Progressive Reports 12% Policy Growth, $9B Premiums, 40% ROE and Sub-90 Combined Ratio
Progressive added 3.7 million policies in 2023, driving 12% personal vehicle policy growth and $9 billion net premiums written, lifting auto market share to 18.5%. The company posted almost $13 billion of comprehensive income, a 40% ROE, a sub-90 combined ratio and secured regulatory approval for 3.5:1 premiums-to-surplus leverage.
1. Policy Growth and Market Share
Progressive added almost 3.7 million new policies in 2023, led by a 12% increase in personal vehicle coverage. This growth drove net premiums written up by $9 billion and expanded private auto market share to approximately 18.5%.
2. Profitability and Investment Returns
Comprehensive income reached nearly $13 billion, yielding a 40% return on equity. Underwriting performance featured a combined ratio below 90%, while the $100 billion investment portfolio delivered over 7% total return with average credit quality of A- minus and duration near 3.5 years.
3. Capital Framework and Shareholder Returns
Regulators approved raising operating leverage to a 3.5:1 premiums-to-surplus ratio, freeing $1.6 billion of capital. Management declared a $13.50 per share variable dividend, increased share repurchases, and affirmed a goal to maintain a ≤96 combined ratio enterprise-wide.
4. Leadership Transition
Chief Financial Officer John Sauerland will retire in July, with Andrew Quigg named as his successor, ensuring continuity in capital management and financial strategy execution.