Skip to the lesson
TryOwning · Big companies · Progressive
Ticket 1 of 8, 0 done

Progressive · 2025 report · 9 min

How insurance works

Drivers pay for car insurance hoping they'll never use it. We'll follow one insurer, Progressive, to see how a company makes money from crashes.

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Ticket 01 · The guessTable 1

Make a guess first

Progressive says it's the second-biggest car insurer in the US by premiums, and it's the one insurer this lesson follows. In 2025 drivers and businesses paid it $81.7Bsec.gov ·2025 for a year of coverage.

Then came the claims: crashes, stolen cars, hail. Out of every $100example (example number: Simplified example: a round amount of premiums, to show Progressive's averages.) customers paid, how much do you think was left after paying claims and running the company?

$30
$0$50
Words to know

Spot something wrong?

Tell us what looks off. No name or email needed.

What kind of problem?

0 / 1000

We'll also send this page, the lesson, ticket 1, so we can find it. Nothing else. Privacy

Sources and every number (3 sources)

Sources

  • The Progressive Corporation 2025 Annual Report to Shareholders (Exhibit 13 to the Form 10-K) · The Progressive Corporation (filed with the U.S. SEC), 2025
  • The Progressive Corporation Form 10-K for the fiscal year ended December 31, 2025 · The Progressive Corporation (filed with the U.S. SEC), 2025
  • The Progressive Corporation 2023 Annual Report to Shareholders (Exhibit 13 to the Form 10-K) · The Progressive Corporation (filed with the U.S. SEC), 2023

Every number

  • $81.7Bsec.gov ·2025 · Net premiums earned, 2025 (income statement).
  • $3.6Bsec.gov ·2025 · Investment income, 2025 (income statement).
  • $727Msec.gov ·2025 · Total net realized gains on securities, 2025 (income statement).
  • $1.7Bsec.gov ·2025 · Worked out: fees and other revenues plus service revenues, 2025 (income statement).
  • $87.7Bsec.gov ·2025 · Total revenues, 2025 (income statement).
  • $54Bsec.gov ·2025 · Losses and loss adjustment expenses, 2025 (income statement).
  • $6.1Bsec.gov ·2025 · Policy acquisition costs, 2025 (income statement).
  • $11.3Bsec.gov ·2025 · Other underwriting expenses, 2025 (income statement).
  • $1.2Bsec.gov ·2025 · Policyholder credit expense, 2025 (income statement).
  • $840Msec.gov ·2025 · Worked out: investment expenses, service expenses and interest expense, added together, 2025 (income statement).
  • $14.2Bsec.gov ·2025 · Income before income taxes, 2025 (income statement).
  • $2.9Bsec.gov ·2025 · Provision for income taxes, 2025 (income statement).
  • $11.3Bsec.gov ·2025 · Net income, 2025 (income statement).
  • $100example (example number: Simplified example: a round amount of premiums, to show Progressive's averages.) · Simplified example: a round amount of premiums, to show Progressive's averages.
  • $65.90sec.gov ·2025 · Applied to the example amount of premiums, from Progressive's 2025 underwriting results. The loss and loss adjustment expense ratio, as printed in the MD&A.
  • $21.50sec.gov ·2025 · Applied to the example amount of premiums, from Progressive's 2025 underwriting results. The underwriting expense ratio, as printed in the MD&A (fees are netted against costs).
  • $12.60sec.gov ·2025 · Applied to the example amount of premiums, from Progressive's 2025 underwriting results. The underwriting profit margin, as printed in the MD&A.
  • 95.3%sec.gov ·2025 · Combined ratio, 2021. Worked out: a hundred minus the underwriting margin in the Ten Year Summary.
  • 95.8%sec.gov ·2025 · Combined ratio, 2022. Worked out: a hundred minus the underwriting margin in the Ten Year Summary.
  • 94.9%sec.gov ·2025 · Combined ratio, 2023. As printed in the 2025 MD&A (Underwriting Performance).
  • 88.8%sec.gov ·2025 · Combined ratio, 2024. As printed in the 2025 MD&A (Underwriting Performance).
  • 87.4%sec.gov ·2025 · Combined ratio, 2025. As printed in the 2025 MD&A (Underwriting Performance).
  • 25.2%sec.gov ·2025 · Worked out: investment income divided by income before income taxes, 2025 (income statement).
  • 96%sec.gov ·2025 · Progressive's long-standing goal: grow as fast as it can at or below this companywide combined ratio (Item 1A).
  • $4sec.gov ·2025 · Worked out: the example amount of premiums minus Progressive's combined ratio goal applied to it (Item 1A).
  • $10.2Bsec.gov ·2025 · Pretax underwriting profit, 2025 (MD&A).
  • $5.1Bsec.gov ·2025 · Advertising costs, 2025 (notes to the financial statements).
  • $4Bsec.gov ·2025 · Advertising costs, 2024 (notes to the financial statements).
  • $1.6Bsec.gov ·2025 · Advertising costs, 2023 (notes to the financial statements).
  • 70,053 peoplesec.gov ·2025 · People employed at the end of 2025 (Ten Year Summary).
  • 38.6 millionsec.gov ·2025 · Policies in force at the end of 2025, Personal and Commercial Lines (MD&A).
  • $43.3Bsec.gov ·2025 · Loss and loss adjustment expense reserves at the end of 2025 (balance sheet).
  • $25.2Bsec.gov ·2025 · Unearned premiums at the end of 2025 (balance sheet).
  • $97.4Bsec.gov ·2025 · Total investments at the end of 2025 (balance sheet).
  • 50%sec.gov ·2025 · About this share of loss reserves is typically paid within the following twelve months (MD&A, liquidity).
  • $722Msec.gov ·2025 · Net income, 2022 (Ten Year Summary).
  • 98.3%sec.gov ·2025 · Personal property combined ratio, 2024 (MD&A, Underwriting Performance).
  • 75.1%sec.gov ·2025 · Personal property combined ratio, 2025 (MD&A, Underwriting Performance).
  • $2.5Bsec.gov ·2025 · Total catastrophe losses incurred, 2024 (MD&A).
  • $1.5Bsec.gov ·2025 · Total catastrophe losses incurred, 2025 (MD&A).
  • 13%sec.gov ·2023 · Aggregate personal auto rate increase taken during 2022, about (2023 MD&A).
  • 19%sec.gov ·2023 · Aggregate personal auto rate increase during 2023, about (2023 MD&A).
  • 48 statessec.gov ·2023 · States where Progressive raised personal auto rates during 2023 (2023 MD&A).
  • 21%sec.gov ·2023 · How much lower total advertising spend was in 2023 than in 2022 (2023 MD&A).
Sign in