10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

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

For the fiscal year ended December 31, 2025

or

☐	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<br>incorporation or organization)			(I.R.S. Employer<br>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)

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

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

None

(Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    ☒  Yes    ☐  No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    ☐  Yes    ☒  No

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 has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements

of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

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

The aggregate market value of the voting common shares held by non-affiliates of the registrant at June 30, 2025: $155,911,082,530

The number of the registrant’s Common Shares, $1.00 par value, outstanding as of January 31, 2026: 585,906,353

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s Proxy Statement for the Annual Meeting of Shareholders to be held on May 8, 2026, and the Annual Report to Shareholders of The Progressive Corporation and subsidiaries for the year ended December 31, 2025, included as Exhibit 13 to this Form 10-K, are incorporated by reference in Parts I, II, III, and IV hereof.

ITEM 1. BUSINESS

General Development of Business

The Progressive Corporation, an insurance holding company, has insurance and non-insurance subsidiaries and affiliates (references in this Item to subsidiaries include affiliates as well). Our insurance subsidiaries write personal and commercial auto insurance, personal residential property insurance, and insurance for motorcycles, watercraft, and other recreational vehicles. We also offer business-related general liability and commercial property insurance predominantly for small businesses, workers’ compensation insurance primarily for the transportation industry, and other specialty property-casualty insurance and provide related services. Our non-insurance subsidiaries generally support our insurance and investment operations. We operate throughout the United States. Unless noted, references to “state(s)” throughout this report include the District of Columbia. The Progressive Corporation, together with its insurance and non-insurance subsidiaries, comprise what we refer to as Progressive.

Progressive’s vision is to become consumers’, agents’, and business owners’ number one destination for insurance and other financial needs. Progressive’s four strategic pillars of people and culture, broad needs of our customers, leading brand, and competitive prices serve as the foundation of how we will achieve our vision.

Description of Business

Organization

Our Chief Executive Officer (CEO) assesses performance and makes key operating decisions for our insurance, investment, and service operations and is supported by the following management team that oversees the business and corporate functions that support all areas of our organization.

Chief Executive Officer
•Chief Financial Officer	•Chief Marketing Officer
•Chief Investment Officer	•Personal Lines President
•Chief Strategy and Finance Management Officer	•Commercial Lines President
•Chief Human Resources Officer	•Claims President
•Chief Information Officer	•Customer Relationship Management President
•Chief Legal Officer

Our insurance and claims organizations are generally managed on a state-by-state basis due to the nature of insurance, legal and regulatory requirements, and other local factors, and are supplemented by national operations and supported by our corporate functions. State-specific organizations typically report to a regional general manager, who then reports to the applicable group president. In California, we operate a separate agency auto organization with its own management and customer relationship management organization.

Personal Lines

Our Personal Lines operating segment writes insurance for personal autos and special lines products (e.g., recreational vehicles, such as motorcycles, RVs, and watercraft), collectively referred to as our personal vehicle business, and personal residential property insurance for homeowners and renters. The Personal Lines segment accounted for 87% of our total net premiums written in 2025, 85% in 2024, and 84% in 2023.

For 2025, our personal vehicle products represented 96% of our total Personal Lines net premiums written, 95% for 2024, and 94% for 2023. We write our personal vehicle insurance in all states, however, our special lines products are not written in the District of Columbia.

•Personal auto insurance represented 95% of our total personal vehicle net premiums written in both 2025 and 2024, and 94% in 2023. We ranked second in market share in the U.S. private passenger auto insurance market, based on 2024 premiums written, and we believe we continue to hold that position for 2025. There are approximately 230 competitors in this market. Progressive and the other leading 15 private passenger auto insurers, each of which writes over $3 billion of premiums annually, comprise about 85% of this market. All industry data, including ranking and market share, based on premiums written, has been obtained directly from data reported by either S&P Global Market Intelligence or A.M. Best Company, Inc. (A.M. Best), or was estimated using A.M. Best data as the primary source.

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•Special lines products represented the remaining personal vehicle net premiums written for the years mentioned above. Due to the seasonal nature of these products, we typically experience higher losses during the warmer weather months. Our competitors are specialty companies and large multi-line insurance carriers. Although industry figures are not available, based on our analysis of this market, we believe that we are the market share leader for both the motorcycle and boat products and that we are one of the largest providers of RV insurance.

In addition to writing residential property insurance for homeowners and renters, in virtually all states, our personal property business offers insurance for manufactured homes, personal umbrella insurance, and primary and excess flood insurance. We also act as a participant in the “Write Your Own” program for the National Flood Insurance Program (NFIP) under which we write flood insurance in virtually all states; 100% of this business is reinsured with the NFIP.

