UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended ~~June~~September 30, 2025


☐			Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission File Number: 001-09518

THE PROGRESSIVE CORPORATION

(Exact name of registrant as specified in its charter)

Ohio

34-0963169

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

300 North Commons Blvd.,

Mayfield Village,

Ohio

44143

(Address of principal executive offices)

(Zip Code)

(440) 461-5000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares, $1.00 Par Value	PGR	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common Shares, $1.00 par value: 586,~~208~~397,~~487~~236 outstanding at ~~June~~October 302, 2025

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

The Progressive Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income

(unaudited)

	Three Months				~~Six~~Nine Months
Periods Ended June 30,	2025		2024		2025		2024
Periods Ended September 30,	2025		2024		2025		2024
(millions — except per share amounts)
Revenues
Net premiums earned	$	20,~~310~~849	$	1718,~~209~~297	$	3960,~~719~~568	$	3351,~~358~~655
Investment income	~~871~~924		~~685~~739		12,~~685~~609		12,~~303~~042
Net realized gains (losses) on securities:
Net realized gains (losses) on security sales	1912		~~(227)~~68		2032		(~~373~~305)
Net holding period gains (losses) on securities	~~368~~283		~~100~~220		~~155~~438		~~402~~622
Total net realized gains (losses) on securities	~~387~~295		~~(127)~~288		~~175~~470		29317
Fees and other revenues	~~303~~306		~~260~~278		~~590~~896		~~496~~774
Service revenues	~~133~~138		~~107~~117		~~244~~382		~~191~~308
Total revenues	22,~~004~~512		1819,~~134~~719		4264,~~413~~925		3555,~~377~~096
Expenses
Losses and loss adjustment expenses	13,~~605~~445		12,~~595~~510		2639,~~409~~854		2336,~~567~~077
Policy acquisition costs	1,~~511~~555		1,~~308~~390		24,~~967~~522		23,~~540~~930
Other underwriting expenses	23,~~689~~015		2,~~180~~670		58,~~408~~423		46,~~111~~781
Investment expenses	9		7		16		13
Policyholder credit expense1	950		0		950		0
Service expenses	139		115		256		207
Investment expenses	10		7		26		20
Interest expense	69		69		139		139
Service expenses	144		126		400		333
Total expenses	18,022		16,274		35,195		30,577
Interest expense	70		70		209		209
Total expenses	19,189		16,773		54,384		47,350
Net Income
Income before income taxes	3,~~982~~323		12,~~860~~946		710,~~218~~541		47,~~800~~746
Provision for income taxes	~~807~~708		~~401~~612		12,~~476~~184		1,~~010~~622
Net income	32,~~175~~615		12,~~459~~334		58,~~742~~357		36,~~790~~124
Other Comprehensive Income (Loss)
Changes in:
Total net unrealized gains (losses) on fixed-maturity securities	~~428~~284		~~108~~1,561		1,~~327~~611		~~(100)~~1,461
Net unrealized losses on forecasted transactions	10		0		1		0
Other comprehensive income (loss)	~~429~~284		~~108~~1,561		1,~~328~~612		~~(100)~~1,461
Comprehensive income (loss)	$	32,~~604~~899	$	13,~~567~~895	$	79,~~070~~969	$	37,~~690~~585
Computation of Earnings Per Common Share
Net income	$	32,~~175~~615	$	12,~~459~~334	$	58,~~742~~357	$	36,~~790~~124
Less: Preferred share dividends and other1	0		0		0		17
Less: Preferred share dividends and other2	0		0		0		17
Net income available to common shareholders	$	32,~~175~~615	$	12,~~459~~334	$	58,~~742~~357	$	36,~~773~~107
Average common shares outstanding - Basic	586.25		585.46		586.13		585.45
Net effect of dilutive stock-based compensation	1.67		2.0		1.68		2.02
Total average equivalent common shares - Diluted	~~587~~588.82		587.46		~~587~~588.71		587.47
Basic: Earnings per common share	$	54.4246	$	23.4998	$	914.8025	$	610.4543
Diluted: Earnings per common share	$	54.4045	$	23.4897	$	914.7721	$	610.4239

1 ~~All~~See ofNote ~~our~~8 ~~outstanding~~– ~~Serial~~Segment ~~Preferred~~Information ~~Shares,~~for ~~Series~~further ~~B, were redeemed in February 2024~~discussion.

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

See notes to consolidated financial statements.

The Progressive Corporation and Subsidiaries

Consolidated Balance Sheets

(unaudited)

	June 30,				December 31,
	September 30,				December 31,
(millions)	2025		2024		2024
Assets
Available-for-sale securities, at fair value:
Fixed maturities (amortized cost: $82,372, $69,668, and $77,126)	$	82,272	$	67,489	$	75,332
Fixed maturities (amortized cost: $88,247, $74,595, and $77,126)	$	88,509	$	74,411	$	75,332
Short-term investments (amortized cost: $2,103, $733, and $615)	2,103		733		615
Short-term investments (amortized cost: $1,515, $757, and $615)	1,515		757		615
Total available-for-sale securities	8490,~~375~~024		6875,~~222~~168		75,947
Equity securities, at fair value:
Nonredeemable preferred stocks (cost: $517, $887, and $756)	500		838		728
Nonredeemable preferred stocks (cost: $454, $760, and $756)	438		735		728
Common equities (cost: $775, $708, and $745)	3,735		3,296		3,575
Common equities (cost: $808, $733, and $745)	4,047		3,497		3,575
Total equity securities	4,~~235~~485		4,~~134~~232		4,303
Total investments	8894,~~610~~509		7279,~~356~~400		80,250
Cash and cash equivalents	~~125~~173		90136		143
Restricted cash and cash equivalents	1012		1211		11
Total cash, cash equivalents, restricted cash, and restricted cash equivalents	~~135~~185		~~102~~147		154
Accrued investment income	~~636~~691		~~564~~560		594
Premiums receivable, net of allowance for credit losses of $501, $328, and $460	16,406		14,545		14,369
Premiums receivable, net of allowance for credit losses of $516, $388, and $460	16,519		15,135		14,369
Reinsurance recoverables	4,~~197~~107		4,881		4,765
Prepaid reinsurance premiums	~~263~~215		~~291~~224		349
Deferred acquisition costs	2,~~110~~164		12,~~938~~032		1,961
Property and equipment, net of accumulated depreciation of $1,369, $1,558, and $1,461	820		713		790
Property and equipment, net of accumulated depreciation of $1,398, $1,590, and $1,461	790		689		790
Net federal deferred income taxes	~~633~~662		~~1,001~~598		954
Other assets	1,~~670~~693		1,~~502~~537		1,559
Total assets	$	~~115~~121,~~480~~535	$	97105,~~893~~203	$	105,745
Liabilities and Shareholders’ Equity
Unearned premiums	$	26,~~335~~822	$	2324,~~681~~772	$	23,858
Loss and loss adjustment expense reserves	4142,~~154~~105		3638,~~605~~062		39,057
Accounts payable, accrued expenses, and other liabilities	810,~~492~~267		78,~~376~~318		10,346
Debt1	6,~~895~~896		6,~~891~~892		6,893
Total liabilities	8286,~~876~~090		7478,~~553~~044		80,154
Common shares, $1.00 par value (authorized 900; issued 798, including treasury shares of 212)	586		586		586
Paid-in capital	2,~~192~~233		2,~~060~~096		2,145
Retained earnings	2932,~~921~~437		2224,~~410~~632		24,283
Accumulated other comprehensive income (loss):
Net unrealized gains (losses) on fixed-maturity securities	~~(81)~~203		(~~1,701~~140)		(1,408)
Net unrealized losses on forecasted transactions	(13)		(14)		(14)
Foreign currency translation adjustment	(1)		(1)		(1)
Total accumulated other comprehensive income (loss)	~~(95)~~189		(~~1,716~~155)		(1,423)
Total shareholders’ equity	3235,~~604~~445		2327,~~340~~159		25,591
Total liabilities and shareholders’ equity	$	~~115~~121,~~480~~535	$	97105,~~893~~203	$	105,745

1 Consists solely of long-term debt. See Note 4 – Debt for further discussion.

See notes to consolidated financial statements.

The Progressive Corporation and Subsidiaries

Consolidated Statements of Changes in Shareholders’ Equity

(unaudited)

	Three Months				~~Six~~Nine Months
Periods Ended June 30,	2025		2024		2025		2024
Periods Ended September 30,	2025		2024		2025		2024
(millions — except per share amounts)
Serial Preferred Shares, No Par Value
Balance, beginning of period	$	0	$	0	$	0	$	494
Redemption of Serial Preferred Shares, Series B1	0		0		0		(494)
Balance, end of period	0		0		0		0
Common Shares, $1.00 Par Value
Balance, beginning of period	586		586		586		585
Treasury shares purchased	0(1)		0(1)		0(1)		0(1)
Net restricted equity awards issued/vested	01		01		01		12
Balance, end of period	586		586		586		586
Paid-In Capital
Balance, beginning of period	2,~~160~~192		2,~~029~~060		2,145		2,013
Amortization of equity-based compensation	3242		3138		4890		4886
Treasury shares purchased	0		0(1)		(1)		(12)
Net restricted equity awards issued/vested	0(1)		0(1)		0(1)		(12)
Reinvested dividends on restricted stock units	0		0		0		1
Balance, end of period	2,~~192~~233		2,~~060~~096		2,~~192~~233		2,~~060~~096
Retained Earnings
Balance, beginning of period	2629,~~732~~921		2122,~~020~~410		24,283		18,801
Net income	32,~~175~~615		12,~~459~~334		58,~~742~~357		36,~~790~~124
Treasury shares purchased	(1339)		(1184)		(66105)		(47131)
Cash dividends declared on common shares ($0.10, $0.10, $0.20, and $0.20 per share)1	(58)		(58)		(117)		(117)
Cash dividends declared on common shares ($0.10, $0.10, $0.30, and $0.30 per share)1	(59)		(59)		(176)		(176)
Cash dividends declared on Serial Preferred Shares, Series B ($0, $0, $0, and $15.688377 per share)1	0		0		0		(8)
Reinvested dividends on restricted stock units	0		0		0		(1)
Other, net	85(1)		031		7978		~~(8)~~23
Balance, end of period	2932,~~921~~437		2224,~~410~~632		2932,~~921~~437		2224,~~410~~632
Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period	(~~524~~95)		(1,~~824~~716)		(1,423)		(1,616)
Other comprehensive income (loss)	~~429~~284		~~108~~1,561		1,~~328~~612		~~(100)~~1,461
Balance, end of period	~~(95)~~189		(~~1,716~~155)		~~(95)~~189		(~~1,716~~155)
Total shareholders’ equity	$	3235,~~604~~445	$	2327,~~340~~159	$	3235,~~604~~445	$	2327,~~340~~159

1 See Note 9 – Dividends for further discussion.

There are 20 million Serial Preferred Shares authorized. There are 5 million Voting Preference Shares authorized; no such shares have been issued.

See notes to consolidated financial statements.

The Progressive Corporation and Subsidiaries

Consolidated Statements of Cash Flows

(unaudited)

Six Months Ended June 30,	2025		2024
Nine Months Ended September 30,	2025		2024
(millions)
Cash Flows From Operating Activities
Net income	$	58,~~742~~357	$	36,~~790~~124
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	~~149~~230		~~138~~208
Net amortization (accretion) of fixed-income securities	(5581)		(2024)
Amortization of equity-based compensation	4890		4886
Net realized (gains) losses on securities	(~~175~~470)		(29317)
Net (gains) losses on disposition of property and equipment	12		(12)
Changes in:
Premiums receivable	(2,~~037~~150)		(23,~~587~~177)
Reinsurance recoverables	~~568~~658		213
Prepaid reinsurance premiums	86134		~~(41)~~26
Deferred acquisition costs	(~~149~~203)		(~~251~~345)
Income taxes	(~~173~~138)		(~~342~~367)
Unearned premiums	2,~~477~~964		34,~~547~~638
Loss and loss adjustment expense reserves	23,~~097~~048		23,~~216~~673
Accounts payable, accrued expenses, and other liabilities	~~550~~2,079		1,~~058~~601
Other, net	54(142)		(~~237~~226)
Net cash provided by operating activities	914,~~183~~378		712,~~502~~111
Cash Flows From Investing Activities
Purchases:
Fixed maturities	(2634,~~354~~912)		(2435,~~532~~836)
Equity securities	(87143)		(32110)
Sales:
Fixed maturities	17,~~086~~520		1318,~~687~~583
Equity securities	~~151~~182		98222
Maturities, paydowns, calls, and other:
Fixed maturities	46,~~006~~269		34,~~235~~750
Equity securities	~~177~~240		23110
Net (purchases) sales of short-term investments	(~~1,429~~825)		1,~~087~~070
Net change in unsettled security transactions	~~178~~398		~~120~~514
Purchases of property and equipment	(~~161~~227)		(~~118~~175)
Sales of property and equipment	5270		4565
Net cash used in investing activities	(611,~~381~~428)		(610,~~387~~807)
Cash Flows From Financing Activities
Dividends paid to common shareholders	(2,~~754~~812)		(~~557~~615)
Acquisition of treasury shares for equity award tax liabilities	(5592)		(38121)
Acquisition of treasury shares acquired in open market	(1215)		(1013)
Redemption of preferred shares	0		(500)
Dividends paid to preferred shareholders	0		(8)
Net cash used in financing activities	(2,~~821~~919)		(1,~~113~~257)
Increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents	(19)		2
Increase in cash, cash equivalents, restricted cash, and restricted cash equivalents	31		47
Cash, cash equivalents, restricted cash, and restricted cash equivalents – January 1	154		100
Cash, cash equivalents, restricted cash, and restricted cash equivalents – June 30	$	135	$	102
Cash, cash equivalents, restricted cash, and restricted cash equivalents – September 30	$	185	$	147

See notes to consolidated financial statements.

The Progressive Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(unaudited)

1. 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).

The consolidated financial statements reflect all normal recurring adjustments that, in the opinion of management, were necessary for a fair statement of the results for the interim periods presented. The results of operations for the period ended ~~June~~September 30, 2025, are not necessarily indicative of the results expected for the full year. These consolidated financial statements and the notes thereto should be read in conjunction with Progressive’s audited financial statements and accompanying notes included in Exhibit 13 to our Annual Report on Form 10-K for the year ended December 31, 2024 (2024 Annual Report to Shareholders).

Premiums Receivable

We perform analyses to evaluate our premiums receivable for expected credit losses. See our 2024 Annual Report to Shareholders for a discussion on our premiums receivable allowance for credit loss policy. The following table summarizes changes in our allowance for credit loss exposure on our premiums receivable:

	Three Months Ended June 30,				Six Months Ended June 30,
	Three Months Ended September 30,				Nine Months Ended September 30,
(millions)	2025		2024		2025		2024
Allowance for credit losses, beginning of period	$	~~473~~501	$	328	$	460	$	369
Increase in allowance1	~~176~~211		~~128~~167		~~329~~540		~~235~~402
Write-offs2	(~~148~~196)		(~~128~~107)		(~~288~~484)		(~~276~~383)
Allowance for credit losses, end of period	$	~~501~~516	$	~~328~~388	$	~~501~~516	$	~~328~~388

1 Represents the incremental increase in other underwriting expenses.

2 Represents the portion of allowance that is reversed when the premiums receivable balances are written off. Premiums receivable balances are written off once we have exhausted our collection efforts.

Property – Held for Sale

At ~~June~~September 30, 2025 and 2024, and December 31, 2024, we had held for sale properties of $~~117~~112 million, $~~152~~150 million, and $129 million, respectively, which are included in other assets on our consolidated balance sheets.

New Accounting Standards

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

In September 2025, the Financial Accounting Standards Board issued an Accounting Standards Update (ASU), which amends the existing accounting guidance for capitalization of internal-use software costs and provides more detailed guidelines around the criteria for capitalization. This ASU will be effective for fiscal years (including interim periods within those fiscal years) beginning after December 15, 2027 (2028 for calendar-year companies). This standard may be applied using a prospective, modified, or retrospective transition approach. We do not believe this ASU will have a material impact on our financial condition or results of operations.

2. INVESTMENTS

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

($ in millions)	Cost		GrossUnrealizedGains		GrossUnrealizedLosses		NetHoldingPeriodGains(Losses)		FairValue		% ofTotalFairValue
June 30, 2025
September 30, 2025
Available-for-sale securities:
Fixed maturities:
U.S. government obligations	$	4651,~~684~~021	$	~~598~~731	$	(~~472~~413)	$	0	$	4651,~~810~~339	5254.83	%
State and local government obligations	3,~~030~~320		1220		(7865)		0		23,~~964~~275		3.35
Foreign government obligations	1716		0		0		0		1716		0
Corporate and other debt securities	18,~~004~~621		~~222~~270		(~~112~~86)		812		18,~~122~~817		2019.59
Residential mortgage-backed securities	2,~~644~~979		2126		(76)		21		23,~~660~~000		3.02
Commercial mortgage-backed securities	5,~~325~~916		1017		(~~286~~247)		0		5,~~049~~686		56.70
Other asset-backed securities	6,~~668~~374		2635		(4433)		0		6,~~650~~376		76.57
Total fixed maturities	8288,~~372~~247		~~889~~1,099		(~~999~~850)		1013		8288,~~272~~509		9293.86
Short-term investments	21,~~103~~515		0		0		0		21,~~103~~515		21.46
Total available-for-sale securities	8489,~~475~~762		~~889~~1,099		(~~999~~850)		1013		8490,~~375~~024		95.2
Equity securities:
Nonredeemable preferred stocks	~~517~~454		0		0		(1716)		~~500~~438		0.65
Common equities	~~775~~808		0		0		23,~~960~~239		34,~~735~~047		4.23
Total equity securities	1,~~292~~262		0		0		23,~~943~~223		4,~~235~~485		4.8
Total portfolio1	$	8591,~~767~~024	$	~~889~~1,099	$	(~~999~~850)	$	23,~~953~~236	$	8894,~~610~~509	100.0	%

($ in millions)	Cost		GrossUnrealizedGains		GrossUnrealizedLosses		NetHoldingPeriodGains(Losses)		FairValue		% ofTotalFairValue
June 30, 2024
September 30, 2024
Available-for-sale securities:
Fixed maturities:
U.S. government obligations	$	4244,~~063~~231	$	60772	$	(~~1,229~~574)	$	0	$	4044,~~894~~429	56.50	%
State and local government obligations	2,~~345~~681		110		(~~144~~90)		0		2,~~202~~601		3.03
Foreign government obligations	17		0		(1)		0		16		0.1
Corporate and other debt securities	1314,~~439~~970		33222		(~~306~~156)		~~(20)~~0		1315,~~146~~036		18.19
Residential mortgage-backed securities	~~981~~1,404		224		(96)		2		~~976~~1,424		1.38
Commercial mortgage-backed securities	4,~~457~~664		24		(~~489~~377)		0		34,~~970~~291		5.54
Other asset-backed securities	6,~~366~~628		840		(8954)		0		6,~~285~~614		8.73
Total fixed maturities	6974,~~668~~595		~~106~~1,072		(21,~~267~~258)		~~(18)~~2		6774,~~489~~411		93.27
Short-term investments	~~733~~757		0		0		0		~~733~~757		1.0
Total available-for-sale securities	7075,~~401~~352		~~106~~1,072		(21,~~267~~258)		~~(18)~~2		6875,~~222~~168		94.27
Equity securities:
Nonredeemable preferred stocks	~~887~~760		0		0		(4925)		~~838~~735		10.29
Common equities	~~708~~733		0		0		2,~~588~~764		3,~~296~~497		4.64
Total equity securities	1,~~595~~493		0		0		2,~~539~~739		4,~~134~~232		5.83
Total portfolio1	$	7176,~~996~~845	$	~~106~~1,072	$	(21,~~267~~258)	$	2,~~521~~741	$	7279,~~356~~400	100.0	%


($ in millions)	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Net Holding Period Gains (Losses)		Fair Value		% of Total Fair Value
December 31, 2024
Available-for-sale securities:
Fixed maturities:
U.S. government obligations	$	47,103	$	36	$	(1,151)	$	0	$	45,988	57.3	%
State and local government obligations	2,893		2		(117)		0		2,778		3.5
Foreign government obligations	16		0		0		0		16		0
Corporate and other debt securities	14,111		65		(215)		(7)		13,954		17.4
Residential mortgage-backed securities	1,600		9		(11)		3		1,601		2.0
Commercial mortgage-backed securities	4,721		7		(376)		0		4,352		5.4
Other asset-backed securities	6,682		26		(65)		0		6,643		8.3

Total fixed maturities	77,126		145		(1,935)		(4)		75,332		93.9
Short-term investments	615		0		0		0		615		0.7
Total available-for-sale securities	77,741		145		(1,935)		(4)		75,947		94.6
Equity securities:
Nonredeemable preferred stocks	756		0		0		(28)		728		0.9
Common equities	745		0		0		2,830		3,575		4.5
Total equity securities	1,501		0		0		2,802		4,303		5.4
Total portfolio1	$	79,242	$	145	$	(1,935)	$	2,798	$	80,250	100.0	%

1 At ~~June~~September 30, 2025 and 2024 and December 31, 2024, we had $~~303~~523 million, $74469 million, and $125 million, respectively, of net unsettled security transactions included in accounts payable, accrued expenses, and other liabilities on our consolidated balance sheets.

The total fair value of the portfolio at ~~June~~September 30, 2025 and 2024 and December 31, 2024, included $54.09 billion, $4.1 billion, and $6.2 billion, respectively, of securities held in a consolidated, non-insurance subsidiary of the holding company, net of unsettled security transactions. A portion of the investments held at December 31, 2024 were sold and proceeds were used to pay our common share dividends in January 2025; see Note 9 – Dividends for additional information.

~~The~~At ~~June~~September 30, ~~2024~~2025, ~~corporate~~bonds and ~~other~~certificates ~~debt~~of ~~securities~~deposit in ~~our~~the ~~Note~~principal 2amount –of ~~Investments~~$788 ~~and~~million ~~Note~~were 3on –deposit ~~Fair~~to ~~Value~~meet ~~tables~~state ~~include~~insurance ~~amounts~~regulatory ~~that~~requirements. ~~were~~We ~~previously~~did ~~reported~~not ashold ~~redeemable~~any ~~preferred~~securities ~~stocks.~~of ~~The~~any ~~reclassification~~one ~~was~~issuer, toexcluding ~~reflect~~U.S. ~~the~~government ~~accurate~~obligations, ~~categorization~~with ~~based~~an onaggregate ~~the~~cost ~~underlying~~or ~~features~~fair value exceeding 10% of ~~these~~total ~~securities;~~shareholders’ ~~see~~equity ~~Note~~at 2September 30, –2025 ~~Investments~~or in2024, ~~our~~or December 31, 2024. ~~Annual~~At ~~Report~~September 30, to2025, ~~Shareholders~~we ~~for~~did ~~further~~not ~~discussion~~hold any debt securities that were non-income producing during the preceding 12 months.

