What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-11-03 compared with 2025-08-04 · 132 added, 115 removed, 864 unchanged (22% of the section changed)

2 unchanged sentences

Consolidated Statements of Comprehensive Income

Three Months Six Months

Periods Ended June 30,

Three Months Nine Months

Periods Ended September 30,

2025 2024 2025 2024

12 unchanged sentences

Other underwriting expenses 3,015 2,670 8,423 6,781

Policyholder credit expense 1

Investment expenses 10 7 26 20

19 unchanged sentences

Earnings per common share $ 4.45 $ 3.97 $ 14.21 $ 10.39

1 See Note 8 – Segment Information for further discussion.

2 All of our outstanding Serial Preferred Shares, Series B, were redeemed in February 2024.

2 unchanged sentences

Consolidated Balance Sheets

June 30, December 31,

September 30, December 31,

(millions) 2025 2024 2024

50 unchanged sentences

Consolidated Statements of Changes in Shareholders’ Equity

Three Months Six Months

Periods Ended June 30, 2025 2024 2025 2024

Three Months Nine Months

Periods Ended September 30, 2025 2024 2025 2024

(millions — except per share amounts)

38 unchanged sentences

Consolidated Statements of Cash Flows

Six Months Ended June 30, 2025 2024

Nine Months Ended September 30, 2025 2024

Cash Flows From Operating Activities

36 unchanged sentences

Net cash used in financing activities ( 2,919 ) ( 1,257 )

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

Increase in cash, cash equivalents, restricted cash, and restricted cash equivalents 31 47

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

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

Cash, cash equivalents, restricted cash, and restricted cash equivalents – September 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 June 30, 2025, are not necessarily indicative of the results expected for the full year.

The results of operations for the period ended September 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 June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

(millions) 2025 2024 2025 2024

8 unchanged sentences

Property – Held for Sale

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.

At September 30, 2025 and 2024, and December 31, 2024, we had held for sale properties of $ 112 million, $ 150 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 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.

We did not adopt any new accounting standards during the three and nine months ended September 30, 2025.

In September 2025, the Financial Accounting Standards Board issued an Accounting Standards Update (ASU), which amends the existing accounting guidance for capitalization of internal-use software costs and provides more detailed guidelines around the criteria for capitalization.

This ASU will be effective for fiscal years (including interim periods within those fiscal years) beginning after December 15, 2027 (2028 for calendar-year companies).

This standard may be applied using a prospective, modified, or retrospective transition approach.

We do not believe this ASU will have a material impact on 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

June 30, 2025

September 30, 2025

Available-for-sale securities:

18 unchanged sentences

(Losses) Fair

June 30, 2024

September 30, 2024

Available-for-sale securities:

37 unchanged sentences

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

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.

1 At September 30, 2025 and 2024 and December 31, 2024, we had $ 523 million, $ 469 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 September 30, 2025 and 2024 and December 31, 2024, included $ 4.9 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 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 June 30, 2025, bonds and certificates of deposit in the principal amount of $ 786 million were on deposit to meet state insurance regulatory requirements.

At September 30, 2025, bonds and certificates of deposit in the principal amount of $ 788 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 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.

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

At September 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.

These securities are reported at fair value:

September 30,

(millions) 2025 2024 December 31, 2024

5 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 June 30, 2025, was:

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

(millions) Cost Fair Value

4 unchanged sentences

Total $ 88,247 $ 88,509

Asset-backed securities are classified in the maturity distribution table based upon their projected cash flows.

Asset-backed securities are classified in the maturity distribution table above based upon their projected cash flows.

All other securities that do not have a single maturity date are reported based upon expected average maturity.