Our personal property business represented 4% of our total Personal Lines net premiums written in 2025, 5% in 2024, and 6% in 2023, with about 95% of the total personal property net premiums written attributable to the homeowners and renters products. We were the twelfth largest homeowners carrier in the U.S., based on 2024 premiums written, and we are currently unable to determine if we will hold that ranking for 2025. There are approximately 360 competitors in the homeowners insurance market nationwide and we compete with many of these companies. Progressive and the other leading 28 large companies/groups, each with over $1 billion of premiums written annually, comprise about 80% of the market.

We tend to see more personal property business written during the second and third quarters of the year based on the cyclical nature of property sales. Losses also tend to be higher during the warmer weather months when storms are more prevalent. As a property insurer, we have exposure to losses from catastrophes, including hurricanes, and other severe weather events. See Item 1A, Risk Factors – II. Insurance Risks below for more information. To help mitigate these risks, we enter into reinsurance arrangements. See the “Reinsurance” section below for further discussion of our reinsurance programs.

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

Agency Distribution Channel

•The agency personal vehicle business includes business written by our network of more than 40,000 independent insurance agencies located throughout the U.S., as well as brokerages in New York and California. These independent insurance agents and brokers have the ability to place business with Progressive for specified insurance coverages within prescribed underwriting guidelines, subject to compliance with our mandated procedures. The agents and brokers do not have authority to establish underwriting guidelines, develop rates, settle or adjust claims, or enter into other transactions or commitments. The agency personal vehicle business also writes insurance through strategic alliance business relationships with other insurance companies, financial institutions, and national agencies. The total personal vehicle net premiums written through the agency channel represented 43% of our total personal vehicle volume in 2025, 45% in 2024, and 46% in 2023.

•Our personal property business is primarily written through the independent agency channel and through select agents under our Platinum program as part of our Destination Era strategy, discussed below. The total personal property net premiums written through the agency channel represented 72% of our total personal property volume in 2025, 74% in 2024, and 77% in 2023.

Direct Distribution Channel

•The direct personal vehicle business includes business written directly by us online or by phone. The total net premiums written by the direct personal vehicle business represented 57% of our total personal vehicle volume in 2025, 55% in 2024, and 54% in 2023.

•Our direct personal property business is written by us over the phone and through HomeQuote Explorer® (HQX), our multi-carrier, direct-to-consumers online personal property offering. The HQX online buy button is available in almost every state. In addition to being able to quote our personal property products on HQX, consumers are able to quickly and easily compare homeowners insurance online from Progressive and other carriers. The total net premiums written by the direct personal property business represented 28% of our total personal property volume in 2025, 26% in 2024, and 23% in 2023.

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We continue to provide personal auto customers in both the agency and direct channels the opportunity to improve their auto insurance rates based on their personal driving behavior through Snapshot®, our usage-based insurance (UBI) program. We offer Snapshot through our hardware-based and/or mobile-app versions in all states, other than California. We believe this mobile app improves the user experience. In addition to the personal benefits for our customers, the data collected via the mobile app affords us a unique perspective on vehicle operations, accidents, and mobile device usage. Our updated personal auto product models, discussed below, often also include Snapshot enhancements intended to improve its accuracy and competitiveness and broaden its applicability.

We seek to refine our product segmentation, underwriting models, and pricing over time, and we regularly elevate new product models. At any one time, we could have multiple product models in the marketplace, as new versions are rolled out on a state-by-state basis. Such new product models generally introduce new risk variables intended to improve the accuracy of matching rate to risk, increase our competitiveness, and/or make our products more attractive to specific market segments, among other enhancements.

In the third quarter 2025, we started rolling out our latest personal auto product offering, model 9.0, which contains new and expanded coverage features. With the 9.0 model, we introduced embedded renters insurance as an optional endorsement to an auto policy. This endorsement provides coverage that used to only be offered through a stand-alone renters policy. Product 9.0 also includes updates to our rating calculation that improve our ability to more accurately match rate to risk by expanding our use of external data, introducing new rating variables, and refining existing rating variables. As of December 31, 2025, 10 states, that represented about 25% of our companywide personal auto net premiums written, are on model 9.0 and, overall, we are seeing favorable conversion results in both the agency and direct channels. Our 9.1 model is currently in execution planning, and we expect the first state to elevate in early 2027.

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

We continued to advance our personal property product segmentation, pricing, and risk selection capabilities in 2025. Through the end of the year, we had 39 states elevated to our next-generation-product models (5.0 and higher), which represented close to 90% of our personal property net premiums written. Key features of our next-generation-product models include expanded peril rating and the introduction of new rating variables. We continue to refine our model design and deployment processes to increase quality and speed to market.

