What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-08-04 compared with 2025-05-05 · 229 added, 111 removed, 750 unchanged (31% of the section changed)

2 unchanged sentences

Consolidated Statements of Comprehensive Income

Three Months Ended March 31,

Three Months Six Months

Periods Ended June 30,

2025 2024 2025 2024

(millions — except per share amounts)

19 unchanged sentences

Other Comprehensive Income (Loss)

Decrease (increase) in total net unrealized losses on fixed-maturity securities 899 ( 208 )

Total net unrealized gains (losses) on fixed-maturity securities 428 108 1,327 ( 100 )

Net unrealized losses on forecasted transactions 1 0 1 0

Other comprehensive income (loss) 429 108 1,328 ( 100 )

Comprehensive income (loss) $ 3,604 $ 1,567 $ 7,070 $ 3,690

12 unchanged sentences

Consolidated Balance Sheets

March 31, December 31,

June 30, December 31,

(millions) 2025 2024 2024

50 unchanged sentences

Consolidated Statements of Changes in Shareholders’ Equity

Three Months Ended March 31, 2025 2024

Three Months Six Months

Periods Ended June 30, 2025 2024 2025 2024

(millions — except per share amounts)

2 unchanged sentences

Redemption of Serial Preferred Shares, Series B 1

0 0 0 ( 494 )

Balance, end of period 0 0 0 0

33 unchanged sentences

Consolidated Statements of Cash Flows

Three Months Ended March 31, 2025 2024

Six Months Ended June 30, 2025 2024

Cash Flows From Operating Activities

32 unchanged sentences

Acquisition of treasury shares for equity award tax liabilities ( 55 ) ( 38 )

Acquisition of treasury shares acquired in open market ( 12 ) ( 10 )

Redemption of preferred shares 0 ( 500 )

1 unchanged sentence

Net cash used in financing activities ( 2,821 ) ( 1,113 )

Increase in cash, cash equivalents, restricted cash, and restricted cash equivalents 53 68

Increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents ( 19 ) 2

Cash, cash equivalents, restricted cash, and restricted cash equivalents – January 1 154 100

Cash, cash equivalents, restricted cash, and restricted cash equivalents – March 31

Cash, cash equivalents, restricted cash, and restricted cash equivalents – June 30

See notes to consolidated financial statements.

4 unchanged sentences

The consolidated financial statements reflect all normal recurring adjustments that, in the opinion of management, were necessary for a fair statement of the results for the interim periods presented.

The results of operations for the period ended March 31, 2025, are not necessarily indicative of the results expected for the full year.

The results of operations for the period ended June 30, 2025, are not necessarily indicative of the results expected for the full year.

These consolidated financial statements and the notes thereto should be read in conjunction with Progressive’s audited financial statements and accompanying notes included in Exhibit 13 to our Annual Report on Form 10-K for the year ended December 31, 2024 (2024 Annual Report to Shareholders).

3 unchanged sentences

The following table summarizes changes in our allowance for credit loss exposure on our premiums receivable:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(millions) 2025 2024 2025 2024

2 unchanged sentences

176 128 329 235

( 148 ) ( 128 ) ( 288 ) ( 276 )

Allowance for credit losses, end of period $ 501 $ 328 $ 501 $ 328

3 unchanged sentences

Property – Held for Sale

At March 31, 2025 and 2024, and December 31, 2024, we had held for sale properties of $ 117 million, $ 170 million, and $ 129 million, respectively, which are included in other assets on our consolidated balance sheets.

At June 30, 2025 and 2024, and December 31, 2024, we had held for sale properties of $ 117 million, $ 152 million, and $ 129 million, respectively, which are included in other assets on our consolidated balance sheets.

New Accounting Standards

We did not adopt any new accounting standards during the three months ended March 31, 2025, and there were no recently issued accounting standards that are expected to materially impact our financial condition or results of operations.

We did not adopt any new accounting standards during the three and six months ended June 30, 2025, and there were no recently issued accounting standards that are expected to materially impact our financial condition or results of operations.

The following tables present the composition of our investment portfolio by major security type:

1 unchanged sentence

(Losses) Fair

March 31, 2025

June 30, 2025

Available-for-sale securities:

18 unchanged sentences

(Losses) Fair

March 31, 2024

June 30, 2024

Available-for-sale securities:

37 unchanged sentences

$ 79,242 $ 145 $ ( 1,935 ) $ 2,798 $ 80,250 100.0 %

1 At March 31, 2025 and 2024 and December 31, 2024, we had $ 297 million, $ 16 million, and $ 125 million, respectively, of net unsettled security transactions included in other liabilities.

The total fair value of the portfolio at March 31, 2025 and 2024 and December 31, 2024, included $ 3.5 billion, $ 3.2 billion, and $ 6.2 billion, respectively, of securities held in a consolidated, non-insurance subsidiary of the holding company, net of unsettled security transactions.

A portion of the investments held at December 31, 2024 were sold and proceeds used to pay our common share dividends in January 2025;

1 At June 30, 2025 and 2024 and December 31, 2024, we had $ 303 million, $ 74 million, and $ 125 million, respectively, of net unsettled security transactions included in accounts payable, accrued expenses, and other liabilities on our consolidated balance sheets.

The total fair value of the portfolio at June 30, 2025 and 2024 and December 31, 2024, included $ 5.0 billion, $ 4.1 billion, and $ 6.2 billion, respectively, of securities held in a consolidated, non-insurance subsidiary of the holding company, net of unsettled security transactions.

