Progressive's Underwriting Is Only Half the Story. Higher Rates Power the Rest.
Progressive is likely to benefit significantly from higher rates thanks to its float.
Overview
Progressive (NYSE: PGR) sells auto insurance. You have probably seen its ads. On the surface, that's the company's primary business. But it isn't the whole story. With interest rates looking likely to increase over the near term, investors are going to find the other half of the company's story, the float, increasingly interesting. Here's what you need to know.
In the first quarter of 2026, Progressive's premium income was nearly $21 billion. It had a combined ratio of roughly 86%. The combined ratio measures how much an insurance company pays to operate its business and to cover claims, and compares that to the premiums it collects. A number below 100% indicates that the company is operating at a profit. Progressive is doing quite well on the insurance front.
Image source: Getty Images.
Details
Source
Originally published at www.fool.com.