What changed in this filing

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Item 1. Financial Statements

2026-08-03 compared with 2026-05-04 · 226 added, 97 removed, 718 unchanged (31% of the section changed)

2 unchanged sentences

Consolidated Statements of Comprehensive Income

Three Months Ended March 31,

Three Months Six Months

Periods Ended June 30,

2026 2025 2026 2025

(millions — except per share amounts)

19 unchanged sentences

Other Comprehensive Income (Loss)

Change in total net unrealized gains (losses) on fixed-maturity securities ( 574 ) 899

Total net unrealized gains (losses) on fixed-maturity securities ( 375 ) 428 ( 949 ) 1,327

Net unrealized losses on forecasted transactions 0 1 0 1

Foreign currency translation adjustment ( 1 ) 0 ( 1 ) 0

Other comprehensive income (loss) ( 376 ) 429 ( 950 ) 1,328

Comprehensive income (loss) $ 2,935 $ 3,604 $ 5,179 $ 7,070

8 unchanged sentences

Consolidated Balance Sheets

March 31, December 31,

June 30, December 31,

(millions) 2026 2025 2025

51 unchanged sentences

Consolidated Statements of Changes in Shareholders’ Equity

Three Months Ended March 31, 2026 2025

Three Months Six Months

Periods Ended June 30, 2026 2025 2026 2025

(millions — except per share amounts)

27 unchanged sentences

Consolidated Statements of Cash Flows

Three Months Ended March 31, 2026 2025

Six Months Ended June 30, 2026 2025

Cash Flows From Operating Activities

28 unchanged sentences

Sales of property and equipment 35 52

Net cash provided by (used in) investing activities 2,637 ( 2,341 )

Net cash used in investing activities ( 284 ) ( 6,381 )

Cash Flows From Financing Activities

4 unchanged sentences

Net cash used in financing activities ( 7,635 ) ( 2,821 )

Increase in cash, cash equivalents, restricted cash, and restricted cash equivalents 41 53

Increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents 55 ( 19 )

Cash, cash equivalents, restricted cash, and restricted cash equivalents – January 1 138 154

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

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

See notes to consolidated financial statements.

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BASIS OF REPORTING AND ACCOUNTING

The accompanying consolidated financial statements include the accounts of The Progressive Corporation and our wholly owned insurance subsidiaries and non-insurance subsidiaries and affiliates in which we have a controlling financial interest (Progressive).

collectively referred to as Progressive, we, us, or our.

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

The results of operations for the period ended March 31, 2026, are not necessarily indicative of the results expected for the full year.

The results of operations for the period ended June 30, 2026, 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, 2025 (2025 Annual Report to Shareholders).

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

Three Months Ended March 31,

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

(millions) 2026 2025 2026 2025

2 unchanged sentences

230 176 413 329

( 214 ) ( 148 ) ( 421 ) ( 288 )

Allowance for credit losses, end of period $ 544 $ 501 $ 544 $ 501

3 unchanged sentences

Supplemental Cash Flow Information

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

The amount of overnight reverse repurchase commitments, which are not considered part of the

investment portfolio, held by these subsidiaries at March 31, 2026 and 2025, and December 31, 2025, were $ 29 million, $ 78 million, and $ 44 million, respectively.

Cash and cash equivalents include bank demand deposits.

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

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

Three Months Ended March 31,

Six Months Ended June 30,

(millions) 2026 2025

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In the respective periods, we paid the following:

Three Months Ended March 31,

Six Months Ended June 30,

(millions) 2026 2025

3 unchanged sentences

New Accounting Standards

We did not adopt any new accounting standards during the three months ended March 31, 2026.

In September 2025, the Financial Accounting Standards Board (FASB) 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.

We did not adopt any new accounting standards during the three and six months ended June 30, 2026.

In May 2026, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) that establishes accounting guidance for the recognition of environmental credits and environmental credit obligations.

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

In September 2025, the FASB issued an ASU that 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 (fiscal 2028 for calendar-year companies).