At June 30, 2025, bonds and certificates of deposit in the principal amount of $786 million were on deposit to meet state insurance regulatory requirements. We did not hold any securities of any one issuer, excluding U.S. government obligations, with an aggregate cost or fair value exceeding 10% of total shareholders’ equity at June 30, 2025 or 2024, or December 31, 2024. At June 30, 2025, we did not hold any debt securities that were non-income producing during the preceding 12 months.

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

	June 30,
	September 30,
(millions)	2025		2024		December 31, 2024
Fixed Maturities:
Corporate and other debt securities	$	~~731~~696	$	~~610~~637	$	608
Residential mortgage-backed securities	~~615~~642		~~273~~369		479
Other asset-backed securities	0		53		1
Total hybrid securities	$	1,~~346~~338	$	~~888~~1,009	$	1,088

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

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

(millions)	Cost		Fair Value
Less than one year	$	8,~~582~~676	$	8,~~547~~668
One to five years	4953,~~855~~046		4953,~~697~~116
Five to ten years	2326,~~657~~249		2326,~~747~~446
Ten years or greater	~~278~~276		~~281~~279
Total	$	8288,~~372~~247	$	8288,~~272~~509

Asset-backed securities are classified in the maturity distribution table above based upon their projected cash flows. All other securities that do not have a single maturity date are reported based upon expected average maturity. Contractual maturities may differ from expected maturities 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:

Total No. of Sec.

TotalFairValue

GrossUnrealizedLosses

Less than 12 Months

12 Months or Greater

($ in millions)

No. of Sec.

FairValue

Gross UnrealizedLosses

No. of Sec.

Fair Value

Gross UnrealizedLosses

June 30, 2025

September 30, 2025

U.S. government obligations

7371

1011,~~463~~145

(~~472~~413)

21,~~878~~777

(203)

79,~~585~~368

(~~452~~410)

State and local government obligations

~~275~~251

1,~~677~~557

(7865)

5340

~~289~~188

(1)

~~222~~211

1,~~388~~369

(7764)

Corporate and other debt securities

~~159~~138

3,~~737~~503

(~~112~~86)

2824

~~610~~718

(64)

~~131~~114

32,~~127~~785

(~~106~~82)

Residential mortgage-backed securities

2928

~~385~~283

(76)

119

~~342~~186

(21)

1819

4397

(5)

Commercial mortgage-backed securities

~~153~~138

32,~~331~~879

(~~286~~247)

~~448~~375

(21)

~~137~~122

2,~~883~~504

(~~284~~246)

Other asset-backed securities

7950

1,~~797~~128

(4433)

4013

~~880~~228

(21)

3937

~~917~~900

(4232)

Total fixed maturities

~~768~~676

2120,~~390~~495

(~~999~~850)

~~157~~109

53,~~447~~472

(3311)

~~611~~567

1517,~~943~~023

(~~966~~839)

Total No. of Sec.

TotalFairValue

GrossUnrealizedLosses

Less than 12 Months

12 Months or Greater

($ in millions)

No. of Sec.

FairValue

Gross UnrealizedLosses

No. of Sec.

Fair Value

Gross UnrealizedLosses

June 30, 2024

September 30, 2024

U.S. government obligations

~~117~~86

2912,~~776~~919

(~~1,229~~574)

173

122,~~936~~069

(~~110~~3)

~~100~~83

1610,~~840~~850

(~~1,119~~571)

State and local government obligations

~~336~~302

21,~~079~~779

(~~144~~90)

5844

~~411~~208

~~(2)~~0

~~278~~258

1,~~668~~571

(~~142~~90)

Foreign government obligations

(1)

Corporate and other debt securities

~~405~~224

95,~~032~~251

(~~306~~156)

~~150~~14

~~3,307~~426

(193)

~~255~~210

54,~~725~~825

(~~287~~153)

Residential mortgage-backed securities

3933

~~308~~244

(96)

~~244~~185

3229

6459

(96)

Commercial mortgage-backed securities

~~183~~177

3,~~883~~750

(~~489~~377)

~~315~~170

~~(1)~~0

~~176~~172

3,~~568~~580

(~~488~~377)

Other asset-backed securities

~~176~~80

31,~~133~~531

(8954)

6216

~~1,447~~353

~~(3)~~0

~~114~~64

1,~~686~~178

(8654)

Total fixed maturities

~~1,257~~903

4825,~~227~~490

(21,~~267~~258)

~~301~~86

183,~~660~~411

(~~135~~6)

~~956~~817

2922,~~567~~079

(21,~~132~~252)


	Total No. of Sec.	Total Fair Value		Gross Unrealized Losses		Less than 12 Months					12 Months or Greater
($ in millions)						No. of Sec.	Fair Value		Gross Unrealized Losses		No. of Sec.	Fair Value		Gross Unrealized Losses
December 31, 2024
U.S. government obligations	113	$	38,782	$	(1,151)	39	$	30,257	$	(418)	74	$	8,525	$	(733)
State and local government obligations	379	2,339		(117)		127	783		(6)		252	1,556		(111)

Corporate and other debt securities	304	7,034		(215)		122	2,935		(33)		182	4,099		(182)
Residential mortgage-backed securities	40	428		(11)		12	377		(4)		28	51		(7)
Commercial mortgage-backed securities	153	3,294		(376)		8	264		(16)		145	3,030		(360)
Other asset-backed securities	84	1,907		(65)		34	912		(8)		50	995		(57)

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

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

Allowance For Credit and Uncollectible Losses We are required to measure the amount of potential credit losses for all fixed-maturity securities in an unrealized loss position. We did not record any allowances for credit losses or any write-offs for credit losses deemed to be uncollectible during the first ~~six~~nine months of 2025 or 2024, and did not have a material credit loss allowance balance as of ~~June~~September 30, 2025 and 2024, or December 31, 2024. We considered several factors and inputs related to the individual securities as part of our analysis. The methodology and significant inputs used to measure the amount of credit losses in our portfolio included:

•current performance indicators on the business model or underlying assets (e.g., delinquency rates, foreclosure rates, and default rates);

•credit support (via current levels of subordination);

•historical credit ratings; and

•updated cash flow expectations based upon these performance indicators.

We initially reviewed securities in a loss position to determine whether we intended, or if it was more likely than not that we would be required, to sell any of the securities prior to the recovery of their respective cost bases (which could be maturity). If we were more likely than not, or intended, to sell prior to a potential recovery, we would write off the unrealized loss. No unrealized loss write offs were recorded during the ~~six~~nine months ended ~~June~~September 30, 2025 or 2024.

For those securities that we determined we were not likely to, or did not intend to, sell prior to a potential recovery, we performed additional analysis to determine if the loss was credit related. For securities with a potential credit-related loss, we calculated the net present value (NPV) of the cash flows expected (i.e., expected recovery value) using the current book yield for each security. The NPV was then compared to the applicable security’s current amortized cost basis to determine if a credit loss existed. If the NPV was below the amortized cost basis, and deemed material for any specific security, or in the aggregate, a credit loss would be recognized and either a new allowance for credit losses would be recorded, or adjustments would be made to a previous allowance. All changes to new or existing allowances for credit losses are recorded to net realized gains (losses) on securities.

As of ~~June~~September 30, 2025 and 2024, and December 31, 2024, we believe that none of the unrealized losses on our fixed-maturity securities were related to material credit losses on any specific securities, or in the aggregate. We continue to expect all the securities in our fixed-maturity portfolio towill pay their principal and interest obligations.

In addition, we reviewed our accrued investment income outstanding on those securities in an unrealized loss position at ~~June~~September 30, 2025 and 2024, and December 31, 2024, to determine if the accrued interest amounts were uncollectible. Based on our analysis, we believe the issuers have sufficient liquidity and capital reserves to meet their current interest, and future principal obligations and, therefore, did not write off any accrued income as uncollectible at ~~June~~September 30, 2025 and 2024, or December 31, 2024.

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

	Three Months				~~Six~~Nine Months
(millions)	2025		2024		2025		2024
Gross realized gains on security sales
Available-for-sale securities:
U.S. government obligations	$	241	$	143	$	7778	$	144
Corporate and other debt securities	26		12		39		46
Residential mortgage-backed securities	10		10		1		1
Total available-for-sale securities	277		345		8188		651
Equity securities:
Nonredeemable preferred stocks	01		0		23		0
Common equities	411		014		3950		1226
Total equity securities	412		014		4153		1226
Subtotal gross realized gains on security sales	3119		359		~~122~~141		1877
Gross realized losses on security sales
Available-for-sale securities:
U.S. government obligations	~~(1)~~0		(~~192~~2)		(78)		(~~327~~329)
State and local government obligations	0		0(1)		(2)		0(1)
Corporate and other debt securities	(24)		(235)		(37)		(3843)
Commercial mortgage-backed securities	~~(6)~~0		~~(10)~~0		(10)		(15)
Total available-for-sale securities	(94)		(~~225~~8)		(9397)		(~~380~~388)
Equity securities:
Nonredeemable preferred stocks	(31)		(57)		(56)		(1118)
Common equities	0(2)		0(12)		(46)		0(12)
Total equity securities	(3)		(519)		(912)		(1130)
Subtotal gross realized losses on security sales	(127)		(~~230~~27)		(~~102~~109)		(~~391~~418)
Net realized gains (losses) on security sales
Available-for-sale securities:
U.S. government obligations	231		~~(191)~~41		~~(1)~~0		(~~326~~285)
State and local government obligations	0		0(1)		(2)		0(1)
Corporate and other debt securities	02		(223)		02		(3437)
Residential mortgage-backed securities	10		10		1		1
Commercial mortgage-backed securities	~~(6)~~0		~~(10)~~0		(10)		(15)
Total available-for-sale securities	183		~~(222)~~37		(129)		(~~374~~337)
Equity securities:
Nonredeemable preferred stocks	~~(3)~~0		(57)		(3)		(1118)
Common equities	49		02		3544		1214
Total equity securities	19		(5)		3241		1(4)
Subtotal net realized gains (losses) on security sales	1912		~~(227)~~32		2032		(~~373~~341)
Other assets
Gain	0		36		0		36
Net holding period gains (losses)
Hybrid securities	113		320		1417		1131
Equity securities	~~357~~280		97200		~~141~~421		~~391~~591
Subtotal net holding period gains (losses)	~~368~~283		~~100~~220		~~155~~438		~~402~~622
Total net realized gains (losses) on securities	$	~~387~~295	$	~~(127)~~288	$	~~175~~470	$	29317

Realized gains (losses) on securities sold are computed using the first-in-, first-out method. ~~During~~We had minimal sales activity during the ~~second~~third quarter ~~and~~of 2025. During the first ~~six~~nine months of 2025 and the third quarter and first nine months of 2024, the majority of our security sales were U.S. Treasury Notes that were sold for duration management. We also selectively sold securities that we viewed as having less attractive risk/reward profiles during the ~~second quarter and~~ first ~~six~~nine months of 2025 and 2024.

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

	Three Months				Six Months
(millions)	2025		2024		2025		2024
Total net gains (losses) recognized during the period on equity securities	$	358	$	92	$	173	$	392
Less: Net gains (losses) recognized on equity securities sold during the period	1		(5)		32		1
Net holding period gains (losses) recognized during the period on equity securities held at period end	$	357	$	97	$	141	$	391

~~Net~~The ~~Investment~~following ~~Income The~~table ~~components~~reflects ofour ~~net~~holding ~~investment~~period ~~income~~realized ~~for~~gains ~~the~~(losses) ~~three~~recognized ~~and~~on ~~six~~equity ~~months~~securities ~~ended~~held ~~June~~at ~~30,~~the ~~were~~respective quarter ends:

	Three Months				~~Six~~Nine Months
(millions)	2025		2024		2025		2024
Available-for-sale securities:
Total net gains (losses) recognized during the period on equity securities	$	289	$	195	$	462	$	587
Fixed maturities:
Less: Net gains (losses) recognized on equity securities sold during the period	9		(5)		41		(4)
U.S. government obligations	$	422	$	361	$	844	$	668
Net holding period gains (losses) recognized during the period on equity securities held at period end	$	280	$	200	$	421	$	591
State and local government obligations	21		13		40		26
Corporate and other debt securities	208		137		379		262
Residential mortgage-backed securities	32		8		57		13
Commercial mortgage-backed securities	59		47		112		93
Other asset-backed securities	84		82		168		160
Total fixed maturities	826		648		1,600		1,222
Short-term investments	28		17		46		36
Total available-for-sale securities	854		665		1,646		1,258
Equity securities:
Nonredeemable preferred stocks	5		10		13		21
Common equities	12		10		26		24
Total equity securities	17		20		39		45
Investment income	871		685		1,685		1,303
Investment expenses	(9)		(7)		(16)		(13)
Net investment income	$	862	$	678	$	1,669	$	1,290

OnNet aInvestment ~~year-over-year~~Income The ~~basis,~~components of net investment income ~~(interest and dividends) increased 27% and 29%~~ for the three and ~~six~~nine months ended ~~June~~ September 30, 2025, respectively, compared to the same periods last year. The increases primarily reflect growth in invested assets and an increase in recurring investment book yield. The book yield increase primarily reflected investing new cash from insurance operations, and proceeds from maturing bonds, in higher coupon rate securities.were:


	Three Months				Nine Months
(millions)	2025		2024		2025		2024
Available-for-sale securities:
Fixed maturities:
U.S. government obligations	$	470	$	396	$	1,314	$	1,064
State and local government obligations	24		16		64		42

Corporate and other debt securities	214		155		593		417
Residential mortgage-backed securities	38		14		95		27
Commercial mortgage-backed securities	63		49		175		142
Other asset-backed securities	78		83		246		243

Total fixed maturities	887		713		2,487		1,935
Short-term investments	20		9		66		45
Total available-for-sale securities	907		722		2,553		1,980
Equity securities:
Nonredeemable preferred stocks	6		9		19		30
Common equities	11		8		37		32
Total equity securities	17		17		56		62
Investment income	924		739		2,609		2,042
Investment expenses	(10)		(7)		(26)		(20)
Net investment income	$	914	$	732	$	2,583	$	2,022

On a year-over-year basis, investment income (interest and dividends) increased 25% and 28% for the three and nine months ended September 30, 2025, respectively, compared to the same periods last year. The increases primarily reflect growth in invested assets and an increase in recurring investment book yield. The book yield increase primarily reflects investing new cash from insurance operations, and proceeds from maturing bonds, in higher coupon rate securities.

3. FAIR VALUE

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

•Level 1: Inputs are unadjusted, quoted prices in active markets for identical instruments at the measurement date (e.g., U.S. government obligations, which are continually priced on a daily basis, active exchange-traded equity securities, and certain short-term investments).

•Level 2: Inputs that are observable for the instrument either directly (other than quoted prices included within Level 1) ~~that are observable for the instrument either directly~~ or indirectly. This includes: (i) quoted prices for similar instruments in active markets, (ii) quoted prices for identical or similar instruments in markets that are not active, (iii) inputs other than quoted prices that are ~~observable for the instruments, and (iv) inputs that~~

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

•Level 3: Inputs that are unobservable. Unobservable inputs reflect our subjective evaluation about the assumptions market participants would use in pricing the financial instrument (e.g., certain privately held investments).

Determining the fair value of the investment portfolio is the responsibility of management. As part of that responsibility, we evaluate whether a market is distressed or inactive in determining the fair value for our portfolio. We review certain market level inputs to evaluate whether sufficient activity, volume, and new issuances exist to create an active market. ~~Based on this evaluation, we concluded that there was sufficient activity related to the sectors and securities for which we obtained valuations.~~

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

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

Fair Value

(millions)

Level 1

Level 2

Level 3

Total

Cost

June 30, 2025

September 30, 2025

Fixed maturities:

U.S. government obligations

4651,~~810~~339

4651,~~684~~021

State and local government obligations

23,~~964~~275

3,~~030~~320

Foreign government obligations

1716

Corporate and other debt securities

18,~~117~~812

18,~~122~~817

18,~~004~~621

Residential mortgage-backed securities

23,~~660~~000

2,~~644~~979

Commercial mortgage-backed securities

5,~~049~~686

5,~~325~~916

Other asset-backed securities

6,~~650~~376

6,~~668~~374

Total fixed maturities

4651,~~810~~339

3537,~~457~~165

8288,~~272~~509

8288,~~372~~247

Short-term investments

1,~~922~~414

~~181~~101

21,~~103~~515

Total available-for-sale securities

4852,~~732~~753

3537,~~638~~266

8490,~~375~~024

8489,~~475~~762

Equity securities:

Nonredeemable preferred stocks

~~440~~378

~~500~~438

~~517~~454

Common equities:

Common stocks

34,~~694~~004

34,~~703~~013

~~743~~774

Other risk investments

3234

Subtotal common equities

34,~~694~~004

4143

34,~~735~~047

~~775~~808

Total equity securities

34,~~694~~004

~~440~~378

~~101~~103

4,~~235~~485

1,~~292~~262

Total portfolio

5256,~~426~~757

3637,~~078~~644

~~106~~108

8894,~~610~~509

8591,~~767~~024

Debt

6,~~294~~398

6,~~895~~896

Fair Value

(millions)

Level 1

Level 2

Level 3

Total

Cost

June 30, 2024

September 30, 2024

Fixed maturities:

U.S. government obligations

4044,~~894~~429

4244,~~063~~231

State and local government obligations

2,~~202~~601

2,~~345~~681

Foreign government obligations

Corporate and other debt securities

1315,~~143~~033

1315,~~146~~036

1314,~~439~~970

Residential mortgage-backed securities

~~976~~1,424

~~981~~1,404

Commercial mortgage-backed securities

34,~~970~~291

4,~~457~~664

Other asset-backed securities

6,~~285~~614

6,~~366~~628

Total fixed maturities

4044,~~894~~429

2629,~~592~~979

6774,~~489~~411

6974,~~668~~595

Short-term investments

~~733~~755

~~733~~757

Total available-for-sale securities

4145,~~627~~184

2629,~~592~~981

6875,~~222~~168

7075,~~401~~352

Equity securities:

Nonredeemable preferred stocks

~~786~~683

~~838~~735

~~887~~760

Common equities:

Common stocks

3,~~250~~452

3,~~272~~474

~~684~~710

Other risk investments

2423

Subtotal common equities

3,~~250~~452

4645

3,~~296~~497

~~708~~733

Total equity securities

3,~~250~~452

~~786~~683

9897

4,~~134~~232

1,~~595~~493

Total portfolio

4448,~~877~~636

2730,~~378~~664

~~101~~100

7279,~~356~~400

7176,~~996~~845

Debt

6,~~166~~498

6,~~891~~892


	Fair Value
(millions)	Level 1		Level 2		Level 3		Total		Cost
December 31, 2024
Fixed maturities:
U.S. government obligations	$	45,988	$	0	$	0	$	45,988	$	47,103
State and local government obligations	0		2,778		0		2,778		2,893
Foreign government obligations	0		16		0		16		16
Corporate and other debt securities	0		13,949		5		13,954		14,111
Residential mortgage-backed securities	0		1,601		0		1,601		1,600
Commercial mortgage-backed securities	0		4,352		0		4,352		4,721
Other asset-backed securities	0		6,643		0		6,643		6,682





Total fixed maturities	45,988		29,339		5		75,332		77,126
Short-term investments	613		2		0		615		615
Total available-for-sale securities	46,601		29,341		5		75,947		77,741
Equity securities:

Nonredeemable preferred stocks	0		676		52		728		756



Common equities:
Common stocks	3,527		0		23		3,550		720
Other risk investments	0		0		25		25		25
Subtotal common equities	3,527		0		48		3,575		745
Total equity securities	3,527		676		100		4,303		1,501
Total portfolio	$	50,128	$	30,017	$	105	$	80,250	$	79,242
Debt	$	0	$	6,173	$	0	$	6,173	$	6,893

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

Our short-term investments classified as Level 1 include commercial paper, treasury bills, and money market funds, which are highly liquid, actively marketed, and have ~~very~~ short durations. These securities are valued at their original cost, adjusted for any accretion of discount, which approximates fair value because of the relatively short period of time until maturity. The remainder of our short-term investments with a trade date to maturity of less than a year are classified as Level 2. These securities are classified as Level 2 since they are valued using external pricing vendor prices or are securities that continually trade at par value because they contain either liquidity facilities or mandatory put features within one year and as a result are valued at their original cost.

At ~~June~~September 30, 2025 and 2024 and December 31, 2024, vendor-quoted prices represented 93% of our Level 1 classifications (excluding short-term investments valued at original cost). The securities quoted by vendors in Level 1 primarily represent our holdings in U.S. Treasury Notes, which are frequently traded, and the quotes are considered similar to exchange-traded quotes. The balance of our Level 1 pricing comes from quotes obtained directly from trades made on active exchanges.

At ~~June~~September 30, 2025 and 2024, vendor-quoted prices comprised 99% of our Level 2 classifications (excluding short-term investments valued at original cost), with the ~~balance from~~

balance from dealer quotes, compared to 100% at ~~June 30, 2024 and~~ December 31, 2024. In our process for selecting a source (e.g., dealer or pricing service) to provide pricing for securities in our portfolio, we reviewed documentation from the sources that detailed the pricing techniques and methodologies used by these sources and determined if their policies adequately considered market activity, either based on specific transactions for the particular security type or based on modeling of securities with similar credit quality, duration, yield, and structure that were recently transacted. Once a source is chosen, we continue to monitor any changes or modifications to their processes by reviewing their documentation on internal controls for pricing and market reviews. We review quality control measures of our sources as they become available to determine if any significant changes have occurred from period to period that might indicate issues or concerns regarding their evaluation or market coverage.

As part of our pricing procedures, we obtain quotes from more than one source to help us fully evaluate the market price of securities. However, our internal pricing policy is to use a consistent source for individual securities in order to maintain the integrity of our valuation process. Quotes obtained from the sources are not considered binding offers to transact. Under our policy, when a review of the valuation received from our selected source appears to be outside of what is considered market level activity (which is defined as trading at spreads or yields significantly different than those of comparable securities or outside the general sector level movement without a reasonable explanation), we may use an alternate source’s price. To the extent we determine that it may be prudent to substitute

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

To allow us to determine if our initial source is providing a price that is outside of a reasonable range, we review our portfolio pricing on a weekly basis. When necessary, we challenge prices from our sources when a price provided does not match our expectations based on our evaluation of market trends and activity. Initially, we perform a review of our portfolio by sector to identify securities whose prices appear outside of a reasonable range. We then perform a more detailed review of fair values for securities disclosed as Level 2. We review dealer bids and quotes for these and/or similar securities to determine the market level context for our valuations. 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, ~~and coupon~~ 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. The review also includes recent trades, including: volume traded at various levels that establish a market; issuer specific fundamentals; and industry-specific economic news as it comes to light.