Our Personal Lines strategy is to be a competitively priced provider of a broad range of personal auto, special lines, and personal property insurance products with distinctive service, distributed through whichever channel the customer prefers, and bundled with other products when appropriate to match our customers’ needs. Volume potential is driven by our price competitiveness, the actions of our competitors, brand recognition, and quality service delivered through our employees who embody the Progressive culture, among other factors. See “Competitive Factors” below for further discussion.

Our Personal Lines business is focused on efforts to form deeper and longer-term relationships with our customers through our Destination Era strategy, which supports the pursuit of our vision described above. Through this strategy, we seek to leverage our personal auto business with that of our personal property business, as well as insurance products and non-insurance services offered by unaffiliated third parties, to provide our customers access to a range of products addressing their diverse needs, with the option to “bundle” certain of the products together. Bundled products are an integral part of our consumer offerings and an important part of our strategic agenda. Customers who prefer to bundle represent a sizable segment of the insurance market, and our experience is that they tend to stay with us longer and generally have lower claims costs.

Our Destination Era strategy involves a number of initiatives, including:

•In our agency distribution channel, we offer customers the opportunity to bundle our personal auto, special lines, and personal property offerings. To further drive bundling in the agency channel, we offer the Platinum program to those select agents who have the appropriate customers for our bundled offering. This program combines our personal auto and property insurance with the compensation, coordinated policy periods, single event deductible, and other features that meet the needs and desires that our agents have expressed. As of December 31, 2025, we had nearly 6,000 Platinum agents.

•We offer independent agents a quoting system that makes it easier for them to bundle multiple policies with us. Our “Portfolio” quoting system reduces data entry, displays all available products eligible for bundled quotes, simplifies the agents’ experience on third-party comparative rater systems, and provides agents and their customers an overview of premium, bundle savings, and applied discounts to allow them to add or remove products with one click. Portfolio is available for all agents appointed to write new business where we offer personal property products.

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•In the direct channel, we bundle Progressive personal auto with our personal property products in almost all states, as well as with homeowners and renters products provided by unaffiliated insurance carriers nationwide. We offer these bundles by providing a single destination to which consumers may come for both their personal auto and property insurance needs. In many cases, we may offer discounts to incentivize or reward this bundling.

•Where available, our special lines products and umbrella insurance can be combined with any of the personal auto, homeowners, or renters coverages that we offer, in either the direct or agency channel.

•As we increase our penetration of the more complex, multi-product customers who are critical to our Destination Era success, we are further expanding the roster of products provided by unaffiliated companies that we make available through online and telephonic referrals and for which we receive commissions, or other compensation, that are reported as service revenues. Our list of unaffiliated company products includes items such as pet health, life, and classic and specialty car insurance.

Commercial Lines

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

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

We offer our commercial auto products in all states, excluding the District of Columbia. Our commercial auto customers insure approximately two vehicles per policy, excluding large fleet policies. During 2025, we wrote about 90% of our commercial auto business through the agency channel, excluding transportation network company (TNC) business, which is all written through the direct channel.

There are approximately 340 competitors in the total U.S. commercial auto market. We primarily compete with about 64 other large companies/groups, each having over $200 million of commercial auto premiums written annually. Progressive and these leading commercial auto insurers comprise 88% of this market. Progressive has ranked number one in the U.S. commercial auto market since 2015, and we believe that we continued to hold that position for 2025.

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

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

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

•Tow – tow trucks and wreckers used in towing services and gas/service station businesses,

•Contractor – vans, pick-up trucks, and dump trucks used by light contractors (e.g., painters, plumbers, landscapers), and heavy construction, and

•Business auto – autos, vans, pick-up trucks used by small businesses (e.g., retailing, manufacturing, farming) and for-hire livery (e.g., non-fleet (i.e., five or fewer vehicles) taxis, black-car services, and airport taxis).

As with our personal auto products, we regularly introduce new commercial auto product models designed to improve our pricing accuracy and competitiveness through improved segmentation, the use of additional risk variables, and other enhancements. New models are typically rolled out on a state-by-state basis and, as a result, we often have more than one product version in the marketplace at a time.

During 2025, we began to roll out our next-generation-product models across our core commercial auto, medium fleet, and BOP products, expanding segmentation and pricing variables. Our 8.3 core commercial auto product model launched in 11 states that represent 43% of our core commercial auto countrywide net premiums written at the end of 2025. Our newest medium-fleet product model was fully deployed, in nearly all states, and our newest BOP model was in market in 34 states that represent 92% of our countrywide BOP net premiums written as of the end of 2025. The BOP product, at year-end 2025, was available to agents in 46 states, excluding the District of Columbia. In core commercial auto, we also launched and rolled out our new Cargo Plus endorsement. The Cargo Plus endorsement expands coverage to better meet the needs of our for-hire transportation customers and was available in 49 states as of the end of 2025.

