Progressive's Combined Ratio Widened to 87.1 Last Quarter. What That Says About the Growth Machine.
Progressive has had a good run, but further growth appears to require some trade-offs.
Overview
Progressive (NYSE: PGR) is an insurance company, so its revenue comes from two primary sources. The first is profitably selling insurance. The second is the income the company generates from managing the float. Right now, it looks like there's a trade-off being made after a period of very strong results. Here's what you need to know.
As an insurance company, Progressive collects premiums up front and pays out claims later. In between, it gets to invest the cash, which is known as the float, to generate income. This is a powerful business model, with the company's investment portfolio valued at over $97 billion as of the end of the second quarter of 2026. That portfolio generated $979 million in revenues for Progressive in the quarter.
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Originally published at www.fool.com.