What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2025-03-03 compared with 2024-02-26 · 195 added, 199 removed, 243 unchanged (62% of the section changed)

1 unchanged sentence

The Progressive Corporation, an insurance holding company, has insurance and non-insurance subsidiaries and affiliates (references in this Item to subsidiaries includes affiliates as well).

Our insurance subsidiaries write personal and commercial auto insurance, personal residential property insurance, business-related general liability and commercial property insurance predominantly for small businesses, workers’ compensation insurance primarily for the transportation industry, and other specialty property-casualty insurance and provide related services.

Our insurance subsidiaries write personal and commercial auto insurance, personal residential property insurance, and insurance for motorcycles, watercraft, and other recreational vehicles.

We also offer business-related general liability and commercial property insurance predominantly for small businesses, workers’ compensation insurance primarily for the transportation industry, and other specialty property-casualty insurance and provide related services.

Our non-insurance subsidiaries generally support our insurance and investment operations.

5 unchanged sentences

Description of Business

The management team that oversees the business and corporate functions that support all areas of our organization consists of the following:

Chief Executive Officer (CEO)

Our Chief Executive Officer (CEO) assesses performance and makes key operating decisions for our insurance, investment, and service operations and is supported by the following management team that oversees the business and corporate functions that support all areas of our organization.

Chief Executive Officer

• Chief Financial Officer

1 unchanged sentence

• Chief Investment Officer

• Property General Manager

• Chief Human Resources Officer

• Commercial Lines President

• Chief Information Officer

• Chief Human Resources Officer

• Claims President

• Chief Information Officer

• Customer Relationship Management President

• Chief Legal Officer

• Customer Relationship

• Chief Marketing Officer

Management President

• Chief Strategy Officer

3 unchanged sentences

Personal Lines

Our Personal Lines segment writes insurance for personal autos and recreational vehicles, which we refer to as our special lines products.

This business generally offers more than one program in a single state, with each program targeted to a specific distribution channel, market, or customer group.

As of December 31, 2023, we wrote our Personal Lines products in all states, however, our special lines products are not written in the District of Columbia.

The Personal Lines business accounted for 79% of our total net premiums written in 2023, 77% in 2022, and 78% in 2021.

The Personal Lines segment consists of personal auto and special lines products.

• Personal auto insurance represented approximately 94% of our total Personal Lines net premiums written in 2023, 2022, and 2021.

Our Personal Lines operating segment writes insurance for personal autos and special lines products (e.g., recreational vehicles, such as motorcycles, RVs, and watercraft), collectively referred to as our personal vehicle business, and, beginning in the fourth quarter 2024, personal residential property insurance for homeowners and renters.

The Personal Lines segment accounted for 85% of our total net premiums written in 2024, 84% in 2023, and 82% in 2022.

Our personal vehicle business generally offers more than one program in a single state, with each program targeted to a specific distribution channel, market, or customer group.

As of December 31, 2024, our personal vehicle products represented 95% of our total Personal Lines net premiums written, and 94% at the end of both 2023 and 2022.

We write our personal vehicle insurance in all states, however, our special lines products are not written in the District of Columbia.

• Personal auto insurance represented 95% of our total personal vehicle net premiums written in 2024, and 94% in both 2023 and 2022.

We ranked second in market share in the U.S.

1 unchanged sentence

There are approximately 240 competitors in this market.

Progressive and the other leading 15 private passenger auto insurers, each of which writes over $2.5 billion of premiums annually, comprise 84% of this market.

Progressive and the other leading 15 private passenger auto insurers, each of which writes over $2.5 billion of premiums annually, comprise about 85% of this market.

All industry data, including ranking and market share, based on premiums written, has been obtained directly from data reported by either SNL Financial or A.M.

2 unchanged sentences

Best data as the primary source.

• Special lines products, which include insurance for motorcycles, ATVs, RVs, watercraft, snowmobiles, and similar items, represented the remaining Personal Lines net premiums written for the years mentioned above.

• Special lines products represented the remaining personal vehicle net premiums written for the years mentioned above.

Due to the seasonal nature of these products, we typically experience higher losses during the warmer weather months.

1 unchanged sentence

Although industry figures are not available, based on our analysis of this market, we believe that we are the market share leader for both the motorcycle and boat products and that we are one of the largest providers of RV insurance.

In addition to writing residential property insurance for homeowners and renters, in virtually all states, our personal property business offers insurance for manufactured homes, personal umbrella insurance, and primary and excess flood insurance.

We also act as a participant in the “Write Your Own” program for the National Flood Insurance Program (NFIP) under which we write flood insurance in virtually all states;

100% of this business is reinsured with the NFIP.

Our personal property business represented 5% of our total Personal Lines net premiums written in 2024, and 6% in both 2023 and 2022, with about 95% of the total personal property net premiums written attributable to the homeowners and renters products.

We were the eleventh largest homeowners carrier in the U.S., based on 2023 premiums written, and we are currently unable to determine if we will hold that ranking for 2024.

There are approximately 360 competitors in the homeowners insurance market nationwide and we compete with many of these companies.

Progressive and the other leading 30 large companies/groups, each with over $800 million of premiums written annually, comprise about 80% of the market.

We tend to see more personal property business written during the second and third quarters of the year based on the cyclical nature of property sales.

Losses also tend to be higher during the warmer weather months when storms are more prevalent.

As a property insurer, we have exposure to losses from catastrophes, including hurricanes, and other severe weather events.

See Item 1A, Risk Factors – II.

Insurance Risks below for more information.

To help mitigate these risks, we enter into reinsurance arrangements.

See the “Reinsurance” section below for further discussion of our reinsurance programs.

Our Personal Lines strategy is to be a competitively priced provider of a broad range of personal auto, special lines, and personal property insurance products with distinctive service, distributed through whichever channel the customer prefers, and bundled with other products when appropriate to match our customers’ needs.

Volume potential is driven by our price competitiveness, the actions of our competitors, brand recognition, and quality service delivered through our dedicated employees who embody the Progressive culture, among other factors.

See “Competitive Factors” below for further discussion.

Our Personal Lines products are sold through both the agency and direct channels.

• The Agency business includes business written by our network of more tha n 40,000 independent insurance agencies located throughout the United States, including brokerages in New York and California.

Agency Distribution Channel

• The agency personal vehicle business includes business written by our network of more tha n 40,000 independent insurance agencies located throughout the U.S., including brokerages in New York and California.

T hese independent insurance agents and brokers have the ability to place business with Progressive for specified insurance coverages within prescribed underwriting guidelines, subject to compliance with our mandated procedures.

The agents and brokers do not have authority to establish underwriting guidelines, develop rates, settle or adjust claims, or enter into other transactions or commitments.

The Agency business also writes insurance through strategic alliance business relationships with other insurance companies, financial institutions, and national agencies.

The total net premiums written through the Agency channel represented 46% of our Personal Lines volume in 2023, 47% in 2022, and 48% in 2021.

• The Direct business includes business written directly by us on the Internet, through the Progressive mobile app, and over the phone.

The total net premiums written by the Direct business represented 54% of our Personal Lines volume in 2023, 53% in 2022, and 52% in 2021.