A portion of the investments held at December 31, 2024 were sold and proceeds were used to pay our common share dividends in January 2025;

see Note 9 – Dividends for additional information.

The March 31, 2024, corporate and other debt securities in our Note 2 – Investments and Note 3 – Fair Value tables include amounts that were previously reported as redeemable preferred stocks.

The June 30, 2024, corporate and other debt securities in our Note 2 – Investments and Note 3 – Fair Value tables include amounts that were previously reported as redeemable preferred stocks.

The reclassification was to reflect the accurate categorization based on the underlying features of these securities;

see Note 2 – Investments in our 2024 Annual Report to Shareholders for further discussion.

At March 31, 2025, bonds and certificates of deposit in the principal amount of $ 785 million were on deposit to meet state insurance regulatory requirements.

At June 30, 2025, bonds and certificates of deposit in the principal amount of $ 786 million were on deposit to meet state insurance regulatory requirements.

We did no t hold any securities of any one issuer, excluding U.S.

government obligations, with an aggregate cost or fair value exceeding 10% of total shareholders’ equity at March 31, 2025 or 2024, or December 31, 2024.

At March 31, 2025, we did no t hold any debt securities that were non-income producing during the preceding 12 months.

government obligations, with an aggregate cost or fair value exceeding 10% of total shareholders’ equity at June 30, 2025 or 2024, or December 31, 2024.

At June 30, 2025, we did no t hold any debt securities that were non-income producing during the preceding 12 months.

Hybrid Securities Certain securities in our fixed-maturity portfolio are accounted for as hybrid securities because they contain embedded derivatives that are not deemed to be clearly and closely related to the host investments.

7 unchanged sentences

Since the embedded derivatives (e.g., change-in-control put option, debt-to-equity conversion, or any other feature unrelated to the credit quality or risk of default of the issuer that could impact the amount or timing of our expected future cash flows) do not have observable intrinsic values, we use the fair value option to record the changes in fair value of these securities through income as a component of net realized gains (losses).

Fixed Maturities The composition of fixed maturities by maturity at March 31, 2025, was:

Fixed Maturities The composition of fixed maturities by maturity at June 30, 2025, was:

(millions) Cost Fair Value

12 unchanged sentences

Value Gross Unrealized

March 31, 2025

June 30, 2025

government obligations 73 $ 10,463 $ ( 472 ) 9 $ 2,878 $ ( 20 ) 64 $ 7,585 $ ( 452 )

9 unchanged sentences

Value Gross Unrealized

March 31, 2024

June 30, 2024

government obligations 117 $ 29,776 $ ( 1,229 ) 17 $ 12,936 $ ( 110 ) 100 $ 16,840 $ ( 1,119 )

19 unchanged sentences

A review of the securities in an unrealized loss position indicated that the issuers were current with respect to their interest obligations and that there was no evidence of deterioration of the current cash flow projections that would indicate we would not receive the remaining principal at maturity.

We had three securities that had their credit ratings downgraded, with a combined fair value of $ 90 million and an unrealized loss of $ 5 million as of March 31, 2025.

Based on our analysis of these securities, no credit loss allowance was required.

Allowance For Credit and Uncollectible Losses We are required to measure the amount of potential credit losses for all fixed-maturity securities in an unrealized loss position.

We did no t record any allowances for credit losses or any write-offs for credit losses deemed to be uncollectible during the first three months of 2025 or 2024, and did no t have a material credit loss allowance balance as of March 31, 2025 and 2024, or December 31, 2024.

We did no t record any allowances for credit losses or any write-offs for credit losses deemed to be uncollectible during the first six months of 2025 or 2024, and did no t have a material credit loss allowance balance as of June 30, 2025 and 2024, or December 31, 2024.

We considered several factors and inputs related to the individual securities as part of our analysis.

4 unchanged sentences

• updated cash flow expectations based upon these performance indicators.

In order to determine the amount of credit loss, if any, we initially reviewed securities in a loss position to determine whether it was likely that we would be required, or intended, to sell any of the securities prior to the recovery of their respective cost bases (which could be maturity).

If we were likely to, or intended to, sell prior to a potential recovery, we would write off the unrealized loss.

We did not have an intention to sell any securities in a gross unrealized loss position at March 31, 2025 or March 31, 2024.

For those securities that we determined we were not likely to, or did not intend to, sell prior to a potential recovery,

we performed additional analysis to determine if the loss was credit related.

For securities subject to credit-related loss, we calculated the net present value (NPV) of the cash flows expected (i.e., expected recovery value) using the current book yield for each security.

The NPV was then compared to the security’s current amortized value to determine if a credit loss existed.

In the event that the NPV was below the amortized value, and the amount was determined to be material on any specific security, or in the aggregate, a credit loss would be deemed to exist, and either an allowance for credit losses would be created, or if an allowance currently existed, either a recovery of the previous allowance, or an incremental loss, would be recorded to net realized gains (losses) on securities.

As of March 31, 2025 and 2024, and December 31, 2024, we believe that none of the unrealized losses on our fixed-maturity securities were related to material credit losses on any specific securities, or in the aggregate.

We initially reviewed securities in a loss position to determine whether we intended, or if it was more likely than not that we would be required, to sell any of the securities prior to the recovery of their respective cost bases (which could be maturity).

If we were more likely than not, or intended, to sell prior to a potential recovery, we would write off the unrealized loss.