For municipal securities (e.g., general obligations, revenue, and housing), we stratify the portfolio to evaluate securities by type, duration, credit quality, and coupon, to review price changes relative to credit spread and interest rate changes. Additionally, we look to economic data as it relates to geographic location as an indication of price-to-call or maturity predictors. For municipal housing securities, we look to changes in cash flow projections, both historical and reasonably estimable projections, to understand yield changes and their effect on valuation.

For short-term investments valued at original cost, we look at acquisition price relative to the coupon or yield. Since most of these securities are 60 days or less to maturity, we believe that original cost is the best estimate of fair value. For short-term investments valued with external vendor prices, we review securities by duration, credit quality, and coupon, as well as changes in interest rate and credit spread movements within that stratification, and recent trade information.

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

market conditions. In addition, we independently review each sector for transaction volumes, new issuances, and changes in spreads, as well as the overall movement of interest rates along the yield curve to determine if sufficient activity and liquidity exists to provide a credible source for our market valuations.

During each valuation period, we create internal estimations of portfolio valuation (performance returns), based on current market-related activity (i.e., interest rate and credit spread movements and other credit-related factors) within each major sector of our portfolio. We compare our ~~internally generated portfolio~~ results ~~with those generated based on quotes we receive externally and research material valuation differences. We compare our results~~ to index returns for each major sector adjusting for duration and credit quality differences to better understand our portfolio’s results. Additionally, we review ~~on a monthly basis~~ our external sales transactions and compare the actual final market sales prices to previous market valuation prices on a monthly basis. This review provides us further validation that our pricing sources are providing market level prices, ~~since~~and wegives ~~are~~us ~~able~~additional comfort regarding the source’s process, the quality of its review, and its willingness to ~~explain~~improve ~~significant~~its ~~price~~analysis ~~changes~~based (ion feedback from clients.~~e.,~~ ~~greater~~We ~~than~~believe ~~2%)~~this aseffort ~~known~~helps ~~events~~ensure ~~occur~~that inwe ~~the~~are ~~marketplace~~reporting ~~and~~the ~~affect~~most arepresentative ~~particular~~fair ~~security’s~~values ~~price~~for atour ~~sale~~securities.

This analysis provides us with additional comfort regarding the source’s process, the quality of its review, and its willingness to improve its analysis based on feedback from clients. We believe this effort helps ensure that we are reporting the most representative fair values for our securities.

After all the valuations are received and our review of Level 2 securities is complete, if the inputs used by vendors are determined to not contain sufficient observable market information, we will reclassify the affected securities to Level 3.

Except as described below, our Level 3 securities are priced externally; however, due to several factors (e.g., nature of the securities, level of activity, and lack of similar securities trading to obtain observable market level inputs), these valuations are more subjective in nature.

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 nine months of 2025 and for the full year of 2024, all prices received from external sources remained unadjusted.

If we do not receive prices from an external source, we perform an internal fair value comparison, which includes a review and analysis of market-comparable securities, to determine if fair value changes are needed. Based on this analysis, certain private equity investments included in the

Level 3 category remain valued at cost or were priced using a recent transaction as the basis for fair value. At ~~least annually, these private equity investments are priced by an external source.~~

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

Our Level 3 other risk investments include securities accounted for under the equity method of accounting and, therefore, are not subject to fair value reporting. Since these securities represent less than 0.1% of our total portfolio, we include them in our Level 3 disclosures and report the activity from these investments as “other” changes in the summary of changes in fair value table and categorize these securities as “pricing exemption securities” in the quantitative information table.

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

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

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

(millions)	Fair Value at ~~March~~June 3130, 2025		Calls/Maturities/Paydowns/Other		Purchases		Sales		Net Realized(Gain)/Losson Sales		Change inValuation1		NetTransfersIn (Out)		Fair Value at ~~June~~September 30, 2025
Fixed maturities:
Corporate and other debt securities	$	5	$	0	$	0	$	0	$	0	$	0	$	0	$	5
Equity securities:
Nonredeemable preferred stocks	60		0		0		0		0		0		0		60
Common equities:
Common stocks	9		0		0		0		0		0		0		9
Other risk investments	3132		12		0		0		0		0		0		3234
Total Level 3 securities	$	~~105~~106	$	12	$	0	$	0	$	0	$	0	$	0	$	~~106~~108
(millions)	Fair Value at ~~March~~June 3130, 2024		Calls/Maturities/Paydowns/Other		Purchases		Sales		Net Realized(Gain)/Losson Sales		Change inValuation1		NetTransfersIn (Out)		Fair Value at ~~June~~September 30, 2024
Fixed maturities:
Corporate and other debt securities	$	3	$	0	$	0	$	0	$	0	$	0	$	0	$	3
Equity securities:
Nonredeemable preferred stocks	6452		0		0		0		0		~~(12)~~0		0		52
Common equities:
Common stocks	22		0		0		0		0		0		0		22
Other risk investments	2524		(1)		0		0		0		0		0		2423
Total Level 3 securities	$	~~114~~101	$	(1)	$	0	$	0	$	0	$	~~(12)~~0	$	0	$	~~101~~100
(millions)	Fair Value at December 31, 2024		Calls/Maturities/Paydowns/Other		Purchases		Sales		Net Realized(Gain)/Losson Sales		Change inValuation1		NetTransfersIn (Out)		Fair Value at ~~June~~September 30, 2025
Fixed maturities:
Corporate and other debt securities	$	5	$	0	$	0	$	0	$	0	$	0	$	0	$	5
Equity securities:
Nonredeemable preferred stocks	52		0		8		0		0		0		0		60
Common equities:
Common stocks	23		0		0		0		0		(14)		0		9
Other risk investments	25		79		0		0		0		0		0		3234
Total Level 3 securities	$	105	$	79	$	8	$	0	$	0	$	(14)	$	0	$	~~106~~108
(millions)	Fair Value at December 31, 2023		Calls/Maturities/Paydowns/Other		Purchases		Sales		Net Realized(Gain)/Losson Sales		Change inValuation1		NetTransfersIn (Out)		Fair Value at ~~June~~September 30, 2024
Fixed maturities:
Corporate and other debt securities	$	3	$	0	$	0	$	0	$	0	$	0	$	0	$	3
Equity securities:
Nonredeemable preferred stocks	64		0		0		0		0		(12)		0		52
Common equities:
Common stocks	22		0		0		0		0		0		0		22
Other risk investments	21		32		0		0		0		0		0		2423
Total Level 3 securities	$	110	$	32	$	0	$	0	$	0	$	(12)	$	0	$	~~101~~100

1 For fixed maturities, these amounts are included in accumulated other comprehensive income (loss) on our consolidated balance sheets. For equity securities, these amounts are included in our consolidated statements of comprehensive income.

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

($ in millions)

Fair Value at ~~June~~September 30, 2025

Valuation Technique

Unobservable Input

Range ofofInput ~~Input~~ValuesIncrease ~~Values Increase~~ (Decrease)

Weighted Average Increase (Decrease)

Fixed maturities:

Corporate and other debt securities

Market comparables

Weighted average market capitalization price change %

0(1.60)% to (0.89)%

0(1.70)

Equity securities:

Nonredeemable preferred stocks

Market comparables

Weighted average market capitalization price change %

(136.16)% to 2211.73%

3.78

Common stocks

Market comparables

Weighted average market capitalization price change %

(2621.35)% to 5674.6%

2111.3

Subtotal Level 3 securities

Pricing exemption securities

3234

Total Level 3 securities

~~106~~108

($ in millions)

Fair Value at ~~June~~September 30, 2024

Valuation Technique

Unobservable Input

Range ofofInput ~~Input~~ValuesIncrease ~~Values Increase~~ (Decrease)

Weighted Average Increase (Decrease)

Fixed maturities:

Corporate and other debt securities

Market comparables

Weighted average market capitalization price change %

(13.21)% to 110.29%

0.2.6

Equity securities:

Nonredeemable preferred stocks

Market comparables

Weighted average market capitalization price change %

(74.6)0% to (125.5)0%

(218.9)1

Common stocks

Market comparables

Weighted average market capitalization price change %

(2619.51)% to 1969.36%

(419.4)0

Subtotal Level 3 securities

Pricing exemption securities

2423

Total Level 3 securities

~~101~~100

($ in millions)

Fair Value at December 31, 2024

Valuation Technique

Unobservable Input

Range ofofInput ~~Input~~ValuesIncrease ~~Values Increase~~ (Decrease)

Weighted Average Increase (Decrease)

Fixed maturities:

Corporate and other debt securities

Market comparables

Weighted average market capitalization price change %

(1.4)% to (1.3)%

(1.4)

Equity securities:

Nonredeemable preferred stocks

Market comparables

Weighted average market capitalization price change %

(14.1)% to 6.0%

(2.7)

Common stocks

Market comparables

Weighted average market capitalization price change %

(41.3)% to 95.9%

6.0

Subtotal Level 3 securities

Pricing exemption securities

Total Level 3 securities

105

4. DEBT

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

($ in millions)						~~June~~September 30, 2025				~~June~~September 30, 2024			December 31, 2024
Principal Amount		Interest Rate		Issuance Date	Maturity Date	CarryingValue		FairValue			CarryingValue		FairValue		CarryingValue		FairValue
$	500	2.45	%	August 2016	2027	$	499	$	~~488~~491		$	499	$	~~469~~483	$	499	$	479
500		2.50		March 2022	2027	499		~~487~~490			498		~~468~~482		499		479
300		6 5/8		March 1999	2029	298		~~324~~323			298		~~321~~330		298		320
550		4.00		October 2018	2029	548		~~547~~550			547		~~527~~549		547		534
500		3.20		March 2020	2030	498		~~477~~481			~~497~~498		~~455~~476		498		462
500		3.00		March 2022	2032	497		~~456~~461			497		~~434~~458		497		439
400		6.25		November 2002	2032	397		~~438~~445			397		~~428~~450		397		430
500		4.95		May 2023	2033	497		~~511~~514			497		~~495~~519		497		495
350		4.35		April 2014	2044	347		~~299~~308			347		~~301~~319		347		298
400		3.70		January 2015	2045	396		~~310~~320			396		~~310~~331		396		308
850		4.125		April 2017	2047	843		~~699~~716			842		~~699~~750		842		684
600		4.20		March 2018	2048	591		~~493~~510			591		~~494~~532		591		490
500		3.95		March 2020	2050	~~491~~492		~~392~~404			491		~~392~~420		491		386
500		3.70		March 2022	2052	494		~~373~~385			494		~~373~~399		494		369
Total						$	6,~~895~~896	$	6,~~294~~398		$	6,~~891~~892	$	6,~~166~~498	$	6,893	$	6,173

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

During the second quarter 2025, The Progressive Corporation renewed its line of credit with PNC Bank, National Association (PNC), in the maximum principal amount of $300 million, which expires April 2026 and has the same terms as the previous line of credit with PNC. See the 2024 Annual Report to Shareholders for a discussion of the terms of this line of credit. We had no borrowings under the line of credit that was available during the periods presented.

5. INCOME TAXES

The effective tax rate for the three and ~~six~~nine months ended ~~June~~September 30, 2025, was 2021.3% and 20.47%, respectively, compared to 2120.68% and 2120.09% for the same periods last year. ~~The decrease in effective tax rate is primarily due to the tax benefits associated with distributions of deferred compensation during the second quarter 2025.~~

Deferred income taxes reflect the tax effects of temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities. Although realization of the deferred tax assets is not assured, management believes that it is more likely than not that the deferred tax assets will be realized based on our expectation that we will be able to fully utilize the deductions that are ultimately recognized for tax purposes and, therefore, no valuation allowance was needed at ~~June~~September 30, 2025 and 2024, and December 31, 2024.

We had net current income taxes ~~recoverable~~payable of $~~115~~24 million and $26 million at ~~June~~September 30, 2025 and December 31, 2024, respectively, which were reported in accounts payable, accrued expenses, and other ~~assets~~liabilities on our consolidated balance sheets, compared to net current income taxes ~~payable~~recoverable of $95 million ~~and $26 million~~ at ~~June~~September 30, 2024 ~~and December 31~~, ~~2024, respectively,~~ which ~~were~~was reported in ~~accounts payable, accrued expenses, and~~ other ~~liabilities~~assets. The balance may fluctuate from period to period due to normal timing differences.

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

6. LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES

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

	June 30,
	September 30,
(millions)	2025		2024
Balance at January 1	$	39,057	$	34,389
Less reinsurance recoverables on unpaid losses	4,487		4,789
Net balance at January 1	34,570		29,600
Incurred related to:
Current year	2740,~~016~~922		2336,~~630~~276
Prior years	(~~607~~1,068)		(63199)
Total incurred	2639,~~409~~854		2336,~~567~~077
Paid related to:
Current year	1221,~~842~~904		1119,~~470~~669
Prior years	1014,~~883~~228		912,~~607~~492
Total paid	2336,~~725~~132		2132,~~077~~161
Net balance at June 30	37,254		32,090
Net balance at September 30	38,292		33,516
Plus reinsurance recoverables on unpaid losses	3,~~900~~813		4,~~515~~546
Balance at June 30	$	41,154	$	36,605
Balance at September 30	$	42,105	$	38,062

We experienced favorable reserve development of $~~607~~1,068 million and $63199 million during the first ~~six~~nine months of 2025 and 2024, respectively, which is reflected as “incurred related to prior years” in the table above.

Year-to-date ~~June~~September 30, 2025

•The favorable prior year reserve development included approximately $~~400~~660 million attributable to accident year 2024, $~~115~~190 million to accident year 2023, and the remainder to accident years 2022 and prior.

•Our personal auto products incurred about $~~520~~910 million of favorable loss and loss adjustment expense (LAE) reserve development, with the agency and direct auto businesses each contributing about half. The favorable development was primarily due to lower than anticipated loss severity and frequency in Florida and, to a lesser extent, lower than anticipated litigation defense costs across most states and lower than anticipated payments on reopened property damage claims that were previously closed.

•Our personal property products experienced about $5075 million of favorable development, primarily attributable to favorable development on 2024 catastrophe events.

•Our Commercial Lines business experienced about $4580 million of favorable development, primarily attributable to lower than anticipated severity in our transportation network company business, partially offset by higher than anticipated severity and litigation defense costs in our core commercial auto bodily injury coverages.

Year-to-date ~~June~~September 30, 2024

•The favorable prior year reserve development included approximately $60160 million ~~of favorable development~~ attributable to accident year 2023, ~~and~~ $205 million to accident year 2022;, ~~partially~~and ~~offset~~the byremainder ~~unfavorable development attributable~~ to accident years 2021 and prior.

•Our personal auto products incurred about $~~235~~375 million of favorable loss and LAE reserve development, with about 60% attributable to the agency auto business and the balance in the direct auto business. The favorable development was, in part, due to lower than anticipated severity and frequency in Florida ~~following tort reform that passed in the first quarter 2023~~ and lower than anticipated property damage severity across the majority of states.

•Our ~~Commercial Lines and~~ personal property ~~businesses~~business experienced about $~~140~~75 million ~~and $30 million, respectively,~~ of unfavorable development, ~~with the Commercial Lines development~~ primarily ~~driven~~due byto higher ~~than~~LAE ~~anticipated~~costs ~~severity~~than ~~in our commercial auto business for California and New York~~anticipated.

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

7. SUPPLEMENTAL CASH FLOW INFORMATION

Cash and cash equivalents include bank demand deposits and daily overnight reverse repurchase commitments of funds held in bank demand deposit accounts by certain subsidiaries. The amount of overnight reverse repurchase commitments, which are not considered part of the investment portfolio, held by these subsidiaries at ~~June~~September 30, 2025 and 2024, and December 31, 2024, were $8058 million, $8189 million, and $127 million, respectively. Restricted cash and restricted cash equivalents include collateral held against unpaid deductibles and cash that is restricted to pay flood claims under the National Flood Insurance Program’s “Write Your Own” program, for which certain subsidiaries are participants.

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

	Six Months Ended June 30,
	Nine Months Ended September 30,
(millions)	2025		2024
Common share dividends1	$	5859	$	5859
Operating lease liabilities2	6383		4774

1 Declared but unpaid. See Note 9 – Dividends for further discussion.

2 From obtaining right-of-use assets.

In the respective periods, we paid the following:

	Six Months Ended June 30,
	Nine Months Ended September 30,
(millions)	2025		2024
Income taxes	$	12,~~644~~313	$	1,~~351~~985
Interest	~~138~~226		~~138~~226
Operating lease liabilities	4568		4363

8. SEGMENT INFORMATION

Our Personal Lines segment writes insurance for personal autos, special lines products (e.g., recreational vehicles, such as motorcycles, RVs, and watercraft), personal residential property insurance for homeowners and renters, umbrella insurance, and flood insurance through the “Write Your Own” program for the National Flood Insurance Program. Property information for the three and ~~six~~nine months ended ~~June~~September 30, 2024, was recast to conform to the current year presentation; see Note 10 – Segment Information in our 2024 Annual Report to Shareholders for further discussion.

Our Commercial Lines segment writes auto-related liability and physical damage insurance, business-related

general liability and commercial property insurance predominately for small businesses, and workers’ compensation insurance primarily for the transportation industry.

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

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

Following are the operating results for the respective periods:

(millions)

Personal Lines

Commercial Lines

Other1

Companywide

Three Months Ended June 30, 2025

Three Months Ended September 30, 2025

Net premiums earned

1718,~~544~~089

2,~~765~~760

20,~~310~~849

Fees and other revenues

~~263~~272

4034

~~303~~306

Total underwriting revenue

1718,~~807~~361

2,~~805~~794

2021,~~613~~155

Losses and loss adjustment expenses:

Losses (excluding catastrophe losses)

9,~~574~~801

1,~~561~~575

(1)

11,~~134~~377

Catastrophe losses

~~688~~207

1912

~~707~~219

Loss adjustment expenses

1,~~471~~554

~~292~~296

(1)

1,~~764~~849

Total losses and loss adjustment expenses

11,~~733~~562

1,~~872~~883

13,~~605~~445

Underwriting expenses:

Distribution expenses2

2,~~328~~507

~~308~~313

2,~~637~~821

Other underwriting expenses3

12,~~298~~394

~~261~~300

12,~~563~~699

Total underwriting expenses

34,~~626~~901

~~569~~613

45,~~200~~520

Pretax underwriting profit (loss)

21,~~448~~898

~~364~~298

(46)

2,~~808~~190

Investment profit (loss)4

1,~~249~~209

Service businesses profit (loss)

(6)

Interest expense

(6970)

Total pretax profit (loss)

3,~~982~~323

(millions)

Personal Lines

Commercial Lines

Other1

Companywide

Three Months Ended June 30, 2024

Three Months Ended September 30, 2024

Net premiums earned

1415,~~545~~570

2,~~664~~727

1718,~~209~~297

Fees and other revenues

~~216~~235

4443

~~260~~278

Total underwriting revenue

1415,~~761~~805

2,~~708~~770

1718,~~469~~575

Losses and loss adjustment expenses:

Losses (excluding catastrophe losses)

8,~~148~~514

1,~~581~~607

(1)

910,~~728~~120

Catastrophe losses

~~1,243~~698

2634

~~1,269~~732

Loss adjustment expenses

1,~~324~~382

~~274~~276

1,~~598~~658

Total losses and loss adjustment expenses

10,~~715~~594

1,~~881~~917

(1)

12,~~595~~510

Underwriting expenses:

Distribution expenses2

12,~~828~~267

~~284~~297

2,~~112~~564

Other underwriting expenses3

1,~~135~~245

~~239~~248

1,~~376~~496

Total underwriting expenses

23,~~963~~512

~~523~~545

34,~~488~~060

Pretax underwriting profit (loss)

1,~~083~~699

~~304~~308

(12)

12,~~386~~005

Investment profit (loss)4

~~551~~1,020

Service businesses profit (loss)

(89)

Interest expense

(6970)

Total pretax profit (loss)

12,~~860~~946

(millions)

Personal Lines

Commercial Lines

Other1

Companywide

Six Months Ended June 30, 2025

Nine Months Ended September 30, 2025

Net premiums earned

3452,~~254~~343

58,~~464~~224

3960,~~719~~568

Fees and other revenues

~~512~~784

78112

~~590~~896

Total underwriting revenue

3453,~~766~~127

58,~~542~~336

4061,~~309~~464

Losses and loss adjustment expenses:

Losses (excluding catastrophe losses)

1828,~~683~~484

34,~~120~~695

~~(1)~~0

2133,~~802~~179

Catastrophe losses

1,~~142~~349

2436

1,~~166~~385

Loss adjustment expenses

24,~~861~~415

~~579~~875

35,~~441~~290

Total losses and loss adjustment expenses

2234,~~686~~248

35,~~723~~606

2639,~~409~~854

Underwriting expenses:

Distribution expenses2

47,~~676~~183

~~594~~907

58,~~271~~092

Other underwriting expenses3

24,~~573~~967

~~523~~823

813

35,~~104~~803

Total underwriting expenses

712,~~249~~150

1,~~117~~730

915

813,~~375~~895

Pretax underwriting profit (loss)

46,~~831~~729

~~702~~1,000

(814)

57,~~525~~715

Investment profit (loss)4

13,~~844~~053

Service businesses profit (loss)

(1218)

Interest expense

(~~139~~209)

Total pretax profit (loss)

710,~~218~~541

(millions)

Personal Lines

Commercial Lines

Other1

Companywide

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Net premiums earned

2843,~~136~~706

57,~~222~~949

3351,~~358~~655

Fees and other revenues

~~412~~647

84127

~~496~~774

Total underwriting revenue

2844,~~548~~353

58,~~306~~076

3352,~~854~~429

Losses and loss adjustment expenses:

Losses (excluding catastrophe losses)

1524,~~711~~225

34,~~174~~781

(34)

1829,~~882~~002

Catastrophe losses

12,~~581~~279

3569

12,~~616~~348

Loss adjustment expenses

23,~~521~~903

~~548~~824

34,~~069~~727

Total losses and loss adjustment expenses

1930,~~813~~407

35,~~757~~674

(34)

2336,~~567~~077

Underwriting expenses:

Distribution expenses2

35,~~388~~655

~~558~~855

36,~~946~~510

Other underwriting expenses3

23,~~223~~468

~~478~~726

24,~~705~~201

Total underwriting expenses

59,~~611~~123

1,~~036~~581

610,~~651~~711

Pretax underwriting profit (loss)

34,~~124~~823

~~513~~821

(13)

35,~~636~~641

Investment profit (loss)4

12,~~319~~339

Service businesses profit (loss)

(1625)

Interest expense

(~~139~~209)

Total pretax profit (loss)

47,~~800~~746

1 Includes other underwriting ~~businesses~~business and run-off operations.

2 Includes policy acquisition costs, agents’ contingent commissions, and advertising costs attributable to our operating segments. A portion of our companywide advertising costs are also attributed to our service businesses.