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Similar to Snapshot in the personal auto business, the Commercial Lines business offers its commercial auto customers UBI options. Smart Haul® is the UBI program that uses driving data from a motor carrier’s existing electronic-logging device. Smart Haul offers owner operators and small fleets the ability to receive discounts on their insurance by sharing their electronic-logging-device-generated data with us. Snapshot ProView® is the UBI program for commercial auto customers without their own electronic logging device. Snapshot ProView allows customers to earn upfront discounts and provides value-added services, like fleet management and personalized tips, to encourage safe driving. Both programs are available in nearly all states.

In addition to the BMTs listed above, as of December 31, 2025, we provided commercial auto coverage in the TNC business to Uber Technologies subsidiaries in 14 states. TNC represented 14% of our Commercial Lines net premiums written in 2025, 15% in 2024, and 13% in 2023. Premiums written in our TNC business are determined, in part, by estimating the number of miles to be driven over the life of the policy term, on a policy-by-policy basis. These premium estimates are adjusted monthly based both on actual miles driven and an estimate of miles to be driven during the remaining policy term.

We also offer workers’ compensation insurance tailored for the transportation industry. Our offering includes loss prevention services that promote safe operations and dedicated claims-handling specialists. This product is available through a limited network of licensed brokers and includes options ranging from guaranteed premium cost plans to loss dependent plans, to meet the varying needs of small to large trucking fleets.

We also continue to act as an agent for business customers to place BOP, general liability, professional liability, and workers’ compensation coverage through unaffiliated insurance carriers and are compensated through commissions, which are reported as service revenues. To further help our direct customers, we offer BusinessQuote Explorer® (BQX), a digital application that allows small business owners to obtain quotes for our BOP product and the products offered from a select group of unaffiliated carriers.

Reinsurance

Our reinsurance activity includes both transactions which are regulated and those that are non-regulated. The regulated programs include several mandatory state pools, such as the Michigan Catastrophic Claims Association, Florida Hurricane Catastrophe Fund (FHCF), and North Carolina Reinsurance Facility, as well as the government-backed NFIP and other reinsurance facilities required by specific states for various lines of business. All of these programs are governed by the federal government or an individual state’s insurance regulations.

Our non-regulated transactions represent voluntary external reinsurance arrangements related to portions of our personal property and Commercial Lines businesses; we generally do not reinsure our personal vehicles business outside of the regulated programs discussed above.

Personal Property Programs

The property reinsurance program is designed to reduce overall risk while, to the extent of coverage purchased, protecting capital from the costs associated with catastrophic events. The program provides coverage for our personal property business and certain BOP product coverages. The program includes contracts that cover multi-year periods.

The occurrence excess of loss (XOL) program, which is in place from June 1, 2025 through May 31, 2026, supports the goal of maintaining adequate capital and is comprised of privately placed reinsurance, reinsurance placed through catastrophe bond transactions, and coverage obtained through the FHCF. The 2025 occurrence XOL program has a retention threshold of $200 million of losses and allocated loss adjustment expenses (ALAE) for the first event outside of Florida and $75 million for an event in Florida. The Florida retention is lower due to a Florida-only XOL layer generally providing up to $125 million of coverage in excess of the $75 million retention threshold and mandatory FHCF coverage. For losses that exceed $200 million, we also retain a percent of the first reinsurance layer, up to $48 million, after applying FHCF coverage. We may be responsible for additional losses if we experience more than two such events or if claims incurred exceed the maximum coverage limits of the reinsurance that is then in place. The coverage limits, net of retention but including the shared limit coverage discussed below, in place at December 31, 2025, were as follows:

•$2.2 billion for a first event in Florida; and

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

The coverage limits above were reduced by $70 million effective January 8, 2026, with the maturation of a catastrophe bond. Portions of the reinsurance coverage limits above only provide coverage for hurricanes and tropical storms as designated by the U.S. National Weather Service (named storms).

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Coverage for a second event (and, potentially, for subsequent covered events) under the occurrence XOL program would depend on several factors, including the location and the extent of covered losses of the earlier events in the contract period. Portions of our program include reinstatement limits providing coverage for subsequent events. Some portions of our occurrence XOL program have an obligatory reinstatement of coverage. Reinstatement premiums would have no effect on our results of operations since, per our contracts, we have separate reinsurance to cover these situations. During 2025, no losses were ceded under the occurrence XOL program that is currently in place or the occurrence XOL that was in place from June 1, 2024 through May 31, 2025.

