Progressive reported net income of $8.5 billion for 2024, more than double the $3.9 billion figure reported for 2023, with underwriting profit coming in well below the company’s annual target.
Executives of the Ohio-based insurer whose main business is personal auto insurance have often stated that the company’s annual goal is to grow as fast as it can while achieving a 96 combined ratio.
For the full year last year, Progressive’s combined ratio was 88.8, more than six points below the 2023 combined ratio of 94.9 and just over 7 points better than the targeted 96.
On the top line, premiums grew more than 20 percent last year, with personal auto premiums growing 24.3 percent—21 percent for agency auto and 27.1 percent for direct auto. Personal property and commercial premiums both grew more than 8 percent (8.0 percent for commercial and 8.5 percent for personal property).
The combined ratio for personal auto business for the year was around 88, with the combined ratio for agency auto alone improving 9 points to 86.1. The direct personal auto combined ratio improved 3 points to 89.7.
While Progressive’s earnings statement does not give a breakdown of underwriting results by line for the fourth quarter, the final quarter’s combined ratio remained below 90 and premium growth stayed up near 20 percent across lines.
Net income for the quarter also improved compared to the prior-year fourth quarter, jumping 18.5 percent to $2.4 billion.