What changed in this filing

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Item 1. Business

2026-03-02 compared with 2025-03-03 · 110 added, 113 removed, 325 unchanged (41% of the section changed)

General Development of Business

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

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

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

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Unless noted, references to “state(s)” throughout this report include the District of Columbia.

The Progressive Corporation, together with its insurance and non-insurance subsidiaries and affiliates, comprise what we refer to as Progressive.

The Progressive Corporation, together with its insurance and non-insurance subsidiaries, comprise what we refer to as Progressive.

Progressive’s vision is to become consumers’, agents’, and business owners’ number one destination for insurance and other financial needs.

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• Chief Financial Officer

• Personal Lines President

• Chief Marketing Officer

• Chief Investment Officer

• Personal Lines President

• Chief Strategy and Finance Management Officer

• Commercial Lines President

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• Chief Legal Officer

• Chief Marketing Officer

• Chief Strategy Officer

Our insurance and claims organizations are generally managed on a state-by-state basis due to the nature of insurance, legal and regulatory requirements, and other local factors, and are supplemented by national operations and supported by our corporate functions.

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Personal Lines

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

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

The Personal Lines segment accounted for 87% of our total net premiums written in 2025, 85% in 2024, and 84% in 2023.

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

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

For 2025, our personal vehicle products represented 96% of our total Personal Lines net premiums written, 95% for 2024, and 94% for 2023.

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

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

• Personal auto insurance represented 95% of our total personal vehicle net premiums written in both 2025 and 2024, and 94% in 2023.

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

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Progressive and the other leading 15 private passenger auto insurers, each of which writes over $3 billion of premiums annually, comprise about 85% of this market.

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

All industry data, including ranking and market share, based on premiums written, has been obtained directly from data reported by either S&P Global Market Intelligence or A.M.

Best Company, Inc.

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100% of this business is reinsured with the NFIP.

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

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

Our personal property business represented 4% of our total Personal Lines net premiums written in 2025, 5% in 2024, and 6% in 2023, with about 95% of the total personal property net premiums written attributable to the homeowners and renters products.

We were the twelfth largest homeowners carrier in the U.S., based on 2024 premiums written, and we are currently unable to determine if we will hold that ranking for 2025.

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

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

Progressive and the other leading 28 large companies/groups, each with over $1 billion of premiums written annually, comprise about 80% of the market.

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

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

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

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

See “Competitive Factors” below for further discussion.

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

Agency Distribution Channel

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

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

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

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Direct Distribution Channel

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

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

• The direct personal vehicle business includes business written directly by us online or by phone.

The total net premiums written by the direct personal vehicle business represented 57% of our total personal vehicle volume in 2025, 55% in 2024, and 54% in 2023.

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

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

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

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

The total net premiums written by the direct personal property business represented 28% of our total personal property volume in 2025, 26% in 2024, and 23% in 2023.

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

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

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

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

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

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

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

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

In the third quarter 2025, we started rolling out our latest personal auto product offering, model 9.0, which contains new and expanded coverage features.

With the 9.0 model, we introduced embedded renters insurance as an optional endorsement to an auto policy.

This endorsement provides coverage that used to only be offered through a stand-alone renters policy.

Product 9.0 also includes updates to our rating calculation that improve our ability to more accurately match rate to risk by expanding our use of external data, introducing new rating variables, and refining existing rating variables.

As of December 31, 2025, 10 states, that represented about 25% of our companywide personal auto net premiums written, are on model 9.0 and, overall, we are seeing favorable conversion results in both the agency and direct channels.

Our 9.1 model is currently in execution planning, and we expect the first state to elevate in early 2027.

We are continuing to roll out our newest special lines product model (R17), which was first launched in late 2024 and consists of 27 product enhancements that expand segmentation.

We continued to advance our personal property product segmentation, pricing, and risk selection capabilities in 2025.