5 unchanged sentences

Value Gross Unrealized

June 30, 2025

September 30, 2025

government obligations 71 $ 11,145 $ ( 413 ) 7 $ 1,777 $ ( 3 ) 64 $ 9,368 $ ( 410 )

9 unchanged sentences

Value Gross Unrealized

June 30, 2024

September 30, 2024

government obligations 86 $ 12,919 $ ( 574 ) 3 $ 2,069 $ ( 3 ) 83 $ 10,850 $ ( 571 )

18 unchanged sentences

Total fixed maturities 1,073 $ 53,784 $ ( 1,935 ) 342 $ 35,528 $ ( 485 ) 731 $ 18,256 $ ( 1,450 )

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.

A review of the securities in an unrealized loss position indicated, at the end of each period presented, 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.

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

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

6 unchanged sentences

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.

No unrealized loss write offs were recorded during the nine months ended September 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.

The NPV was then compared to the applicable 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 June 30, 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 June 30, 2025 and 2024, or December 31, 2024.

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

Three Months Six Months

As of September 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 will pay their principal and interest obligations.

In addition, we reviewed our accrued investment income outstanding on those securities in an unrealized loss position at September 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 nine months ended September 30, were:

Three Months Nine Months

(millions) 2025 2024 2025 2024

35 unchanged sentences

Subtotal net realized gains (losses) on security sales 12 32 32 ( 341 )

Gain 0 36 0 36

Net holding period gains (losses)

4 unchanged sentences

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

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

We had minimal sales activity during the third quarter of 2025.

During the first nine months of 2025 and the third quarter and first nine months of 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 second quarter and first six months of 2025 and 2024.

We also selectively sold securities that we viewed as having less attractive risk/reward profiles during the first nine 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

Three Months Nine 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 $ 280 $ 200 $ 421 $ 591

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

Three Months Six Months

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

Three Months Nine Months

(millions) 2025 2024 2025 2024

17 unchanged sentences

Net investment income $ 914 $ 732 $ 2,583 $ 2,022

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 .

On a year-over-year basis, investment income (interest and dividends) increased 25 % and 28 % for the three and nine months ended September 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.

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

We have categorized our financial instruments, based on the degree of subjectivity inherent in the method by which they are valued, into a fair value hierarchy of three levels, as follows:

1 unchanged sentence

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.

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

This includes:

(i) quoted prices for similar instruments in active markets, (ii) quoted prices for identical or similar instruments in markets that are not active, (iii) inputs other than quoted prices that are observable for the instruments, and (iv) inputs that

are derived principally from or corroborated by observable market data by correlation or other means.

(i) quoted prices for similar instruments in active markets, (ii) quoted prices for identical or similar instruments in markets that are not active, (iii) inputs other than quoted prices that are

observable for the instruments, and (iv) inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Inputs that are unobservable.

3 unchanged sentences

We review certain market level inputs to evaluate whether sufficient activity, volume, and new issuances exist to create an active market.

Based on this evaluation, we concluded that there was sufficient activity related to the sectors and securities for which we obtained valuations.

Based on this evaluation, we concluded there was sufficient activity related to the sectors and securities for which we obtained valuations.

The composition of the investment portfolio by major security type and our outstanding debt was:

(millions) Level 1 Level 2 Level 3 Total Cost

June 30, 2025

September 30, 2025

Fixed maturities:

19 unchanged sentences

(millions) Level 1 Level 2 Level 3 Total Cost

June 30, 2024

September 30, 2024

Fixed maturities:

41 unchanged sentences

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.

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 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.

1 unchanged sentence

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).

At September 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 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.

At September 30, 2025 and 2024, 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 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.

14 unchanged sentences

For structured debt securities, including commercial, residential, and other asset-backed securities, we evaluate available market-related data for these and similar securities related to collateral, delinquencies, and defaults for historical trends and reasonably estimable projections, as well as historical prepayment rates and current prepayment assumptions and cash flow estimates.

We further stratify each class of structured debt securities into more finite sectors (e.g., planned amortization class, first pay, second pay, senior, and subordinated) and use duration, credit quality, and coupon to determine if the fair value is appropriate.

We further stratify each class of structured debt securities into more finite sectors (e.g., planned amortization class, first pay, second pay, senior, and subordinated) and use duration and credit quality to determine if the fair value is appropriate.