No unrealized loss write offs were recorded during the six months ended June 30, 2025 or 2024.

For those securities that we determined we were not likely to, or did not intend to, sell prior to a potential recovery, we performed additional analysis to determine if the loss was credit related.

For securities with a potential credit-related loss, we calculated the net present value (NPV) of the cash flows expected (i.e., expected recovery value) using the current book yield for each security.

The NPV was then compared to the security’s current amortized cost basis to determine if a credit loss existed.

If the NPV was below the amortized cost basis, and deemed material for any specific security, or in the aggregate, a credit loss would be recognized and either a new allowance for credit losses would be recorded, or adjustments would be made to a previous allowance.

All changes to new or existing allowances for credit losses are recorded to net realized gains (losses) on securities.

As of June 30, 2025 and 2024, and December 31, 2024, we believe that none of the unrealized losses on our fixed-maturity securities were related to material credit losses on any specific securities, or in the aggregate.

We continue to expect all the securities in our fixed-maturity portfolio to pay their principal and interest obligations.

In addition, we reviewed our accrued investment income outstanding on those securities in an unrealized loss position at March 31, 2025 and 2024, and December 31, 2024, to determine if the accrued interest amounts were uncollectible.

Based on our analysis, we believe the issuers have sufficient liquidity and capital reserves to meet their current interest, and future principal obligations and, therefore, did no t write off any accrued income as uncollectible at March 31, 2025 and 2024, or December 31, 2024.

Realized Gains (Losses) The components of net realized gains (losses) for the three months ended March 31, were:

In addition, we reviewed our accrued investment income outstanding on those securities in an unrealized loss position at June 30, 2025 and 2024, and December 31, 2024, to determine if the accrued interest amounts were uncollectible.

Realized Gains (Losses) The components of net realized gains (losses) for the three and six months ended June 30, were:

Three Months Six Months

(millions) 2025 2024 2025 2024

3 unchanged sentences

Corporate and other debt securities 2 1 3 4

Residential mortgage-backed securities 1 1 1 1

Total available-for-sale securities 27 3 81 6

21 unchanged sentences

Corporate and other debt securities 0 ( 22 ) 0 ( 34 )

Residential mortgage-backed securities 1 1 1 1

Commercial mortgage-backed securities ( 6 ) ( 10 ) ( 10 ) ( 15 )

11 unchanged sentences

Realized gains (losses) on securities sold are computed using the first-in-first-out method.

During the first three months of 2025 and 2024, the majority of our security sales were U.S.

During the second quarter and first six months of 2025 and 2024, the majority of our security sales were U.S.

Treasury Notes that were sold for duration management.

We also selectively sold securities that we viewed as having less attractive risk/reward profiles during the first three months of 2025 and 2024.

We also selectively sold securities that we viewed as having less attractive risk/reward profiles during the second quarter and first six months of 2025 and 2024.

The following table reflects our holding period realized gains (losses) recognized on equity securities held at the respective quarter ends:

Three Months Six Months

(millions) 2025 2024 2025 2024

2 unchanged sentences

Net holding period gains (losses) recognized during the period on equity securities held at period end $ 357 $ 97 $ 141 $ 391

Net Investment Income The components of net investment income for the three months ended March 31, were:

Net Investment Income The components of net investment income for the three and six months ended June 30, were:

Three Months Six Months

(millions) 2025 2024 2025 2024

17 unchanged sentences

Net investment income $ 862 $ 678 $ 1,669 $ 1,290

On a year-over-year basis, investment income (interest and dividends) increased 32 % for the three months ended March 31, 2025, compared to the same period last year .

The increase primarily reflects growth in invested assets and an increase in recurring investment book yield.

On a year-over-year basis, investment income (interest and dividends) increased 27% and 29 % for the three and six months ended June 30, 2025, respectively, compared to the same periods last year .

The increases primarily reflect growth in invested assets and an increase in recurring investment book yield.

The book yield increase primarily reflected investing new cash from insurance operations, and proceeds from maturing bonds, in higher coupon rate securities.

1 unchanged sentence

Inputs are unadjusted, quoted prices in active markets for identical instruments at the measurement date (e.g., U.S.

government obligations, which are continually priced on a daily basis, active exchange-traded equity securities, and certain short-term securities).

government obligations, which are continually priced on a daily basis, active exchange-traded equity securities, and certain short-term investments).

Inputs (other than quoted prices included within Level 1) that are observable for the instrument either directly or indirectly.

10 unchanged sentences

(millions) Level 1 Level 2 Level 3 Total Cost

March 31, 2025

June 30, 2025

Fixed maturities:

19 unchanged sentences

(millions) Level 1 Level 2 Level 3 Total Cost

March 31, 2024

June 30, 2024

Fixed maturities:

40 unchanged sentences

Debt $ 0 $ 6,173 $ 0 $ 6,173 $ 6,893

Our portfolio valuations, excluding short-term investments, classified as either Level 1 or Level 2 in the above tables are priced exclusively by external sources, including pricing vendors, dealers/market makers, and exchange-quoted prices.

Our short-term investments classified as Level 1 are highly liquid, actively marketed, and have a very short duration, primarily 90 days or less to redemption.

These securities are held at their original cost, adjusted for any accretion of discount, since that value very closely approximates what

an active market participant would be willing to pay for such securities.

The remainder of our short-term investments are classified as Level 2 and are not priced externally since these securities continually trade at par value.