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

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

~~Our~~In ~~management~~the ~~uses~~tables ~~underwriting~~above, ~~margin~~the results for the Personal Lines segment for both the three and ~~combined~~nine ~~ratio~~months asended ~~primary~~September 30, ~~measures~~2025, included $950 million of ~~underwriting~~policyholder ~~profitability.~~credit ~~The~~expense, included within other underwriting ~~margin~~expenses. isDuring the ~~pretax~~third ~~underwriting~~quarter 2025, we determined it was probable that our personal auto profit ~~(loss)~~in ~~expressed~~Florida asfor athe ~~percentage~~2023 ofto ~~net~~2025 ~~premiums~~period ~~earned.~~will ~~Pretax~~exceed ~~underwriting~~the statutory profit ~~(loss)~~limit isthat ~~calculated~~a asFlorida ~~net~~statute ~~premiums~~imposes ~~earned~~on ~~plus~~the ~~fees~~profit ~~and~~that ~~other~~any ~~revenues,~~insurance ~~less:~~group ~~(i)~~can ~~losses~~earn ~~and~~on ~~loss~~personal ~~adjustment~~auto ~~expenses;~~insurance ~~(ii)~~over ~~policy~~any ~~acquisition~~three-calendar-year ~~costs;~~period. ~~and~~In ~~(iii)~~such ~~other~~event, ~~underwriting~~we ~~expenses.~~would ~~Combined~~need ~~ratio~~to iscredit ~~the~~any ~~complement~~profit, ofabove the ~~underwriting~~limit, ~~margin.~~to ~~Fees~~all ~~and~~Florida ~~other~~personal ~~revenues~~auto ~~are~~policyholders ~~netted~~active ~~against~~at ~~either~~December ~~loss~~31, ~~adjustment~~2025. ~~expenses~~Further, orthe ~~underwriting~~accrual ~~expenses~~represents inour current estimate of the ~~ratio~~profit ~~calculations,~~we ~~based~~will earn on the ~~underlying~~three-calendar-year ~~activity~~period ~~that~~ending ~~generated~~December 31, 2025, in excess of the ~~revenue~~permitted profit limit. ~~Following~~The ~~are~~expense is reported in policyholder credit expense on the ~~underwriting~~consolidated ~~margins~~statements of comprehensive income and ~~combined~~the ~~ratios~~accrual ~~for~~is ~~our~~included ~~underwriting~~in ~~operations~~accounts ~~for~~payable, ~~the~~accrued ~~respective~~expenses, ~~periods:~~and other liabilities on our consolidated balance sheets.

	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
	Under-writingMargin		CombinedRatio	Under-writingMargin		CombinedRatio	Under-writingMargin		CombinedRatio	Under-writingMargin		CombinedRatio
Personal Lines	14.0	%	86.0	7.4	%	92.6	14.1	%	85.9	11.1	%	88.9
Commercial Lines	13.2		86.8	11.4		88.6	12.9		87.1	9.8		90.2
Total underwriting operations	13.8		86.2	8.1		91.9	13.9		86.1	10.9		89.1

Our management uses underwriting margin and combined ratio as primary measures of underwriting profitability. The underwriting margin is the pretax underwriting profit (loss) expressed as a percentage of net premiums earned. Pretax underwriting profit (loss) is calculated as net premiums earned plus fees and other revenues, less: (i) losses and loss adjustment expenses; (ii) policy acquisition costs; (iii) other underwriting expenses; and (iv) policyholder credit expense. Combined ratio is the complement of the underwriting margin. Fees and other revenues are netted against either loss adjustment expenses or underwriting expenses in the ratio calculations, based on the underlying activity that generated the revenue. Following are the underwriting margins and combined ratios for our underwriting operations for the respective periods:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
	Under- writing Margin		Combined Ratio	Under- writing Margin		Combined Ratio	Under- writing Margin		Combined Ratio	Under- writing Margin		Combined Ratio
Personal Lines	10.5	%	89.5	10.9	%	89.1	12.9	%	87.1	11.0	%	89.0
Commercial Lines	10.8		89.2	11.3		88.7	12.2		87.8	10.3		89.7
Total underwriting operations	10.5		89.5	11.0		89.0	12.7		87.3	10.9		89.1

9. DIVIDENDS

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

(millions — except per share amounts)		Amount
Declared	Payable	Per Share		Accrued/Paid1
Common – Annual-Variable Dividends:
December 2024	January 2025	$	4.50	$	2,637
December 2023	January 2024	0.75		439
Common – Quarterly Dividends:
August 2025	October 2025	0.10		59
May 2025	July 2025	0.10		58
March 2025	April 2025	0.10		59
December 2024	January 2025	0.10		58
August 2024	October 2024	0.10		59
May 2024	July 2024	0.10		58
March 2024	April 2024	0.10		59
December 2023	January 2024	0.10		59
Preferred Dividends:
January 20242	February 2024	15.688377		8

1 The accrual is based on an estimate of shares outstanding as of the record date and recorded as a component of accounts payable, accrued expenses, and other liabilities on our consolidated balance sheets until paid.

2 In February 2024, we redeemed all of our outstanding Serial Preferred Shares, Series B.

10. OTHER COMPREHENSIVE INCOME (LOSS)

The components of other comprehensive income (loss), including reclassification adjustments by income statement line item, were as follows:

							Components of Changes inAccumulated OtherComprehensive Income (after tax)
(millions)	Pretax totalaccumulatedothercomprehensiveincome (loss)		Total tax(provision)benefit		After tax totalaccumulatedothercomprehensiveincome (loss)		Total net unrealized gains (losses) on securities		Net unrealized losses on forecasted transactions		Foreigncurrencytranslationadjustment
Balance at March 31, 2025	$	(671)	$	147	$	(524)	$	(509)	$	(14)	$	(1)
Balance at June 30, 2025	$	(128)	$	33	$	(95)	$	(81)	$	(13)	$	(1)
Other comprehensive income (loss) before reclassifications:
Investment securities	~~558~~362		(~~117~~76)		~~441~~286		~~441~~286		0		0
Total other comprehensive income (loss) before reclassifications	~~558~~362		(~~117~~76)		~~441~~286		~~441~~286		0		0
Less: Reclassification adjustment for amounts realized in net income by income statement line item:
Net realized gains (losses) on securities	163		(31)		132		132		0		0
Interest expense	(1)		0		(1)		0		(1)		0
Total reclassification adjustment for amounts realized in net income	3		(1)		2		2		0		0
Total reclassification adjustment for amounts realized in net income	15		(3)		12		13		(1)		0
Total other comprehensive income (loss)	359		(75)		284		284		0		0
Total other comprehensive income (loss)	543		(114)		429		428		1		0
Balance at September 30, 2025	$	231	$	(42)	$	189	$	203	$	(13)	$	(1)
Balance at June 30, 2025	$	(128)	$	33	$	(95)	$	(81)	$	(13)	$	(1)
							Components of Changes inAccumulated OtherComprehensive Income (after tax)
(millions)	Pretax totalaccumulatedothercomprehensiveincome (loss)		Total tax(provision)benefit		After tax totalaccumulatedothercomprehensiveincome (loss)		Total net unrealized gains (losses) on securities		Net unrealized losses on forecasted transactions		Foreigncurrencytranslationadjustment
Balance at March 31, 2024	$	(2,316)	$	492	$	(1,824)	$	(1,809)	$	(14)	$	(1)
Balance at June 30, 2024	$	(2,180)	$	464	$	(1,716)	$	(1,701)	$	(14)	$	(1)
Other comprehensive income (loss) before reclassifications:
Investment securities	~~(85)~~2,013		18(423)		~~(67)~~1,590		~~(67)~~1,590		0		0
Total other comprehensive income (loss) before reclassifications	~~(85)~~2,013		18(423)		~~(67)~~1,590		~~(67)~~1,590		0		0
Less: Reclassification adjustment for amounts realized in net income by income statement line item:
Net realized gains (losses) on securities	~~(221)~~36		46(7)		~~(175)~~29		~~(175)~~29		0		0
Total reclassification adjustment for amounts realized in net income	~~(221)~~36		46(7)		~~(175)~~29		~~(175)~~29		0		0
Total other comprehensive income (loss)	~~136~~1,977		(28416)		~~108~~1,561		~~108~~1,561		0		0
Balance at June 30, 2024	$	(2,180)	$	464	$	(1,716)	$	(1,701)	$	(14)	$	(1)
Balance at September 30, 2024	$	(203)	$	48	$	(155)	$	(140)	$	(14)	$	(1)

							Components of Changes inAccumulated OtherComprehensive Income (after tax)
(millions)	Pretax totalaccumulatedothercomprehensiveincome (loss)		Total tax(provision)benefit		After tax totalaccumulatedothercomprehensiveincome (loss)		Total net unrealized gains (losses) on securities		Net unrealized losses on forecasted transactions		Foreigncurrencytranslationadjustment
Balance at December 31, 2024	$	(1,809)	$	386	$	(1,423)	$	(1,408)	$	(14)	$	(1)
Other comprehensive income (loss) before reclassifications:
Investment securities	12,~~666~~028		(~~350~~426)		1,~~316~~602		1,~~316~~602		0		0
Total other comprehensive income (loss) before reclassifications	12,~~666~~028		(~~350~~426)		1,~~316~~602		1,~~316~~602		0		0
Less: Reclassification adjustment for amounts realized in net income by income statement line item:
Net realized gains (losses) on securities	(1411)		32		(119)		(119)		0		0
Interest expense	(1)		0		(1)		0		(1)		0
Total reclassification adjustment for amounts realized in net income	(1512)		32		(1210)		(119)		(1)		0
Total other comprehensive income (loss)	12,~~681~~040		(~~353~~428)		1,~~328~~612		1,~~327~~611		1		0
Balance at June 30, 2025	$	(128)	$	33	$	(95)	$	(81)	$	(13)	$	(1)
Balance at September 30, 2025	$	231	$	(42)	$	189	$	203	$	(13)	$	(1)
							Components of Changes inAccumulated OtherComprehensive Income (after tax)
(millions)	Pretax totalaccumulatedothercomprehensiveincome (loss)		Total tax(provision)benefit		After tax totalaccumulatedothercomprehensiveincome (loss)		Total net unrealized gains (losses) on securities		Net unrealized losses on forecasted transactions		Foreigncurrencytranslationadjustment
Balance at December 31, 2023	$	(2,053)	$	437	$	(1,616)	$	(1,601)	$	(14)	$	(1)
Other comprehensive income (loss) before reclassifications:
Investment securities	~~(499)~~1,514		~~105~~(318)		~~(394)~~1,196		~~(394)~~1,196		0		0
Total other comprehensive income (loss) before reclassifications	~~(499)~~1,514		~~105~~(318)		~~(394)~~1,196		~~(394)~~1,196		0		0
Less: Reclassification adjustment for amounts realized in net income by income statement line item:
Net realized gains (losses) on securities	(~~372~~336)		7871		(~~294~~265)		(~~294~~265)		0		0
Total reclassification adjustment for amounts realized in net income	(~~372~~336)		7871		(~~294~~265)		(~~294~~265)		0		0
Total other comprehensive income (loss)	~~(127)~~1,850		27(389)		~~(100)~~1,461		~~(100)~~1,461		0		0
Balance at June 30, 2024	$	(2,180)	$	464	$	(1,716)	$	(1,701)	$	(14)	$	(1)
Balance at September 30, 2024	$	(203)	$	48	$	(155)	$	(140)	$	(14)	$	(1)

In an effort to manage interest rate risk, we entered into forecasted transactions on certain of Progressive’s debt issuances. During the next 12 months, we expect to reclassify $1 million (pretax) into interest expense, related to net unrealized losses on forecasted transactions (see Note 4 – Debt in our 2024 Annual Report to Shareholders for further discussion).

11. LITIGATION

The Progressive Corporation and/or its insurance subsidiaries are named as defendants in various lawsuits arising out of claims made under insurance policies written by our insurance subsidiaries in the ordinary course of business. We consider all legal actions relating to such claims in establishing our loss and loss adjustment expense reserves.

In addition, The Progressive Corporation and/or its insurance subsidiaries are named as defendants in a number of class action or individual lawsuits that challenge certain of the operations of the subsidiaries. The nature and volume of litigation pending against The Progressive Corporation and/or its insurance subsidiaries is similar to that which was disclosed in Note 12 – Litigation in our 2024 Annual Report to Shareholders.

As of ~~June~~September 30, 2025, lawsuits have been certified or conditionally certified as class/collective actions in cases alleging that: we improperly value total loss claims by applying a negotiation adjustment in Alabama, Arkansas, Colorado, ~~Georgia, Indiana,~~ North Carolina, Ohio, ~~Pennsylvania,~~ and South Carolina; we improperly calculate basic economic loss as it relates to wage loss coverage in New York; 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. We plan to contest the pending lawsuits vigorously, but may pursue settlement negotiations in some cases, as we deem appropriate.

Lawsuits arising from insurance policies and operations, including, but not limited to, allegations involving claims adjustment and vehicle valuation, may be filed

contemporaneously in multiple states. As of ~~June~~September 30,

2025, we are named as defendants in class action lawsuits

pending in multiple states alleging that we improperly

value total loss vehicle physical damage claims through the

application of a negotiation adjustment in calculating such valuations, which includes ~~nine~~six states in which classes have been certified, as noted above, and lawsuits styled as putative class actions pending in additional states. These lawsuits, which were filed at different times by different plaintiffs, feature certain similar claims and also include different allegations and are subject to various state laws. While we believe we have meritorious defenses and we are vigorously contesting these lawsuits, an unfavorable result in, or a settlement of, a significant number of these lawsuits could, in aggregation, have a material adverse effect on our financial condition, cash flows, and/or results of operations. Based on information available to us, we determined that losses from these lawsuits are reasonably possible but neither probable nor reasonably estimable, other than for suits for which accruals have been established and are not material, as of ~~June~~September 30, 2025.

With respect to our pending lawsuits that are not related to claims under insurance policies, the accruals that we have established were not material at ~~June~~September 30, 2025 and 2024, or December 31, 2024, and there were no material settlements during 2024 or the first ~~six~~nine months of 2025. For most of these lawsuits, we do not consider any losses to be both probable and estimable, and we are unable to estimate a meaningful range of loss, if any, at this time, due to the factors discussed in Note 12 – Litigation in our 2024 Annual Report to Shareholders. In the event that any one or more of these lawsuits results in a substantial judgment against us, or settlement by us, or if our accruals (if any) prove to be inadequate, the resulting liability could have a material adverse effect on our consolidated financial condition, cash flows, and/or results of operations. 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 2024 Annual Report to Shareholders.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

I. OVERVIEW

The Progressive Corporation’s insurance subsidiaries recognized ~~substantial~~strong year-over-year growth in both premiums and policies in force during the ~~second~~third quarter 2025, compared to the same period last year, while maintaining an underwriting profit better than our 4% companywide calendar-year underwriting profit goal.

During the ~~second~~third quarter 2025, we wrote $2021.14 billion of companywide net premiums written, which was $21.29 billion, or 10%, more than we generated during the same period last year., ~~Companywide~~with ~~net~~a ~~premiums written and earned increased 12~~14% ~~and~~increase ~~18%,~~in ~~respectively,~~net ~~during~~premiums ~~the second quarter 2025, compared to the same period last year~~earned. Policies in force increased 1512%, or by 54.02 million policies, compared to ~~June~~September 30, 2024; with policies in force increasing by 1.0.8 million in the ~~second~~third quarter 2025. WeWhile ~~experienced~~experiencing ~~profitable~~this strong growth during the ~~second~~third quarter 2025, ~~with~~we aalso maintained strong profitability, with an underwriting profit margin of 1310.85%.

Our Personal Lines segment experienced ~~strong~~ year-over-year growth for the ~~second~~third quarter 2025, with net premiums written increasing 1512% and policies in force up 1613%, over the significant growth of 28% in net premiums written and 15% in policies in force we experienced in the ~~second~~third quarter ~~2024~~last year. This growth was primarily driven by our personal auto products and reflects ~~new and~~ renewal application growth, ~~which~~driven weby ~~believe~~new isapplications ~~mainly~~gained ~~attributable~~over tothe ~~increased~~last ~~advertising~~year ~~spend,~~renewing ~~competitively~~during ~~priced~~the ~~products, and our agency incentive compensation programs~~quarter.

In Commercial Lines, we experienced a decrease in net premiums written of 6% ~~during~~for the ~~second~~third quarter 2025, compared to the same period last year, despite experiencing policies in force growth of 6%. The decline in net premiums written ~~during the quarter~~ was primarily driven by ~~changes~~a decrease in ~~the~~transportation ~~length~~network ofcompany ~~policy~~(TNC) ~~terms~~premiums, ~~and~~due ~~related~~to ~~renewal~~decreases ~~timing~~in ~~for~~projected ~~certain~~mileage, ~~transportation~~which ~~network~~is ~~company~~the ~~(TNC)~~basis ~~business~~for ~~policies.~~computing ~~These~~premiums, ~~policies~~during ~~were~~the ~~renewed~~third ~~for~~quarter a2025, ~~6-month~~compared ~~term~~to increases in projected mileage during the ~~second~~third quarter 2024. ~~and~~To ~~subsequently~~a ~~renewed~~lesser ~~for~~extent, the net premiums written decline was due to a ~~12-month~~shift ~~term~~to ina ~~the~~greater ~~fourth~~mix ~~quarter~~of ~~2024.~~policies Inwith ~~addition,~~6-month terms in our contractor and business auto business market targets (BMT), ~~experienced~~which ahave ~~shift~~about tohalf athe ~~greater~~amount ~~mix~~ of ~~policies~~net ~~with~~premiums 6written as 12-month ~~terms~~policies, ~~compared~~and to ~~the~~a ~~second~~mix ~~quarter~~shift ~~2024~~to lower average written premium BMTs in our core commercial auto business (which excludes our TNC business, our Progressive Fleet & Specialty Programs (Fleet & Specialty) products, and our business owners’ policy (BOP) product). AsOn 12a year-~~month~~to-date ~~policies~~basis ~~have~~for ~~about~~the ~~twice~~period ~~the~~ended ~~amount~~September of30, 2025, net premiums written in our TNC business were flat compared to ~~6-month~~the ~~policies~~same period last year. Excluding TNC, Commercial Lines net premiums written would have decreased 2% for the ~~shift~~third ~~negatively~~quarter ~~impacted~~2025, ~~average~~compared ~~premiums~~to the same period last year.

During the ~~second~~third quarter 2025, on a countrywide basis, we ~~decreased~~increased personal auto rates less than 1% and increased our personal property rates about 42%, in the aggregate. In our core commercial auto ~~businesses (which excludes our TNC~~ business, ~~our~~we ~~Progressive~~increased ~~Fleet~~rates &about ~~Specialty~~2% ~~Programs~~in ~~(Fleet~~the &aggregate ~~Specialty)~~during ~~products,~~the ~~and~~third ~~our~~quarter ~~business~~2025. ~~owners’ policy (BOP) product), we increased~~

~~rates~~While we currently continue to believe we are adequately priced in ~~the~~our ~~aggregate~~personal ~~about~~auto 3%products ~~during~~in most states, starting in the ~~second~~first quarter 2025, the U.S. government announced additional tariffs on goods imported into the U.S. from numerous countries, which have, in response, resulted in additional tariffs against the U.S. We regularly model the potential impact tariffs could have on vehicle loss costs, the supply chain, the availability of parts, and general inflation, among other factors, although the dynamic international trade environment currently prevents us from accurately predicting how tariffs will ultimately impact our business over time. While our focus has been on trying to maintain stable rates for customers, effective tariffs and other retaliatory actions will likely result in higher loss costs, which could result in a reduction in profitability and the possible need for higher than currently anticipated rate increases throughout 2025 and 2026. While we expect to continue increasing rates in our personal property and core commercial auto products through the remainder of 2025, we will continue to monitor the impact from tariffs and other potential changes in the regulatory environment as we evaluate the possible need for additional rate increases.

~~While~~For ~~we currently believe we are adequately priced in our personal auto products in most states, starting in~~ the ~~first~~third quarter 2025, the ~~U.S.~~$281 ~~government~~million ~~announced~~year-over-year ~~additional~~increase ~~tariffs~~in onnet ~~goods~~income ~~imported~~primarily ~~into~~reflected ~~the~~an ~~U.S.~~almost ~~from~~even ~~numerous~~increase ~~countries, which have,~~ in ~~response,~~both ~~resulted~~underwriting inincome ~~additional~~and ~~tariffs~~total ~~against~~net ~~the~~investment ~~U.S. We regularly model the potential impact tariffs could have on vehicle loss costs~~income, ~~the~~while ~~supply~~total ~~chain,~~comprehensive ~~the~~income ~~availability~~decreased of$996 ~~parts~~million, ~~and~~primarily ~~general~~related ~~inflation,~~to ~~among~~lower ~~other~~net ~~factors,~~unrealized ~~although~~gains ~~the~~on ~~dynamic international trade environment currently prevents us from accurately predicting how tariffs will ultimately impact~~ our ~~business~~fixed-maturity ~~over~~securities ~~time. While our focus has been on trying to maintain stable rates for customers, effective tariffs and other retaliatory actions will likely result~~ in ~~higher loss costs, which could result in a reduction in profitability and~~ the ~~possible~~third ~~need~~quarter ~~for higher than currently anticipated rate increases throughout~~ 2025 ~~and 2026~~. ~~While~~Included ~~we expect to continue increasing rates~~ in ~~our~~underwriting ~~personal~~income ~~property~~for ~~and core commercial auto products through~~ the ~~remainder~~third ofquarter 2025, wewas ~~will~~a ~~continue~~$950 tomillion ~~monitor~~policyholder ~~the~~credit ~~impact~~expense ~~from~~related ~~tariffs~~to ~~and~~excess ~~other~~profits ~~potential~~earned ~~changes~~ in ~~the regulatory environment as we evaluate the possible need for additional rate increases~~Florida.