For corporate and other debt, nonredeemable preferred stock, and the notes issued by The Progressive Corporation (see Note 4 – Debt ), we review securities by duration, credit quality, and coupon, as well as changes in interest rate and credit spread movements within that stratification.

13 unchanged sentences

During each valuation period, we create internal estimations of portfolio valuation (performance returns), based on current market-related activity (i.e., interest rate and credit spread movements and other credit-related factors) within each major sector of our portfolio.

We compare our internally generated portfolio results with those generated based on quotes we receive externally and research material valuation differences.

We compare our results to index returns for each major sector adjusting for duration and credit quality differences to better understand our portfolio’s results.

Additionally, we review on a monthly basis our external sales transactions and compare the actual final market sales prices to previous market valuation prices.

This review provides us further validation that our pricing sources are providing market level prices, since we are able to explain significant price changes (i.e., greater than 2%) as known events occur in the marketplace and affect a particular security’s price at sale.

This analysis provides us with additional comfort regarding the source’s process, the quality of its review, and its willingness to improve its analysis based on feedback from clients.

Additionally, we review our external sales transactions and compare the actual final market sales prices to previous market valuation prices on a monthly basis.

This review provides us further validation that our pricing sources are providing market level prices, and gives us additional comfort regarding the source’s process, the quality of its review, and its willingness to improve its analysis based on feedback from clients.

We believe this effort helps ensure that we are reporting the most representative fair values for our securities.

3 unchanged sentences

To the extent we receive prices from external sources (e.g., broker and valuation firm) for the Level 3 securities, we review those prices for reasonableness using internally developed assumptions and then compare our derived prices to the prices received from the external sources.

Based on our review, all prices received from external sources remained unadjusted.

Based on our review during the first nine months of 2025 and for the full year of 2024, all prices received from external sources remained unadjusted.

If we do not receive prices from an external source, we perform an internal fair value comparison, which includes a review and analysis of market-comparable securities, to determine if fair value changes are needed.

1 unchanged sentence

Level 3 category remain valued at cost or were priced using a recent transaction as the basis for fair value.

At least annually, these private equity investments are priced by an external source.

least annually, these private equity investments are priced by an external source.

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.

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.

During the first nine 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 and six months ended June 30, 2025 and 2024:

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

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

(millions) Fair Value at June 30, 2025 Calls/

Paydowns/Other Purchases Sales Net Realized

on Sales Change in

In (Out) Fair Value at June 30, 2025

In (Out) Fair Value at September 30, 2025

Fixed maturities:

7 unchanged sentences

$ 106 $ 2 $ 0 $ 0 $ 0 $ 0 $ 0 $ 108

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

(millions) Fair Value at June 30, 2024 Calls/

Paydowns/Other Purchases Sales Net Realized

on Sales Change in

In (Out) Fair Value at June 30, 2024

In (Out) Fair Value at September 30, 2024

Fixed maturities:

10 unchanged sentences

on Sales Change in

In (Out) Fair Value at June 30, 2025

In (Out) Fair Value at September 30, 2025

Fixed maturities:

9 unchanged sentences

on Sales Change in

In (Out) Fair Value at June 30, 2024

In (Out) Fair Value at September 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 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)

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

($ in millions) Fair Value at September 30, 2025 Valuation

Technique Unobservable Input Range of

(Decrease) Weighted

Fixed maturities:

6 unchanged sentences

Total Level 3 securities $ 108

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

($ in millions) Fair Value at September 30, 2024 Valuation

Technique Unobservable Input Range of

(Decrease) Weighted

Fixed maturities:

6 unchanged sentences

Total Level 3 securities $ 100

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

($ in millions) Fair Value at December 31, 2024 Valuation

Technique Unobservable Input Range of

(Decrease) Weighted

Fixed maturities:

7 unchanged sentences

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

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

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

Principal Amount Interest Rate Issuance Date Maturity Date Carrying

20 unchanged sentences

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

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.