Our Personal Lines strategy is to be a competitively priced provider of a broad range of personal auto and special lines insurance products with distinctive service, distributed through whichever channel the customer prefers, and bundled with property insurance and other products when appropriate to match our customers’ needs.

See “Competitive Factors” below for further discussion.

We seek to refine our personal auto segmentation, underwriting models, and pricing over time, and we regularly elevate new product models.

At any one time, we could have multiple product models in the marketplace, as new versions are rolled out on a state-by-state basis.

Such new product models generally introduce new risk variables intended to improve its accuracy of matching rate to risk, increase our competitiveness, or make our products more attractive to specific market segments, among other enhancements.

We continue to provide customers in both the Agency and Direct channels the opportunity to improve their auto insurance rates based on their personal driving behavior through Snapshot ® , our usage-based insurance (UBI) program.

The agency personal vehicle business also writes insurance through strategic alliance business relationships with other insurance companies, financial institutions, and national agencies.

The total personal vehicle net premiums written through the agency channel represented 45% of our total personal vehicle volume in 2024, 46% in 2023, and 47% in 2022.

• Our personal property business is primarily written through the independent agency channel and through select agents under our Platinum program as part of our Destination Era strategy, discussed below.

The total personal property net premiums written through the agency channel represented 74% of our total personal property volume in 2024, 77% in 2023, and 75% in 2022.

Direct Distribution Channel

• The direct vehicle business includes business written directly by us online and over the phone.

The total net premiums written by the direct vehicle business represented 55% of our total personal vehicle volume in 2024, 54% in 2023, and 53% in 2022.

• Our direct personal property business is written by us over the phone and through HomeQuote Explorer ® (HQX), our multi-carrier, direct-to-consumers online personal property offering.

The HQX online buy button is available in almost every state.

In addition to being able to quote and purchase our personal property products on HQX, consumers are able to quickly and easily compare homeowners insurance online from Progressive and other carriers.

The total net premiums written by the direct personal property business represented 26% of our total personal property volume in 2024, 23% in 2023, and 25% in 2022.

We continue to provide personal auto customers in both the agency and direct channels the opportunity to improve their auto insurance rates based on their personal driving behavior through Snapshot ® , our usage-based insurance (UBI) program.

We offer Snapshot through our hardware-based and/or mobile-app versions in all states, other than California.

1 unchanged sentence

In addition to the personal benefits for our customers, the data collected via the mobile app affords us a unique perspective on vehicle operations, accidents, and mobile device usage.

Our updated auto product models, discussed above, often also include Snapshot enhancements intended to improve its accuracy and competitiveness and broaden its applicability.

Our updated personal auto product models, discussed below, often also include Snapshot enhancements intended to improve its accuracy and competitiveness and broaden its applicability.

We seek to refine our product segmentation, underwriting models, and pricing over time, and we regularly elevate new product models.

At any one time, we could have multiple product models in the marketplace, as new versions are rolled out on a state-by-state basis.

Such new product models generally introduce new risk variables intended to improve the accuracy of matching rate to risk, increase our competitiveness, and/or make our products more attractive to specific market segments, among other enhancements.

In January 2024, we started rolling out our latest personal auto product offering, model 8.9, which contains new and expanded usage of external data and new coverage features.

With the 8.9 model, we first introduced Progressive vehicle protection, a new car mechanical breakdown coverage that a customer can add to their Progressive personal auto insurance, for eligible vehicles, to help manage the cost of unforeseen vehicle repairs.

As of December 31, 2024, 17 states, that represented about 40% of both companywide personal auto premiums and total personal auto policies in force, are on model 8.9 and, overall, we are seeing favorable conversion results with preferred business showing the most promising elasticities.

Our 9.0 model is currently in execution planning, and we expect the first state to elevate in mid-2025.

Design work on the 9.1 model is underway and being finalized.

During the fourth quarter 2024, we elevated our newest special lines product model (R17) in its first state, which continues to expand segmentation and acceptability.

We will continue to roll out this product model during 2025.

We continued to advance our personal property product segmentation, pricing, and risk selection capabilities in 2024.

Through the end of the year, we had 20 states elevated to our next generation product model, which represented just over 55% of our personal property net premiums written.

Key features of our next generation product models (5.0 and higher) include expanded peril rating and the introduction of new rating variables.

We continue to refine our model design and deployment processes to increase quality and speed to market.

Our Personal Lines business is focused on efforts to form deeper and longer-term relationships with our customers through our Destination Era strategy, which supports the pursuit of our vision described above.

Through this strategy, we seek to leverage our Property business, as well as insurance and non-insurance products offered by unaffiliated third parties, to provide our customers access to a range of products addressing their diverse needs and, if the customer chooses, to “bundle” certain of the products together.

Through this strategy, we seek to leverage our personal auto business with that of our personal property business, as well as insurance and non-insurance products offered by unaffiliated third parties, to provide our customers access to a range of products addressing their diverse needs, with the option to “bundle” certain of the products together.

Bundled products are an integral part of our consumer offerings and an important part of our strategic agenda.

1 unchanged sentence

Our Destination Era strategy involves a number of initiatives, including:

• In our Agency channel, we offer customers the opportunity to bundle our auto, special lines, and Property offerings.

• In our agency distribution channel, we offer customers the opportunity to bundle our personal auto, special lines, and personal property offerings.

To further drive bundling in the agency channel, we offer the Platinum program to those select agents who have the appropriate customers for our bundled offering.

This program combines our auto and Property insurance with the compensation, coordinated policy periods, single event deductible, and other features that meet the needs and desires that our agents have expressed.

This program combines our personal auto and property insurance with the compensation, coordinated policy periods, single event deductible, and other features that meet the needs and desires that our agents have expressed.

As of December 31, 2024, we had nearly 7,100 Platinum agents.

1 unchanged sentence

Our “Portfolio” quoting system reduces data entry, displays all available products eligible for bundled quotes, simplifies the agents’ experience on third-party comparative rater systems, and provides agents and their customers an overview of premium, bundle savings, and applied discounts to allow them to add or remove products with one click.

Portfolio is available for all agents appointed to write new business where we offer Property products.

• In the Direct channel, we bundle Progressive personal auto with our Property products in almost all states, as well as with homeowners and renters products provided by unaffiliated insurance carriers nationwide.

We offer these bundles by providing a single destination to which consumers may come for both their auto and property insurance needs.

Portfolio is available for all agents appointed to write new business where we offer personal property products.

• In the direct channel, we bundle Progressive personal auto with our personal property products in almost all states, as well as with homeowners and renters products provided by unaffiliated insurance carriers nationwide.

We offer these bundles by providing a single destination to which consumers may come for both their personal auto and property insurance needs.

In many cases, we may offer discounts to incentivize or reward this bundling.

• Where available, our special lines products and umbrella insurance can be combined with any of the personal auto, home, or renters coverages that we offer, in either the Direct or Agency channel.

• HomeQuote Explorer ® (HQX) is our multi-carrier, direct-to-consumers online property offering.

Through HQX, consumers are able to quickly and easily quote and compare homeowners insurance online from Progressive and other carriers, with the HQX online buy button available in almost every state.

• Where available, our special lines products and umbrella insurance can be combined with any of the personal auto, homeowners, or renters coverages that we offer, in either the direct or agency channel.