These securities are classified as Level 2 since they are primarily longer-dated securities issued by municipalities that contain either liquidity facilities or mandatory put features within one year.

At both March 31, 2025 and December 31, 2024, vendor-quoted prices represented 93 % of our Level 1 classifications (excluding short-term investments), compared to 92 % at March 31, 2024.

Our portfolio valuations, excluding short-term investments valued at original cost, classified as either Level 1 or Level 2 in the above tables are priced exclusively by external sources, including pricing vendors, dealers/market makers, and exchange-quoted prices.

Our short-term investments classified as Level 1 include commercial paper, treasury bills, and money market funds which are highly liquid, actively marketed, and have very short durations.

These securities are valued at their original cost, adjusted for any accretion of discount, which approximates fair value because of the relatively short period of time until maturity.

The remainder of our short-term investments with a trade date to maturity of less than a year are classified as Level 2.

These securities are classified as Level 2 since they are valued using external pricing vendor prices or are securities that continually trade at par value because they contain either liquidity facilities or mandatory put features within one year and as a result are valued at their original cost.

At June 30, 2025 and 2024 and December 31, 2024, vendor-quoted prices represented 93 % of our Level 1 classifications (excluding short-term investments valued at original cost).

The securities quoted by vendors in Level 1 primarily represent our holdings in U.S.

1 unchanged sentence

The balance of our Level 1 pricing comes from quotes obtained directly from trades made on active exchanges.

At March 31, 2025 and 2024 and December 31, 2024, vendor-quoted prices comprised 100 % of our Level 2

classifications (excluding short-term investments).

At June 30, 2025, vendor-quoted prices comprised 99 % of our Level 2 classifications (excluding short-term investments valued at original cost), with the balance from

dealer quotes, compared to 100 % at June 30, 2024 and December 31, 2024.

In our process for selecting a source (e.g., dealer or pricing service) to provide pricing for securities in our portfolio, we reviewed documentation from the sources that detailed the pricing techniques and methodologies used by these sources and determined if their policies adequately considered market activity, either based on specific transactions for the particular security type or based on modeling of securities with similar credit quality, duration, yield, and structure that were recently transacted.

5 unchanged sentences

Under our policy, when a review of the valuation received from our selected source appears to be outside of what is considered market level activity (which is defined as trading at spreads or yields significantly different than those of comparable securities or outside the general sector level movement without a reasonable explanation), we may use an alternate source’s price.

the extent we determine that it may be prudent to substitute one source’s price for another, we will contact the initial source to obtain an understanding of the factors that may be contributing to the significant price variance.

To the extent we determine that it may be prudent to substitute

one source’s price for another, we will contact the initial source to obtain an understanding of the factors that may be contributing to the significant price variance.

To allow us to determine if our initial source is providing a price that is outside of a reasonable range, we review our portfolio pricing on a weekly basis.

14 unchanged sentences

For municipal housing securities, we look to changes in cash flow projections, both historical and reasonably estimable projections, to understand yield changes and their effect on valuation.

For short-term securities, we look at acquisition price relative to the coupon or yield.

Since our short-term securities are typically 90 days or less to maturity, with the majority listed in Level 2 being 30 days or less to redemption, we believe that acquisition price is the best estimate of fair value.

For short-term investments valued at original cost, we look at acquisition price relative to the coupon or yield.

Since most of these securities are 60 days or less to maturity, we believe that original cost is the best estimate of fair value.

For short-term investments valued with external vendor prices, we review securities by duration, credit quality, and coupon, as well as changes in interest rate and credit spread movements within that stratification, and recent trade information.

We also review data assumptions as supplied by our sources to determine if that data is relevant to current

18 unchanged sentences

Our Level 3 other risk investments include securities accounted for under the equity method of accounting and, therefore, are not subject to fair value reporting.

categorize these securities as “pricing exemption securities” in the quantitative information table.

During the first three months of 2025 and for the full year of 2024, there were no material assets or liabilities measured at fair value on a nonrecurring basis.

Since these securities represent less than 0.1% of our total portfolio, we include them in our Level 3 disclosures and report the activity from these investments as “other” changes in the summary of changes in fair value table and categorize these securities as “pricing exemption securities” in the quantitative information table.

During the first six months of 2025 and for the full year of 2024, there were no material assets or liabilities measured at fair value on a nonrecurring basis.

Due to the relative size of the Level 3 securities’ fair values, compared to the total portfolio’s fair value, any changes in pricing methodology would not have a significant change in valuation that would materially impact net or comprehensive income.

The following tables provide a summary of changes in fair value associated with Level 3 assets for the three months ended March 31, 2025 and 2024:

Level 3 Fair Value

The following tables provide a summary of changes in fair value associated with Level 3 assets for the three and six months ended June 30, 2025 and 2024:

(millions) Fair Value at March 31, 2025 Calls/

Paydowns/Other Purchases Sales Net Realized

on Sales Change in

In (Out) Fair Value at June 30, 2025

Fixed maturities:

Corporate and other debt securities $ 5 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 5

Equity securities:

Nonredeemable preferred stocks 60 0 0 0 0 0 0 60

Common equities:

Common stocks 9 0 0 0 0 0 0 9

Other risk investments 31 1 0 0 0 0 0 32

Total Level 3 securities

$ 105 $ 1 $ 0 $ 0 $ 0 $ 0 $ 0 $ 106

(millions) Fair Value at March 31, 2024 Calls/

Paydowns/Other Purchases Sales Net Realized

on Sales Change in

In (Out) Fair Value at June 30, 2024

Fixed maturities:

Corporate and other debt securities $ 3 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 3

Equity securities:

Nonredeemable preferred stocks 64 0 0 0 0 ( 12 ) 0 52

Common equities:

Common stocks 22 0 0 0 0 0 0 22

Other risk investments 25 ( 1 ) 0 0 0 0 0 24

Total Level 3 securities

$ 114 $ ( 1 ) $ 0 $ 0 $ 0 $ ( 12 ) $ 0 $ 101

(millions) Fair Value at December 31, 2024 Calls/

1 unchanged sentence

on Sales Change in

In (Out) Fair Value at March 31, 2025

In (Out) Fair Value at June 30, 2025

Fixed maturities:

6 unchanged sentences

Total Level 3 securities $ 105 $ 7 $ 8 $ 0 $ 0 $ ( 14 ) $ 0 $ 106

Level 3 Fair Value

(millions) Fair Value at December 31, 2023 Calls/

1 unchanged sentence

on Sales Change in

In (Out) Fair Value at March 31, 2024

In (Out) Fair Value at June 30, 2024

Fixed maturities:

9 unchanged sentences

For equity securities, these amounts are included in our consolidated statements of comprehensive income.

The following tables provide a summary of the quantitative information about Level 3 fair value measurements for our applicable securities at March 31, 2025 and 2024, and December 31, 2024:

Quantitative Information about Level 3 Fair Value Measurements

($ in millions) Fair Value at March 31, 2025 Valuation Technique Unobservable Input Range of Input Values Increase (Decrease) Weighted Average Increase (Decrease)

The following tables provide a summary of the quantitative information about Level 3 fair value measurements for our applicable securities at June 30, 2025 and 2024, and December 31, 2024:

($ in millions) Fair Value at June 30, 2025 Valuation Technique Unobservable Input Range of Input Values Increase (Decrease) Weighted Average Increase (Decrease)

Fixed maturities:

6 unchanged sentences

Total Level 3 securities $ 106

Quantitative Information about Level 3 Fair Value Measurements

($ in millions) Fair Value at March 31, 2024 Valuation Technique Unobservable Input Range of Input Values Increase (Decrease) Weighted Average Increase (Decrease)

($ in millions) Fair Value at June 30, 2024 Valuation Technique Unobservable Input Range of Input Values Increase (Decrease) Weighted Average Increase (Decrease)

Fixed maturities:

6 unchanged sentences

Total Level 3 securities $ 101

Quantitative Information about Level 3 Fair Value Measurements

($ in millions) Fair Value at December 31, 2024 Valuation Technique Unobservable Input Range of Input Values Increase (Decrease) Weighted Average Increase (Decrease)

8 unchanged sentences

Debt at each of the balance sheet periods consisted of the following Senior Notes:

($ in millions) March 31, 2025 March 31, 2024 December 31, 2024

($ in millions) June 30, 2025 June 30, 2024 December 31, 2024

Principal Amount Interest Rate Issuance Date Maturity Date Carrying

17 unchanged sentences

There was no short-term debt outstanding as of the end of all periods presented.

The Progressive Corporation has a line of credit with PNC Bank, National Association (PNC), in the maximum principal amount of $ 300 million.

During the second quarter 2025, The Progressive Corporation renewed its line of credit with PNC Bank, National Association (PNC), in the maximum principal amount of $ 300 million, which expires April 2026 and has the same terms as the previous line of credit with PNC.

See the 2024 Annual Report to Shareholders for a discussion of the terms of this line of credit.

We had no borrowings under the line of credit that was available during the periods presented.

The effective tax rate for the three months ended March 31, 2025 and 2024, was 20.7 % .

The effective tax rate for the three and six months ended June 30, 2025, was 20.3 % and 20.4 %, respectively , compared to 21.6 % and 21.0 % for the same periods last year.

The decrease in effective tax rate is primarily due to the tax benefits associated with distributions of deferred compensation during the second quarter 2025.

Deferred income taxes reflect the tax effects of temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities.

Although realization of the deferred tax assets is not assured, management believes that it is more likely than not that the deferred tax assets will be realized based on our expectation that we will be able to fully utilize the deductions that are ultimately recognized for tax purposes and, therefore, no valuation allowance was needed at March 31, 2025 and 2024, and December 31, 2024.

We had net current income taxes payable of $ 838 million , $ 962 million, and $ 26 million at March 31, 2025 and 2024, and December 31, 2024, respectively, which were reported in accounts payable, accrued expenses, and other liabilities on our consolidated balance sheets.

We had net current income taxes recoverable of $ 115 million at June 30, 2025, which were reported in other assets on our consolidated balance sheets, compared to net current income taxes payable of $ 9 million and $ 26 million at June 30, 2024 and December 31, 2024, respectively, which were reported in accounts payable, accrued expenses, and other liabilities.

The balance may fluctuate from period to period due to normal timing differences.

At March 31, 2025 and 2024, and December 31, 2024, we have not recorded any unrecognized tax benefits or related interest and penalties.

At June 30, 2025 and 2024, and December 31, 2024, we have not recorded any unrecognized tax benefits or related interest and penalties.