~~For~~Since ~~the~~Florida ~~second~~insurance ~~quarter~~reform ~~2025~~was enacted in early 2023, ~~the~~we $1have seen lower loss costs on certain types of personal auto accident claims and favorable reserve development, and we have experienced strong profitability in our Florida personal auto business.7 ~~billion~~Despite ~~year-over-year~~actions ~~increase~~to lower rates in ~~net~~the ~~income~~last ~~reflected~~year, anit ~~increase~~is probable that our personal auto profit in ~~both~~Florida ~~underwriting~~for ~~income~~the ~~and~~2023 ~~total~~to ~~net~~2025 ~~investment~~period ~~income,~~will ~~with~~exceed the ~~change~~statutory inprofit ~~net~~limit ~~unrealized~~that ~~losses~~a Florida statute imposes on ~~our~~the ~~fixed~~profit that any insurance group can earn on personal auto insurance over any three-~~maturity~~calendar-year ~~securities~~period. ~~also~~In ~~contributing~~such ~~positively~~event, we would need to credit any profit above the limit to all Florida personal auto policyholders active at December 31, 2025. As a result, in September 2025, we recorded a $950 million policyholder credit expense, which represents our ~~growth~~current estimate of the profit we will earn on the three-calendar-year period ending December 31, 2025, in ~~comprehensive~~excess ~~income.~~

At June 30, 2025, total capital (debt plus shareholders’ equity) was $39.5 billion, which was an increase of $7.0 billion from year-end 2024, primarily driven by the $7.1 billion of comprehensive income earned in the first half of 2025.

A. Insurance Operations

Our underwriting profit margin was 13.8% during the second quarter 2025, compared to 8.1% during the second quarter 2024. Our Personal Lines and Commercial Lines operating segments both generated strong profitability for the second quarter 2025, with margins of 14.0% and 13.2%, respectively. Underwriting profit was up significantly on a year-over-year basis, for the second quarter 2025, with our companywide loss and loss adjustment expense (LAE) ratio decreasing 6.1 points. The decrease in the loss and LAE ratio was primarily driven by a decrease in catastrophe losses in Personal Lines and by favorable prior accident years reserve development in both Personal Lines and Commercial Lines.

~~We closely manage our expenses, monitoring both acquisition expenses and non-acquisition expenses, which we view as an important measure~~ of ~~operational~~the ~~efficiency~~permitted asprofit ~~we seek to deliver our most competitive rates to consumers~~limit. WeThis liability will continue to ~~advertise~~be torefined ~~maximize~~through ~~growth as long as~~ the ~~advertising~~fourth ~~spend is efficient and we remain on track to achieve our calendar-year profitability goal. During the second~~ quarter 2025~~, our advertising spend was $1~~.2 ~~billion,~~See ~~which~~Financial ~~was~~Condition ~~35%,~~for orfurther 0information.~~7 points, greater than the second quarter last year. The expense ratio impact from increased advertising spend was partially offset by a decrease in certain general expenses.~~

~~Our~~At ~~Personal~~September ~~Lines~~30, ~~segment~~2025, istotal ~~comprised~~capital of(debt ~~our~~plus ~~personal~~shareholders’ ~~vehicle~~equity) ~~and~~was ~~property products~~$42.3 ~~Personal Lines vehicles include both personal auto and special lines products~~billion, ~~with~~which ~~the~~was ~~latter~~an ~~typically~~increase ~~having higher losses during the warmer weather months, due to the seasonal nature~~ of ~~these products (e~~$9.~~g.,~~9 ~~recreational~~billion ~~vehicles,~~from ~~such~~year-end ~~as motorcycles~~2024, ~~RVs,~~primarily ~~and~~driven ~~watercraft).~~by ~~Our Personal Lines underwriting margin for~~ the ~~second quarter 2025 was 14~~$10.0%, ~~with~~billion ~~personal~~of ~~vehicle~~comprehensive ~~and~~income ~~property~~earned ~~products~~in ~~reporting~~the ~~13.8%~~first ~~and~~nine ~~16.4%,~~months ~~respectively.~~of ~~The special lines profitability had minimal impact to our personal vehicle combined ratio during the second quarter~~ 2025.

~~Our Commercial Lines segment includes our core commercial auto products, TNC business, Fleet & Specialty products, and BOP product~~A. ~~Our~~Insurance ~~total Commercial Lines underwriting profitability for the second quarter 2025 was 13.2%.~~Operations

~~For~~Our companywide underwriting profit margin was 10.5% during the ~~second~~third quarter 2025, ~~Personal~~compared ~~Lines~~to ~~generated~~11.0% ~~strong~~during ~~net~~the ~~premiums~~third ~~written~~quarter ~~growth~~2024. ofFor ~~15%,~~the ~~with~~third ~~the~~quarter ~~agency~~2025, ~~and~~our ~~direct~~loss ~~personal~~and ~~vehicle~~loss ~~businesses~~adjustment ~~and~~expense ~~property~~(LAE) ~~business~~ratio ~~growing~~decreased ~~11%,~~3.7 ~~20%~~points, and our underwriting expense ratio increased 4.2%, ~~respectively~~points, compared to the same period last year. The decrease in the loss and LAE ratio was primarily driven by a decrease in catastrophe losses and by favorable prior accident years reserve development in both Personal Lines and Commercial Lines. ~~net~~The ~~premiums~~increase ~~written~~in ~~decreased~~the underwriting expense ratio was primarily driven by the Florida personal auto excess profit policyholder credit, previously discussed, adding 4.6 points to the companywide ratio. Our Personal Lines and Commercial Lines operating segments both generated strong profitability for the third quarter 2025, with margins of 10.5% and 10.8%, respectively. Excluding the Florida personal auto excess profit policyholder credit, the Personal Lines underwriting margin would have been 15.8%.

We closely manage our expenses, monitoring both acquisition expenses and non-acquisition expenses, which we view as an important measure of operational efficiency as we seek to deliver our most competitive rates to consumers. We will continue to advertise to maximize growth as long as the advertising spend is efficient and we remain on track to achieve our calendar-year profitability goal. During the third quarter 2025, our advertising spend was $1.3 billion, which was 10% greater than the third quarter last year, although, due to the growth in net premiums earned, advertising spend contributed 0.2 less points to the underwriting expense ratio in the third quarter 2025, compared to the same period last year.

Our Personal Lines segment is comprised of our personal vehicle and property products. Personal Lines vehicles include both personal auto and special lines products, with the latter typically having higher losses during the warmer weather months, due to the seasonal nature of these products (e.g., recreational vehicles, such as motorcycles, RVs, and watercraft). Our Personal Lines underwriting margin for the third quarter 2025 was 10.5%, with personal vehicle and property products reporting 9.3% and 36.5%, respectively, with Florida excess profit credits reducing the personal vehicles margin by 5.5%. Profitability in our special lines products had minimal impact to our personal vehicle combined ratio during the third quarter 2025. The substantially high underwriting profit margin in our personal property products was primarily driven by

favorable development on prior accident year losses and the low level of incurred catastrophe losses during the period.

Our Commercial Lines segment includes our core commercial auto products, TNC business, Fleet & Specialty products, and BOP product. Our total Commercial Lines underwriting profitability for the third quarter 2025 was 10.8%.

For the third quarter 2025, Personal Lines generated strong net premiums written growth of 12%, with the agency and direct personal vehicle businesses and property business growing 9%, 15%, and 5%, respectively, compared to the same period last year. Commercial Lines net premiums written decreased 6% year over year.

Changes in net premiums written are a function of new business applications (i.e., policies sold), business mix, premium per policy, and retention.

~~During~~Relative to the ~~second~~significant growth we experienced in our personal vehicle products during the third quarter ~~2025~~2024, we experienced ana ~~increase~~small decrease in ~~both~~ total Personal Lines new ~~and renewal~~ business applications, ~~primarily~~during ~~driven~~the bythird ~~significant~~quarter ~~increases~~2025. inTotal ~~our~~Personal ~~personal~~Lines ~~vehicle~~renewal ~~products,~~business ~~due~~applications ~~to continued~~ increased ~~advertising spend~~substantially, ~~our~~primarily ~~continued~~driven ~~efforts~~by tothe ~~get~~significant ~~back~~new ~~into~~business ~~independent~~application ~~agents’~~growth ~~quote~~experienced ~~flows,~~in ~~and~~ our ~~competitiveness~~personal vehicle products in ~~the~~prior ~~marketplace~~periods. New and renewal personal auto applications ~~increased~~decreased 82% and 22increased 20%, respectively, ~~during~~for the ~~second~~third quarter 2025, oncompared ~~top~~to of the ~~significant~~same ~~growth~~period ~~we experienced~~ in the ~~same~~prior ~~period last~~ year.

In our personal property business, ~~significant~~the strong growth in new applications in our renters policies was offset by declines in our homeowners product, which we define as our total personal property business excluding renters and umbrella products. For the ~~second~~third quarter 2025, the new business applications in our homeowners product decreased just over 35%, compared to the same period last year, with a significant decrease in both the less volatile and more volatile (e.g., coastal and hail-prone states) weather-related states.

~~business~~During ~~applications~~the inthird ~~our~~quarter ~~homeowners~~2025, ~~product~~in ~~decreased~~our ~~just~~personal ~~over~~property ~~50%~~business, ~~compared~~we continued to ~~the~~focus ~~same~~on ~~period~~improving ~~last~~profitability ~~year,~~and ~~with~~reducing ~~decreases~~exposure in ~~both~~more ~~less~~ volatile weather-related ~~states~~markets, and, inwhere ~~the~~permitted, ~~more~~on ~~volatile~~slowing ~~weather~~growth and non-~~related~~renewing ~~markets~~policies. We prioritized insuring lower-risk properties (e.g., ~~coastal~~new construction, existing homes with newer roofs), accepting new business for our homeowners product only when bundled with a Progressive personal auto policy, where permitted, and ~~hail~~continued to exit the non-~~prone~~owner-occupied ~~states)~~home market. In addition, we maintained our cost sharing through mandatory wind and hail deductibles and roof depreciation schedules in most markets. We believe these actions adversely impacted new business application growth. We plan to continue certain actions during the remainder of 2025. During the third quarter 2025, we began to take actions in several markets

During the second quarter 2025, in our personal property business, we continued to focus on improving profitability and reducing exposure in more volatile weather-related markets, and, where permitted, on slowing growth and non-renewing policies. We prioritized insuring lower-risk properties (e.g., new construction, existing homes with newer roofs), accepting new business for our homeowners product only when bundled with a Progressive personal auto policy, where permitted, and continued to exit the non-owner-occupied home market. In addition, we maintained our cost sharing through mandatory wind and hail deductibles and roof depreciation schedules in most markets. We believe these actions adversely impacted new business application growth. We plan to continue these actions during the remainder of 2025 in the more volatile weather-related markets and will determine readiness for new business growth at the state level based on our concentration risks, product segmentation, rate adequacy, and cost sharing execution.

The total Commercial Lines net premiums written decrease during the second quarter 2025 primarily reflected changes in the renewal timing for certain TNC policies and a shift in the length of policy terms in the core commercial auto contractor and business auto BMTs, compared to the second quarter 2024, as previously discussed. Excluding the TNC business, total Commercial Lines net premiums written was down 2% on a year-over-year basis.

New and renewal business applications in our core commercial auto products increased 3% and 5%, respectively, during the second quarter 2025, compared to the same period last year. The new business application growth was primarily due to an increase in quote volume in all BMTs and improved conversion in all BMTs, other than for-hire transportation and for-hire specialty. Excluding the impact of the for-hire transportation BMT, which had a year-over-year decrease in new applications, our core commercial auto new application growth would have been 8% during the second quarter 2025. The for-hire transportation BMT continued to be adversely impacted by challenging freight market conditions that have caused a decline in the active number of motor carriers in this BMT.

During the second quarter 2025, on a year-over-year basis, average written premium per policy decreased 1% in personal auto and 6% in both our personal property and core commercial auto products. In aggregate, we took minimal personal auto rate decreases during the second quarter 2025. The decrease in personal property average written premium per policy was due to a shift in the mix of business to more renters policies, which have lower average written premiums, and our continued focus on slowing growth in more volatile weather-related markets,

~~which~~to ~~generally~~generate ~~have~~new ~~higher~~business ~~risk~~growth ~~and,~~at ~~therefore,~~the ~~higher~~state ~~average~~level ~~premiums~~based ~~per~~on ~~policy.~~our ~~These~~concentration ~~mix~~risks, ~~shifts~~product insegmentation, ~~our~~rate ~~personal~~adequacy, ~~property~~cost ~~business~~sharing ~~were~~execution, ~~partially~~and ~~offset~~regulatory byand ~~aggregate~~market ~~rate~~conditions. ~~increases~~Some of ~~14%~~these ~~taken~~actions ~~over~~include ~~the~~expanding ~~last~~agency 12relationships, ~~months~~lifting certain agency restrictions put in place in 2024, and ~~higher~~reopening ~~premium~~new ~~coverages~~business ~~reflecting~~in ~~increased~~our ~~property~~direct ~~values~~channel.

The ~~decrease~~total inCommercial ~~average~~Lines ~~written~~net ~~premium~~premiums ~~per~~written ~~policy~~decreased in6% ~~our~~for ~~core~~the ~~commercial~~third ~~auto~~quarter ~~products~~2025, ~~was~~compared ~~due~~ to athe ~~shift~~same period in the ~~mix~~prior ~~of business~~year, primarily driven by ~~decreased~~our ~~demand~~TNC inbusiness, ~~our~~reflecting ~~for-hire~~decreases ~~transportation~~in ~~BMT~~projected ~~and~~mileage, towhich ais ~~lesser~~the ~~extent~~basis for computing premiums, during the ~~for-hire~~third ~~specialty~~quarter ~~BMT~~2025, ascompared ~~well~~to asincreases ain ~~shift~~projected inmileage ~~policy~~during ~~term~~the ~~towards~~third ~~more~~quarter ~~6-month~~2024. ~~policies~~In inaddition, our contractor and business auto BMTs. ~~This~~experienced ~~decrease~~a ~~was~~shift ~~partially~~to ~~offset~~a bygreater ~~rate~~mix ~~increases~~ of ~~about~~policies ~~7%,~~with in6-month ~~the aggregate~~terms, ~~over~~compared to the ~~trailing~~third 12quarter ~~months~~2024. ~~Given~~As ~~that~~12-month ~~our~~policies ~~personal~~have ~~property~~about ~~and~~twice ~~commercial~~the ~~auto~~amount ~~policies~~of ~~are~~net ~~predominately~~premiums written ~~for~~compared 12to 6-month ~~terms~~policies, ~~rate~~the ~~actions~~shift ~~take~~negatively ~~longer~~impacted average premiums. A mix shift to ~~earn~~lower ~~into~~average written premium BMTs also contributed to the decline. Excluding the TNC business, total Commercial Lines net premiums written was down 2% for ~~these~~the ~~products~~third quarter 2025, on a year-over-year basis.

New and renewal business applications in our core commercial auto products decreased 1% and increased 6%, respectively, for the third quarter 2025, compared to the same period last year. The new business application decline was predominately driven by the for-hire transportation BMT, primarily attributable to rate and non-rate actions taken to address profitability challenges and, to a lesser extent, the continued decline in the number of active motor carriers in this BMT. Excluding the impact of this BMT, our core commercial auto new application growth would have been 3% for the third quarter 2025.

For the third quarter 2025, on a year-over-year basis, average written premium per policy decreased 1%, 5%, and 7% in the personal auto, personal property, and core commercial auto products, respectively. In aggregate, we took minimal personal auto rate increases during the third quarter 2025. The decrease in personal property average written premium per policy was due to a shift in the mix of business to more renters policies, which have lower average written premiums, and our continued focus on slowing growth in more volatile weather-related markets, which generally have higher risk and, therefore, higher average premiums per policy. These mix shifts in our personal property business were partially offset by aggregate rate increases of 11% taken over the last 12 months and higher premium coverages reflecting increased property values.

The decrease in average written premium per policy in our core commercial auto products was due to a shift in the mix of business, primarily driven by decreased demand in our for-hire transportation BMT, as well as a shift in policy term towards more 6-month policies in our contractor and business auto BMTs. This decrease was partially offset by

rate increases of about 6%, in the aggregate, over the trailing 12 months. Given that our personal property and commercial auto policies are predominately written for 12-month terms, rate actions take longer to earn into premium for these products.

We will continue to monitor the factors that could impact our loss costs for both segments, which may include tariffs, as previously discussed, new and used car prices, miles driven, driving patterns, loss severity, weather events, building materials, construction costs, inflation, and other factors, on a state-by-state basis.

We believe a key element in improving the accuracy of our personal auto rating is Snapshot®, our usage-based insurance offering. ~~During~~For the ~~second~~third quarter 2025, the personal auto adoption rates for consumers enrolling in the program decreased 21% in agency and increased 6% in direct, compared to the same period last year. Snapshot is available in all states, other than California, and our latest segmentation model was available in states that represented 78% of our countrywide personal auto net premiums written (excluding California) on a trailing 12-month basis at quarter end. We continue to invest in our mobile application, with the majority of new enrollments choosing mobile devices for Snapshot monitoring.

We realize that to grow policies in force, it is critical that we retain our customers for longer periods. Consequently, increasing retention continues to be one of our most important priorities. Our efforts to increase our share of Progressive auto and personal property bundled households (i.e., Robinsons) remains a key initiative, and we plan to continue to make investments to improve the customer experience in order to support that goal. Policy life expectancy, which is our actuarial estimate of the average length of time that a newly written policy will remain in force before cancellation or lapse in coverage, is our primary measure of customer retention in our Personal Lines and Commercial Lines businesses.

In personal auto, we evaluate personal auto retention using a trailing 12-month and a trailing 3-month policy life expectancy. Although the latter can reflect more volatility and is more sensitive to seasonality, we believe this measure is more responsive to current experience and may be an indicator for the future trend of our 12-month measure. Our trailing 12-month total personal auto policy life expectancy was down 6% year over year for the third quarter 2025. On a trailing 3-month basis, our personal auto policy life expectancy was down 7% for the third quarter 2025, compared to the same period last year, which we believe is primarily due to increased shopping and competition in the marketplace, and due to a shift in our mix of business. Due, in part, to the efforts of our customer preservation team, during the period we saw an increase in existing customers who went through our new customer quote process to either modify existing coverage or to find a lower rate. As a result, some of these customers replaced their existing policies with new Progressive policies, which

be an indicator for the future trend of our 12-month measure. Our trailing 12-month total personal auto policy life expectancy was down 5% year over year for the second quarter 2025. On a trailing 3-month basis, our personal auto policy life expectancy was down 7% for the second quarter 2025, compared to the same period last year, which we believe is due to a shift in the mix of business, increased shopping, and increased competition in the marketplace.

Our trailing 12-month policy life expectancy was down 17% for our personal property products year over year for the second quarter 2025. We believe our personal property retention decreased primarily as a result of a mix shift to more renters policies, rate increases, and the non-renewal of certain policies.

For our core commercial auto products, our trailing 12-month policy life expectancy increased 5%, compared to the prior year, which we believe is due to the moderation of our rate increases, compared to competitor rate increases, and our improving competitiveness in the marketplace. The increase in the core commercial auto policy life expectancy was across all BMTs, except in for-hire specialty and for-hire transportation, which we believe is due to various initiatives to help with improving policy life expectancy such as payment and renewal reminders.

B. Investments

The fair value of our investment portfolio was $88.6 billion at June 30, 2025, compared to $80.3 billion at December 31, 2024. The increase from year-end 2024 reflected positive cash flows from insurance operations and investment returns, partially offset by the payment of our annual variable common share dividend.

Our asset allocation strategy is to maintain 0%-25% of our portfolio in Group I securities, with the balance (75%-100%) of our portfolio in Group II securities (the securities allocated to Group I and II are defined below under Results of Operations – Investments). At June 30, 2025 and December 31, 2024, 5% and 6%, respectively, of our portfolio was allocated to Group I securities with the remainder to Group II securities.

Our recurring investment income generated a pretax book yield of 4.2% for the second quarter 2025, compared to 3.9% for the same period in 2024. The increase from the prior year primarily reflected investing new cash from insurance operations, and proceeds from maturing bonds, in higher coupon rate securities. Our investment portfolio produced a fully taxable equivalent (FTE) total return of 2.1% and 0.9% for the second quarter 2025 and 2024, respectively. Our fixed-income and common stock portfolios had FTE total returns of 1.7% and 10.9%, respectively, for the second quarter 2025, compared to 0.8% and 3.6%, respectively, last year. The increase in the fixed-income portfolio FTE total return primarily reflected movements in U.S. Treasury yields year-over-year. The

~~increase~~negatively inimpacted ~~the~~policy ~~common~~life ~~stock~~expectancy ~~portfolio~~but ~~FTE~~retained ~~total~~the ~~return reflected general market conditions~~customer.

AtOur ~~June 30,~~trailing ~~2025~~12-month ~~and~~policy ~~2024,~~life ~~and~~expectancy ~~December 31,~~was ~~2024,~~down ~~the~~15% ~~fixed-income~~for ~~portfolio~~our ~~had~~personal aproperty ~~weighted~~products ~~average~~year ~~credit~~over ~~quality~~year offor ~~AA-. At June 30, 2025,~~ the ~~fixed-income~~third ~~portfolio~~quarter ~~duration was 3~~2025.4 ~~years,~~We ~~compared~~believe toour ~~3.2~~personal ~~years~~property atretention ~~June 30,~~decreased ~~2024,~~primarily ~~and~~as ~~3.3~~a ~~years~~result atof ~~December 31,~~a ~~2024.~~mix ~~During~~shift ~~2025, we increased our duration~~ to ~~take~~more ~~advantage~~renters ~~of higher yields in the market~~policies.

AtFor ~~June 30,~~our ~~2025~~core commercial auto products, weour ~~continued~~trailing 12-month policy life expectancy increased 11%, compared to ~~maintain~~the aprior ~~relatively~~year, ~~conservative~~which ~~investment~~we ~~portfolio~~believe ~~with~~is adue ~~greater~~to ~~allocation~~the moderation of our rate increases, compared to ~~cash~~competitor ~~and~~rate ~~treasuries.~~increases, Weour ~~believe~~improving ~~that~~competitiveness ~~this~~in ~~portfolio~~the ~~allocation~~marketplace, ~~positions~~and usvarious ~~well~~initiatives to ~~benefit~~help ~~from~~with ~~the~~improving ~~continuing~~policy ~~dynamic~~life ~~market~~expectancy ~~environment.~~such Weas ~~believe~~payment ~~the~~and ~~investment~~renewal ~~portfolio~~reminders. isThe increase in athe ~~very~~core ~~strong~~commercial ~~position~~auto aspolicy welife ~~move~~expectancy ~~into~~was ~~the~~across ~~third~~all ~~quarter~~BMTs, ofexcept ~~2025~~in for-hire specialty.

B. Investments

The fair value of our investment portfolio was $94.5 billion at September 30, 2025, compared to $80.3 billion at December 31, 2024. The increase from year-end 2024 reflected positive cash flows from insurance operations and investment returns, partially offset by the payment of our annual variable common share dividend.

