Progressive’s combined ratio for the first nine months of 2023 was 97.2, just over a point higher than the company’s target of 96 and also above a 96.5 result the carrier posted for the same period in 2022.

Progressive reported the year-to-date underwriting result as part of its September earnings snapshot, also revealing a September combined ratio under 90 (89.7), and a third-quarter combined ratio of 92.4 across all lines of business. With net written premiums growing 20 percent in third-quarter 2023, compared to third-quarter 2022, Progressive’s companywide combined ratio improved 6.8 points.

A key contributor to the improvement is Progressive’s biggest business, the personal auto insurance segment, which Carrier Management estimates landed at about 91 for the third-quarter of 2023, compared to a breakeven result last year. (Note: Carrier Management calculated the third-quarter results for the personal, commercial and property business segments using information from Progressive’s July, August and September reports.)

Both the loss and expense ratio components of the auto combined ratio improved as premiums increased.

Personal lines premiums rose roughly 23 percent in the quarter as policies-in-force continued to grow in the low-teens, suggesting that the carrier continued to push for rate during the quarter as well.

Underwriting results in third-quarter 2023 are also better than results Progressive reported in second-quarter 2023, when nearly $0.5 billion unfavorable prior-year loss reserves marred results. (Related article: Progressive’s Q2 Worsens In Spite of Double-Digit Auto Premium Growth). According to the last three monthly reports, unfavorable development for prior accident years was only about $36.5 million for third-quarter 2023.

With all three of Progressive’s insurance businesses—personal auto, commercial lines, and property—generating third-quarter underwriting profits for 2023, and investment results turning around, Progressive reported bottom-line net income of $1.1 billion on for the third quarter and $1.9 billion for the first nine months. In 2022, third-quarter net income was only $124 million, and Progressive reported a net loss of $104.9 million for the first nine months last year.