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES

12 unchanged sentences

Total paid 23,725 21,077

Net balance at March 31

Net balance at June 30

37,254 32,090

Plus reinsurance recoverables on unpaid losses 3,900 4,515

Balance at March 31

Balance at June 30

$ 41,154 $ 36,605

We experienced favorable reserve development of $ 278 million and $ 11 million during the first three months of 2025 and 2024, respectively, which is reflected as “incurred related to prior years ” in the table above.

First Quarter 2025

We experienced favorable reserve development of $ 607 million and $ 63 million during the first six months of 2025 and 2024, respectively, which is reflected as “incurred related to prior years ” in the table above.

Year-to-date June 30, 2025

• The favorable prior year reserve development included approximately $ 400 million attributable to accident year 2024, $ 115 million to accident year 2023, and the remainder to accident years 2022 and prior.

• Our perso nal auto products incurred about $ 520 million of favorable loss and loss adjustment expense (LAE) reserve development, with the agency and direct auto businesses each contributing about half.

The favorable development was primarily due to lower than anticipated loss severity and frequency in Florida.

The favorable development was primarily due to lower than anticipated loss severity and frequency in Florida and, to a lesser extent, lower than anticipated litigation defense costs across most states.

• Our personal property products experienced about $ 50 million of favorable development, primarily attributable to favorable development on 2024 catastrophe events.

First Quarter 2024

• Our Commercial Lines business experienced about $ 45 million of favorable development, primarily attributable to lower than anticipated severity in our transportation network company business.

Year-to-date June 30, 2024

• The favorable prior year reserve development included approximately $ 60 million of favorable development attributable to accident year 2023 and $ 20 million to accident year 2022;

partially offset by unfavorable development attributable to accident years 2021 and prior.

• Our personal auto products incurred about $ 100 million of favorable loss and LAE reserve development, in part due to lower than anticipated frequency in Florida following tort reform that passed in the first quarter 2023, with about 60 % attributable to the agency auto business and the balance in the direct auto business.

• Our Commercial Lines business experienced about $ 70 million of unfavorable development, primarily driven by higher than anticipated severity in our commercial auto business for California and New York.

• Our personal auto products incurred about $ 235 million of favorable loss and LAE reserve development, with about 60 % attributable to the agency auto business and the balance in the direct auto business.

The favorable development was, in part, due to lower than anticipated frequency in Florida following tort reform that passed in the first quarter 2023 and lower than anticipated property damage severity across the majority of states.

• Our Commercial Lines and personal property businesses experienced about $ 140 million and $ 30 million, respectively, of unfavorable development, with the Commercial Lines development primarily driven by higher than anticipated severity in our commercial auto business for California and New York.

SUPPLEMENTAL CASH FLOW INFORMATION

Cash and cash equivalents include bank demand deposits and daily overnight reverse repurchase commitments of funds held in bank demand deposit accounts by certain subsidiaries.

The amount of overnight reverse repurchase commitments, which are not considered part of the investment portfolio, held by these subsidiaries at March 31, 2025 and 2024, and December 31, 2024, were $ 78 million, $ 108 million, and $ 127 million, respectively.

The amount of overnight reverse repurchase commitments, which are not considered part of the investment portfolio, held by these subsidiaries at June 30, 2025 and 2024, and December 31, 2024, were $ 80 million, $ 81 million, and $ 127 million, respectively.

Restricted cash and restricted cash equivalents include collateral held against unpaid deductibles and cash that is restricted to pay flood claims under the National Flood Insurance Program’s “Write Your Own” program, for which certain subsidiaries are participants.

Non-cash activity included the following in the respective periods:

Three Months Ended March 31,

Six Months Ended June 30,

(millions) 2025 2024

5 unchanged sentences

In the respective periods, we paid the following:

Three Months Ended March 31,

Six Months Ended June 30,

(millions) 2025 2024

Income taxes $ 1,644 $ 1,351

Interest 138 138

2 unchanged sentences

Our Personal Lines segment writes insurance for personal autos, special lines products (e.g., recreational vehicles, such as motorcycles, RVs, and watercraft), personal residential property insurance for homeowners and renters, umbrella insurance, and flood insurance through the “Write Your Own” program for the National Flood Insurance Program.

Property information for the three months ended March 31, 2024, was recast to conform to the current year presentation;

Property information for the three and six months ended June 30, 2024, was recast to conform to the current year presentation;

see Note 10 – Segment Information in our 2024 Annual Report to Shareholders for further discussion.

2 unchanged sentences

Our service businesses provide insurance-related services, including serving as an agent for homeowners, general liability, and workers’ compensation insurance, among other products, through programs in our direct Personal Lines and Commercial Lines businesses.

All segment revenues are generated from external customers;

all intercompany transactions are eliminated in consolidation.

All segment revenues are generated from external customers and all intercompany transactions are eliminated in consolidation.