Our asset allocation strategy is to maintain 0%-25% of our portfolio in Group I securities, with the balance (75%-100%) of our portfolio in Group II securities (the securities allocated to Group I and II are defined below under Results of Operations – Investments). At September 30, 2025 and December 31, 2024, 5% and 6%, respectively, of our portfolio was allocated to Group I securities with the remainder to Group II securities.

Our recurring investment income generated a pretax book yield of 4.2% for the third quarter 2025, compared to 4.0% for the same period in 2024. The increase from the prior year primarily reflected investing new cash from insurance operations, and proceeds from maturing bonds, in higher coupon rate securities. Our investment portfolio produced a fully taxable equivalent (FTE) total return of 1.7% and 4.0% for the third quarter 2025 and 2024, respectively. Our fixed-income and common stock portfolios had FTE total returns of 1.5% and 8.1%, respectively, for the third quarter 2025, compared to 3.9% and 5.8%, respectively, last year. The decrease in the fixed-income portfolio FTE total return primarily reflected movements in U.S. Treasury yields year-over-year. The increase in the common stock portfolio FTE total return reflected general market conditions.

At September 30, 2025 and 2024, and December 31, 2024, the fixed-income portfolio had a weighted average credit quality of AA-. At September 30, 2025, the fixed-income portfolio duration was 3.4 years, compared to 3.3 years at September 30, 2024 and December 31, 2024. During 2025, we increased our duration to take advantage of higher yields in the market.

At September 30, 2025, we continued to maintain a relatively conservative investment portfolio with a greater allocation to cash and treasuries. We believe that this portfolio allocation positions us well to benefit from the continuing dynamic market environment. We believe the investment portfolio is in a very strong position as we move into the fourth quarter of 2025.

II. FINANCIAL CONDITION

A. Liquidity and Capital Resources

Progressive’s insurance operations create liquidity by collecting and investing premiums from new and renewal business in advance of paying claims, as well as our insurance subsidiaries producing aggregate calendar-year underwriting profits and positive cash flows. As primarily an auto insurer, our claims liabilities generally have a short-term duration.

Operations generated positive cash flows of $914.24 billion and $712.51 billion for the ~~six~~nine months ended ~~June~~ September 30, 2025 and 2024, respectively. The increase in operating cash flow for the first ~~six~~nine months of 2025, compared to the same period last year, was inprimarily ~~part~~ driven by the growth in profit from our underwriting operations. We believe cash flows will remain positive in the foreseeable future and do not expect we will need to raise capital to support our operations in that timeframe, although changes in market or regulatory conditions affecting the insurance ~~industry, or other unforeseen events, may necessitate otherwise.~~

~~As of June 30~~industry, ~~2025,~~or weother ~~held~~unforeseen ~~$48.9 billion in short-term investments and U.S. Treasury securities~~events, which represented about 55% of our total portfolio at quarter end. Based on our portfolio allocation and investment strategies, we believe that we have sufficient readily available marketable securities to cover our claim payments and short-term obligations in the event our cash flows from operations were to be negative. See Item 1A, Risk Factors in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission for the year ended December 31, 2024 (our 2024 Form 10-K), for a discussion of certain matters that may ~~affect~~necessitate ~~our portfolio and capital position~~otherwise.

~~Our~~As ~~total~~of ~~capital~~September ~~(debt~~30, ~~plus~~2025, ~~shareholders’~~we ~~equity)~~held ~~was~~ $3952.59 billion, ~~based~~in onshort-term ~~book~~investments ~~value,~~and atU.S. ~~June 30,~~Treasury ~~2025~~securities, ~~compared~~which torepresented ~~$30.2~~about ~~billion~~56% atof ~~June 30,~~our ~~2024,~~total ~~and~~portfolio ~~$32.5~~at ~~billion~~quarter atend. ~~December~~Based ~~31,~~on ~~2024.~~our ~~The~~portfolio ~~increase~~allocation ~~from~~and ~~year-end~~investment ~~2024~~strategies, ~~primarily~~we ~~reflected~~believe ~~the~~that ~~comprehensive~~we ~~income~~have ~~recognized~~sufficient ~~during~~readily ~~the~~available ~~first~~marketable ~~six~~securities ~~months~~to ofcover ~~2025.~~our ~~Our~~claim ~~debt~~payments and short-~~to-total~~term ~~capital~~obligations ~~ratio~~in ~~was~~the ~~17.5%~~event atour ~~June 30,~~cash ~~2025,~~flows 22from operations were to be negative.8% atSee ~~June 30,~~Item ~~2024~~1A, ~~and~~Risk 21Factors in our Annual Report on Form 10-K filed with the U.2%S. atSecurities and Exchange Commission for the year ended December 31, 2024. ~~Our~~(our ~~debt-to-total~~2024 ~~capital~~Form ~~ratios~~10-K), ~~were~~for ~~consistent~~a ~~with~~discussion ~~our~~of ~~financial~~certain ~~policy~~matters ofthat ~~maintaining~~may aaffect ~~ratio~~our ofportfolio ~~less~~and ~~than~~capital ~~30%~~position.

~~None~~Our oftotal ~~the~~capital ~~covenants on our existing~~ (debt ~~securities~~plus ~~include~~shareholders’ ~~rating~~equity) orwas ~~credit triggers that would require an adjustment of interest rate or an acceleration of principal payments in the event that our debt securities are downgraded by a rating agency~~$42. ~~In April 2025~~3 billion, webased ~~renewed~~on ~~the~~book ~~unsecured~~value, ~~discretionary~~at ~~line~~September ~~of credit with PNC Bank~~30, ~~National Association~~2025, incompared ~~the~~to ~~maximum principal amount of~~ $~~300 million~~34.1 Webillion ~~did~~at ~~not~~September ~~engage~~30, ~~in short-term borrowings~~2024, ~~including~~and ~~any~~$32.5 billion ~~borrowings~~at ~~under~~December ~~the line of credit~~31, to2024. ~~fund~~The ~~our~~increase ~~operations~~from ~~or for liquidity purposes during the reported periods.~~

We seek to deploy capital in a prudent manner and use multiple data sources and modeling tools to estimate the frequency, severity, and correlation of identified exposures, including, but not limited to, catastrophic and other insured losses, natural disasters, and other significant business interruptions, to estimate our potential capital needs.

During the first six months of 2025, we returned capital to shareholders primarily through common share dividends and common share repurchases. Our Board of Directors declared a $0.10 per common share dividend in both the first and second quarters of 2025. These dividends, which were $59 million and $58 million, respectively, in the aggregate, were paid in April 2025 and July 2025. In January 2025, we also paid common share dividends declared in the fourth quarter 2024, in the aggregate amount of $2.7 billion, or $4.60 per share (see Note 9 – Dividends for further discussion).

Pursuant to our financial policies, we repurchase common shares to neutralize dilution from equity-based compensation granted during the year and opportunistically when we believe our shares are trading below our determination of long-term fair value. During the first six months of 2025, we repurchased 0.3 million common shares, at a total cost of $67 million, including 0.1 million shares in the second quarter 2025, both in the open market and to satisfy tax withholding obligations in connection with the vesting of equity awards under our employee equity compensation plans. We will continue to make decisions on returning capital to shareholders based on the strength of our overall capital position, the capital strength of our subsidiaries, and the potential capital needs of our business.

Atyear-end ~~June 30~~2024, ~~2025,~~primarily wereflects ~~had~~the ~~$5.0~~comprehensive ~~billion~~income inrecognized aduring ~~consolidated,~~the ~~non-insurance~~first ~~subsidiary~~nine months of ~~the~~2025. ~~holding~~Our ~~company~~debt-to-total ~~that~~capital ~~can~~ratio bewas ~~used~~16.3% toat ~~fund~~September ~~corporate~~30, ~~obligations~~2025, ~~and~~20.2% ~~provide~~at ~~additional~~September ~~capital~~30, to2024, ~~the~~and ~~insurance~~21.2% ~~subsidiaries~~at toDecember ~~fund~~31, ~~potential~~2024. ~~future~~Our ~~growth~~debt-to-total ~~and~~capital ~~other~~ratios ~~opportunities.~~were Asconsistent ofwith ~~June 30,~~our ~~2025,~~financial ~~our~~policy ~~estimated~~of ~~consolidated~~maintaining ~~statutory~~a ~~surplus~~ratio ~~was~~of ~~$31.1~~less ~~billion~~than 30%.

~~During~~None of the ~~first~~covenants ~~six~~on ~~months~~our ofexisting ~~2025,~~debt ~~our~~securities ~~contractual~~include ~~obligations~~rating ~~and~~or ~~critical~~credit ~~accounting~~triggers ~~policies~~that ~~have~~would ~~not~~require ~~changed~~an ~~materially~~adjustment ~~from~~of ~~those~~interest ~~discussed~~rate or an acceleration of principal payments in the event that our ~~2024~~debt ~~Annual~~securities ~~Report~~are todowngraded ~~Shareholders~~by a rating agency. ~~There~~During ~~have~~the ~~not~~second ~~been~~quarter ~~any~~2025, ~~material~~we ~~changes~~renewed the unsecured discretionary line of credit with PNC Bank, National Association, in ~~off~~the maximum principal amount of $300 million. We did not engage in short-~~balance-sheet~~term ~~leverage~~borrowings, ~~which~~including ~~includes~~any ~~purchase~~borrowings ~~obligations,~~under ~~from~~the ~~those~~line ~~discussed~~of incredit, to fund our ~~2024~~operations ~~Annual~~or ~~Report~~for toliquidity ~~Shareholders~~purposes during the reported periods.

OnWe ~~July~~seek 4to deploy capital in a prudent manner and use multiple data sources and modeling tools to estimate the frequency, ~~2025~~severity, ~~H.R.~~and 1,correlation ~~“An~~of ~~Act~~identified toexposures, ~~provide~~including, ~~for~~but ~~reconciliation~~not ~~pursuant~~limited to, ~~title~~investment IIlosses, ofcatastrophic H.and ~~Con.~~other ~~Res.~~insured ~~14”~~losses, ~~(the~~natural ~~Act)~~disasters, ~~was~~and ~~signed~~other ~~into~~significant ~~law~~business byinterruptions, ~~the~~to ~~President~~estimate ofour ~~the~~potential ~~United~~capital needs.

~~States.~~During ~~The~~the ~~Act~~first ~~contains~~nine ~~numerous~~months ~~tax~~of ~~provisions~~2025, ~~applicable~~we returned capital to ~~corporations~~shareholders primarily through common share dividends and common share repurchases. WeOur ~~are~~Board of Directors declared a $0.10 per common share dividend in each of the ~~process~~first three quarters of ~~evaluating~~2025. ~~the~~These ~~provisions~~quarterly ~~applicable~~common toshare ~~Progressive~~dividends, which were $59 million, $58 million, and $59 million, ~~while~~in ~~this~~the ~~assessment~~aggregate, iswere ~~not~~paid ~~yet~~in ~~complete~~April 2025, July 2025, and October 2025, respectively. In January 2025, we doalso ~~not~~paid ~~currently~~a ~~expect~~common share dividend declared in the ~~Act~~fourth ~~will~~quarter ~~have~~2024, ain ~~material~~the ~~effect~~aggregate onamount ~~our~~of ~~financial~~$2.7 ~~condition~~billion, or ~~results~~$4.60 ofper ~~operations~~share (see Note 9 – Dividends for further discussion).

~~Since~~Pursuant ~~Florida~~to ~~insurance~~our ~~reform~~financial ~~was enacted in early 2023~~policies, we ~~have~~repurchase ~~seen~~common ~~lower~~shares ~~loss~~to ~~costs~~neutralize ondilution ~~certain~~from ~~types~~equity-based ofcompensation ~~personal~~granted ~~auto~~during ~~accident~~the ~~claims~~year and ~~favorable~~opportunistically ~~reserve~~when ~~development, and~~ we ~~have~~believe ~~experienced~~our ~~strong~~shares ~~profitability~~are intrading below our ~~Florida~~determination ~~personal~~of ~~auto~~long-term ~~business~~fair value. InDuring ~~response~~the tofirst ~~these~~nine ~~trends~~months of 2025, we ~~have~~repurchased ~~lowered~~0.4 ~~Florida~~million ~~personal~~common ~~auto~~shares, ~~rates~~at ~~twice~~a intotal ~~the~~cost ~~last~~of ~~year~~$107 million, including 0.1 ~~Despite~~million ~~these~~shares ~~actions~~in the third quarter 2025, itboth isin ~~possible~~the ~~that~~open ~~our~~market ~~profit~~and ~~for~~to ~~personal~~satisfy ~~auto~~tax withholding obligations in ~~Florida~~connection ~~for~~with the ~~2023~~vesting toof ~~2025~~equity ~~period~~awards ~~will~~under ~~exceed~~our ~~the~~employee ~~statutory~~equity ~~profit~~compensation ~~limit~~plans. ~~that~~We awill ~~Florida~~continue ~~statute~~to ~~imposes~~make decisions on ~~the~~returning ~~profit~~capital ~~that~~to ~~any~~shareholders ~~insurance~~based ~~group~~on ~~can~~the ~~earn~~strength onof ~~personal~~our ~~auto~~overall ~~insurance~~capital ~~over~~position, ~~any~~the ~~three-calendar-year~~capital ~~period~~strength ~~and~~of ~~that~~our wesubsidiaries, ~~will~~and ~~need~~the topotential ~~pay~~capital ~~any~~needs ~~profit~~of ~~above~~our business.

~~the~~At ~~limit~~September ~~to all Florida personal auto policyholders active at December 31~~30, 2025., ~~We are not currently able to determine whether~~ we ~~will~~had ~~exceed the permitted profit limit because several factors can impact the determination~~$4.9 ~~The~~billion ~~Atlantic~~in ~~hurricane~~a ~~season continues through late November 2025~~consolidated, ~~and~~non-insurance ~~the~~subsidiary ~~risk~~ of ~~hurricanes impacting Florida through that time is relatively high. In addition, any reserve development through~~ the ~~first~~holding ~~quarter~~company ~~2026 on losses for accident years 2023 through 2025 will impact the statutory calculations. Finally, other factors described in Item 1A, Risk Factors in our 2024 Form 10-K~~ that ~~may~~can ~~impact our ability to establish accurate loss reserves could impact these determinations. We expect to~~ be ~~able~~used to ~~reasonably~~fund ~~estimate~~corporate ~~any~~obligations ~~potential exposure by the end of the fourth quarter 2025,~~ and ~~to pay amounts owed, if any, during late 2025 or 2026.~~

provide additional capital to the insurance subsidiaries to fund potential future growth and other opportunities. As of September 30, 2025, our estimated consolidated statutory surplus was $33.7 billion.

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 maximum target for our vehicle businesses; however, two states have permitted us to target a premiums-to-surplus ratio for our vehicle businesses to a maximum ratio of 3.5 to 1 based on our strong financial condition. This approval reduces the amount of capital we may need to hold at our applicable insurance subsidiaries relative to premium, subject to the other factors previously mentioned. For 2024, these subsidiaries represented 90% of our companywide total net premiums written. The pace and extent to which we move to this ratio is yet to be determined. We have previously announced our intention to pay a dividend on our common shares on a quarterly basis and to consider paying a variable dividend on at least an annual basis. The Board of Directors declares any applicable dividend and may consider, among other factors, changes in our performance or available capital, or other potential uses for our capital as part of this action.

During the first nine months of 2025, our contractual obligations and critical accounting policies have not changed materially from those discussed in our 2024 Annual Report to Shareholders. There have not been any material changes in off-balance-sheet leverage, which includes purchase obligations, from those discussed in our 2024 Annual Report to Shareholders.

On July 4, 2025, H.R. 1, “An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14” (the Act) was signed into law by the President of the United States. The Act contains numerous tax provisions applicable to corporations. These provisions will not have a material adverse effect on our financial condition or results of operations.

Since Florida insurance reform was enacted in early 2023, we have seen lower loss costs on certain types of personal auto accident claims and favorable reserve development, and we have experienced strong profitability in our Florida personal auto business. In response to these trends, we have lowered Florida personal auto rates twice in the last year. Despite these actions, it is probable that our personal auto profit in Florida for the 2023 to 2025 period will exceed the statutory profit limit that a Florida statute

imposes on the profit that any insurance group can earn on personal auto insurance over any three-calendar-year period. In such event, we would need to credit any profit above the limit to all Florida personal auto policyholders active at December 31, 2025. As a result, in September 2025, we recorded a $950 million policyholder credit expense, which represents our current estimate of the profit we will earn on the three-calendar-year period ending December 31, 2025, in excess of the permitted profit limit. The estimated liability will continue to be refined through the end of the fourth quarter 2025, given the continuing exposure to potential significant storm activity through the Atlantic hurricane season, which continues into late November 2025, and the other factors that impact reserve development through the first quarter 2026 on losses for applicable accident years. See Item 1A, Risk Factors in our 2024 Form 10-K, for a description of other factors that may impact our ability to establish accurate loss reserves. In early 2026, we expect to provide credits to policyholders active at December 31, 2025. As of September 30, 2025, we had approximately 2.7 million personal auto policyholders active in Florida.

Based upon our capital planning and forecasting efforts, we believe we have sufficient capital resources and cash flows from operations to support our current business, scheduled principal and interest payments on our debt, anticipated quarterly dividends on our common shares, our contractual obligations, and other expected capital requirements for the foreseeable future.

Nevertheless, we may decide to raise additional capital to take advantage of attractive terms in the market and provide additional financial flexibility. We currently have an effective shelf registration with the U.S. Securities and Exchange Commission so that we may periodically offer and sell an indeterminate aggregate amount of senior or subordinated debt securities, preferred stock, depository shares, common stock, purchase contracts, warrants, and units. The shelf registration enables us to raise funds, subject to market conditions, from the offering of any securities covered by the shelf registration as well as any combination thereof.

III. RESULTS OF OPERATIONS – UNDERWRITING

A. Segment Overview

We report our underwriting operations in two segments: Personal Lines and Commercial Lines. Our Personal Lines segment writes insurance for personal vehicles, which include personal auto and special lines products (e.g., recreational vehicles, such as motorcycles, RVs, and watercraft), personal residential property insurance for homeowners and renters, umbrella insurance, and flood insurance through the “Write Your Own” program for the National Flood Insurance Program. Since our personal auto products represented about 90% of our Personal Lines segment net premiums written at quarter end, much of the following discussion will focus on our personal auto products, both in total and by distribution channel. We will also discuss our personal property products as we continue to focus on improving profitability and reducing our concentration and exposure in more volatile weather-related markets.

Our Commercial Lines segment writes auto-related liability and physical damage insurance, business-related general liability and commercial property insurance predominantly for small businesses, and workers’ compensation insurance primarily for the transportation industry and includes our core commercial auto products, TNC business, Fleet & Specialty products, and BOP product. Of our total Commercial Lines segment, our core commercial auto products represented about 80% of net premiums written and our TNC business represented about 15%, both on a trailing 12-month basis, as of the end of the ~~second~~third quarter 2025. Therefore, much of the following discussion focuses only on our core commercial auto products.

The following table shows the composition of our companywide net premiums written, by segment, for the respective periods:

	Three Months Ended June 30,				Six Months Ended June 30,
	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Personal Lines
Vehicles
Agency	3736	%	37	%	3536	%	36	%
Direct	4750		4447		4647		4345
Property	4		54		4		4
Total Personal Lines	8890		8688		8587		8385
Commercial Lines	1210		1412		1513		1715
Total underwriting operations	100	%	100	%	100	%	100	%

Within our Personal Lines segment, we often categorize our personal auto product policyholders into four consumer segments:

•Sam - inconsistently insured;

•Diane - consistently insured and maybe a renter;

•Wrights - homeowners who do not bundle auto and home; and

•Robinsons - homeowners who bundle auto and home.

While our personal auto policies primarily have 6-month terms, to promote bundled personal auto and property growth, we write 12-month personal auto policies in our Platinum agencies. At ~~June~~September 30, 2025 and 2024, 11% and 13%, respectively, of our agency personal auto policies in force were 12-month policies. To the extent our agency

13%, respectively, of our agency personal auto policies in force were 12-month policies. To the extent our agency application mix of annual personal auto policies changes, the shift in policy term could impact our average premiums in the agency channel, as 12-month policies have about twice the amount of net premiums written compared to 6-month policies. 32

~~Our~~application ~~special~~mix ~~lines~~of ~~and~~annual personal ~~property~~auto ~~products~~policies ~~are~~changes, ~~written~~the ~~for~~shift ~~12-month~~in ~~terms.~~policy ~~About~~term ~~55%~~could ~~and~~impact ~~70%, respectively, of~~ our ~~special~~average ~~lines products and personal property business net~~ premiums written ~~during~~in the ~~second~~agency ~~quarter~~channel, ~~2025~~as ~~was~~12-month ~~generated~~policies ~~through~~have ~~the~~about ~~independent~~twice ~~agency~~the ~~channel,~~amount ~~with~~of ~~the~~net ~~balance~~premiums ~~through~~written ~~the~~compared ~~direct~~to ~~channel~~6-month policies.

Our special lines and personal property products are written for 12-month terms. About 55% and 70%, respectively, of our special lines products and personal property business net premiums written during the third quarter 2025 was generated through the independent agency channel, with the balance through the direct channel.

Within our Commercial Lines segment, our core commercial auto business operates in the following five traditional business market targets (BMT):

•for-hire specialty;

•for-hire transportation;

•tow;

•contractor; and

•business auto.

At ~~June~~September 30, 2025, about 85% of Commercial Lines policies in force had 12-month terms. The majority of our Commercial Lines business is written through the independent agency channel, although we continue to focus on growing our direct business, with about 10% of our core commercial auto premiums written through the direct channel.