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

March 31, 2026

June 30, 2026

Available-for-sale securities:

18 unchanged sentences

(Losses) Fair

March 31, 2025

June 30, 2025

Available-for-sale securities:

37 unchanged sentences

$ 93,947 $ 901 $ ( 753 ) $ 3,278 $ 97,373 100.0 %

1 At March 31, 2026 and 2025, and December 31, 2025, we had $ 443 million, $ 297 million, and $ 200 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 March 31, 2026 and 2025, and December 31, 2025, included $ 6.2 billion, $ 3.5 billion, and $ 13.0 billion, respectively, of securities held in a consolidated, non-insurance subsidiary of the holding company, net of unsettled security transactions.

1 At June 30, 2026 and 2025, and December 31, 2025, we had $ 568 million, $ 303 million, and $ 200 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, 2026 and 2025, and December 31, 2025, included $ 6.7 billion, $ 5.0 billion, and $ 13.0 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, 2025, were sold and proceeds were used to pay our common share dividends in January 2026;

see Note 10 – Dividends for additional information.

At March 31, 2026, bonds and certificates of deposit in the principal amount of $ 789 million were on deposit to meet state insurance regulatory requirements.

At June 30, 2026, securities in the principal amount of $ 881 million were on deposit to meet state insurance and other regulatory requirements.

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

government securities, with an aggregate cost or fair value exceeding 10% of total shareholders’ equity at March 31, 2026 or 2025, or December 31, 2025.

At March 31, 2026, we did no t hold any debt securities that were non-income producing during the preceding 12 months.

government securities, with an aggregate cost or fair value exceeding 10% of total shareholders’ equity at June 30, 2026 or 2025, or December 31, 2025.

At June 30, 2026, 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.

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

Fixed Maturities The composition of fixed maturities by maturity at March 31, 2026, was:

Fixed Maturities The following table details the composition of fixed maturities by maturity at June 30, 2026:

(millions) Cost Fair Value

4 unchanged sentences

Total $ 91,485 $ 90,435

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

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

Contractual maturities may differ from expected maturities because the issuers of the securities may have the right to call or prepay obligations.

Securities are classified in the maturity distribution table based upon their projected cash flows.

Contractual maturities may differ from expected cash flows because the issuers of the securities may have the right to call or prepay obligations.

Gross Unrealized Losses The following tables show the composition of gross unrealized losses by major security type and by the length of time that individual securities have been in a continuous unrealized loss position:

3 unchanged sentences

Value Gross Unrealized

March 31, 2026

June 30, 2026

government 91 $ 37,839 $ ( 734 ) 51 $ 32,644 $ ( 400 ) 40 $ 5,195 $ ( 334 )

9 unchanged sentences

Value Gross Unrealized

March 31, 2025

June 30, 2025

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

19 unchanged sentences

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

We did no t record any allowances for credit losses or any write-offs for credit losses deemed to be uncollectible during the first three months of 2026 or 2025, and did no t have a material credit loss allowance balance as of March 31, 2026 and 2025, or December 31, 2025.

No unrealized loss write offs were recorded during the three months ended March 31, 2026 or 2025.

As of March 31, 2026 and 2025, and December 31, 2025, 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 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 2026 or 2025, and did no t have a material credit loss allowance balance as of June 30, 2026 and 2025, or December 31, 2025.

No unrealized loss write offs were recorded during the six months ended June 30, 2026 or 2025.

As of June 30, 2026 and 2025, and December 31, 2025, 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 March 31, 2026 and 2025, and December 31, 2025, to determine if the accrued interest amounts were uncollectible.

Based on our analysis, we believe the issuers have sufficient liquidity and capital reserves to meet their current interest and future principal obligations and, therefore, did no t write off any accrued income as uncollectible at March 31, 2026 and 2025, or December 31, 2025.