• As we increase our penetration of the more complex, multi-product customers who are critical to our Destination Era success, we are further expanding the roster of products provided by unaffiliated companies that we make available through online and telephonic referrals and for which we receive commissions, or other compensation, that are reported as service revenues.

1 unchanged sentence

Commercial Lines

The Commercial Lines segment writes auto-related liability and physical damage insurance, business-related general liability and property insurance predominately for small businesses, and workers’ compensation insurance primarily for the transportation industry.

We expanded our portfolio of offerings to larger fleet, workers’ compensation coverage for trucking, along with trucking industry independent contractors, and affinity programs in 2021, when we acquired Protective Insurance Corporation and subsidiaries (Protective Insurance).

The Commercial Lines operating segment writes auto-related liability and physical damage insurance, business-related general liability and commercial property insurance predominately for small businesses, and workers’ compensation insurance primarily for the transportation industry.

The Commercial Lines business accounted for 15% of our total net premiums written in 2024, 16% in 2023, and 18% in 2022.

Unless otherwise noted, the following auto discussion focuses on our commercial auto business and, therefore, excludes business owners’ policy (BOP) and workers’ compensation products, which are discussed below.

We offer our commercial auto products in all states.

Unless otherwise noted, the following discussion focuses on our commercial auto business and, therefore, excludes business owners’ policy (BOP) and workers’ compensation products, which are discussed below.

We offer our commercial auto products in all states, excluding the District of Columbia.

Our commercial auto customers insure approximately two vehicles per policy, excluding large fleet policies.

During 2023, we wrote about 90% of our commercial auto business through the agency channel.

During 2024, we wrote about 90% of our commercial auto business through the agency channel, excluding transportation network company (TNC), which is all written through the direct channel.

There are approximately 340 competitors in the total U.S.

commercial auto market.

We primarily compete with about 55 other large companies/groups, each with over $200 million of commercial auto premiums written annually.

We primarily compete with about 60 other large companies/groups, each having over $200 million of commercial auto premiums written annually.

Progressive and these leading commercial auto insurers comprise 87% of this market.

Progressive ranked number one in the U.S.

commercial auto insurance market based on 2022 premiums written.

We have been the number one commercial auto insurer since 2015, and we believe that we continued to hold that position for 2023.

The Commercial Lines business operates in the following commercial auto business market targets (BMT):

• Business auto – autos, vans, pick-up trucks used by small businesses (e.g., retailing, manufacturing, farming) and for-hire livery (e.g., non-fleet (i.e., five or fewer vehicles) taxis, black-car services, and airport taxis),

Progressive has ranked number one in the U.S.

commercial auto market since 2015, and we believe that we continued to hold that position for 2024.

The core commercial auto business (which excluded TNC business and our Progressive Fleet & Specialty Programs (Fleet & Specialty) products) operates in the following commercial auto business market targets (BMT):

• For-hire specialty – dump trucks, log trucks, and garbage trucks used by dirt, sand and gravel, logging, garbage/debris removal, and coal-type businesses,

• For-hire transportation – tractors, trailers, and straight trucks primarily used by regional general freight and expeditor-type businesses and long-haul operators,

• Contractor – vans, pick-up trucks, and dump trucks used by light contractors (e.g., painters, plumbers, landscapers), and heavy construction,

• For-hire specialty – dump trucks, log trucks, and garbage trucks used by dirt, sand and gravel, logging, garbage/debris removal, and coal-type businesses, and

• Tow – tow trucks and wreckers used in towing services and gas/service station businesses,

• Contractor – vans, pick-up trucks, and dump trucks used by light contractors (e.g., painters, plumbers, landscapers), and heavy construction, and

As with our personal auto products, we regularly introduce new commercial auto product models designed to improve our pricing accuracy and competitiveness through improved segmentation, the use of additional risk variables, and other enhancements.

New models are typically rolled out on a state-by-state basis and, as a result, we often have more than one product version in the marketplace at a time.

During 2024, we rolled out new product models across our core commercial auto and our Fleet & Specialty medium fleet products.

Our latest deployed core commercial auto product model was in 14 states at December 31, 2024, which represented about 50% of our core commercial auto net premiums written.

We also completed development of our next product model that we began to roll out in early 2025.

Our Fleet & Specialty new medium fleet model was in 46 states at the end of 2024.

Similar to Snapshot in the personal auto business, the Commercial Lines business offers its commercial auto customers UBI options.

3 unchanged sentences

Snapshot ProView allows customers to earn upfront discounts and provides value-added services, like fleet management and personalized tips, to encourage safe driving.

Both programs are available in almost all states.

In addition to the BMTs listed above, as of December 31, 2023, we provided commercial auto coverage in the transportation network company (TNC) business to Uber Technologies subsidiaries in 16 states and to Lyft’s rideshare operations in 4 states.

TNC represented about 13% of our Commercial Lines net premiums written in 2023, 10% in 2022, and 6% in 2021.

Both programs are available in nearly all states.

In addition to the BMTs listed above, as of December 31, 2024, we provided commercial auto coverage in the TNC business to Uber Technologies subsidiaries in 16 states and to Lyft’s rideshare operations in 4 states.

TNC represented 15% of our Commercial Lines net premiums written in 2024, 13% in 2023, and 10% in 2022.

Premiums written in our TNC business are determined in part by estimating the number of miles to be driven over the life of the policy term, on a policy-by-policy basis.

These premium estimates are adjusted monthly based both on actual miles driven and an estimate of miles to be driven during the remaining policy term.

During 2023, our TNC business experienced a strong increase in rideshare miles traveled compared to 2022.

During 2024, our TNC business experienced a significant increase in rideshare miles traveled compared to 2023.

Our Commercial Lines business also offers business-related general liability and property insurance through our BOP insurance.

These products are geared specifically to small businesses and at year-end 2024 were available to agents in 46 states, excluding the District of Columbia, with plans to expand to additional states during 2025.

Our new BOP product model was in 24 states that represented approximately 75% of our trailing 12-month countrywide BOP premiums as of the end of 2024.

We also offer workers’ compensation insurance tailored for the transportation industry.

3 unchanged sentences

To further help our direct customers, we offer BusinessQuote Explorer ® (BQX), a digital application that allows small business owners to obtain quotes for our BOP product and the products offered from a select group of unaffiliated carriers.

Our Property segment writes residential property and renters insurance in virtually all states, primarily in the independent agency channel and through select agents under our Platinum program discussed above.

We also act as a participant in the “Write Your Own” program for the National Flood Insurance Program (NFIP) under which we write flood insurance in virtually all states;

100% of this business is reinsured with the NFIP.

Our Property business accounted for 5% of our total net premiums written in 2023, 2022, and 2021.

We tend to see more business written during the second and third quarters of the year based on the cyclical nature of property sales.

Losses also tend to be higher during the warmer weather months when storms are more prevalent.

As a property insurer, we have exposure to losses from catastrophes, including hurricanes, and other severe weather events.

See Item 1A, Risk Factors – II.

Insurance Risks below for more information.

To help mitigate these risks, we enter into reinsurance arrangements.

See the “Reinsurance” section below for further discussion of our reinsurance programs.

We specialize in residential property insurance for homeowners, other property owners, and renters, as well as insurance for manufactured homes, personal umbrella insurance, and primary and excess flood insurance.