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

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

Through the end of the year, we had 39 states elevated to our next-generation-product models (5.0 and higher), which represented close to 90% of our personal property net premiums written.

Key features of our next-generation-product models include expanded peril rating and the introduction of new rating variables.

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

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

See “Competitive Factors” below for further discussion.

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

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

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

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

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As of December 31, 2025, we had nearly 6,000 Platinum agents.

• We offer independent agents an agency quoting system that makes it easier for them to bundle multiple policies with us.

• We offer independent agents a quoting system that makes it easier for them to bundle multiple policies with us.

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

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The Commercial Lines business accounted for 13% of our total net premiums written in 2025, 15% in 2024, and 16% in 2023.

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

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

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

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

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

During 2025, we wrote about 90% of our commercial auto business through the agency channel, excluding transportation network company (TNC) business, which is all written through the direct channel.

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

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commercial auto market since 2015, and we believe that we continued to hold that position for 2025.

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

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

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

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

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

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

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

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

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

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

During 2025, we began to roll out our next-generation-product models across our core commercial auto, medium fleet, and BOP products, expanding segmentation and pricing variables.

Our 8.3 core commercial auto product model launched in 11 states that represent 43% of our core commercial auto countrywide net premiums written at the end of 2025.

Our newest medium-fleet product model was fully deployed, in nearly all states, and our newest BOP model was in market in 34 states that represent 92% of our countrywide BOP net premiums written as of the end of 2025.

The BOP product, at year-end 2025, was available to agents in 46 states, excluding the District of Columbia.

In core commercial auto, we also launched and rolled out our new Cargo Plus endorsement.

The Cargo Plus endorsement expands coverage to better meet the needs of our for-hire transportation customers and was available in 49 states as of the end of 2025.

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

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Both programs are available in nearly all states.

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

In addition to the BMTs listed above, as of December 31, 2025, we provided commercial auto coverage in the TNC business to Uber Technologies subsidiaries in 14 states.

TNC represented 14% of our Commercial Lines net premiums written in 2025, 15% in 2024, and 13% in 2023.

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

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

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

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

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

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

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

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

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

Personal Property Programs

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

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

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

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

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

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

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

The program provides coverage for our personal property business and certain BOP product coverages.

The program includes contracts that cover multi-year periods.

The occurrence excess of loss (XOL) program, which is in place from June 1, 2025 through May 31, 2026, supports the goal of maintaining adequate capital and is comprised of privately placed reinsurance, reinsurance placed through catastrophe bond transactions, and coverage obtained through the FHCF.

The 2025 occurrence XOL program has a retention threshold of $200 million of losses and allocated loss adjustment expenses (ALAE) for the first event outside of Florida and $75 million for an event in Florida.

The Florida retention is lower due to a Florida-only XOL layer generally providing up to $125 million of coverage in excess of the $75 million retention threshold and mandatory FHCF coverage.

For losses that exceed $200 million, we also retain a percent of the first reinsurance layer, up to $48 million, after applying FHCF coverage.

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

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• $2.0 billion for a first event outside of Florida.

The coverage limits above were reduced by $70 million effective January 8, 2026, with the maturation of a catastrophe bond.

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

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During 2025, no losses were ceded under the occurrence XOL program that is currently in place or the occurrence XOL that was in place from June 1, 2024 through May 31, 2025.

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

Included in the occurrence XOL, from June 1, 2025 through December 31, 2025, we had shared limit coverage in our reinsurance program that provided $175 million of coverage for named storms.

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During 2025, no losses were ceded under this “hurricane season” coverage.

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

We have renewed this coverage from May 31, 2026 through December 31, 2026 (i.e., the 2026 hurricane season) for $175 million of coverage.

During 2025, our personal property business also had an aggregate XOL program structure with multiple layers providing coverage for catastrophe losses and ALAE.

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In January 2026, we entered into a new aggregate XOL for claims occurring in 2026.

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

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

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

to generate loss estimates.