Following are the operating results for the respective periods:

(millions) Personal Lines Commercial Lines Other 1

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Net premiums earned $ 17,544 $ 2,765 $ 1 $ 20,310

18 unchanged sentences

(millions) Personal Lines Commercial Lines Other 1

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Net premiums earned $ 14,545 $ 2,664 $ 0 $ 17,209

17 unchanged sentences

Total pretax profit (loss) $ 1,860

(millions) Personal Lines Commercial Lines Other 1

Six Months Ended June 30, 2025

Net premiums earned $ 34,254 $ 5,464 $ 1 $ 39,719

Fees and other revenues 512 78 0 590

Total underwriting revenue 34,766 5,542 1 40,309

Losses and loss adjustment expenses:

Losses (excluding catastrophe losses) 18,683 3,120 ( 1 ) 21,802

Catastrophe losses 1,142 24 0 1,166

Loss adjustment expenses 2,861 579 1 3,441

Total losses and loss adjustment expenses 22,686 3,723 0 26,409

Underwriting expenses:

Distribution expenses 2

4,676 594 1 5,271

Other underwriting expenses 3

2,573 523 8 3,104

Total underwriting expenses 7,249 1,117 9 8,375

Pretax underwriting profit (loss) $ 4,831 $ 702 $ ( 8 ) 5,525

Investment profit (loss) 4

Service businesses profit (loss) ( 12 )

Interest expense ( 139 )

Total pretax profit (loss) $ 7,218

(millions) Personal Lines Commercial Lines Other 1

Six Months Ended June 30, 2024

Net premiums earned $ 28,136 $ 5,222 $ 0 $ 33,358

Fees and other revenues 412 84 0 496

Total underwriting revenue 28,548 5,306 0 33,854

Losses and loss adjustment expenses:

Losses (excluding catastrophe losses) 15,711 3,174 ( 3 ) 18,882

Catastrophe losses 1,581 35 0 1,616

Loss adjustment expenses 2,521 548 0 3,069

Total losses and loss adjustment expenses 19,813 3,757 ( 3 ) 23,567

Underwriting expenses:

Distribution expenses 2

3,388 558 0 3,946

Other underwriting expenses 3

2,223 478 4 2,705

Total underwriting expenses 5,611 1,036 4 6,651

Pretax underwriting profit (loss) $ 3,124 $ 513 $ ( 1 ) 3,636

Investment profit (loss) 4

Service businesses profit (loss) ( 16 )

Interest expense ( 139 )

Total pretax profit (loss) $ 4,800

1 Includes other underwriting businesses and run-off operations.

2 Includes policy acquisition costs, agents’ contingent commissions, and advertising costs attributable to our operating segments.

A portion of our companywide advertising costs are also related to our service businesses.

A portion of our companywide advertising costs are also attributed to our service businesses.

3 Primarily consists of employee compensation and benefit costs, and the increase in the allowance for credit loss exposure on our premiums receivable.

9 unchanged sentences

Following are the underwriting margins and combined ratios for our underwriting operations for the respective periods:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Margin Combined

Ratio Underwriting

Margin Combined

Personal Lines 14.0 % 86.0 7.4 % 92.6 14.1 % 85.9 11.1 % 88.9

1 unchanged sentence

Total underwriting operations 13.8 86.2 8.1 91.9 13.9 86.1 10.9 89.1

Following is a summary of our common and preferred share dividends that were declared and/or paid during the three months ended March 31, 2025 and 2024:

Following is a summary of our common and preferred share dividends that were declared and/or paid during the six months ended June 30, 2025 and 2024:

(millions — except per share amounts) Amount

4 unchanged sentences

Common – Quarterly Dividends:

May 2025 July 2025 0.10 58

March 2025 April 2025 0.10 59

December 2024 January 2025 0.10 58

May 2024 July 2024 0.10 58

March 2024 April 2024 0.10 59

15 unchanged sentences

comprehensive

income (loss) Total net

on securities Net unrealized losses on forecasted transactions Foreign

Balance at December 31, 2024 $ ( 1,809 ) $ 386 $ ( 1,423 ) $ ( 1,408 ) $ ( 14 ) $ ( 1 )

income (loss) Total net unrealized gains (losses) on securities Net unrealized losses on forecasted transactions Foreign

Balance at March 31, 2025 $ ( 671 ) $ 147 $ ( 524 ) $ ( 509 ) $ ( 14 ) $ ( 1 )

Other comprehensive income (loss) before reclassifications:

3 unchanged sentences

Net realized gains (losses) on securities 16 ( 3 ) 13 13 0 0

Interest expense ( 1 ) 0 ( 1 ) 0 ( 1 ) 0

Total reclassification adjustment for amounts realized in net income 15 ( 3 ) 12 13 ( 1 ) 0

Total other comprehensive income (loss) 543 ( 114 ) 429 428 1 0

Balance at June 30, 2025 $ ( 128 ) $ 33 $ ( 95 ) $ ( 81 ) $ ( 13 ) $ ( 1 )

Components of Changes in

Accumulated Other

Comprehensive Income (after tax)

(millions) Pretax total

comprehensive

income (loss) Total tax

benefit After tax total

comprehensive

income (loss) Total net unrealized gains (losses) on securities Net unrealized losses on forecasted transactions Foreign

Balance at March 31, 2024 $ ( 2,316 ) $ 492 $ ( 1,824 ) $ ( 1,809 ) $ ( 14 ) $ ( 1 )

Other comprehensive income (loss) before reclassifications:

Investment securities ( 85 ) 18 ( 67 ) ( 67 ) 0 0

Total other comprehensive income (loss) before reclassifications ( 85 ) 18 ( 67 ) ( 67 ) 0 0

Reclassification adjustment for amounts realized in net income by income statement line item:

Net realized gains (losses) on securities ( 221 ) 46 ( 175 ) ( 175 ) 0 0

Total reclassification adjustment for amounts realized in net income ( 221 ) 46 ( 175 ) ( 175 ) 0 0

Total other comprehensive income (loss) 136 ( 28 ) 108 108 0 0

Balance at June 30, 2024 $ ( 2,180 ) $ 464 $ ( 1,716 ) $ ( 1,701 ) $ ( 14 ) $ ( 1 )