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

In addition, we reviewed the accrued investment income on securities in an unrealized loss position at June 30, 2026 and 2025, and December 31, 2025, to determine if the accrued interest amounts were uncollectible.

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

Three Months Six Months

(millions) 2026 2025 2026 2025

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Total net realized gains (losses) on securities $ 604 $ 387 $ 484 $ 175

During the first three months of 2026 and 2025, the majority of our security sales were U.S.

During the second quarter and first six months of 2026 and 2025, the majority of our security sales were U.S.

government securities that were sold for duration management.

We also selectively sold securities that we viewed as having less attractive risk/reward profiles during the first three months of 2026 and 2025.

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

We also selectively sold securities that we viewed as having less attractive risk/reward profiles during the second quarter and first six months of 2026 and 2025.

The following table reflects our holding period realized gains (losses) recognized on equity securities held at the three and six months ended June 30:

Three Months Six Months

(millions) 2026 2025 2026 2025

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Net holding period gains (losses) recognized during the period on equity securities held at period end $ 571 $ 357 $ 382 $ 141

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

Net Investment Income The following table details the components of net investment income for the three and six months ended June 30:

Three Months Six Months

(millions) 2026 2025 2026 2025

17 unchanged sentences

Net investment income $ 969 $ 862 $ 1,878 $ 1,669

On a year-over-year basis, investment income (interest and dividends) increased 13% for the three months ended March 31, 2026, compared to the same period last year .

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

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

On a year-over-year basis, investment income (interest and dividends) increased 12 % and 13 % for the three and six months ended June 30, 2026, respectively, compared to the same periods last year .

The increases primarily reflect growth in invested assets.

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

(millions) Level 1 Level 2 Level 3 Total Cost

March 31, 2026

June 30, 2026

Fixed maturities:

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(millions) Level 1 Level 2 Level 3 Total Cost

March 31, 2025

June 30, 2025

Fixed maturities:

40 unchanged sentences

Debt $ 0 $ 6,345 $ 0 $ 6,345 $ 6,897

Our portfolio valuations, excluding short-term investments valued at adjusted 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.

We concluded there was sufficient market activity in the relevant sectors and securities, further supporting our Level 1 and Level 2 classifications.

Our portfolio valuations, excluding short-term investments valued at adjusted original cost and 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.

At each reporting period, we concluded there was sufficient market activity in the relevant sectors and securities, further supporting our Level 1 and Level 2 classifications.

Our short-term investments classified as Level 1 include commercial paper, U.S.

3 unchanged sentences

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 March 31, 2026 and 2025, and December 31, 2025, vendor-quoted prices represented 92 %, 93 %, and 91 %, respectively, of our Level 1 classifications (excluding short-term investments valued at adjusted original cost).

At June 30, 2026 and December 31, 2025, vendor-quoted prices represented 91 % of our Level 1 classifications (excluding short-term investments valued at adjusted original cost), compared to 93 %, at June 30, 2025.

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

1 unchanged sentence

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

At March 31, 2026, vendor-quoted prices comprised 99 % of our Level 2 classifications (excluding short-term investments valued at adjusted original cost), with the balance from dealer quotes, compared to 100 % at March 31, 2025 and December 31, 2025.

At June 30, 2026 and 2025, vendor-quoted prices comprised 99 % of our Level 2 classifications (excluding short-term investments valued at adjusted original cost), with the balance from dealer quotes, compared to 100 % at December 31, 2025.

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.

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We then evaluate inputs relevant for each class of securities disclosed in the preceding hierarchy tables.

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 and credit quality to determine if the fair value is appropriate.

For asset-backed securities, including residential, commercial, 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 asset-backed 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.

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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 during the first three months of 2026 and for the full year of 2025, all prices received from external sources remained unadjusted.

Based on our review during the first six months of 2026 and for the full year of 2025, 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.

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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 three months of 2026 and for the full year of 2025, there were no material assets or liabilities measured at fair value on a nonrecurring basis.

During the first six months of 2026 and for the full year of 2025, there were no material assets or liabilities measured at fair value on a nonrecurring basis.