We were the tenth largest homeowners carrier in the U.S., based on 2022 premiums written, and we estimate that we retained this ranking for 2023.

There are approximately 365 competitors in the homeowners insurance market nationwide and we compete with many of these companies.

Progressive and the other leading 27 large companies/groups, each with over $800 million of premiums written annually, comprise about 80% of the market.

As discussed above, our Property business is an important component of our Destination Era strategy.

Our reinsurance activity includes both transactions which are regulated and those that are non-regulated.

The regulated programs include several mandatory state pools, such as the Michigan Catastrophic Claims Association, Florida Hurricane Catastrophe Fund (FHCF), and North Carolina Reinsurance Facility, as well as the NFIP and other reinsurance facilities required by specific states for various lines of business.

In addition, we participated in the Florida Reinsurance to Assist Policyholders Program (RAP) for 2023.

All of these programs are governed by the individual state’s insurance regulations.

Our non-regulated transactions represent voluntary external reinsurance arrangements related to portions of our Property and Commercial Lines businesses;

we do not reinsure our Personal Lines business outside of the regulated programs discussed above.

Property Programs

The reinsurance program in our Property business is designed to reduce overall risk while, to the extent of coverage purchased, protecting capital from the costs associated with catastrophic events.

The Property program includes contracts that cover multi-year periods.

We also maintain an excess of loss reinsurance treaty covering our personal umbrella business.

The occurrence excess of loss program supports the goal of maintaining adequate capital and is comprised of privately placed reinsurance, reinsurance placed through catastrophe bond transactions, and coverage obtained through the FHCF and RAP.

Under the 2023 occurrence excess of loss reinsurance, we are responsible for the first $200 million of losses and allocated loss adjustment expenses (ALAE) for the first event.

The regulated programs include several mandatory state pools, such as the Michigan Catastrophic Claims Association, Florida Hurricane Catastrophe Fund (FHCF), and North Carolina Reinsurance Facility, as well as the government-backed NFIP and other reinsurance facilities required by specific states for various lines of business.

All of these programs are governed by the federal government or an individual state’s insurance regulations.

Our non-regulated transactions represent voluntary external reinsurance arrangements related to portions of our personal property and Commercial Lines businesses;

we do not reinsure our personal vehicles business outside of the regulated programs discussed above.

Personal Property Programs

The reinsurance program in our personal property business is designed to reduce overall risk while, to the extent of coverage purchased, protecting capital from the costs associated with catastrophic events.

The personal property program includes contracts that cover multi-year periods.

During 2024, we also maintained an excess of loss (XOL) reinsurance treaty covering our personal umbrella business;

we chose not to reinsure our personal umbrella business in 2025.

The occurrence XOL program, which is in place from June 1, 2024 through May 31, 2025, supports the goal of maintaining adequate capital and is comprised of privately placed reinsurance, reinsurance placed through catastrophe bond transactions, and coverage obtained through the FHCF.

Under the 2024 occurrence XOL program, we are responsible for the first $200 million of losses and allocated loss adjustment expenses (ALAE) for the first event.

We may be responsible for additional losses if we experience more than two such events or if claims incurred exceed the maximum coverage limits of the reinsurance that is then in place.

The coverage limits, net of retention, in place at December 31, 2023, were as follows:

The coverage limits, net of retention but including the shared limit coverage discussed below, in place at December 31, 2024, were as follows:

• $2.1 billion for a first event in Florida;

• $1.8 billion for a first event outside of Florida.

Coverage for a second event (and, potentially, for subsequent covered events) would depend on several factors, including the location and the extent of covered losses of the earlier events in the contract period.

Portions of the reinsurance coverage limits above only provide coverage for hurricanes and tropical storms as designated by the U.S.

National Weather Service (named storms).

Coverage for a second event (and, potentially, for subsequent covered events) under the occurrence XOL program would depend on several factors, including the location and the extent of covered losses of the earlier events in the contract period.

Portions of our program include reinstatement limits providing coverage for subsequent events.

Some portions of our occurrence program have an obligatory reinstatement of coverage.

Some portions of our occurrence XOL program have an obligatory reinstatement of coverage.

Reinstatement premiums would have no effect on our results of operations since, per our contracts, we have separate reinsurance to cover these situations.

During 2023, no losses were ceded under the occurrence excess of loss program related to storms occurring in 2023.

In February 2024, a catastrophe bond matured, overall reducing our maximum coverage limits by $200 million, irrespective of the location of the first event.

In addition, from June 1, 2023, through December 31, 2023, we had shared limit coverage in our reinsurance program that provided $125 million of coverage for named storms (hurricanes and tropical storms as designated by the U.S.

National Weather Service).

This reinsurance arrangement can, depending on the circumstances, provide additional coverage for a significant covered event, or provide coverage for aggregate losses under our occurrence excess of loss retention.

During 2023, we ceded no losses under this “hurricane season” coverage.

During 2024, no losses were ceded under the occurrence XOL program that is currently in place or the occurrence XOL that was in place from June 1, 2023 through May 31, 2024.

In support of our annual occurrence XOL program, with a risk period effective June 1, 2025 through May 31, 2026, we issued all perils per occurrence catastrophe bonds in the amount of $275 million, which replaced the catastrophe bonds that mature prior to that risk period, including $200 million in named storm bonds that matured on December 23, 2024 and $135 million that are scheduled to mature on March 16, 2025.

Included in the occurrence XOL, from June 1, 2024 through December 31, 2024, we had shared limit coverage in our reinsurance program that provided $175 million of coverage for named storms.

During 2024, no losses were ceded under this “hurricane season” coverage.

We have renewed this coverage from June 1, 2025 through December 31, 2025 (i.e., the 2025 hurricane season) for $175 million of coverage.

During 2023, our Property business also had an aggregate excess of loss program structure, with the first retention layer threshold ranging from $500 million to $575 million, excluding named tropical storms and hurricanes, and the second retention layer threshold of $600 million, including named tropical storms.

The first and second layers provide coverage up to $100 million and $85 million, respectively.

During 2023, we exceeded the first layer annual retention threshold by $17.9 million, under this program.

Each layer in the 2023 aggregate excess of loss program was subject to a per occurrence deductible ranging from $2 million to $5 million before each loss could be considered for aggregate retention, and each event was subject to a coverage limit ranging from $95 million to $98 million.

In addition, any one portion of the aggregate program does not have to be exhausted before the other portions can be applied.

In January 2024, the Property business entered into a new aggregate excess of loss program for claims occurring in 2024, with the multiple layers providing for a total coverage amount of $185 million for catastrophe event losses and ALAE.

The layers provide coverage, as follows:

Coverage Terms (millions) First Layer Second Layer

Retention $450.0 to $475.0 $525.0

During 2024, our personal property business also had an aggregate XOL program structure with multiple layers providing coverage for catastrophe losses and ALAE.

No losses were ceded under this aggregate XOL agreement during 2024.

In January 2025, we entered into a new aggregate XOL for claims occurring in 2025.

As part of the excess of loss program for 2025, we also entered into a severe convective storm modeled loss aggregate cover.

A severe convective storm is a type of thunderstorm characterized by strong winds, heavy rain, large hail, thunder, lightning, and sometimes tornadoes.

