WEST PALM BEACH, Fla. — Progressive's insurance profits are now reaching a point where state regulations in Florida may force the insurer to return some money to auto policyholders.
The insurer's third-quarter income reportedly is over $2.5 billion, and nearly $1 billion is being set aside for policyholders.
WATCH BELOW: Progressive profits may lead to cash back for policyholders
"There is regulation that limits that profit, and that's a good thing for consumers," Robert Norberg of Arden Insurance in Lantana said. "All of that is now appearing to kick in, so they have to roll back the money."
A statement from the Florida Office of Insurance Regulation states the following:
"If excess profits are found, our regulatory team works together with our legal team to draft a consent order which orders the company to return the excess profits to policyholders…"
The money — either a check or a policy credit — is slated to go to Progressive personal auto policyholders who are active clients as of Dec. 31, 2025, according to paperwork filed with the SEC.
"It's going to compare to whatever their policy was. So, it won't be, 'Let's just give out the money to everyone.' It'll vary by client," Norberg said.
A Progressive spokesperson sent WPTV the following statement regarding the credits:
"Progressive strives to match price to risk as closely as possible and regularly adjusts rates to ensure we remain appropriately priced for the risk we insure. In the past year, on two separate occasions, Progressive meaningfully reduced rates for Florida personal auto policyholders. Since Florida insurance reforms were enacted in early 2023, we have had lower than anticipated loss severity and frequency in this market. Despite our ongoing actions to match price to risk, Progressive currently estimates that it will exceed the statutory profit limit that a Florida statute imposes for this specific line of business and is preparing to return excess profit to our Florida personal auto policyholders, consistent with Progressive’s goal to deliver sustainable value to our customers and comply with Florida regulations.
Progressive currently expects Florida personal auto policyholders active as of December 31, 2025, will receive a credit in 2026. The actual credit amount for each policyholder will vary in proportion to each auto policy’s earned premium during calendar year 2025 and will depend on final year-end financial results for 2025. As of September month end, Progressive has approximately 2.7 million active personal auto policyholders in Florida."
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