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

The following tables provide a summary of changes in fair value associated with Level 3 assets for the three months ended March 31, 2026 and 2025:

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, 2026 and 2025:

(millions) Fair Value at March 31, 2026 Calls/

Other Purchases Sales Net Realized

on Sales Change in

In (Out) Fair Value at June 30, 2026

Fixed maturities:

Corporate and other debt $ 4 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 4

Other asset-backed 0 0 150 0 0 0 0 150

Equity securities:

Nonredeemable preferred stocks 49 0 0 0 0 0 0 49

Common equities:

Common stocks 5 0 0 0 0 3 0 8

Other risk investments 37 2 0 0 0 0 0 39

Total Level 3 securities

$ 95 $ 2 $ 150 $ 0 $ 0 $ 3 $ 0 $ 250

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

Other Purchases Sales Net Realized

on Sales Change in

In (Out) Fair Value at June 30, 2025

Fixed maturities:

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

Equity securities:

Nonredeemable preferred stocks 60 0 0 0 0 0 0 60

Common equities:

Common stocks 9 0 0 0 0 0 0 9

Other risk investments 31 1 0 0 0 0 0 32

Total Level 3 securities $ 105 $ 1 $ 0 $ 0 $ 0 $ 0 $ 0 $ 106

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

Paydowns/Other Purchases Sales Net Realized

Other Purchases Sales Net Realized

on Sales Change in

In (Out) Fair Value at March 31, 2026

In (Out) Fair Value at June 30, 2026

Fixed maturities:

Corporate and other debt $ 4 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 4

Other asset-backed 0 0 150 0 0 0 0 150

Equity securities:

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

Paydowns/Other Purchases Sales Net Realized

Other Purchases Sales Net Realized

on Sales Change in

In (Out) Fair Value at March 31, 2025

In (Out) Fair Value at June 30, 2025

Fixed maturities:

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For equity securities, amounts included are net holding period gains (losses) on securities on our consolidated statements of comprehensive income.

The following tables provide a summary of the quantitative information about Level 3 fair value measurements for our applicable securities at March 31, 2026 and 2025, and December 31, 2025:

($ in millions) Fair Value at March 31, 2026 Valuation

The following tables provide a summary of the quantitative information about Level 3 fair value measurements for our applicable securities at June 30, 2026 and 2025, and December 31, 2025:

($ in millions) Fair Value at June 30, 2026 Valuation

Technique Unobservable Input Range of

1 unchanged sentence

Fixed maturities:

Corporate and other debt $ 4 Market comparables Weighted average market capitalization price change % ( 1.0 )%

Corporate and other debt $ 4 Market comparables Weighted average market capitalization price change % ( 0.8 )% to 1.4 %

Equity securities:

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Subtotal Level 3 securities 61

External price securities 150

Pricing exemption securities 39

Total Level 3 securities $ 250

($ in millions) Fair Value at March 31, 2025 Valuation

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

Technique Unobservable Input Range of

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

($ in millions) March 31, 2026 March 31, 2025 December 31, 2025

($ in millions) June 30, 2026 June 30, 2025 December 31, 2025

Principal Amount Interest Rate Issuance Date Maturity Date Carrying

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Total $ 8,387 $ 7,758 $ 6,895 $ 6,294 $ 6,897 $ 6,345

At March 31, 2026, short-term debt consisted of the $ 500 million 2.45 % senior notes that mature in January 2027 and the $ 500 million 2.50 % senior notes that mature in March 2027.

There was no short-term debt outstanding at March 31, 2025, or December 31, 2025.

At June 30, 2026, short-term debt consisted of the $ 500 million 2.45 % senior notes that mature in January 2027 and the $ 500 million 2.50 % senior notes that mature in March 2027.

There was no short-term debt outstanding at June 30, 2025, or December 31, 2025.

