Progressive’s $950M in Florida Regurgitation to Mostly Be Credits in Renewals

Progressive’s insureds in Florida who held auto policies in 2023 and 2024, then switched to another carrier, may not qualify for a refund, despite a state law that measures excess profits over a three-year period.

Progressive officials said that the profit-regurgitation laws, Florida Statutes and , require refunds only for drivers with active policies as of Dec. 31, 2025, the South Florida Sun Sentinel newspaper .

The company revealed the excess auto profit in a filing this year with the U.S. Securities and Exchange Commission. With some $950 million in profits above the threshold dictated by Florida law, and more than 2.7 million policyholders in the state, the average refund is expected to be about $300.

The statute provides a formula to be used to calculate an auto insurer’s underwriting profits: “Excessive profit has been realized if there has been an underwriting gain for the 3 most recent calendar-accident years combined which is greater than the anticipated underwriting profit plus 5 percent of earned premiums for those calendar-accident years,” the Florida law reads.

Progressive representatives could not be reached Tuesday morning, but the Sun Sentinel reported that most of the regurgitation will come in the form of credits on 2026 policy renewals. If a driver has a zero balance with Progressive or their credit is greater than their next payment, a payment will be made to the customer via the same method the customer has used to pay premiums, a Progressive spokesperson told the newspaper.

If an insured cancels the policy or allows it to terminate, the insurer “shall make a cash refund not later than 60 days after termination of such coverage,” the law reads.

Progressive noted that the refunds will be provided only to active policyholders who held policies at the end of the year. Florida’s insurance commissioner said essentially the same in an Oct. 23 bulletin.

The statute speaks to current policyholders but does not mention previous customers: “The excessive amount shall be refunded on a pro rata basis in relation to the final compilation year earned premiums to the voluntary private passenger automobile policyholders of record of the insurer group on December 31 of the final compilation year.”

The refund or credit shall be treated as a policyholder dividend, applicable to the year in which it is incurred, for purposes of reporting for subsequent years, the statute notes.

Commissioner Yaworsky and Florida Gov. Ron DeSantis in early October Progressive’s excessive profits as another sign that 2022 and 2023 legislative reforms have eased litigation burdens for insurers, resulting in healthier bottom lines for many.

Topics Florida

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