Included in the occurrence XOL, from June 1, 2025 through December 31, 2025, we had shared limit coverage in our reinsurance program that provided $175 million of coverage for named storms. This reinsurance arrangement can, depending on the circumstances, provide additional coverage for a significant covered event, or provide coverage for aggregate losses under our occurrence XOL retention. During 2025, no losses were ceded under this “hurricane season” coverage. We have renewed this coverage from May 31, 2026 through December 31, 2026 (i.e., the 2026 hurricane season) for $175 million of coverage.

During 2025, our personal property business also had an aggregate XOL program structure with multiple layers providing coverage for catastrophe losses and ALAE. No losses were ceded under this aggregate XOL agreement during 2025. In January 2026, we entered into a new aggregate XOL for claims occurring in 2026. The layers for the aggregate XOL programs active in 2025 and 2026 provided coverage, as follows:

Policy for claims occurring in the year ended December 31,	2026			2025
Coverage terms (millions)	First Layer	Second Layer	Third Layer	Modeled Loss	First Layer	Second Layer
Retention	$550	$550	$750	$665	$450 to $475	$525
Per occurrence event retention limit, net of the per occurrence deductible	$280	$280	$280	$50	$43 or $45	$175 or $180
Total coverage, net of retention	$113	$125	$63	$15	$75	$100
Per occurrence deductible before each loss could be considered for aggregation	$20	$20	$20	$0	$5 or $8	$20 or $25

For 2026, all layers include coverage for named storms and other types of perils (e.g., wildfires, winter storms, and severe thunderstorms). Any one portion of the aggregate XOL program does not have to be exhausted before the other portions can be applied.

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

Beginning in 2026, we have an occurrence XOL program covering our special lines boat product, which provides coverage from January 1, 2026, through December 31, 2026. This program provides $150 million of coverage for named windstorms in excess of a $225 million per event retention. Portions of the boat XOL program include reinstatement limits providing coverage for subsequent events.

Commercial Lines Programs

The reinsurance program in our Commercial Lines business is designed to help manage certain exposures in our commercial auto, TNC, BOP, and workers’ compensation products. Our Commercial Lines business uses quota-share reinsurance agreements for TNC, and certain workers’ compensation and BOP product coverages. We also have XOL reinsurance agreements for higher-limit commercial auto liability, and certain BOP and workers’ compensation product coverages, which reinsure a portion of loss above a retention threshold. Under each agreement, we cede a portion of premiums, losses, and, in most cases, loss adjustment expenses (LAE).

For the large fleet commercial auto business, we retain the first $1 million, per occurrence, and have a coverage limit, net of retention, of up to $4 million. The retention threshold for the BOP XOL agreement is $2 million, for each property loss, with a coverage limit up to $4 million. Lastly, for the workers’ compensation product, we have catastrophe workers’ compensation coverage up to $74 million per occurrence pursuant to a $20 million maximum one-life sublimit. In general, we retain approximately $1 million per occurrence on workers’ compensation through the use of XOL and quota-share reinsurance.

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For our TNC product, the amounts retained vary by state and cost-sharing agreements are in place with companies owned by the TNC company. Recoverable balances under these arrangements are required by our contracts to be collateralized (i.e., secured by assets held by an independent third party or a letter of credit issued by a commercial bank) at a target of over 100% of the recoverable balance.

Program Evaluation

We evaluate our reinsurance programs during our renewal discussions, if not more frequently, to ensure they continue to effectively address the company’s risk tolerance. We plan to continue to assess our ability to assume more risk with the availability and costs of various types of reinsurance contracts. See Item 1A, Risk Factors – II. Insurance Risks and – VI. Credit and Other Financial Risks below and Note 7 – Reinsurance in our 2025 Annual Report to Shareholders, which is filed as Exhibit 13 to this Form 10-K (the Annual Report) for more information.

Claims

Our employees handle nearly all of our Personal Lines vehicle and Commercial Lines claims from either physical claims offices throughout the U.S. or through a virtual environment, and are supported by centralized functions at our corporate offices and a nationwide network of about 4,700 third-party repair shops. During 2025, we used independent claim adjusters opportunistically in our vehicle businesses to help support our claim employees in managing our claims inventory and to timely respond to our customers impacted by certain catastrophe events. While not intended to be a significant part of our claims handling model for these businesses, we may use independent adjusters from time to time.

For our Personal Lines property business, we manage claims through a network of independent claim field adjusters and employee claim representatives who manage the overall claims process. As of December 31, 2025, we had about 1,270 claims employees to handle our personal property claims.