In March 2026, The Progressive Corporation issued $ 500 million of 4.60 % Senior Notes due 2031 and $ 1 billion of 5.15 % Senior Notes due 2036 in an underwritten public offering.

The net proceeds from the issuances, after deducting underwriters’ discounts, commissions, and other issuance costs, were approximately

$ 1,487 million in aggregate.

Consistent with the other senior notes issued by Progressive, interest on these notes is payable semiannually, principal is due at maturity, and the notes are redeemable, in whole or in part, at any time, subject to a treasury “make whole” provision.

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

The net proceeds from the issuances, after deducting underwriters’ discounts, commissions, and other issuance costs, were approximately $ 1,487 million in aggregate.

Consistent with the other senior notes issued by The Progressive Corporation, interest on these notes is payable semiannually, principal is

due at maturity, and the notes are redeemable, in whole or in part, at any time, subject to a treasury “make whole” provision.

During the second quarter 2026, The Progressive Corporation renewed its line of credit with PNC Bank, National Association (PNC), in the maximum principal amount of $ 300 million, which expires April 30, 2027.

The renewal amended the interest rate to 1-month term Secured Overnight Financing Rate (SOFR) plus 1.0 %.

The remaining terms are unchanged from the previous line of credit.

See the 2025 Annual Report to Shareholders for a discussion of the terms of this line of credit.

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

The effective tax rate for the three months ended March 31, 2026 and 2025, was 21.0 % and 20.7 %, respectively.

The effective tax rate for the three and six months ended June 30, 2026, was 21.3 % and 21.2 %, r espectively, compared to 20.3 % and 20.4 % for the same periods last year.

The lower effective tax rate for the prior-year periods was primarily due to the tax benefits associated with distributions of deferred compensation during the second quarter 2025.

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

Although realization of the deferred tax assets is not assured, management believes that it is more likely than not that the deferred tax assets will be realized based on our expectation that we will be able to fully utilize the deductions that are ultimately recognized for tax purposes and, therefore, no valuation allowance was needed at March 31, 2026 and 2025, and December 31, 2025.

We had net current income taxes payable of $ 700 million, $ 838 million, and $ 28 million at March 31, 2026 and 2025, and December 31, 2025 , respectively, which were reported in accounts payable, accrued expenses, and other liabilities on our consolidated balance sheets.

and, therefore, no valuation allowance was needed at June 30, 2026 and 2025, and December 31, 2025.

We had net current income taxes recoverable of $ 50 million and $ 115 million at June 30, 2026 and 2025, respectively, which were reported in other assets on our consolidated balance sheets, compared to net current income taxes payable of $ 28 million at December 31, 2025, which was reported in accounts payable, accrued expenses, and other liabilities.

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

At March 31, 2026 and 2025, and December 31, 2025, we have not recorded any unrecognized tax benefits or related interest and penalties.

At June 30, 2026 and 2025, and December 31, 2025, we have not recorded any unrecognized tax benefits or related interest and penalties.

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES

12 unchanged sentences

Total paid 26,001 23,725

Net balance at March 31

Net balance at June 30

41,901 37,254

Plus reinsurance recoverables on unpaid losses 3,666 3,900

Balance at March 31

Balance at June 30

$ 45,567 $ 41,154

We experienced favorable reserve development of $ 451 million and $ 278 million during the first three months of 2026 and 2025, respectively, which is reflected as “incurred related to prior years ” in the table above.

First Quarter 2026

We experienced favorable reserve development of $ 1,002 million and $ 607 million during the first six months of 2026 and 2025, respectively, which is reflected as “incurred related to prior years ” in the table above.

Year-to-date June 30, 2026

• The favorable prior-year reserve development included approximately $ 670 million attributable to accident year 2025, $ 220 million to accident year 2024, and the remainder to accident years 2023 and prior.

• Our perso nal auto products incurred about $ 845 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 bodily injury severity, more subrogation and salvage recoveries than anticipated, and lower than anticipated payments on previously closed but reopened property damage claims.