This modeled loss cover uses a third-party model to simulate weather patterns across the U.S.

to generate loss estimates.

The layers for the aggregate XOL programs active in 2024 and 2025 provided coverage, as follows:

Policy for claims occurring in the year ended December 31, 2025 2024

Coverage terms (millions) Modeled Loss First Layer Second Layer First Layer Second Layer

Retention $665 $450 to $475 $525 $450 to $475 $525

Total coverage, net of retention $15 $75 $100 $85 $100

Per occurrence deductible before each loss could be considered for aggregation, dependent on the peril covered $5.0 or $7.5 $20.0 or $25.0

Per event coverage limit, net of the per occurrence deductible, dependent on the peril covered $42.5 or $45.0 $175.0 or $180.0

The first layer of coverage does not provide coverage for named tropical storms or hurricanes, as designated by the U.S.

National Weather Service.

The second layer includes coverage for named tropical storms or hurricanes as designated by the U.S.

National Weather Service, and also includes a secondary coverage part with a retention threshold of $425 million that shares the same $100 million limit mentioned above.

The secondary coverage portion only provides coverage for named tropical storms or hurricanes, as designated by the U.S.

National Weather Service.

Any one portion of the aggregate program does not have to be exhausted before the other portions can be applied.

Per occurrence deductible before each loss could be considered for aggregation, dependent on the peril covered $0 $5 or $8 $20 or $25 $5 or $8 $20 or $25

Per event coverage limit, net of the per occurrence deductible, dependent on the peril covered $50 $43 or $45 $175 or $180 $43 or $45 $175 or $180

The first layer of coverage under the aggregate XOL program does not provide coverage for named storms.

The second layer includes coverage for named storms and other types of perils (e.g., wildfires, winter storms, and severe thunderstorms).

The second layer also includes a secondary coverage part with a retention threshold of $425 million that shares the same $100 million limit mentioned above.

The secondary coverage portion only provides coverage for named storms.

Any one portion of the aggregate XOL program does not have to be exhausted before the other portions can be applied.

Commercial Lines Programs

1 unchanged sentence

Our Commercial Lines business uses quota-share reinsurance agreements for TNC, and certain workers’ compensation and BOP product coverages.

We also have excess of loss reinsurance agreements for higher-limit commercial auto liability, and certain BOP and workers’ compensation product coverages, which reinsure a portion of loss above a retention threshold.

Under each agreement, we cede a portion of premiums, losses, and, in most cases, loss adjustment expenses (LAE).

As part of the Commercial Lines program, we also have excess of loss reinsurance agreements for higher-limit commercial auto liability, and certain BOP and workers’ compensation product coverages, which reinsure a portion of loss above a retention threshold.

The retention threshold for the BOP excess of loss agreement is $2 million, while the retention threshold for the uninsured and underinsured motorist (UM/UIM) commercial auto liability excess of loss agreement is $5 million, for each

casualty occurrence or each property loss.

For the large fleet commercial auto business, we retain the first $2 million, per occurrence, and have a coverage limit, net of retention, of up to $3 million.

In addition, for the workers’ compensation product, we have catastrophe workers’ compensation coverage up to $74 million per occurrence pursuant to a $20 million maximum one-life sublimit.

The retention threshold for the BOP excess of loss agreement is $2 million, for each property loss.

Lastly, for the workers’ compensation product, we have catastrophe workers’ compensation coverage up to $74 million per occurrence pursuant to a $20 million maximum one-life sublimit.

In general, we retain approximately $1 million per occurrence on workers’ compensation through the use of excess of loss and quota-share reinsurance.

For our TNC product, the amounts ceded vary by state.

A portion of the quota-share reinsurance contract is written through reinsurers that are owned by the TNC company.

Reinsurance recoverables under this arrangement are required by our contracts to be collateralized (i.e., secured by assets held by an independent third party or a letter of credit issued by a commercial bank) at a target of over 100% of the recoverable balance.

During 2023, the remaining portion of reinsurance for the TNC product was written by a third-party reinsurer.

For our TNC product, the amounts retained vary by state and cost-sharing agreements are in place with companies owned by the TNC company.

Recoverable balances under these arrangements are required by our contracts to be collateralized (i.e., secured by assets held by an independent third party or a letter of credit issued by a commercial bank) at a target of over 100% of the recoverable balance.

During 2023, a portion of the business was ceded to a reinsurance agreement written by a third-party reinsurer.

Program Evaluation

We evaluate our reinsurance programs during our renewal discussions, if not more frequently, to ensure they continue to effectively address the company’s risk tolerance.

We will continue to balance our ability to assume more risk with the availability and costs of various types of reinsurance contracts.

We plan to continue to assess our ability to assume more risk with the availability and costs of various types of reinsurance contracts.

See Item 1A, Risk Factors – II.

1 unchanged sentence

Credit and Other Financial Risks below and Note 7 – Reinsurance in our 2024 Annual Report to Shareholders, which is filed as Exhibit 13 to this Form 10-K (the Annual Report) for more information.

Our employees handle nearly all of our Personal and Commercial Lines claims from either physical claims offices throughout the United States or through a virtual environment, and are supported by centralized functions at our corporate offices and a nationwide network of nearly 3,600 third-party repair shops.

During 2023, we used independent claim adjusters opportunistically in our vehicle businesses to help support our claim employees manage claims inventory and to timely respond to our customers impacted by certain catastrophe events.

Our employees handle nearly all of our Personal Lines vehicle and Commercial Lines claims from either physical claims offices throughout the U.S.

or through a virtual environment, and are supported by centralized functions at our corporate offices and a nationwide network of about 3,700 third-party repair shops.

During 2024, we used independent claim adjusters opportunistically in our vehicle businesses to help support our claim employees in managing our claims inventory and to timely respond to our customers impacted by certain catastrophe events.

While not intended to be a significant part of our claims handling model for these businesses, we may use independent adjusters from time to time.

For our Property business, we manage claims through a network of independent claim field adjusters and employee claim representatives that manage the overall claims process.

As of December 31, 2023, we had about 1,100 claim employees to handle our Property claims;

we currently plan to continue to increase our internal claims staff in 2024.

For our Personal Lines property business, we manage claims through a network of independent claim field adjusters and employee claim representatives who manage the overall claims process.

As of December 31, 2024, we had about 1,250 claim employees to handle our personal property claims.

Competitive Factors

10 unchanged sentences

Competition in our insurance markets is also affected by the pace of technological developments.

An insurer’s ability to adapt to change, innovate, develop, and implement new applications and other technologies can affect its competitive position.

An insurer’s ability to adapt to change, innovate, develop, implement and use new applications and other technologies can affect its competitive position.

In addition, our competitive position could be adversely impacted if we, or one of our third-party vendors, experience a cybersecurity attack or incident or we are unable to maintain uninterrupted access to our systems, business functions, and the systems of certain third-party providers.

2 unchanged sentences

Several of our competitors have many more patents than we do.