Competitive Factors

The insurance markets in which we operate are highly competitive. Property-casualty insurers generally compete on the basis of price, agent commission rates, consumer brand recognition and confidence, coverages offered and other product features, claims handling, financial stability, customer service, and geographic coverage. Vigorous competition is provided by large, well-capitalized national companies in both the agency and direct channels, and by smaller regional insurers. In the agency channel, some of our competitors have broad distribution networks of employed or captive agents. With widely available comparative rating services, consumers can easily compare prices among competitors. Due to the highly competitive nature of the property-casualty insurance markets in which we operate, many competitors invest heavily in advertising and marketing efforts and/or expanding their online or mobile service offerings.

We rely heavily on technology to operate our business and on extensive data gathering and analysis to segment markets and price our products accurately according to risk. We have remained competitive by refining our risk measurement and price segmentation skills, closely managing expenses, and achieving operating efficiencies. High-quality customer service, fair and accurate claims adjusting, and strong brand recognition are also important factors in our competitive strategy. Competition in our insurance markets is also affected by the pace of technological developments. An insurer’s ability to adapt to change, innovate, develop, implement and use new applications and other technologies can affect its competitive position. In addition, our competitive position could be adversely impacted if we, or one of our third-party vendors, experience a cybersecurity attack or incident or we are unable to maintain uninterrupted access to our systems, business functions, and the systems of certain third-party providers. See Item 1A, Risk Factors and Item 1C, Cybersecurity below for more information.

In addition, there continues to be a proliferation of patents related to new ways in which technologies can affect competitive positions in the insurance industry. Several of our competitors have many more patents than we do. Some of the patents we currently hold include two patents on the Name Your Price® functionality on our website (expiring in 2028 or after), a usage-based insurance patent (expiring in 2032 or after), three multi-product quoting patents (expiring in 2032 or after), three patents for our implementation of a mobile insurance platform and architecture (expiring in 2032 or after), a patent on our system of providing customized insurance quotes based on a user’s price and/or coverage preferences (expiring in 2033 or after), two patents for our loyalty call routing system (expiring in 2033 or after), two patents for a multivariate predictive system that processes usage-based data (expiring in 2035 or after), four patents for the implementation of chatbots in online quoting and servicing (expiring in 2038 or after), two patents for our Commercial Lines business classification system (expiring in 2039 or after), three patents for our automated document classification system (expiring in 2040 or after), and two patents for embedded quoting (expiring in 2043 or after).

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We have a substantial amount of “know-how” developed from years of experience with usage-based insurance, and from analyzing the data from billions of driving miles derived from our usage-based devices and our mobile app. We believe this intellectual property provides us with a competitive advantage in the usage-based insurance market.

Insurance Licenses

Our insurance subsidiaries operate under licenses issued by various insurance regulatory authorities. These licenses may be of perpetual duration or renewable periodically, provided the holder continues to meet applicable regulatory requirements. Our licenses govern the kinds of insurance coverages that may be written by our insurance subsidiaries in the issuing jurisdiction. Such licenses are normally issued only after the filing of an appropriate application and the satisfaction of prescribed criteria. All licenses that are material to our subsidiaries’ businesses are in good standing.

Insurance Regulation

Our insurance subsidiaries are generally subject to regulation and supervision by insurance departments of the jurisdictions in which they are domiciled or licensed to transact business. At least one of our insurance subsidiaries is licensed and subject to regulation in each of the 50 states, the District of Columbia, Bermuda, and Canada and its provinces. We also have subsidiaries that write excess and surplus lines, which are regulated in a different fashion that generally offers additional product flexibility. The nature and extent of such regulation and supervision varies from jurisdiction to jurisdiction. Generally, an insurance company is subject to a higher degree of regulation and supervision in its jurisdiction of domicile. Our domestic insurance subsidiaries are domiciled in the states of Florida, Illinois, Indiana, Louisiana, Michigan, New Jersey, New York, Ohio, Texas, and Wisconsin. In addition, California and Florida treat certain of our subsidiaries as domestic insurers for certain purposes under their “commercial domicile” laws.

Insurance laws impose numerous requirements, conditions, and limitations on the operations of insurance companies. Insurance departments have broad regulatory powers relating to those operations. Regulated areas include, among others:

•licensing of insurers and agents,

•capital and surplus requirements,

•restrictions on marketing,

•statutory accounting principles specific to insurance companies and the content of required financial and other reports,

•requirements for establishing insurance reserves,

•investments,

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

•limitations on rates of return or excess profitability,

•rating criteria, rate levels, and rate changes,

•insolvencies of insurance companies,

•assigned risk programs,

•authority to exit a business, and

•numerous requirements relating to other areas of insurance operations, including: required coverages, policy forms, policy cancellations and non-renewals, underwriting standards, and claims handling.