The effective tax rate for the three and nine months ended September 30, 2025, was 21.3 % and 20.7 %, respectively , compared to 20.8 % and 20.9 % for the same periods last year.

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 June 30, 2025 and 2024, and December 31, 2024.

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.

We had net current income taxes payable of $ 24 million and $ 26 million at September 30, 2025 and December 31, 2024 , respectively, which were reported in accounts payable, accrued expenses, and other liabilities on our consolidated balance sheets, compared to net cu rrent income taxes recoverable of $ 5 million at September 30, 2024 , which was reported in other assets.

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

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

At September 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

Activity in the loss and loss adjustment expense reserves is summarized as follows:

September 30,

(millions) 2025 2024

10 unchanged sentences

Total paid 36,132 32,161

Net balance at June 30

Net balance at September 30

38,292 33,516

Plus reinsurance recoverables on unpaid losses 3,813 4,546

Balance at June 30

Balance at September 30

$ 42,105 $ 38,062

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

We experienced favorable reserve development of $ 1,068 million and $ 199 million during the first nine months of 2025 and 2024, respectively, which is reflected as “incurred related to prior years ” in the table above.

Year-to-date September 30, 2025

• The favorable prior year reserve development included approximately $ 660 million attributable to accident year 2024, $ 190 million to accident year 2023, and the remainder to accident years 2022 and prior.

• Our perso nal auto products incurred about $ 910 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 and, to a lesser extent, lower than anticipated litigation defense costs across most states and lower than anticipated payments on reopened property damage claims that were previously closed.

• Our personal property products experienced about $ 75 million of favorable development, primarily attributable to favorable development on 2024 catastrophe events.

• 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 Commercial Lines business experienced about $ 80 million of favorable development, primarily attributable to lower than anticipated severity in our transportation network company business, partially offset by higher than anticipated severity and litigation defense costs in our core commercial auto bodily injury coverages.

Year-to-date September 30, 2024

• The favorable prior year reserve development included approximately $ 160 million attributable to accident year 2023, $ 5 million to accident year 2022, and the remainder to accident years 2021 and prior.

• Our personal auto products incurred about $ 375 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.

The favorable development was, in part, due to lower than anticipated severity and frequency in Florida and lower than anticipated property damage severity across the majority of states.

• Our personal property business experienced about $ 75 million of unfavorable development primarily due to higher LAE costs than anticipated.

• Our Commercial Lines business experienced about $ 100 million of unfavorable development primarily driven by higher than anticipated severity in our commercial auto business for California, New York, and Texas.

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 June 30, 2025 and 2024, and December 31, 2024, were $ 80 million, $ 81 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 September 30, 2025 and 2024, and December 31, 2024, were $ 58 million, $ 89 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:

Six Months Ended June 30,

Nine Months Ended September 30,

(millions) 2025 2024

5 unchanged sentences

In the respective periods, we paid the following:

Six Months Ended June 30,

Nine Months Ended September 30,

(millions) 2025 2024

4 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 and six months ended June 30, 2024, was recast to conform to the current year presentation;

Property information for the three and nine months ended September 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.

5 unchanged sentences

(millions) Personal Lines Commercial Lines Other 1

Three Months Ended June 30, 2025

Three Months Ended September 30, 2025

Net premiums earned $ 18,089 $ 2,760 $ 0 $ 20,849

18 unchanged sentences

(millions) Personal Lines Commercial Lines Other 1

Three Months Ended June 30, 2024

Three Months Ended September 30, 2024

Net premiums earned $ 15,570 $ 2,727 $ 0 $ 18,297

18 unchanged sentences

(millions) Personal Lines Commercial Lines Other 1

Six Months Ended June 30, 2025

Nine Months Ended September 30, 2025

Net premiums earned $ 52,343 $ 8,224 $ 1 $ 60,568

18 unchanged sentences

(millions) Personal Lines Commercial Lines Other 1

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Net premiums earned $ 43,706 $ 7,949 $ 0 $ 51,655

17 unchanged sentences

Total pretax profit (loss) $ 7,746

1 Includes other underwriting businesses and run-off operations.

1 Includes other underwriting business 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 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.