B. Profitability

Profitability, for our underwriting operations, is defined by pretax underwriting profit or loss, which is calculated as net premiums earned plus fees and other revenues less losses and loss adjustment expenses, policy acquisition costs, ~~and~~ other underwriting expenses, and policyholder credit expense. We also use underwriting margin, which is underwriting profit or loss expressed as a percentage of net premiums earned, to analyze our results. For the respective periods, our underwriting profitability results were as follows:

	Three Months Ended June 30,								Six Months Ended June 30,
	Three Months Ended September 30,								Nine Months Ended September 30,
	2025				2024				2025				2024
	UnderwritingProfit (Loss)				UnderwritingProfit (Loss)				UnderwritingProfit (Loss)				UnderwritingProfit (Loss)
($ in millions)	$		Margin		$		Margin		$		Margin		$		Margin
Personal Lines
Vehicles
Agency	$	1,135	15.6	%	$	788	12.7	%	$	2,406	16.8	%	$	1,739	14.4	%
Agency1	$	873	11.7	%	$	870	13.1	%	$	3,279	15.0	%	$	2,609	14.0	%
Direct	1,185		12.5		783		10.3		2,198		12.0		1,826		12.5
Direct1	737		7.5		665		8.1		2,935		10.4		2,491		10.9
Property	~~128~~288		1636.45		~~(488)~~164		~~(66~~21.3)5		~~227~~515		1422.60		(~~441~~277)		(3012.45)
Total Personal Lines	21,~~448~~898		1410.05		1,~~083~~699		710.49		46,~~831~~729		1412.19		34,~~124~~823		11.10
Commercial Lines	~~364~~298		1310.28		~~304~~308		11.43		~~702~~1,000		12.92		~~513~~821		910.83
Other indemnity1	(4)		NM		(1)		NM		(8)		NM		(1)		NM
Other indemnity2	(6)		NM		(2)		NM		(14)		NM		(3)		NM
Total underwriting operations	$	2,~~808~~190	1310.85	%	$	12,~~386~~005	811.10	%	$	57,~~525~~715	1312.97	%	$	35,~~636~~641	10.9	%

1 ~~Underwriting~~Included ~~margins~~in ~~for~~the ~~our~~underwriting ~~other~~profit ~~indemnity~~of ~~businesses~~the ~~are~~personal ~~not~~vehicles ~~meaningful~~agency ~~(NM)~~business ~~due~~and to the ~~low~~personal ~~level~~vehicles ofdirect ~~premiums~~business ~~earned~~is ~~by,~~$436 million and ~~the~~$514 ~~variability~~million, respectively, of ~~loss~~expense ~~costs~~related ~~in,~~to ~~such~~Florida ~~businesses~~personal auto policyholder credits for both the three and nine months ended September 30, 2025.

322 Underwriting margins for our other indemnity businesses are not meaningful (NM) due to the low level of premiums earned by, and the variability of loss costs in, such businesses.

The ~~increase~~decrease in our underwriting profit margin on a year-over-year basis for the ~~second~~third quarter 2025 was due, in part, to athe ~~decrease~~$950 inmillion ~~our~~Florida ~~companywide~~excess ~~loss~~profit ~~and~~policyholder ~~LAE~~credit ~~ratio~~expense recorded during the quarter. Excluding the effect of 6the policyholder credit, third quarter 2025 underwriting profit would have been 4.1 points. Onhigher athan ~~year-to-date~~the ~~basis~~same period last year, driven by a decrease in the loss and LAE ratio, ~~decreased~~which ~~4.1~~is ~~points~~attributable to lower incurred catastrophe losses and favorable development on prior accident year losses.

The ~~decrease~~increase in ~~the~~our ~~loss~~underwriting ~~and~~profit ~~LAE~~margin, ~~ratio~~on ~~during~~a ~~the~~year-over-year ~~second~~basis, ~~quarter~~for ~~2025~~the ~~was~~nine ~~primarily~~months ~~driven~~ended bySeptember a30, ~~decrease~~2025, inwas ~~catastrophe~~also ~~losses~~driven ~~in Personal Lines and~~ by ~~favorable~~the ~~prior~~same ~~accident years reserve development in both Personal Lines and Commercial Lines~~factors.

During the second quarter 2025, our advertising spend was $1.2 billion, which was 35%, or 0.7 points, greater than the

second quarter last year, and $2.5 billion during the first half of 2025, which was 57%, or 1.5 points, greater than the same period last year. The expense ratio impact from increased advertising spend was partially offset by a decrease in non-acquisition expenses.

See the Losses and Loss Adjustment Expenses (LAE) section below for further discussion of our catastrophe losses, auto frequency and severity trends, and reserve development recognized during the periods and the Underwriting Expenses section for further discussion of our advertising and non-acquisition expenses.

	Three Months Ended June 30,			Six Months Ended June 30,
Underwriting Performance1	2025	2024	Change	2025	2024	Change
Personal Lines
Vehicles
Agency
Loss & loss adjustment expense ratio	66.2	69.2	(3.0)	65.1	67.6	(2.5)
Underwriting expense ratio	18.2	18.1	0.1	18.1	18.0	0.1
Combined ratio	84.4	87.3	(2.9)	83.2	85.6	(2.4)
Direct
Loss & loss adjustment expense ratio	68.3	71.0	(2.7)	67.7	69.5	(1.8)
Underwriting expense ratio	19.2	18.7	0.5	20.3	18.0	2.3
Combined ratio	87.5	89.7	(2.2)	88.0	87.5	0.5
Property
Loss & loss adjustment expense ratio	54.4	137.4	(83.0)	56.4	101.6	(45.2)
Underwriting expense ratio	29.2	28.9	0.3	29.0	28.8	0.2
Combined ratio	83.6	166.3	(82.7)	85.4	130.4	(45.0)
Total Personal Lines
Loss & loss adjustment expense ratio	66.8	73.6	(6.8)	66.2	70.4	(4.2)
Underwriting expense ratio	19.2	19.0	0.2	19.7	18.5	1.2
Combined ratio	86.0	92.6	(6.6)	85.9	88.9	(3.0)
Commercial Lines
Loss & loss adjustment expense ratio	66.8	69.6	(2.8)	67.2	71.0	(3.8)
Underwriting expense ratio	20.0	19.0	1.0	19.9	19.2	0.7
Combined ratio	86.8	88.6	(1.8)	87.1	90.2	(3.1)
Total Underwriting Operations
Loss & loss adjustment expense ratio	66.8	72.9	(6.1)	66.3	70.4	(4.1)
Underwriting expense ratio	19.4	19.0	0.4	19.8	18.7	1.1
Combined ratio	86.2	91.9	(5.7)	86.1	89.1	(3.0)
Accident year – Loss & loss adjustment expense ratio2	68.4	73.2	(4.8)	67.8	70.6	(2.8)

1 Ratios are expressed as a percentage of net premiums earned. Fees and other revenues are netted against either loss adjustment expenses or underwriting expenses in the ratio calculations, based on the underlying activity that generated the revenue.

2 The accident year ratios include only the losses that occurred during the period noted. As a result, accident period results will change over time, either favorably or unfavorably, as we revise our estimates of loss costs when payments are made or reserves for that accident period are reviewed.

Further underwriting results for our Personal Lines business, Commercial Lines business, and our underwriting operations in total, were as follows:


	Three Months Ended September 30,			Nine Months Ended September 30,
Underwriting Performance1	2025	2024	Change	2025	2024	Change
Personal Lines
Vehicles
Agency
Loss & loss adjustment expense ratio	63.7	67.9	(4.2)	64.7	67.6	(2.9)
Underwriting expense ratio2	24.6	19.0	5.6	20.3	18.4	1.9
Combined ratio2	88.3	86.9	1.4	85.0	86.0	(1.0)
Direct
Loss & loss adjustment expense ratio	66.4	69.9	(3.5)	67.3	69.7	(2.4)
Underwriting expense ratio2	26.1	22.0	4.1	22.3	19.4	2.9
Combined ratio2	92.5	91.9	0.6	89.6	89.1	0.5
Property
Loss & loss adjustment expense ratio	33.8	48.6	(14.8)	48.8	83.3	(34.5)
Underwriting expense ratio	29.7	29.9	(0.2)	29.2	29.2	0
Combined ratio	63.5	78.5	(15.0)	78.0	112.5	(34.5)
Total Personal Lines
Loss & loss adjustment expense ratio	63.9	68.0	(4.1)	65.3	69.5	(4.2)
Underwriting expense ratio2	25.6	21.1	4.5	21.8	19.5	2.3
Combined ratio2	89.5	89.1	0.4	87.1	89.0	(1.9)
Commercial Lines
Loss & loss adjustment expense ratio	67.6	69.3	(1.7)	67.3	70.4	(3.1)
Underwriting expense ratio	21.6	19.4	2.2	20.5	19.3	1.2
Combined ratio	89.2	88.7	0.5	87.8	89.7	(1.9)
Total Underwriting Operations
Loss & loss adjustment expense ratio	64.4	68.1	(3.7)	65.7	69.7	(4.0)
Underwriting expense ratio	25.1	20.9	4.2	21.6	19.4	2.2
Combined ratio	89.5	89.0	0.5	87.3	89.1	(1.8)
Accident year – Loss & loss adjustment expense ratio3	66.6	68.8	(2.2)	67.5	70.1	(2.6)

2 Included in both the underwriting expense and the combined ratios for the personal vehicles agency business are 5.8 points for the third quarter 2025, and 2.0 points for the nine months ended September 30, 2025, of expense related to the Florida personal auto policyholder credit. Included in both the underwriting expense and the combined ratios for the personal vehicles direct business are 5.2 points for the third quarter 2025, and 1.8 points for the nine months ended September 30, 2025, of policyholder credit expense. Excluding the policyholder credit, the total Personal Lines underwriting expense and combined ratios would have been 5.3 points lower for the third quarter 2025, and 1.8 points lower for the nine months ended September 30, 2025.

3 The accident year ratios include only the losses that occurred during the period noted. As a result, accident period results will change over time, either favorably or unfavorably, as we revise our estimates of loss costs when payments are made or reserves for that accident period are reviewed.

Losses and Loss Adjustment Expenses (LAE)

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(millions)

2025

2024

2025

2024

Change in net loss and LAE reserves

1,~~565~~038

1,~~911~~425

23,~~684~~722

23,~~490~~915

Paid losses and LAE

12,~~040~~407

1011,~~684~~085

2336,~~725~~132

2132,~~077~~162

Total incurred losses and LAE

13,~~605~~445

12,~~595~~510

2639,~~409~~854

2336,~~567~~077

Claims costs, our most significant expense, represent payments made, and estimated future payments to be made, to or on behalf of our policyholders, including expenses needed to adjust or settle claims. Claims costs are a function of loss severity and frequency and, for our personal auto and core commercial auto businesses, are influenced by inflation and driving patterns, among other factors, some of which are discussed below. In our personal property business, severity is primarily a function of construction costs and the age and complexity of the structure, among other factors. Accordingly, anticipated changes in these factors are taken into account when we establish premium rates and loss reserves. Loss reserves

are estimates of future costs and our reserves are adjusted as underlying assumptions change and information develops.

Our total loss and LAE ratio decreased 63.17 points and 4.10 points, for the three and ~~six~~nine ~~month~~months ~~periods~~ ended ~~June~~September 30, 2025, respectively, compared to the prior year periods, primarily due to a decrease in catastrophe losses and to favorable prior accident years reserve development. On an accident year basis, our loss and LAE ratio was 42.82 points and 2.86 points lower for the ~~second~~third quarter and first ~~half~~nine months of 2025, respectively, compared to the same periods last year.

The following table shows our consolidated catastrophe losses and related combined ratio point impact, excluding loss adjustment expenses, incurred during the periods:

	Three Months Ended June 30,						Six Months Ended June 30,
	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
($ in millions)	$		Point1	$		Point1	$		Point1	$		Point1
Personal Lines
Vehicles	$	~~531~~198	31.21	$	~~687~~641	54.03	$	~~831~~1,029	2.51	$	~~887~~1,528	3.37
Property	~~157~~9		201.21	~~556~~57		757.65	~~311~~320		2013.07	~~694~~751		4734.90
Total Personal Lines	~~688~~207		31.91	~~1,243~~698		84.5	1,~~142~~349		32.36	12,~~581~~279		5.62
Commercial Lines	1912		0.74	2634		1.02	2436		0.4	3569		0.79
Total net catastrophe losses incurred	$	~~707~~219	31.51	$	~~1,269~~732	7.4.0	$	1,~~166~~385	2.93	$	12,~~616~~348	4.85

1 Represents catastrophe losses incurred during the period, including the impact of reinsurance, as a percent of net premiums earned for each segment.

InChanges ~~the~~in ~~second~~our ~~quarter~~estimate ~~2025,~~of our ~~catastrophe~~ultimate losses ~~reflected~~on ~~severe~~catastrophes ~~weather~~currently ~~events~~reserved, ~~throughout~~along ~~the~~with ~~United~~potential ~~States~~future catastrophes, ~~with~~could ~~Texas~~have ~~accounting~~a ~~for~~material ~~about~~impact ~~one~~on ~~third~~our financial condition, cash flows, or results of ~~the~~operations. We reinsure various risks including, but not limited to, catastrophic losses. We do not have ~~responded~~catastrophe-specific reinsurance for our personal auto, ~~and~~special ~~plan~~lines, toor ~~continue~~core tocommercial ~~respond~~auto businesses. For the personal property business and certain BOP product coverages, ~~promptly~~reinsurance toprograms ~~catastrophic~~include ~~events~~catastrophe ~~when~~per ~~they~~occurrence ~~occur~~excess inof ~~order~~loss tocontracts ~~provide~~and ~~high~~aggregate excess of loss contracts. We also purchase excess of loss reinsurance on our workers’ compensation insurance and our higher-~~quality~~limit ~~claims~~commercial ~~service~~auto toliability product offered by our ~~customers~~Fleet & Specialty business and on certain BOP product coverages.

~~Changes~~We inevaluate our ~~estimate~~reinsurance ofprograms ~~our~~during ~~ultimate~~the ~~losses~~renewal ~~on catastrophes currently reserved~~process, ~~along~~if ~~with~~not ~~potential~~more ~~future catastrophes~~frequently, ~~could~~to ~~have~~ensure ~~a material impact on~~ our ~~financial~~programs ~~condition,~~continue ~~cash flows, or results of operations. We reinsure various risks including, but not limited~~ to, ~~catastrophic~~effectively ~~losses.~~address Wethe docompany’s ~~not~~risk ~~have catastrophe-specific reinsurance for our personal auto, special lines, or core commercial auto businesses~~tolerance. ~~For~~During the ~~personal~~second ~~property~~quarter ~~business~~2025, ~~and~~we ~~certain~~entered ~~BOP~~into ~~product~~new ~~coverages,~~ reinsurance ~~programs~~contracts ~~include~~under ~~catastrophe~~our per occurrence excess of loss ~~contracts~~program ~~and~~for ~~aggregate~~our ~~excess~~personal ofproperty ~~loss contracts~~business. WeThis ~~also purchase excess of loss~~ reinsurance onprogram ~~our~~has ~~workers’~~a ~~compensation~~retention ~~insurance~~threshold ~~and~~for ~~our~~losses ~~higher-limit commercial auto liability product offered by our Fleet & Specialty business, and on certain BOP product coverages.~~

We evaluate our reinsurance programs during the renewal process, if not more frequently, to ensure our programs continue to effectively address the company’s risk tolerance. During the second quarter 2025, we entered into new reinsurance contracts under our per occurrence excess of loss program for our personal property business. This reinsurance program has a retention threshold for losses and allocated loss adjustment expenses (ALAE) from a single catastrophic event of $200 million for a storm outside of Florida and $75 million for a storm in Florida. In general, our program includes coverage for $2.0 billion in losses and ALAE with additional substantial coverage for a second or third hurricane. When considering coverage specific to Florida, including the Florida Hurricane Catastrophe Fund, this coverage reaches an estimated $2.2 billion.

For 2025, we also entered into a new catastrophe aggregate excess of loss reinsurance contract for claims occurring in 2025 that has multiple layers of coverage. The first retention layer threshold ranges from $450 million to $475 million, excluding named tropical storms and hurricanes, and the second retention layer threshold is $525 million, including named tropical storms and hurricanes. The first and second layers provide coverage up to $75 million and $100 million, respectively. As part of the 2025 aggregate excess of loss program, we also entered into a severe convective storm parametric loss aggregate coverage, which covers a type of thunderstorm characterized by strong winds, heavy rain, large hail, thunder, lightning, and

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and the second retention layer threshold is $525 million, including named tropical storms and hurricanes. The first and second layers provide coverage up to $75 million and $100 million, respectively. As part of the 2025 aggregate excess of loss program, we also entered into a severe convective storm parametric loss aggregate coverage, which covers a type of thunderstorm characterized by strong winds, heavy rain, large hail, thunder, lightning, and sometimes tornadoes. This parametric loss coverage provides $15 million of coverage, net of a retention of $665 million.

While the total coverage limit and per-event retention will evolve to fit the growth of our business, we expect to remain a consistent purchaser of reinsurance coverage. While the availability of reinsurance is subject to many forces outside of our control, the types of reinsurance that we elected to purchase during the first ~~half~~nine months of 2025 were readily available and competitively priced. On a year-over-year basis, we did not incur a material change in the aggregate costs of our reinsurance programs. See Item 1A, Risk Factors in our 2024 Form 10-K for a discussion of certain risks related to catastrophe events. See Item 1, Business – Reinsurance in our 2024 Form 10-K for a discussion of our various reinsurance programs.

The following discussion of our severity and frequency trends in our personal auto business excludes comprehensive coverage because of its inherent volatility, as it is typically linked to catastrophic losses generally resulting from adverse weather. For our core commercial auto business, the reported frequency and severity trends include comprehensive coverage. Comprehensive coverage insures against damage to a customer’s vehicle due to various causes other than collision, such as windstorm, hail, theft, falling objects, and glass breakage.

On a calendar-year basis, the change in total personal auto incurred severity (i.e., average cost per claim, including both paid losses and the change in case reserves) over the prior-year period, was as follows:

	Quarter	Year-to-date
Coverage Type	2025	2025
Bodily injury	1211%	10%
Collision	12	3
Personal injury protection	(31)	(64)
Property damage	47	34
Total	67	56

The year-over-year ~~increase~~increases in total severity was predominantly driven by increased bodily injury coverage reserves, compared to the same periods last year, due to higher medical costs and a higher rate of ~~litigated~~plaintiff-attorney represented injury claims.

To address inherent seasonality trends and lessen the effects of month-to-month variability in the commercial auto products, we use a trailing 12-month period in assessing severity. Since the loss patterns in the core commercial auto products are not indicative of our other commercial auto products (i.e., TNC and Fleet & Specialty businesses), disclosing severity and frequency trends excluding those businesses is more representative of our overall experience for the majority of our commercial products. As of the end of the second quarter 2025, our core commercial auto products’ trailing 12-month incurred severity increased 7%, compared to the same period last year, in part, due to increased medical costs.

businesses), disclosing severity and frequency trends excluding those businesses is more representative of our overall experience for the majority of our commercial products. As of the end of the third quarter 2025, our core commercial auto products’ trailing 12-month incurred severity increased 7%, compared to the same period last year, in part, due to increased medical costs.

It is a challenge to estimate future severity, but we continue to monitor changes in the underlying costs, such as tariffs, general inflation, used car prices, vehicle repair costs, medical costs, health care reform, court decisions, and jury verdicts, along with regulatory changes and other factors that may affect severity.

The change in total personal auto incurred frequency, on a calendar-year basis, over the prior-year period, was as follows:

	Quarter	Year-to-date
Coverage Type	2025	2025
Bodily injury	(1)%	0%
Collision	(65)	(6)
Personal injury protection	(3)	(23)
Property damage	~~(3)~~0	(21)
Total	(42)	(3)

The year-over-year decrease in frequency during the three and nine months ended September 30, 2025, in part, reflects a shift in the mix of business to a more preferred tier of customers (i.e., Wrights and Robinsons) ~~and lower vehicle miles traveled during the first half of 2025, compared to the same periods last year~~.

On a trailing 12-month basis, our core commercial auto products’ incurred frequency decreased 89% ~~through~~as of the ~~second~~end of the third quarter 2025, we believe, in part, due to a shift in the mix of business and lower vehicle miles traveled, compared to the same period last year.

We closely monitor changes in frequency, but the degree or direction of near-term frequency change is not something that we are able to predict with any certainty. We will continue to analyze trends to distinguish changes in our experience from other external factors, such as changes in the number of vehicles per household, miles driven, vehicle usage, gasoline prices, advances in vehicle safety, and unemployment rates, versus those resulting from shifts in the mix of our business, changes in driving patterns, and the ridesharing economy, to allow us to react quickly to price for these trends and to reserve more accurately for our loss exposures.

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The table below presents the actuarial adjustments implemented and the loss reserve development experienced on a companywide basis in the following periods:

	Three Months Ended June 30,						Six Months Ended June 30,
	Three Months Ended September 30,						Nine Months Ended September 30,
($ in millions)	2025			2024			2025			2024
Actuarial Adjustments
Reserve decrease (increase)
Prior accident years	$	73156		$	(55113)		$	98254		$	(~~119~~232)
Current accident year	40137			~~(17)~~400			54191			16416
Calendar-year actuarial adjustments	$	~~113~~293		$	~~(72)~~287		$	~~152~~445		$	~~(103)~~184
Prior Accident Years Development
Favorable (unfavorable)
Actuarial adjustments	$	73156		$	(55113)		$	98254		$	(~~119~~232)
All other development	~~256~~305			~~107~~249			~~509~~814			~~182~~431
Total development	$	~~329~~461		$	52136		$	~~607~~1,068		$	63199
(Increase) decrease to calendar-year combined ratio	12.62		pts.	0.37		pts.	1.58		pts.	0.24		pts.

Total development consists of both actuarial adjustments and “all other development” on prior accident years. We use “accident year” generically to represent the year in which a loss occurred. The actuarial adjustments represent the net changes made by our actuarial staff to both current and prior accident year reserves based on regularly scheduled reviews. Through these reviews, our actuaries identify and measure variances in the projected frequency and severity trends, which allow them to adjust the reserves to reflect current cost trends.

For the Personal Lines vehicle products and the Commercial Lines business, development for catastrophe losses would be reflected in “all other development,” discussed below, to the extent they relate to prior year reserves. For our Personal Lines property business, 100% of catastrophe losses are reviewed monthly, and any development on catastrophe reserves are included as part of the actuarial adjustments. We report these actuarial adjustments separately for the current and prior accident years to reflect these adjustments as part of the total prior accident years development.

“All other development” represents claims settling for more or less than reserved, emergence of unrecorded claims at rates different than anticipated in our incurred but not recorded (IBNR) reserves, and changes in reserve estimates on specific claims. Although we believe the development from both the actuarial adjustments and “all other development” generally results from the same factors, we are unable to quantify the portion of the reserve development that might be applicable to any one or more of those underlying factors.

Our objective is to establish case and IBNR reserves that are adequate to cover all loss costs, while incurring minimal variation from the date the reserves are initially established until losses are fully developed. Our ability to meet this objective is impacted by many factors, such as the factors impacting severity estimates described above and storms occurring close to quarter end.

As reflected in the table above, we experienced favorable prior accident years development during the first ~~six~~nine months of 2025 and 2024. The favorable development during the first ~~six~~nine months of 2025 was, in part, due to lower than anticipated severity and frequency in Florida, ~~and~~ lower than anticipated litigation defense costs across most states, inand ~~the~~lower than anticipated personal auto ~~business~~payments related to reopened property damage claims that were previously closed.

See Note 6 – Loss and Loss Adjustment Expense Reserves to the consolidated financial statements for a more detailed discussion of our prior accident years reserve development and Critical Accounting Policies in our 2024 Annual Report to Shareholders for discussion of the application of estimates and assumptions in the establishment of our loss reserves.