Components of Changes in

13 unchanged sentences

Net realized gains (losses) on securities ( 14 ) 3 ( 11 ) ( 11 ) 0 0

Interest expense ( 1 ) 0 ( 1 ) 0 ( 1 ) 0

Total reclassification adjustment for amounts realized in net income ( 15 ) 3 ( 12 ) ( 11 ) ( 1 ) 0

Total other comprehensive income (loss) 1,681 ( 353 ) 1,328 1,327 1 0

Balance at March 31, 2024 $ ( 2,316 ) $ 492 $ ( 1,824 ) $ ( 1,809 ) $ ( 14 ) $ ( 1 )

Balance at June 30, 2025 $ ( 128 ) $ 33 $ ( 95 ) $ ( 81 ) $ ( 13 ) $ ( 1 )

Components of Changes in

Accumulated Other

Comprehensive Income (after tax)

(millions) Pretax total

comprehensive

income (loss) Total tax

benefit After tax total

comprehensive

income (loss) Total net unrealized gains (losses) on securities Net unrealized losses on forecasted transactions Foreign

Balance at December 31, 2023 $ ( 2,053 ) $ 437 $ ( 1,616 ) $ ( 1,601 ) $ ( 14 ) $ ( 1 )

Other comprehensive income (loss) before reclassifications:

Investment securities ( 499 ) 105 ( 394 ) ( 394 ) 0 0

Total other comprehensive income (loss) before reclassifications ( 499 ) 105 ( 394 ) ( 394 ) 0 0

Reclassification adjustment for amounts realized in net income by income statement line item:

Net realized gains (losses) on securities ( 372 ) 78 ( 294 ) ( 294 ) 0 0

Total reclassification adjustment for amounts realized in net income ( 372 ) 78 ( 294 ) ( 294 ) 0 0

Total other comprehensive income (loss) ( 127 ) 27 ( 100 ) ( 100 ) 0 0

Balance at June 30, 2024 $ ( 2,180 ) $ 464 $ ( 1,716 ) $ ( 1,701 ) $ ( 14 ) $ ( 1 )

In an effort to manage interest rate risk, we entered into forecasted transactions on certain of Progressive’s debt issuances.

4 unchanged sentences

The nature and volume of litigation pending against The Progressive Corporation and/or its insurance subsidiaries is similar to that which was disclosed in Note 12 – Litigation in our 2024 Annual Report to Shareholders.

As of March 31, 2025, lawsuits have been certified or conditionally certified as class/collective actions in cases alleging that:

we improperly value total loss claims by applying a negotiation adjustment in Alabama, Arkansas, Colorado, Georgia, Indiana, New York, Ohio, Pennsylvania, and South Carolina;

we improperly fail to pay fees and taxes associated with total losses in Michigan;

As of June 30, 2025, lawsuits have been certified or conditionally certified as class/collective actions in cases alleging that:

we improperly value total loss claims by applying a negotiation adjustment in Alabama, Arkansas, Colorado, Georgia, Indiana, North Carolina, Ohio, Pennsylvania, and South Carolina;

we improperly calculate basic economic loss as it relates to wage loss coverage in New York;

we improperly reduce or deny personal injury protection benefits when medical expenses are paid initially by health insurance in Arkansas;

and we sell illusory underinsured motorist coverage in New Mexico.

and we improperly reduce or deny personal injury protection benefits when medical expenses are paid initially by health insurance in Arkansas.

Other insurance companies face many of these same issues.

2 unchanged sentences

contemporaneously in multiple states.

As of March 31,

As of June 30,

2025, we are named as defendants in class action lawsuits

pending in multiple states alleging that we improperly value total loss vehicle physical damage claims through the application of a negotiation adjustment in calculating such valuations, which includes nine states in which classes have been certified, as noted above, and lawsuits styled as putative class actions pending in additional states.

pending in multiple states alleging that we improperly

value total loss vehicle physical damage claims through the

application of a negotiation adjustment in calculating such valuations, which includes nine states in which classes have been certified, as noted above, and lawsuits styled as putative class actions pending in additional states.

These lawsuits, which were filed at different times by different plaintiffs, feature certain similar claims and also include different allegations and are subject to various state laws.

While we believe we have meritorious defenses and we are vigorously contesting these lawsuits, an unfavorable result in, or a settlement of, a significant number of these lawsuits could, in aggregation, have a material adverse effect on our financial condition, cash flows, and/or results of operations.

Based on information available to us, we determined that losses from these lawsuits are reasonably possible but neither probable nor reasonably estimable, other than for suits for which accruals have been established and are not material, as of March 31, 2025.

With respect to our pending lawsuits that are not related to claims under insurance policies, the accruals that we have established were not material at March 31, 2025 and 2024, or December 31, 2024, and there were no material settlements during 2024 or the first three months of 2025.

With respect to our pending lawsuits that are not related to claims under insurance policies, the accruals that we have established were not material at June 30, 2025 and 2024, or December 31, 2024, and there were no material settlements during 2024 or the first six months of 2025.

For most of these lawsuits, we do not consider any losses to be both probable and estimable, and we are unable to estimate a meaningful range of loss, if any, at this time, due to the factors discussed in Note 12 – Litigation in our 2024 Annual Report to Shareholders.

2 unchanged sentences

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-Q

Item 1. Financial Statements