Some of the patents we currently hold include a usage-based insurance patent (expiring in 2024 or after), two patents on the Name Your Price ® functionality on our website (expiring in 2028 or after), three multi-product quoting patents (expiring in 2032 or after), three patents for our implementation of a mobile insurance platform and architecture (expiring in 2032 or after), a patent on our system of providing customized insurance quotes based on a user’s price and/or coverage preferences (expiring in 2033 or after), two patents for our loyalty call routing system (expiring in 2033 or after), a patent for a multivariate predictive system that processes usage-based data (expiring in 2035 or after), four patents for the implementation of chatbots in online quoting and servicing (expiring in 2038 or after), two patents for our Commercial Lines business classification system (expiring in 2039 or after), three patents for

our automated document classification system (expiring 2040 or after), and one patent for embedded quoting (expiring in 2043 or after).

Some of the patents we currently hold include two patents on the Name Your Price ® functionality on our website (expiring in 2028 or after), a usage-based insurance patent (expiring in 2032 or after), three multi-product quoting patents (expiring in 2032 or after), three patents for our implementation of a mobile insurance platform and architecture (expiring in 2032 or after), a patent on our system of providing customized insurance quotes based on a user’s price and/or coverage preferences (expiring in 2033 or after), two patents for our loyalty call routing system (expiring in 2033 or after), two patents for a multivariate predictive system that processes usage-based data (expiring in 2035 or after), four patents for the implementation of chatbots in online quoting and servicing (expiring in 2038 or after), two patents for our Commercial Lines business classification system (expiring in 2039 or after), three patents for our automated document classification system (expiring in 2040 or after), and two patents for embedded quoting (expiring in 2043 or after).

We have a substantial amount of “know-how” developed from years of experience with usage-based insurance, and from analyzing the data from billions of driving miles derived from our usage-based devices and our mobile app.

8 unchanged sentences

Our insurance subsidiaries are generally subject to regulation and supervision by insurance departments of the jurisdictions in which they are domiciled or licensed to transact business.

At least one of our insurance subsidiaries is licensed and subject to regulation in each of the 50 states, the District of Columbia, Puerto Rico, Bermuda, and Canada.

At least one of our insurance subsidiaries is licensed and subject to regulation in each of the 50 states, the District of Columbia, Bermuda, and Canada and its provinces.

We also have subsidiaries that write excess and surplus lines, which are regulated in a different fashion that generally offers additional product flexibility.

24 unchanged sentences

Although the ratio of written premiums to surplus that the regulators will allow is a function of a number of factors (including applicable laws, the type of business being written, the adequacy of the insurer’s reserves, and the quality of the insurer’s assets), the annual net premiums that an insurer may write historically have been perceived to be limited to a specified multiple of the insurer’s total surplus, generally 3 to 1 for property and casualty insurance, which is generally the target for our vehicle businesses;

our Property business maintains a lower premiums-to-surplus ratio.

however, certain states have permitted us to target a premiums-to-surplus ratio for our personal vehicle insurance companies in excess of 3 to 1 based on our strong financial condition.

Our personal property business maintains a lower premiums-to-surplus ratio.

Thus, the amount of an insurer’s statutory surplus, in certain cases, may limit its ability to grow its business.

At year-end 2024, we had net premiums written of $74.4 billion and statutory surplus of $27.2 billion.

The combined premiums-to-surplus ratio for all of our insurance companies was 2.8 to 1.

In addition, as of

December 31, 2023, we had access to $4.2 billion of securities held in a non-insurance subsidiary, portions of which could be contributed to the capital of our insurance subsidiaries to support growth or for other purposes.

The combined premiums-to-surplus ratio for all of our insurance companies was 2.7 to 1 at December 31, 2024.

In addition, as of January 31, 2025 we had access to $3.9 billion of securities held in a non-insurance subsidiary, portions of which could be contributed to the capital of our insurance subsidiaries to support growth or for other purposes.

The National Association of Insurance Commissioners (NAIC) also has developed a risk-based capital (RBC) program to enable regulators to identify and take appropriate and timely regulatory actions relating to insurers that show signs of weak or deteriorating financial condition.

12 unchanged sentences

These laws impose prior approval requirements for certain transactions between insurers and their affiliates and generally regulate dividend and other distributions, including loans and cash advances, between insurers and their affiliates.

See Note 8 – Statutory Financial Information in our Annual Report for further discussion.

See Note 8 – Statutory Financial Information in the Annual Report for further discussion.

Under insolvency and guaranty laws, insurers can be assessed or required to contribute to applicable guaranty funds to cover policyholder losses resulting from the insolvency of other insurers.

14 unchanged sentences

In recent years, legislation, regulatory measures, and voter initiatives have been introduced, and in some cases adopted, which deal with use of consumer information, cybersecurity, use of credit and other information in underwriting and rating, insurance rate development, use of artificial intelligence and algorithms, rate of return limitations, and the ability of insurers to cancel or non-renew insurance policies.

In addition, from time to time, the United States Congress and certain federal agencies investigate the current condition of the insurance industry to determine whether federal regulation is necessary.

In addition, from time to time, the U.S.

Congress and certain federal agencies have investigated the current condition of the insurance industry to determine whether federal regulation is necessary.

The Federal Insurance Office is required to collect information about the insurance industry and monitor the industry for systemic risk.

8 unchanged sentences

For securities related to our investment portfolios, total investment income includes interest, dividends, accretion, amortization, net realized gains (losses) on securities sold, and net holding period gains (losses) on securities (composed primarily of valuation changes on equity securities).

Total investment income, before expenses and taxes, was $2.3 billion in 2023, compared to an investment loss of $0.7 billion in 2022, and investment income of $2.4 billion in 2021.

On a pretax total return basis (i.e., total investment income plus changes in net unrealized gains (losses) on our fixed-maturity securities), our investment portfolio generated investment income of $3.8 billion in 2023, compared to an investment loss of $4.3 billion in 2022 and investment income of $1.2 billion in 2021.

Outside of our investment portfolio, but reported in impairment losses in the consolidated statements of comprehensive income, were $9.0 million, $8.6 million, and $5.0 million of other-than-temporary impairment losses resulting from tax credit investments during 2023, 2022, and 2021, respectively.

Total investment income, before expenses and taxes, was $3.1 billion in 2024, compared to investment income of $2.3 billion in 2023 and an investment loss of $0.7 billion in 2022.

On a pretax total return basis (i.e., total investment income plus changes in net unrealized gains (losses) on our fixed-maturity securities), our investment portfolio generated investment income of $3.3 billion in 2024 and $3.8 billion in 2023, compared to an investment loss of $4.3 billion in 2022.

For more detailed discussion of our investment portfolio, see Note 2 – Investments, Note 3 – Fair Value, and Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Annual Report.

1 unchanged sentence

Our service businesses, which represented less than 1% of our total revenues at December 31, 2024, 2023, and 2022, and did not have a material effect on our overall operations, primarily include our commission- or fee-based businesses, where we often act as an agent for other insurance companies.

We offer home, condominium, and renters insurance, among other products, written by unaffiliated insurance companies in almost all states in the direct channel.

We offer home, condominium, and renters insurance, among other products, written by affiliated and unaffiliated insurance companies in almost all states in the direct channel.

We also offer our customers the ability to package their commercial auto coverage with other commercial coverages that are written by unaffiliated insurance companies.

We receive commissions for the policies written under this program and allocate marketing and other administration costs associated with maintaining these programs.