Insurance departments are authorized to conduct periodic and other examinations of regulated insurers’ financial condition and operations to monitor the financial stability of the insurers and to ensure adherence to statutory accounting principles and compliance with insurance laws and regulations. In addition, in some jurisdictions, the attorney general’s office may exercise certain supervisory authority over insurance companies and, from time to time, may investigate certain insurance company practices.

Insurance departments establish and monitor compliance with capital and surplus requirements. One prominent ratio monitored by regulators is the amount of net premiums written as a ratio of surplus. Although the ratio of written premiums to surplus that the regulators will allow is a function of a number of factors (including applicable laws, the type of business being written, the adequacy of the insurer’s reserves, and the quality of the insurer’s assets), the annual net premiums that an insurer may write historically have been perceived to be limited to a specified multiple of the insurer’s total surplus, generally 3 to 1 for property and casualty insurance, which is generally the target for our vehicle businesses; however, two states have permitted us to target a premiums-to-surplus ratio for our personal vehicle insurance companies to a maximum ratio of 3.5 to 1 based on our strong financial condition. For 2025, these subsidiaries represented 91% of our companywide total net premiums written. Our personal property business maintains a lower premiums-to-surplus ratio. Thus, the amount of an insurer’s statutory surplus, in certain cases, may limit its ability to grow its business. At year-end 2025, we had net premiums written of $83.2 billion and statutory

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surplus of $28.4 billion. The combined premiums-to-surplus ratio for all of our insurance companies was 2.9 to 1 at December 31, 2025. In addition, as of January 31, 2026 we had access to $5.5 billion of securities held in a non-insurance subsidiary, portions of which could be contributed to the capital of our insurance subsidiaries to support growth or for other purposes.

The National Association of Insurance Commissioners (NAIC) also has developed a risk-based capital (RBC) program to enable regulators to identify and take appropriate and timely regulatory actions relating to insurers that show signs of weak or deteriorating financial condition. RBC is determined by a series of dynamic surplus-related formulas that contain a variety of factors that are applied to financial balances based on the degree of certain risks, such as asset, credit, and underwriting risks. At December 31, 2025, our RBC ratios were in excess of minimum requirements.

Insurance companies are generally required to file detailed annual and other reports with the insurance department of each jurisdiction in which they conduct business. These reports include:

•the insurer’s financial statements under statutory accounting principles,

•details concerning claims reserves held by the insurer,

•specific investments held by the insurer, and

•numerous other disclosures about the insurer’s financial condition and operations.

Insurance laws and insurance departments also regulate investments that insurers are permitted to make. Limitations are placed on the amounts an insurer may invest in a particular issuer, as well as the aggregate amount an insurer may invest in certain types of investments. Certain investments are prohibited.

Insurance holding company laws enacted in many jurisdictions authorize insurance departments to regulate acquisitions of insurers and certain other transactions and to require periodic disclosure of specified information. These laws impose prior approval requirements for certain transactions between insurers and their affiliates and generally regulate dividend and other distributions, including loans and cash advances, between insurers and their affiliates. See Note 8 – Statutory Financial Information in the Annual Report for further discussion.

Under insolvency and guaranty laws, insurers can be assessed or required to contribute to applicable guaranty funds to cover policyholder losses resulting from the insolvency of other insurers. Insurers are also required by many jurisdictions, as a condition of doing business in the jurisdiction, to provide coverage to certain risks that cannot find coverage in the voluntary market. These “assigned risk” plans generally specify the types of insurance and the level of coverage that must be offered to such involuntary risks, as well as the allowable premium. Many jurisdictions also have involuntary market plans, which hire a limited number of servicing carriers to provide insurance to involuntary risks. These plans, through assessments, pass underwriting and administrative expenses on to insurers that write voluntary coverages in those jurisdictions.

Many jurisdictions have laws and regulations that limit an insurer’s ability to exit a market. For example, certain jurisdictions limit an insurer’s ability to cancel or non-renew policies. Certain jurisdictions also prohibit an insurer from withdrawing one or more lines of business from the jurisdiction, except pursuant to a plan that is approved by the jurisdiction’s insurance department. The insurance department may disapprove a plan that may lead to market disruption. Laws and regulations that limit the cancellation or non-renewal of policies, or that subject program withdrawals to prior approval requirements, may delay or restrict an insurer’s ability to exit unprofitable markets or businesses.

As mentioned above, insurance departments have regulatory authority over many other aspects of an insurer’s insurance operations, including coverages, forms, rating criteria, and rate levels. The ability to implement changes to these items on a timely basis is critical to our ability to compete effectively in the marketplace. Rate regulation varies from “use and file,” to “file and use,” to “prior approval.”

