Progressive Corp.

Strong Financial Performance and Growth: Progressive reported strong first-quarter results for 2025 with an impressive 86% combined ratio and over 20% year-over-year growth in personal auto new applications, surpassing last year's record. The company achieved near-record margins with increased policies enforced in various segments, reflecting strong market competitiveness and effective customer acquisition strategies.

Mixed Rate Adjustments: The company is strategically adjusting rates on a state-by-state basis, with an emphasis on maintaining stable rates for insureds. While some states saw rate increases, others experienced decreases. This dynamic approach allows Progressive to remain competitive while continuing its growth trajectory, with a focus on below-target acquisition costs.

Tariff Uncertainty and Its Impact: Management expressed concerns about the potential impact of tariffs on loss costs, necessitating a cautious approach to pricing decisions. Progressive's pricing team is actively modeling various scenarios related to tariffs and has emphasized agility in responding to changes in the market environment to mitigate associated risks.