Prior to the expiration of our Commercial Automobile Insurance Procedures/Plans (CAIP) service contract in August 2022, we acted as a servicing carrier, on a nationwide basis, for the CAIP plans, which are state-supervised plans servicing the involuntary market in nearly all states.

The expiration of our participation as a CAIP service provider did not materially affect our financial condition, results of operations, or cash flows.

Liability for Property-Casualty Losses and Loss Adjustment Expenses

1 unchanged sentence

Our objective is to ensure that total reserves (i.e., case reserves and incurred but not recorded reserves, or IBNR) are adequate to cover all loss costs, while sustaining minimal variation from the time reserves are initially established until losses are fully developed.

The liabilities for losses and LAE are determined using actuarial and statistical procedures and represent undiscounted estimates of the ultimate net cost of all unpaid losses and LAE incurred through December 31 of each year.

These estimates are subject to the effect of future trends on claims settlement, among other factors.

4 unchanged sentences

These anticipated trends are reconsidered periodically based on actual development and are modified if necessary.

See Note 6 – Loss and Loss Adjustment Expense Reserves in our Annual Report for a detailed discussion of our loss reserving practices and a reconciliation of our loss and LAE reserve activity, along with incurred and paid claims development by accident year for our segments, based on definitions pursuant to statutory accounting principles.

See Note 6 – Loss and Loss Adjustment Expense Reserves in the Annual Report for a detailed discussion of our loss reserving practices and a reconciliation of our loss and LAE reserve activity, along with incurred and paid claims development by accident year for our segments, based on definitions pursuant to statutory accounting principles.

Human Capital

We believe that our people and our culture remain our most significant competitive advantage, and that having the right people working together in the right way is critical to driving our results, building our enduring business, and creating long-term shareholder value.

Our culture is deeply rooted in our Core Values (Integrity, Golden Rule, Excellence, Objectives, and Profit) and is the foundation for our human capital management strategies to attract, retain, engage, and motivate highly qualified employees.

We believe that our culture and continued success has enabled us to create a workplace comprised of highly talented people across diverse markets and with a broad range of backgrounds and experiences.

Our culture is deeply rooted in our Core Values (Integrity, Golden Rule, Excellence, Objectives, and Profit) and is the foundation for our human capital management strategies to attract, hire, engage, and retain highly qualified employees.

We believe that our culture and continued success has enabled us to create a workplace composed of highly talented people across diverse markets and with a broad range of backgrounds and experiences.

Attract and Hire

We employ extensive recruiting practices with the goal of developing qualified and deep candidate pools and attracting candidates from both established and new sources.

We believe that our recruitment efforts generally have enabled us to present diverse and high-potential pools of job candidates to our hiring managers.

In turn, we train our hiring managers about identifying and avoiding unconscious biases they may have during the interview and selection process and the importance of employing individuals with different kinds of experiences and backgrounds.

We employ extensive recruiting practices with a goal of developing qualified and deep candidate pools and attracting candidates from both established and new sources.

We believe that our recruitment efforts generally have enabled us to present high-potential pools of job candidates to our hiring managers.

In turn, we train our hiring managers to identify and avoid unconscious biases they may have during the interview and selection process and the importance of employing individuals with different kinds of experiences and backgrounds.

We believe these strategies collectively enhance our applicant pools and contribute to our continued success.

7 unchanged sentences

Promoting from within is also a key part of our strategy.

Many of our leaders, including nearly all of the executive team members, joined Progressive in a more junior position and advanced to significant leadership positions within the organization.

Many of our leaders, including most executive team members, joined Progressive in a more junior position and advanced to significant leadership positions within the organization.

In 2024, we filled over 75% of our open positions above entry level by promoting from within, including just over 2,100 managerial positions.

Demographic Data

We publish employee and manager demographic information on our diversity and inclusion website and update this data on an annual basis.

We also disclose our consolidated EEO-1 data online.

• As of December 31, 2023, we had about 61,400 employees of whom 60% were women and 41% were people of color, while women comprised 51% and people of color comprised 39% of the U.S.

workforce (based on data obtained from the U.S.

Census Bureau’s Current Population Survey, November 2023).

• During 2023, we hired more than 14,600 new employees of whom 67% were women and 56% were people of color, representing about 1.7% of the total applicants for a job at Progressive.

• During 2023, of our employees promoted into management positions, 55% were women and 32% were people of color.

As of December 31, 2023, women represented 49% of all managers and people of color were 26% of all managers.

• As of December 31, 2023, we had about 1,100 senior leaders of whom 40% were women and 18% were people of color.

As of December 31, 2024, we had about 66,300 employees.

We disclose our consolidated EEO-1 data on our website.

Supporting our People and Culture

2 unchanged sentences

Training and Development

We actively foster a learning culture and offer several leadership development programs, including our Multicultural Leadership Development Program.

We actively foster a learning culture and offer several leadership development programs, including a program open to employees of all backgrounds with a focus on leading inclusively.

Two of our career development boot camps (IT Programmer and Analyst) are intended to accelerate career opportunities.

Moreover, our professional development program, “Career Central,” encourages employees to take control of their career through team-building exercises, coaching techniques, and communication strategies.

Available to new and tenured employees, our learning solutions are tailored to both individual contributors and leaders and cover a broad

swath of skills and competencies.

Moreover, our career development resource, “Career Central,” encourages employees to take control of their careers through career exploration guides, recorded career journeys, discovery questionnaires to guide employees to roles that match their skills, and more.

Available to new and tenured employees, our learning solutions are tailored to both individual contributors and leaders and cover a broad swath of skills and competencies.

We also leverage our extensive contemporary art collection to offer training sessions to spark conversations about our culture, innovation, ethical obligations, and respecting our differences, among other things.

Employee Resource Groups

Over a decade ago, our first Employee Resource Groups (ERG) were created to help build communities for our employees.

We have nine inclusive ERGs (Asian American Network, Disabilities Awareness Network, LGBTQ+ Network, Military Network, Network for Empowering Women, Parent Connection, Progressive African American Network, Progressive Latin American Networking Association, and Young Professionals Network), each one open to all employees at the company.

We believe our

ERGs provide spaces for networking, understanding differences, and sharing experiences.

Our first ERGs launched in 2007, and 44% of Progressive people belong to at least one ERG as of December 31, 2024.

Our Core Values are the foundation for our Code of Business Conduct and Ethics, which provides clear expectations for all our people and confirms our commitment to high ethical standards and compliance with legal requirements.

We provide ethics training, as well as regular communications, video series, and outside speakers presenting themes such as Celebrate Disagreement, Core Conversations, and Courage at our Core, to emphasize our commitment to our ethical and legal responsibilities.

We provide ethics training, as well as regular communications, video series, and outside speakers presenting on themes such as Celebrate Disagreement, Core Conversations, and Courage at our Core, to emphasize our commitment to our ethical and legal responsibilities.

Additionally, we have an “open door” policy that empowers every employee to reach out to any manager or any human resource representative when they have a question or concern or they want to share an idea.

1 unchanged sentence

We encourage our people to speak up, and when they do, we give timely attention to their concerns, take remedial action where appropriate, and do not discriminate or retaliate against them for reporting any concern to us in good faith.

Diversity, Equity, and Inclusion (DEI)

We believe that in order to be consumers’, agents’, and business owners’ number one destination for insurance and other financial needs, we need to anticipate and understand the needs of our customers.