The layers for the aggregate XOL programs active in 2025 and 2026 provided coverage, as follows:

Policy for claims occurring in the year ended December 31, 2026 2025

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

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

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

Retention $550 $550 $750 $665 $450 to $475 $525

Per occurrence event retention limit, net of the per occurrence deductible $280 $280 $280 $50 $43 or $45 $175 or $180

Total coverage, net of retention $113 $125 $63 $15 $75 $100

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

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

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

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

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

The secondary coverage portion only provides coverage for named storms.

Per occurrence deductible before each loss could be considered for aggregation $20 $20 $20 $0 $5 or $8 $20 or $25

For 2026, all layers include coverage for named storms and other types of perils (e.g., wildfires, winter storms, and severe thunderstorms).

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

The 2025 severe convective storm modeled loss aggregate XOL program, that provided $15 million of coverage, net of a retention of $665 million, was not renewed for 2026.

Beginning in 2026, we have an occurrence XOL program covering our special lines boat product, which provides coverage from January 1, 2026, through December 31, 2026.

This program provides $150 million of coverage for named windstorms in excess of a $225 million per event retention.

Portions of the boat XOL program include reinstatement limits providing coverage for subsequent events.

Commercial Lines Programs

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

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

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

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

For the large fleet commercial auto business, we retain the first $1 million, per occurrence, and have a coverage limit, net of retention, of up to $4 million.

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

The retention threshold for the BOP XOL agreement is $2 million, for each property loss, with a coverage limit up to $4 million.

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

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

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

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

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

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

Program Evaluation

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

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

As of December 31, 2025, we had about 1,270 claims employees to handle our personal property claims.

Competitive Factors

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With widely available comparative rating services, consumers can easily compare prices among competitors.

Many competitors invest heavily in advertising and marketing efforts and/or expanding their online or mobile service offerings.

Over the past two decades, these changes have further intensified the competitive nature of the property-casualty insurance markets in which we operate.

We rely heavily on technology to operate our business and on extensive data gathering and analysis to segment markets and price accurately according to risk.

Due to the highly competitive nature of the property-casualty insurance markets in which we operate, many competitors invest heavily in advertising and marketing efforts and/or expanding their online or mobile service offerings.

We rely heavily on technology to operate our business and on extensive data gathering and analysis to segment markets and price our products accurately according to risk.

We have remained competitive by refining our risk measurement and price segmentation skills, closely managing expenses, and achieving operating efficiencies.

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See Item 1A, Risk Factors and Item 1C, Cybersecurity below for more information.

In addition, there has been a proliferation of patents related to new ways in which technologies can affect competitive positions in the insurance industry.

In addition, there continues to be a proliferation of patents related to new ways in which technologies can affect competitive positions in the insurance industry.

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

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• acquisitions of insurers and transactions between insurers and their affiliates,

• limitations on rates of return or profitability,

• limitations on rates of return or excess profitability,

• rating criteria, rate levels, and rate changes,

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Insurance departments establish and monitor compliance with capital and surplus requirements.

One prominent ratio monitored by regulators is the amount of net premiums written as a ratio of surplus.

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

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

however, two states have permitted us to target a premiums-to-surplus ratio for our personal vehicle insurance companies to a maximum ratio of 3.5 to 1 based on our strong financial condition.

For 2025, these subsidiaries represented 91% of our companywide total net premiums written.

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

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

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

At year-end 2025, we had net premiums written of $83.2 billion and statutory

surplus of $28.4 billion.

The combined premiums-to-surplus ratio for all of our insurance companies was 2.9 to 1 at December 31, 2025.

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Investment income is affected by the variability of cash flows to or from the portfolio, shifts in the type and quality of investments in the portfolio, changes in yield, and other factors.

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

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

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

For securities related to our investment portfolios, total investment income includes interest, dividends, accretion, amortization, and total net realized gains (losses) on securities.

Total investment income, before expenses and taxes, was $4.3 billion in 2025, $3.1 billion in 2024, and $2.3 billion in 2023.