Underwriting Expenses

Underwriting expenses include policy acquisition costs, ~~and~~ other underwriting expenses, and policyholder credit expense. The underwriting expense ratio is our underwriting expenses, net of certain fees and other revenues, expressed as a percentage of net premiums earned. For the ~~second~~third quarter and first ~~half~~nine months of 2025, our underwriting expense ratio was up 0.4.2 points and 12.12 points, respectively, compared to the same periods last year. ~~Both~~The ~~increases~~increase ~~were~~for both periods was primarily attributable to the ~~increase~~$950 inmillion ~~our~~of ~~advertising~~Florida ~~spend.~~policyholder Incredit ~~total,~~expense ~~our~~recorded ~~companywide advertising spend increased 35%, or 0.7 points,~~ in the ~~second~~third quarter 2025, and ~~57%~~accounted orfor 4.6 and 1.56 points, for the ~~first~~three ~~six~~and nine months ofended September 30, 2025, ~~compared to the same periods last year~~respectively.

~~Our~~During ~~total~~the ~~advertising~~third ~~spend~~quarter ~~for~~and ~~the~~nine ~~first~~months ~~half~~ended ofSeptember 30, 2025, our advertising spend was $21.53 billion and $3.8 billion, ~~compared~~respectively, towhich ~~$1.6~~was ~~billion~~10% inand 36% greater than the ~~first~~same ~~half~~periods oflast ~~2024~~year. WeAs ~~invested~~a ~~heavily~~result ~~during~~of the ~~first~~increase ~~half~~in ofnet ~~the~~premiums ~~year~~earned toduring ~~capture~~the ~~consumer shopping~~periods, ~~and~~advertising ~~will~~spend ~~continue~~contributed to0.2 ~~advertise~~less points to ~~maximize~~the ~~growth,~~underwriting asexpense ~~long~~ratio asin wethe ~~remain~~third onquarter ~~track~~2025, toand ~~achieve~~0.9 ~~our~~more ~~profitability~~points ~~goal~~to ~~and~~the ~~can~~underwriting ~~acquire~~expense ~~customers~~ratio atfor orthe ~~below~~nine ~~our~~months ~~target acquisition cost.~~

~~To analyze underwriting expenses, we also review our non-acquisition expense ratio (NAER), which excludes costs related to policy acquisition (e.g., advertising and agency~~ 37

36ended September 30, 2025, compared to the same periods last year.

~~commissions)~~We ~~from~~invested ~~our~~heavily ~~underwriting~~in ~~expense~~advertising ~~ratio.~~during Bythe ~~excluding~~first ~~acquisition~~nine ~~costs~~months ~~from~~of ~~our~~the ~~underwriting~~year ~~expense ratio, we are able~~ to ~~understand~~capture ~~costs~~consumer ~~other~~shopping, ~~than~~and ~~those~~will ~~necessary~~continue to ~~acquire~~advertise ~~new~~to ~~policies~~maximize ~~and~~growth, ~~grow~~as ~~the~~long ~~business.~~as ~~During~~we ~~the~~remain ~~second~~on ~~quarter~~track ~~2025,~~to ~~our~~achieve ~~NAER decreased 0.4 points in~~ our ~~personal~~profitability ~~vehicle~~goal ~~business~~ and ~~increased~~can ~~0.9~~acquire ~~points~~customers ~~and~~at ~~0.5~~or ~~points~~below in our ~~personal~~target ~~property~~acquisition ~~and core~~ cost.

~~commercial~~To ~~auto~~analyze ~~businesses,~~underwriting ~~respectively~~expenses, ~~compared~~we toalso ~~the~~review ~~same~~our ~~period last year. On a year~~non-~~to-date~~acquisition ~~basis,~~expense ~~our~~ratio (NAER), ~~decreased~~which ~~0.3~~excludes ~~points~~costs inrelated ~~our~~to ~~personal~~policy ~~vehicle~~acquisition ~~business~~(e.g., ~~and~~advertising ~~increased 1.1 points~~ and ~~0.4~~agency ~~points~~commissions) infrom our ~~personal~~underwriting ~~property~~expense ~~and core commercial auto businesses, respectively~~ratio. WeBy ~~remain~~excluding ~~committed~~acquisition tocosts ~~efficiently~~from ~~managing~~our ~~operational~~underwriting ~~non-acquisition~~expense ~~expenses.~~

ratio, we are able to understand costs other than those necessary to acquire new policies and grow the business.

For the third quarter 2025, our NAER increased 0.1 points, 0.6 points, and 1.7 points in our personal vehicle (excluding policyholder credit expense), personal property, and core commercial auto businesses, respectively, compared to the same period last year. On a year-to-date basis, our NAER decreased 0.1 points in our personal vehicle business (excluding policyholder expense), and increased 0.8 points in both our personal property and core commercial auto businesses. We remain committed to efficiently managing operational non-acquisition expenses.

C. Growth

For our underwriting operations, we analyze growth in terms of both premiums and policies. Net premiums written represent the premiums from policies written during the period, less any premiums ceded to reinsurers. Net premiums earned, which are a function of the premiums written in the current and prior periods, are earned as revenue over the life of the policy using a daily earnings convention. Policies in force, our preferred measure of growth since it removes the variability due to rate changes or mix shifts, represents all policies for which coverage was in effect as of the end of the period specified.

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

($ in millions)

2025

2024

% Growth

2025

2024

% Growth

Net Premiums Written

Personal Lines

Vehicles

Agency

7,~~481~~724

67,~~734~~104

119

1422,~~954~~678

1320,~~133~~237

1412

Direct

910,~~387~~600

79,~~828~~185

2015

1930,~~454~~054

1525,~~910~~095

2220

Property

~~845~~824

~~831~~788

12,~~578~~402

12,~~564~~352

Total Personal Lines

1719,~~713~~148

1517,~~393~~077

1512

3555,~~986~~134

3047,~~607~~684

1816

Commercial Lines

2,~~363~~234

2,~~508~~378

(6)

68,~~296~~530

68,~~256~~634

(1)

Other indemnity1

Total underwriting operations

2021,~~076~~384

1719,~~902~~455

1210

4263,~~282~~666

3656,~~864~~319

1513

Net Premiums Earned

Personal Lines

Vehicles

Agency

7,~~302~~480

6,~~213~~628

1813

1421,~~328~~808

1218,~~071~~699

1917

Direct

9,~~466~~819

78,~~596~~180

2520

1828,~~374~~193

1422,~~616~~796

2624

Property

~~776~~790

~~736~~762

12,~~552~~342

12,~~449~~211

Total Personal Lines

1718,~~544~~089

1415,~~545~~570

2116

3452,~~254~~343

2843,~~136~~706

2220

Commercial Lines

2,~~765~~760

2,~~664~~727

58,~~464~~224

57,~~222~~949

Other indemnity1

Total underwriting operations

20,~~310~~849

1718,~~209~~297

1814

3960,~~719~~568

3351,~~358~~655

1917

NM = Not meaningful

1 Includes other underwriting business and run-off operations.

June 30,

September 30,

(# in thousands)

2025

2024

% Growth

Policies in Force

Personal Lines

Agency - auto

10,~~423~~630

89,~~965~~415

1613

Direct - auto

15,~~245~~619

1213,~~576~~388

2117

Special lines

6,~~850~~980

6,~~312~~475

Property

3,~~608~~651

3,~~339~~460

Total Personal Lines

36,~~126~~880

3132,~~192~~738

1613

Commercial Lines

1,~~189~~198

1,~~118~~131

Companywide total

3738,~~315~~078

3233,~~310~~869

1512

To analyze growth, we review new policies, rate levels, and the retention characteristics of our segments. Although new policies are necessary to maintain a growing book of business, we recognize the importance of retaining our current customers as a critical component of our continued growth.

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D. Personal Lines

Our Personal Lines business offers personal vehicle (personal auto and special lines) and residential property insurance products to ~~personal~~ consumers, with the operating goal of optimizing the number of insured products within our policyholders’ households. In our discussion below, we report our personal auto and personal property business results separately as components of our Personal Lines segment to provide a further understanding of our products. Our personal auto business discussions are further separated between the agency and direct distribution channels. For the three months ended ~~June~~September 30, 2025, 4441% of our personal auto business was written through the agency channel and 5659% was written through the direct channel. ~~While~~For the third quarter 2025, consumer segment results varied by channel, as discussed below, and our total personal auto business experienced overall growth in policies in force, while new business applications, quotes, and conversion ~~during~~were down, compared to the ~~second~~same ~~quarter~~period ~~and~~last ~~first~~year. ~~half~~Personal ofauto ~~2025~~new business applications, ~~compared~~quotes, toand ~~the~~conversion ~~same~~increased ~~periods~~on ~~last~~a year.-over-year basis, for the nine months ended September 30, 2025.

Personal Auto - Agency

The year-over-year changes in our personal auto agency business were as follows:

	Change Over Prior Year
	Quarter				Year-to-date
	2025		2024		2025		2024
Applications
New	6(5)	%	1398	%	179	%	~~(1)~~22	%
Renewal	19		97		18		8
Total	1613		920		1816		611
Written premium per policy
New	(65)		610		(5)		56
Renewal	(34)		146		(2)		1612
Total	(34)		125		(23)		1311
Policy life expectancy
Trailing 3 months	(67)		30
Trailing 12 months	(45)		188

The personal auto agency business includes business written by more than 40,000 independent insurance agencies that represent Progressive, as well as brokerages in New York and California. During the ~~second~~third quarter 2025, we generated new agency personal auto application growth in 3220 states and the District of Columbia, including ~~seven~~four of our top 10 largest agency states.

Compared to the same ~~periods~~period in the prior year, ~~new~~the ~~applications~~decrease ~~increased~~in 6%new applications during the ~~second~~third quarter 2025, was primarily driven by ~~significant~~substantial ~~growth~~declines for ~~Sams~~both Wrights and Robinsons, with a slight decline for Dianes, which ~~more~~was ~~than~~partially offset by a ~~decrease~~single-digit increase in Sams. For the first nine months of 2025, compared to the same period in the prior year, all consumer segments experienced an increase in new application growth, except for Robinsons who experienced a significant decline. Year-over-year policies in force growth at the end of the third quarter

~~applications for Robinsons~~2025, ~~while~~was ~~Wrights~~strong ~~experienced~~in ~~flat growth. For the first six months of 2025,~~ all consumer segments ~~experienced an increase in new application growth,~~ except ~~for~~ Robinsons, ~~who~~which ~~experienced~~saw a ~~decline.~~small ~~All consumer segments saw an~~ increase indue ~~policies in force at the end of the second quarter 2025, compared~~ to ~~the~~restrictions ~~same~~on ~~period~~new ~~last~~homeowner ~~year~~applications.

~~During~~For the ~~second~~third quarter and ~~first~~the ~~six~~nine months ofended September 30, 2025, on a year-over-year basis, we experienced an increase in agency auto quote volume of 72% and 128%, respectively, with a rate of conversion (i.e., converting a quote to a sale) decrease of 26% for the quarter, ~~and~~with anflat ~~increase~~conversion ~~of 4%~~ on a year-to-date basis. For the third quarter 2025, Sams and Dianes experienced an increase in quote volume, compared to the same ~~periods~~period ~~last~~in the prior year, while Wrights and Robinsons saw a single-digit decline. ~~For~~On ~~both~~a ~~the~~year-over-year ~~second~~basis ~~quarter~~for ~~and~~the first ~~six~~nine months of 2025, all consumer segments experienced an increase in quote volume, ~~compared to the same periods in the prior year,~~ except Robinsons, who ~~decreased~~saw ~~substantially.~~a ~~Both~~moderate ~~Sams~~decline. ~~and~~All ~~Dianes~~consumer segments experienced ana ~~increase~~decrease in conversion ~~during~~for the ~~second~~third quarter ~~and first half of~~ 2025, with conversion declines in Wrights and Robinsons ~~experiencing~~for athe ~~decrease~~first nine months of 2025, compared to the same periods last year.

The ~~increase in new applications, quotes, and conversion for Sams were, in part, driven by lifting certain underwriting restrictions that were in place at the beginning of 2024. The~~ decline in new applications, quotes, and conversion for Robinsons, compared to the prior year periods, was due to several initiatives implemented in our personal property business that were focused on improving profitability, as discussed in the Personal Property section below. These initiatives, which began during the last half of 2024, focused primarily on home and condo coverages and impacted growth in bundled personal auto and ~~homeowner~~homeowners policies.

Our personal auto rates were relatively stable during the quarter. The decrease in written premium per policy for new and renewal personal auto agency business ~~during~~for the ~~second~~third quarter and first ~~six~~nine months of 2025, compared to the same periods last year, was, in part, attributable to rate decreases in certain markets, including Florida, and a shift in the mix of business, including a shift to a higher percentage of 6-month policies, which have about half of the amount of net premiums written as policies with 12-month terms.

Our trailing 3- and 12-month policy life expectancy in the agency auto business experienced a decrease at the end of the ~~second~~third quarter 2025, on a year-over-year basis, which we believe is primarily driven by apolicy ~~shift~~replacements due to increased consumer shopping and price sensitivity. As previously discussed, due, in part, to the ~~mix~~efforts of ~~business~~our customer preservation team, during the period we saw an increase in existing customers who went through our new customer quote process to ~~more~~either ~~Sams~~modify ~~and~~existing ~~increased~~coverage ~~consumer~~or ~~shopping~~to find a lower rate. As a result, some of these customers replaced their existing policies with new Progressive policies, which negatively impacted policy life expectancy, but retained the customer.

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Personal Auto - Direct

The year-over-year changes in our personal auto direct business were as follows:

	Change Over Prior Year
	Quarter				Year-to-date
	2025		2024		2025		2024
Applications
New	90	%	50117	%	2113	%	1741	%
Renewal	2521		810		2322		10
Total	2115		1727		2220		1217
Written premium per policy
New	3		1013		3		911
Renewal	10		125		1		1310
Total	1		105		1		129
Policy life expectancy
Trailing 3 months	(87)		(109)
Trailing 12 months	(6)		2(6)

The personal auto direct business includes business written directly by Progressive online or by phone. During the ~~second~~third quarter 2025, we generated new direct personal auto application growth in 3927 states and the District of Columbia, including ~~seven~~six of our top 10 largest direct states. Compared to the same periods in the prior year, all ~~four~~ consumer segments experienced ~~moderate~~a ~~growth~~decline in new applications, except Sams, who experienced ~~significant~~moderate growth for the ~~second~~third quarter 2025, with all four consumer segments experiencing ~~significant~~ growth for the first ~~half~~nine months of 2025. Policies in force grew between 1715% and 2419% in each consumer segment, compared to the same period last year.

~~During~~For the ~~second~~third quarter and first ~~six~~nine months of 2025, direct personal auto quote volume ~~increased~~decreased 24% and 12increased 6%, respectively, with a rate of conversion increase of 64% and 76%, compared to the same periods last year, primarily driven by increased advertising spend and our competitiveness in the marketplace. For the ~~second~~third quarter 2025, ~~Sams~~all ~~and~~consumer ~~Robinsons~~segments experienced ~~quote~~a ~~volume~~decline ~~growth~~in ~~higher~~quote ~~than the total~~volume, ~~Dianes~~except ~~experienced flat growth~~Robinsons, ~~and~~who ~~the Wrights~~ experienced a ~~decline~~slight increase, ~~compared~~with toall ~~the same period last year. All~~ consumer segments ~~experienced~~experiencing quote volume growth for the first ~~half~~nine months of 2025, compared to the same periods last year. For the ~~second~~third quarter and first ~~half~~nine months of 2025, all consumer segments experienced an increase in conversion, except for Robinsons, who experienced a slight decline in both periods, compared to the same periods in the prior year.

The personal property profitability initiatives that negatively affected Robinsons new application, quote, and conversion growth in the agency channel were not as impactful to the direct channel as the majority of the property business bundles with personal auto in the direct channel is written through unaffiliated third-party carriers, which remain available even when we restrict writing our personal property products.

Our personal auto rates were relatively stable during the quarter, resulting in relatively steady written premium per policy for the third quarter and first nine months of 2025, compared to the same periods last year.

Our trailing 3- and 12-month policy ~~during~~life expectancy in the ~~second~~direct ~~quarter~~auto ~~and~~business ~~first~~experienced ~~six~~a ~~months~~decrease at the end of the third quarter 2025, ~~compared~~on a year-over-year basis, which we believe is primarily due to increased shopping and price sensitivity where we saw an increase in the ~~same~~number ~~periods~~of ~~last~~existing ~~year~~customers who went through our new customer quote process to either modify existing coverage or to find a lower rate. As a result, some of these customers replaced their existing policies with new Progressive policies, which negatively impacted policy life expectancy, but retained the customer.

Our trailing 3- and 12-month policy life expectancy in the direct auto business experienced a decrease at the end of the second quarter 2025, on a year-over-year basis, which we believe is primarily driven by a shift in the mix of business and increased consumer shopping.

Personal Property

The year-over-year changes in our personal property business were as follows:

	Change Over Prior Year
	Quarter				Year-to-date
	2025		2024		2025		2024
Applications
New	(114)	%	3542	%	(65)	%	3336	%
Renewal	1413		63		13		75
Total	47		1615		6		15
Written premium per policy
New	(3316)		(1022)		(3731)		(511)
Renewal	(36)		21		(34)		43
Total	(65)		(49)		(7)		(14)
Policy life expectancyTrailing 12 months	(1715)		5(6)

Our personal property business writes residential property insurance for homeowners and renters, umbrella, and flood insurance through the “Write Your Own” program for the National Flood Insurance Program. Our personal property business insurance is written in the agency and direct channels.

In addition to reducing our geographic footprint in more volatile weather-related markets (e.g., coastal and hail-prone states), we continued to focus on achieving profitability goals in markets that are less susceptible to catastrophes for our homeowners product, which we define as our total personal property business excluding renters and umbrella products. In the growth-oriented states, homeowners product policies in force increased 72% on a year-over-year basis as of ~~June~~September 30, 2025. Policies in force decreased 15% in the volatile weather states as of the end of the ~~second~~third quarter 2025, compared to the same period in the prior year.

We believe actions taken to address profitability adversely impacted new business application growth. During the first ~~half~~nine months of 2025, we continued several initiatives, including: (i) prioritizing insuring lower-risk properties (e.g., new construction, existing homes with newer roofs); (ii) having underwriting restrictions in place in most states, to only accept new homeowners product business when the property policy is bundled with a Progressive personal auto policy, where permitted; (iii) restricting new business and non-renewing policies that provide coverage for non-owner-occupied properties (e.g., short-term vacation rental, ~~secondary residence, etc.) in the majority of states; and, (iv) expanding our cost sharing with policyholders through~~

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secondary residence, etc.) in the majority of states; and, (iv) expanding our cost sharing with policyholders through mandatory wind and hail deductibles and roof depreciation schedules in markets where permitted. During the third quarter 2025, we began to take actions in certain states to generate new business growth at the state level based on our concentration risks, product segmentation, rate adequacy, cost sharing execution, and regulatory and market conditions. Some of these actions include expanding agency relationships and reopening new business in certain agency and direct channel markets.

InOur ~~addition,~~written ~~beginning~~premium inper ~~the~~policy ~~second~~decreased ~~quarter~~on ~~2024,~~a ~~following~~year-over-year basis for the ~~required~~third ~~filings~~quarter and ~~notices~~first nine months of 2025, weprimarily ~~began~~attributable ~~our~~to ~~efforts~~a shift in the mix of business to ~~non-renew~~more ~~about~~renters ~~115~~policies,~~000~~ ~~property~~which ~~policies~~have inlower ~~Florida.~~average ~~This~~written ~~effort~~premiums, ~~slowed~~and ~~while~~a ~~the~~decline ~~moratoriums~~in ~~were~~homeowners policies in ~~place~~force in ~~response~~both tovolatile ~~Hurricanes~~weather-related ~~Helene~~markets and ~~Milton~~non-owner-occupied properties, which ~~temporarily~~both ~~limited~~have anhigher ~~insurer’s~~average ~~ability~~premiums. toThe ~~non-renew~~effect ~~policies,~~of ~~but~~these ~~resumed~~declines ~~once~~were ~~the~~partially ~~moratoriums~~offset ~~expired~~by inrate ~~December~~increases ~~2024.~~taken ~~This~~during ~~effort~~the ~~was~~last ~~substantially~~12 ~~completed~~months byand ~~the~~higher ~~end~~premium ofcoverages reflecting increased property values. During the ~~second~~third quarter 2025, we increased rates, in aggregate, about 2% in our personal property business, bringing the year-to-date aggregate rate increase to 8%. We intend to continue to make targeted rate increases in states where we are not achieving our profitability goals.

~~Our~~The ~~written~~policy ~~premium~~life ~~per~~expectancy ~~policy~~in ~~decreased~~our onpersonal aproperty ~~year-over-year~~business ~~basis~~shortened ~~for~~as of the ~~second~~end ~~quarter~~of ~~and~~the ~~first~~third ~~six~~quarter ~~months of~~ 2025, ~~primarily~~compared ~~attributable~~ to ~~a shift in~~ the ~~mix~~same ofperiod ~~business~~last ~~to more renters policies~~year, which ~~have~~we ~~lower~~believe ~~average~~is ~~written~~primarily ~~premiums,~~driven ~~and~~by a ~~decline~~shift in ~~homeowners~~the ~~policies~~mix ~~in force in both volatile weather-related markets and non-owner-occupied properties, which both have higher average premiums. The effect~~ of these declines were partially offset by rate increases taken during the last 12 months and higher premium coverages reflecting increased property values. During the second quarter 2025, we increased rates, in aggregate, about 4% in our personal property business, ~~bringing the year-~~to~~-date~~ ~~aggregate~~more ~~rate~~renters ~~increase to 6%~~policies. ~~We intend to continue to make targeted rate increases in states where we are not achieving our profitability goals.~~

The policy life expectancy in our personal property business shortened during the second quarter 2025, compared to the same period last year, which we believe is primarily driven by a shift in the mix of business to more renters policies, the non-renewals for certain policies in volatile weather states, and rate increases made during the last 12 months.

E. Commercial Lines

The following table and discussion focuses on our core commercial auto products, which accounted for about 80% of our Commercial Lines segment net premiums written on a trailing 12-month basis, as of the end of the ~~second~~third quarter 2025. Year-over-year changes in our core commercial auto products were as follows:

	Change Over Prior Year
	Quarter				Year-to-date
	2025		2024		2025		2024
Applications
New	3(1)	%	711	%	64	%	46	%
Renewal	56		12		5		1
Total	54		45		5		23
Written premium per policy
New	(76)		1(3)		(7)		21
Renewal	(67)		135		(56)		1311
Total	(67)

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