Therefore, we seek to be diverse in our employee demographics, experiences, and perspectives.

Our commitment to diversity starts at the top with our highly skilled and diverse Board of Directors.

We are one of the few public companies with a female CEO, as well as a female independent Board Chairperson.

Our DEI efforts are overseen by our Compensation Committee on behalf of the entire Board of Directors, and those efforts are implemented at all levels of the organization.

For Progressive, DEI is not just a program, initiative, or singular goal.

We take a holistic approach to DEI guided by four primary objectives, which have been in place for several years:

(1) to maintain a fair and inclusive work environment;

(2) to reflect the customers we serve;

(3) for our leaders to reflect the people they lead;

and (4) to contribute to our communities.

A few years ago, for instance, we introduced an ambitious aspiration to double the representation of people of color in senior leadership from 10% to 20% by the end of 2025.

We set this aspiration to challenge ourselves to reach far and wide to attract diverse, highly qualified applicant pools when recruiting opportunities arose, to invest broadly in developing our internal talent, and to help measure the success of these efforts.

During 2023, representation of people of color in senior leadership increased from 17% to 18%.

We're committed to creating an environment where all our people feel welcomed, valued, and respected, and we integrate DEI into our workplace.

We support DEI awareness among our employees through formal training sessions and workshops focused on building our overall awareness and individual competencies to address difficult topics such as racial inequality, micro-inequities, and unconscious biases.

This includes hosting regular Inclusion Quarterly events, which feature a series of speakers, discussion groups, and storytelling focused on themes of diversity, equity, and inclusion.

We also have a companywide Courageous Conversations and DEI speakers bureau, where presenters and facilitators lead work teams in discussions around biases, stereotypes, and the development of inclusive behaviors.

Additionally, we have DEI leadership job objectives for our executive team and managers aimed at fostering a diverse and inclusive workplace.

Moreover, we support efforts to contribute to our communities, through our Keys to Progress ® programs (which include providing vehicles to veterans and furnishing homes for individuals emerging from homelessness), our various education and engagement efforts, and our financial contributions to various community organizations.

For over 20 years, we have also contributed to The Progressive Insurance Foundation, which provided matching funds to eligible 501(c)(3) charitable organizations to which employees contributed.

To more broadly represent our employees and their communities, in 2020, The Progressive Insurance Foundation began funding national charitable organizations identified by our Employee Resource Groups.

Beginning mid-2022, in lieu of matching funds, each employee can recommend an eligible charity to receive a fixed amount of the Foundation’s charitable giving without requiring the employee make an out-of-pocket donation.

We know we still have much more work to do, but we are committed to these efforts.

To learn more, please visit our DEI website at:

progressive.com/about/diversity-and-inclusion.

The information on that website is not incorporated by reference in, and does not form part of, this Form 10-K or any other SEC filing.

Employee Resource Groups

Over a decade ago, our first Employee Resource Groups (ERG) were created to help build communities for our employees with common backgrounds, life experiences, interests or professional goals.

We have nine employee resource groups (Progressive African American Network, Asian American Network, Disabilities Awareness Network, Progressive Latin American Networking Association, LGBTQ+ Network, Military Network, Network for Empowering Women, Parent Connection, and Young Professionals Network) that support creation of a space for networking, understanding differences, and sharing experiences.

In the time since their inception, our ERGs have grown in both influence and size with 44% of Progressive people belonging to at least one ERG as of December 31, 2023.

Compensation and Benefits

1 unchanged sentence

We publish, internally, our competitive annualized base pay ranges and annual cash incentive targets for virtually all of our positions.

As part of employee compensation, nearly all Progressive people participate in our annual cash incentive program named Gainshare, which measures the growth and profitability of our insurance businesses.

As part of employee compensation, nearly all Progressive people participate in our annual cash incentive program, named Gainshare, which rewards the growth and profitability of our insurance businesses.

We believe Gainshare contributes to the cooperative and collaborative way we work together and, in part, defines our culture.

Our executives and other senior leaders also receive compensation in the form of equity awards, which we believe supports a strong pay-for-performance linkage and further aligns their interests with those of our shareholders.

We monitor overall pay equity among employees with similar performance, experience, and job responsibilities, and publish the results annually on our DEI website.

We monitor overall pay equity among employees with similar performance, experience, and job responsibilities, and publish the results annually on our website.

Our employee benefits are intended to be competitive and to support the needs of our people and their families.

5 unchanged sentences

and paid parental leave following birth, adoption, or placement of a foster child.

Our health and wellness offerings include on-site fitness centers, medical clinics, and health seminars.

Many of these on-site offerings transitioned to online offerings, such as fitness classes and health discussions, to meet the needs of our employees who are working remotely.

Our health and wellness offerings include on-site fitness centers, a medical clinic, and health seminars.

We provide several on-site and online offerings, such as fitness classes and health discussions, to meet the needs of our employees who are working remotely.

We continue to offer a variety of health and wellness programs accessible to employees working from the office or remotely.

We also offer an Employee Assistance Program that provides 24-hour support, flexible work arrangements, and provide paid time off to help our people balance their work and personal lives.

Diversity, Equity, and Inclusion

Therefore, we aspire to take full advantage of the rich diversity of our employees’ unique backgrounds, experiences, skills, talents, and perspectives.

For Progressive, our inclusive workplace philosophy is not represented by just a program, initiative, or singular goal.

We take a holistic approach guided by four primary objectives, which have been in place for several years:

(1) to maintain a fair and inclusive work environment;

(2) to reflect the customers we serve;

(3) for our leaders to reflect the people they lead;

and (4) to contribute to our communities.

We’re committed to creating an environment where all our people feel welcomed, valued, and respected, and we integrate this commitment into our workplace.

We support inter-cultural and inter-personal awareness among our employees by offering formal training sessions and workshops focused on building our overall awareness and individual competencies to address difficult topics and foster an inclusive culture.

This includes hosting regular IQ Inclusion Quarterly SM events which feature a series of speakers, discussion groups, and storytelling focused on themes such as embracing vulnerability and increasing collaboration.

We also have companywide Courageous Conversations and Speakers Bureau programs, where presenters and facilitators lead work teams in discussions around topics such as the development of inclusive behaviors.

We support efforts to contribute to our communities, through our Keys to Progress ® programs (which provide vehicles to veterans and veteran-focused organizations), and by supporting programs which furnish homes for individuals emerging from homelessness, our various education and engagement efforts, and our financial contributions to various community organizations.

For over 20 years, we also have contributed to The Progressive Insurance Foundation.

Through the Name Your Cause ® program, each employee can recommend an eligible charity to receive a fixed amount of the Foundation’s charitable giving without requiring the employee make an out-of-pocket donation.

This is the Foundation’s way of supporting causes and reaching communities across the country where our people, and our customers, live and work.

Since 2020, Progressive has also contributed, either directly or through the Foundation, to national charitable organizations identified by our ERGs.

Available Information

3 unchanged sentences

These reports are also available on the SEC’s website:

http://www.sec.gov.

https://www.sec.gov.

Information on our website does not constitute soliciting material and should not be deemed filed or incorporated by reference into any other Progressive filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent we specifically incorporate such information by reference in such a filing.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business