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

4 Calculated as recurring investment income plus total net realized gains (losses) on securities, less investment expenses.

In the tables above, the results for the Personal Lines segment for both the three and nine months ended September 30, 2025, included $ 950 million of policyholder credit expense, included within other underwriting expenses.

During the third quarter 2025, we determined it was probable that our personal auto profit in Florida for the 2023 to 2025 period will exceed the statutory profit limit that a Florida statute imposes on the profit that any insurance group can earn on personal auto insurance over any three-calendar-year period.

In such event, we would need to credit any profit, above the limit, to all Florida personal auto policyholders active at December 31, 2025.

Further, the accrual represents our current estimate of the profit we will earn on the three-calendar-year period ending December 31, 2025, in excess of the permitted profit limit.

The expense is reported in policyholder credit expense on the consolidated statements of comprehensive income and the accrual is included in accounts payable, accrued expenses, and other liabilities on our consolidated balance sheets.

Our management uses underwriting margin and combined ratio as primary measures of underwriting profitability.

3 unchanged sentences

(ii) policy acquisition costs;

and (iii) other underwriting expenses.

(iii) other underwriting expenses;

and (iv) policyholder credit expense.

Combined ratio is the complement of the underwriting margin.

1 unchanged sentence

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

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

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

6 unchanged sentences

Total underwriting operations 10.5 89.5 11.0 89.0 12.7 87.3 10.9 89.1

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:

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

(millions — except per share amounts) Amount

4 unchanged sentences

Common – Quarterly Dividends:

August 2025 October 2025 0.10 59

May 2025 July 2025 0.10 58

1 unchanged sentence

December 2024 January 2025 0.10 58

August 2024 October 2024 0.10 59

May 2024 July 2024 0.10 58

17 unchanged sentences

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 )

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

Other comprehensive income (loss) before reclassifications:

3 unchanged sentences

Net realized gains (losses) on securities 3 ( 1 ) 2 2 0 0

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

Total reclassification adjustment for amounts realized in net income 3 ( 1 ) 2 2 0 0

Total other comprehensive income (loss) 359 ( 75 ) 284 284 0 0

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

Balance at September 30, 2025 $ 231 $ ( 42 ) $ 189 $ 203 $ ( 13 ) $ ( 1 )

Components of Changes in

7 unchanged sentences

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 )

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

Other comprehensive income (loss) before reclassifications:

5 unchanged sentences

Total other comprehensive income (loss) 1,977 ( 416 ) 1,561 1,561 0 0

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

Balance at September 30, 2024 $ ( 203 ) $ 48 $ ( 155 ) $ ( 140 ) $ ( 14 ) $ ( 1 )

Components of Changes in

16 unchanged sentences

Total other comprehensive income (loss) 2,040 ( 428 ) 1,612 1,611 1 0

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

Balance at September 30, 2025 $ 231 $ ( 42 ) $ 189 $ 203 $ ( 13 ) $ ( 1 )

Components of Changes in

15 unchanged sentences

Total other comprehensive income (loss) 1,850 ( 389 ) 1,461 1,461 0 0

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

Balance at September 30, 2024 $ ( 203 ) $ 48 $ ( 155 ) $ ( 140 ) $ ( 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 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;

As of September 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, North Carolina, Ohio, and South Carolina;

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

4 unchanged sentences

contemporaneously in multiple states.

As of June 30,

As of September 30,

2025, we are named as defendants in class action lawsuits

1 unchanged sentence

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.

application of a negotiation adjustment in calculating such valuations, which includes six 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 June 30, 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.

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 September 30, 2025 and 2024, or December 31, 2024, and there were no material settlements during 2024 or the first nine 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