On a pretax total return basis (i.e., total investment income plus changes in net unrealized gains (losses) on our fixed-maturity securities), our investment portfolio generated investment income of $6.2 billion in 2025, $3.3 billion in 2024, and $3.8 billion in 2023.

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

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

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

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

Liability for Property-Casualty Losses and Loss Adjustment Expenses

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

They create innovative products and services, serve our customers, and work hard to help us achieve our vision.

Attract and Hire

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

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

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

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

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

In turn, we train our hiring managers to identify and avoid unconscious biases they may have during the interview and selection process.

We also train our hiring managers on the importance of employing individuals with different kinds of backgrounds, experiences, perspectives, and skills.

We believe these strategies collectively enhance our ability to hire the best candidate for each of our openings and contribute to our continued success.

Engage and Retain

We understand that engaged employees are more productive, provide better service to our customers, and are more likely to stay with Progressive.

We appreciate that engaged employees are more productive, provide better service to our customers, and are more likely to stay with Progressive.

Each year, we survey our people to measure their engagement.

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Employee retention is an important part of our strategy.

Our annualized employee retention rate for 2024 was 89%, up three points from the prior year, and, as of December 31, 2024, more than 17,000 employees had over 10 years of tenure at the company.

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

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

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

As of December 31, 2025, our annualized retention rate was 90%, up 1% from the prior year, and more than 18,000 employees had over 10 years of tenure at the company.

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

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

In 2025, we filled over 81% of our open positions above entry level by hiring from within, including just over 2,200 managerial positions.

As of December 31, 2025, we had about 70,000 employees.

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We strive to support our employees by providing challenging work experiences, career opportunities, and a culture of learning.

We are focused on coaching and development, which we believe promotes greater engagement in our business and improved individual performance.

We aim to provide a work environment that enables employees to present innovative ideas, share differing viewpoints, and constructively challenge assumptions.

We believe this approach has helped the company expand and grow our businesses and create additional career opportunities for our employees.

Training and Development

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

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

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

We are focused on coaching and development, which we believe promotes greater engagement in our business and improves individual performance.

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

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

Moreover, we endeavor to provide employees with the tools and support to excel in their roles and build long-term careers at the company.

Our professional development resource, “Career Central,” encourages employees to take control of their careers through career exploration guides, video insights, sample career journeys, discovery questionnaires to guide employees to roles that match their skills, and more.

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

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Employee Resource Groups

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

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

We believe our

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

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

Our first Employee Resource Groups (ERGs) were created in 2007 to help build communities for our employees and drive business impact.

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

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

In addition to enhancing our work environment, we believe our ERGs give the company valuable insights to better serve our customers.

Nearly 44% of Progressive people belong to at least one ERG as of December 31, 2025.

Additionally, we believe that ERG members are more engaged and more likely to stay with the company;

as of December 31, 2025, their annualized employee retention rate was 94%, compared to 87% for non-ERG members.

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

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

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

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

We also provide a confidential Alertline that is available for employees and others who want to raise a concern anonymously.

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Compensation and Benefits

We seek to provide competitive pay through a combination of fixed and variable compensation and have designed our compensation programs for employees to earn above market pay when company performance warrants it.

We seek to provide competitive pay through a combination of fixed and variable compensation and have designed our compensation programs for employees to earn above market total compensation when company performance warrants it.

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

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

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

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

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

We invest in physical, emotional, and financial health of Progressive people by providing a broad range of benefits, including:

We invest in the health and wellbeing of Progressive people by providing a broad range of benefits, including:

medical, prescription drug, dental, and vision benefits;

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

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

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

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

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

Diversity, Equity, and Inclusion

Supporting An Inclusive Workplace

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

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

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

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

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

(2) to reflect the customers we serve;

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

and (4) to contribute to our communities.

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

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

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

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

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

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

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

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

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

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

What changed 10-K

Item 1. Business