Underwriting Operations — Loss adjustment expenses
Progressive Underwriting Operations — Loss adjustment expenses increased by 2.1% to $1.89B in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 10.8%, from $1.70B to $1.89B. Over 3 years (FY 2022 to FY 2025), Underwriting Operations — Loss adjustment expenses shows an upward trend with a 15.7% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.
Analysis
How to read this metric
An increase relative to total losses may indicate rising legal costs or operational inefficiencies in the claims handling process.
Detailed definition
These are the costs associated with investigating, settling, and defending insurance claims. This includes both internal...
Peer comparison
Commonly reported as 'LAE' across the insurance industry; a key component of the overall expense ratio.
pgr_segment_underwriting_operations_loss_adjustment_expensesHistorical Data
| Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $1.16B | $1.16B | $1.16B | $1.16B | $1.37B | $1.37B | $1.37B | $1.37B | $1.47B | $1.60B | $1.66B | $1.70B | $1.68B | $1.76B | $1.85B | $1.89B |
| QoQ Change | — | +0.0% | +0.0% | +0.0% | +18.3% | +0.0% | +0.0% | +0.0% | +7.3% | +8.6% | +3.8% | +2.8% | -1.6% | +5.2% | +4.8% | +2.1% |
| YoY Change | — | — | — | — | +18.3% | +18.3% | +18.3% | +18.3% | +7.3% | +16.6% | +21.0% | +24.3% | +14.0% | +10.4% | +11.5% | +10.8% |
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Frequently Asked Questions
- What is Progressive's underwriting operations — loss adjustment expenses?
- Progressive (PGR) reported underwriting operations — loss adjustment expenses of $1.89B in Q4 2025.
- How has Progressive's underwriting operations — loss adjustment expenses changed year-over-year?
- Progressive's underwriting operations — loss adjustment expenses increased by 10.8% year-over-year, from $1.70B to $1.89B.
- What is the long-term trend for Progressive's underwriting operations — loss adjustment expenses?
- Over 3 years (2022 to 2025), Progressive's underwriting operations — loss adjustment expenses has grown at a 15.7% compound annual growth rate (CAGR), from $4.63B to $7.18B.
- What does underwriting operations — loss adjustment expenses mean?
- The administrative and legal costs incurred to process and settle insurance claims.