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Investing.com -- The Progressive Corporation reported a rise in first-quarter profit highlighting continued growth in premiums, and firms’ expanding customer base.
Shares in the company rose 0.6% during premarket hours of trading on Wednesday.
Progressive reported net premiums written of $9.91 billion, reflecting a 10% increase year-over-year, driven by higher policy volumes and ongoing pricing actions. The company’s ability to grow its top line underscores strong demand across its insurance products.
The results come at a time when Progressive is facing heightened scrutiny over whether the auto insurer can sustain its market share gains as competition intensifies across the industry.
Progressive reported quarterly net income of $2.82 billion, also up 10% compared to the prior year, or net income per share of $4.80 for the quarter, compared to $4.37 net income per share from the year-ago quarter. However, it missed Wall Street estimates of earnings per share of $4.83.
The company continued to expand its customer base, with policies in force reaching 39.6 million, a 9% increase from last year, reinforcing its position as one of the leading personal auto insurers in the United States.
Progressive maintained profitability with a combined ratio of 88.8 for March and 86.4 for the first quarter. While both figures remain comfortably below 100—indicating underwriting profit—they suggest a slight increase in claims costs or expenses compared to earlier periods.
However, results were partially impacted by $218 million in pretax realized investment losses, reflecting ongoing volatility in financial markets.