First Quarter 2025

The favorable development was primarily due to lower than anticipated bodily injury severity and, to a lesser extent, lower than anticipated payments on reopened property damage claims that were previously closed and lower than anticipated personal injury protection loss adjustment expenses.

• Our Commercial Lines business incurred about $ 140 million of favorable loss and LAE reserve development.

The favorable development was primarily due to lower than anticipated injury severity in our transportation network company (TNC) business, partially offset by higher than anticipated injury severity and litigation defense costs in our core commercial auto products.

Year-to-date June 30, 2025

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

• Our personal auto products incurred about $ 520 million of favorable loss and LAE reserve development, with the agency and direct auto businesses each contributing about half.

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

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

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

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

SEGMENT INFORMATION

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(millions) Personal Lines Commercial Lines Other 1

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Net premiums earned $ 18,880 $ 2,691 $ 2 $ 21,573

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(millions) Personal Lines Commercial Lines Other 1

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

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

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Total pretax profit (loss) $ 3,982

(millions) Personal Lines Commercial Lines Other 1

Six Months Ended June 30, 2026

Net premiums earned $ 37,264 $ 5,274 $ 3 $ 42,541

Fees and other revenues 564 38 0 602

Total underwriting revenue 37,828 5,312 3 43,143

Losses and loss adjustment expenses:

Losses (excluding catastrophe losses) 20,720 2,847 7 23,574

Catastrophe losses 1,022 19 0 1,041

Loss adjustment expenses 3,193 591 0 3,784

Total losses and loss adjustment expenses 24,935 3,457 7 28,399

Underwriting expenses:

Distribution expenses 2

5,200 616 5 5,821

Other underwriting expenses 3

2,772 558 11 3,341

Total underwriting expenses 7,972 1,174 16 9,162

Pretax underwriting profit (loss) $ 4,921 $ 681 $ ( 20 ) 5,582

Investment profit (loss) 4

Service businesses profit (loss) ( 11 )

Interest expense ( 158 )

Total pretax profit (loss) $ 7,775

(millions) Personal Lines Commercial Lines Other 1

Six Months Ended June 30, 2025

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

Fees and other revenues 512 78 0 590

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

Losses and loss adjustment expenses:

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

Catastrophe losses 1,142 24 0 1,166

Loss adjustment expenses 2,861 579 1 3,441

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

Underwriting expenses:

Distribution expenses 2

4,676 594 1 5,271

Other underwriting expenses 3

2,573 523 8 3,104

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

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

Investment profit (loss) 4

Service businesses profit (loss) ( 12 )

Interest expense ( 139 )

Total pretax profit (loss) $ 7,218

1 Includes other underwriting business and run-off operations.

12 unchanged sentences

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

Three Months Ended March 31,

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

2026 2025 2026 2025

Margin Combined

Ratio Underwriting

Margin Combined

Personal Lines 12.4 % 87.6 14.0 % 86.0 13.2 % 86.8 14.1 % 85.9

12 unchanged sentences

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

Balance at December 31, 2025 $ 130 $ ( 27 ) $ 103 $ 117 $ ( 13 ) $ ( 1 )

Other comprehensive income (loss) before reclassifications for investment securities ( 628 ) 132 ( 496 ) ( 496 ) 0 0

Balance at March 31, 2026 $ ( 596 ) $ 125 $ ( 471 ) $ ( 457 ) $ ( 13 ) $ ( 1 )

Other comprehensive income (loss) before reclassifications:

Investment securities ( 438 ) 92 ( 346 ) ( 346 ) 0 0

Foreign currency translation adjustment ( 1 ) 0 ( 1 ) 0 0 ( 1 )

Total other comprehensive income (loss) before reclassifications ( 439 ) 92 ( 347 ) ( 346 ) 0 ( 1 )

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

2 unchanged sentences

Total other comprehensive income (loss) ( 476 ) 100 ( 376 ) ( 375 ) 0 ( 1 )

