P&C Insurance: UBS Evidence Lab inside: Mutuals/Reciprocals Accelerate Ad Spend Growth

Research evidence excerpt

P&C Insurance: UBS Evidence Lab inside: Mutuals/Reciprocals Accelerate Ad Spend Growth

Powered by Lab Global8 JulyResearch2026ab Evidence UBS YES

P&C Insurance Equities

AmericasUBS Evidence Lab inside: Mutuals/Reciprocals

Accelerate Ad Spend Growth Insurance

Brian Meredith

Analyst

brian.meredith@ubs.com

Digital Ad Spend up y/y for all players +1-212-713 2492

Our UBS Evidence Lab US Digital Advertising Spend Monitor (> Access Dataset) suggests Leandro Leite

marketing spend across personal auto insurers remains elevated. Among the insurers Associate Analyst

under our coverage, GEICO and Progressive posted more modest y/y increases in May leandro.leite@ubs.com

2026, with spending up +7% and +3%, respectively. In contrast, Allstate (ALL) increased +1-212-882 5559

digital advertising spend by +21% y/y. Among private competitors, ranked by market Justin Tucker

share, State Farm Auto's spending increased +43% y/y, while USAA Insurance and Associate Analyst

Liberty Mutual Auto grew +39% y/y and +72% y/y, respectively. Notably, mutuals/ justin.tucker@ubs.com

reciprocal competitors appear to be accelerating spending at a much faster pace +1-212-713 2325

recently, with most posting double-digit growth rates, while Progressive and GEICO

have remained comparatively more disciplined, increasing spend by mid to high-single

digits y/y. We continue to view elevated advertising spend as evidence of an increasingly

competitive market environment. Marketing spend has historically shown a positive

correlation with policies-in-force (PIF) growth, particularly for direct-to-consumer

carriers, as it supports new business generation and customer acquisition.

What to expect from PGR results in June 2026?

Progressive is scheduled to report its June 2026 monthly results on July 17th. We