in the auto insurance sector [2] - The combined ratio improved to 88%, reflecting underwriting profitability as premiums collected exceeded claims and expenses [2] Group 2: Leadership Transition - The company announced a planned leadership transition, with Chief Financial Officer John Sauerland set to retire on July 3, 2026, and Andrew Quigg named as his expected successor [2]

Exhibit 99.1 PROGRESSIVE REPORTS DECEMBER RESULTS MAYFIELD VILLAGE, OHIO -- January 28, 2026 -- The Progressive Corporation (NYSE:PGR) today reported the following results for the month and quarter ended December 31, 2025: | (millions, except per share amounts and ratios; | | | | December | | | | | Quarter | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | unaudited) | | 2025 | | 2024 | Change | | 2025 | | 2024 | Change | | Net premiums written | $ | 6,313 | $ | 5,964 | 6 % | $ | 19,5 ...

Core Insights - The Progressive Corporation (PGR) reported fourth-quarter 2025 earnings per share (EPS) of $4.67, exceeding the Zacks Consensus Estimate by 5.2% and reflecting a year-over-year increase of 14.4% [1][7] - Operating revenues rose 10.6% year over year to $22.49 billion, surpassing the consensus estimate by 2.5% [1][7] Premiums and Revenue Growth - Net premiums written for the quarter reached $19.5 billion, an 8% increase from $18.1 billion a year ago [2] - Net premiums earned grew by 10% to $21 billion, exceeding the Zacks Consensus Estimate of $20.9 billion [2] - The net realized gain on securities was $257 million, a significant improvement from a loss of $53 million in the prior year [2] Expense and Combined Ratio Analysis - Total expenses increased by 13.5% to $73.4 billion, driven by higher losses, policy acquisition costs, and other underwriting expenses [4] - The combined ratio, which indicates the percentage of premiums paid out as claims and expenses, improved by 140 basis points to 87.4 [4] Full-Year Performance - For the full year, operating revenues grew 15.7% year over year to $86.9 billion, supported by a 15.3% increase in net premiums earned and a 26.5% rise in net investment income [3] - The company also reported a 12.4% increase in fees and other revenues, along with a 22% rise in service revenues [3] Policy Growth - Policies in force in the Personal Lines segment increased by 11% year over year to 37.4 million [5] - The Direct Auto segment saw a 14% increase to 16 million policies, while Agency Auto rose by 10% to 10.8 million [5] Financial Metrics - As of December 30, 2025, Progressive's book value per share was $51.74, an 18.4% increase from $43.67 a year earlier [6] - The return on equity was 40.1%, up from 36.4% in the previous year [6] - The total debt-to-total capital ratio improved by 270 basis points to 18.5 [6]

For the quarter ended December 2025, Progressive (PGR) reported revenue of $22.49 billion, up 10.6% over the same period last year. EPS came in at $4.67, compared to $4.08 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $21.94 billion, representing a surprise of +2.5%. The company delivered an EPS surprise of +5.1%, with the consensus EPS estimate being $4.44.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ...

Shares of The Progressive Corporation ( PGR ) have been a poor performer over the past year, losing about 16% of their value, and shares currently sit near a 52-week low. There has been significant concern that auto insurance profitability has peaked, and those fears wereOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a questio ...