Balance at June 30, 2026 $ ( 1,072 ) $ 225 $ ( 847 ) $ ( 832 ) $ ( 13 ) $ ( 2 )

Components of Changes in

Accumulated Other

Comprehensive Income (after tax)

(millions) Pretax total

comprehensive

income (loss) Total tax

benefit After tax total

comprehensive

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

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

Other comprehensive income (loss) before reclassifications for investment securities 558 ( 117 ) 441 441 0 0

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

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

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

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

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

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

Components of Changes in

8 unchanged sentences

Balance at December 31, 2025 $ 130 $ ( 27 ) $ 103 $ 117 $ ( 13 ) $ ( 1 )

Other comprehensive income (loss) before reclassifications:

Investment securities ( 1,066 ) 224 ( 842 ) ( 842 ) 0 0

Foreign currency translation adjustment ( 1 ) 0 ( 1 ) 0 0 ( 1 )

Total other comprehensive income (loss) before reclassifications ( 1,067 ) 224 ( 843 ) ( 842 ) 0 ( 1 )

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

Net realized gains (losses) on securities 135 ( 28 ) 107 107 0 0

Total reclassification adjustment for amounts realized in net income 135 ( 28 ) 107 107 0 0

Total other comprehensive income (loss) ( 1,202 ) 252 ( 950 ) ( 949 ) 0 ( 1 )

Balance at June 30, 2026 $ ( 1,072 ) $ 225 $ ( 847 ) $ ( 832 ) $ ( 13 ) $ ( 2 )

Components of Changes in

Accumulated Other

Comprehensive Income (after tax)

(millions) Pretax total

comprehensive

income (loss) Total tax

benefit After tax total

comprehensive

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

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

Other comprehensive income (loss) before reclassifications for investment securities 1,666 ( 350 ) 1,316 1,316 0 0

1 unchanged sentence

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

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

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

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

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

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

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

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

During the next 12 months, we expect to reclassify approximately $ 1 million (pretax) into interest expense, related to net unrealized losses on forecasted transactions (see Note 4 – Debt in our 2025 Annual Report to Shareholders for further discussion).

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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 2025 Annual Report to Shareholders.

As of March 31, 2026, lawsuits have been certified or conditionally certified as class/collective actions in cases alleging that:

As of June 30, 2026, 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 Colorado, North Carolina, and Ohio;

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

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

and we sell illusory underinsured motorist coverage in New Mexico.

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

Other insurance companies face many of these same issues.

2 unchanged sentences

contemporaneously in multiple states.

As of March 31, 2026, we are named as defendants in class action lawsuits

As of June 30, 2026, we are named as defendants in class action lawsuits

pending in multiple states alleging that we improperly

3 unchanged sentences

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

Based on information available to us, we determined that losses from these lawsuits are reasonably possible but neither probable nor reasonably estimable, other than for suits for which accruals have been established and are not material, as of March 31, 2026.

With respect to our pending lawsuits that are not related to claims under insurance policies, the accruals that we have established were not material at March 31, 2026 and 2025, or December 31, 2025, and there were no material settlements during 2025 or the first three months of 2026.

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, 2026 and 2025, or December 31, 2025, and there were no material settlements during 2025 or the first six months of 2026.

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 2025 Annual Report to Shareholders.

1 unchanged sentence

For a further discussion on our pending litigation and related reserving policies, see Note 1 – Reporting and Accounting Policies and Note 12 – Litigation in our 2025 Annual Report to Shareholders.

Following is a summary of our common share dividends that were declared and/or paid during the three months ended March 31, 2026 and 2025:

Following is a summary of our common share dividends that were declared and/or paid during the six months ended June 30, 2026 and 2025:

(millions — except per share amounts) Amount

4 unchanged sentences

Quarterly Dividends:

May 2026 July 2026 0.10 58

March 2026 April 2026 0.10 58

December 2025 January 2026 0.10 59

May 2025 July 2025 0.10 58

March 2025 April 2025 0.10 59

3 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