Regulation of insurance constantly changes as real or perceived issues and developments arise. Some changes may be due to economic developments, such as changes in investment laws made to recognize new investment products or to respond to perceived investment risks, while others reflect concerns about consumer privacy, insurance availability, prices, allegations of unfair-discriminatory pricing, underwriting practices, and solvency. In recent years, legislation, regulatory measures, and voter initiatives have been introduced, and in some cases adopted, which deal with use of consumer information, cybersecurity, use of credit and other information in underwriting and rating, insurance rate development, use of artificial intelligence and algorithms, rate of return limitations, and the ability of insurers to cancel or non-renew insurance policies. In addition, from time to time, the U.S. Congress and certain federal agencies have investigated the current condition of the insurance industry to determine whether federal regulation is necessary. The Federal Insurance Office is required to collect information about the insurance industry and monitor the industry for systemic risk.

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

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Investments

Our investment portfolio, which had a fair value of $97.4 billion at December 31, 2025, compared to $80.3 billion at December 31, 2024, consists of fixed-maturity securities, short-term investments, and equity securities (nonredeemable preferred stocks and common equity securities). Our fixed-maturity securities, short-term investments, and nonredeemable preferred stocks are collectively referred to as fixed-income securities. Our principal investment goals are to manage our portfolio on a total return basis to support all of the insurance premiums that we can profitably write and contribute to our comprehensive income. In our actively managed fixed-income securities portfolio, we believe that, in addition to many traditional considerations of fixed-income investing, there is less risk in securities that score higher across various environmental, social, and governance factors. Therefore, we consider these assessments when evaluating these investment decisions. Our portfolio is invested primarily in short-term and intermediate-term, investment-grade fixed-income securities.

Investment income is affected by the variability of cash flows to or from the portfolio, shifts in the type and quality of investments in the portfolio, changes in yield, and other factors. For securities related to our investment portfolios, total investment income includes interest, dividends, accretion, amortization, and total net realized gains (losses) on securities. Total investment income, before expenses and taxes, was $4.3 billion in 2025, $3.1 billion in 2024, and $2.3 billion in 2023. On a pretax total return basis (i.e., total investment income plus changes in net unrealized gains (losses) on our fixed-maturity securities), our investment portfolio generated investment income of $6.2 billion in 2025, $3.3 billion in 2024, and $3.8 billion in 2023. For more detailed discussion of our investment portfolio, see Note 2 – Investments, Note 3 – Fair Value, and Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Annual Report.

Service Businesses

Our service businesses, which represented less than 1% of our total revenues at December 31, 2025, 2024, and 2023, and did not have a material effect on our overall operations, primarily include our commission- or fee-based businesses, where we often act as an agent for other insurance companies. We offer home, condominium, and renters insurance, among other products, written by affiliated and unaffiliated insurance companies in almost all states in the direct channel. We also offer our customers the ability to package their commercial auto coverage with other commercial coverages that are written by unaffiliated insurance companies. We receive commissions for the policies written under this program and allocate marketing and other servicing costs associated with maintaining these programs.

Liability for Property-Casualty Losses and Loss Adjustment Expenses

The consolidated financial statements include the estimated liability for unpaid losses and LAE, which include ALAE (e.g., defense and cost containment expenses) and unallocated LAE (e.g., adjusting and other expenses), of our insurance subsidiaries. Our objective is to ensure that total reserves (i.e., case reserves and incurred but not recorded reserves, or IBNR) are adequate to cover all loss costs, while sustaining minimal variation from the time reserves are initially established until losses are fully developed. The liabilities for losses and LAE are determined using actuarial and statistical procedures and represent undiscounted estimates of the ultimate net cost of all unpaid losses and LAE incurred through the end of the period. These estimates are subject to the effect of future trends on claims settlement, among other factors.

These estimates are regularly reviewed and adjusted as experience develops and new information becomes known. Adjustments, if any, relating to accidents that occurred in prior years are reflected in the current year results of operations and are referred to as “development” of the prior year estimates. In establishing loss reserves, we take into account projected changes in claim severity caused by a number of factors that vary with the individual type of policy written. This severity is projected based on historical trends, adjusted for anticipated changes in underwriting standards, inflation, policy provisions, claims resolution practices, and general economic trends. These anticipated trends are reconsidered periodically based on actual development and are modified if necessary.

See Note 6 – Loss and Loss Adjustment Expense Reserves in the Annual Report for a detailed discussion of our loss reserving practices and a reconciliation of our loss and LAE reserve activity, along with incurred and paid claims development by accident year for our segments, based on definitions pursuant to statutory accounting principles.

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Human Capital

We believe that our people and our culture remain our most significant competitive advantage, and that having the right people working together in the right way is critical to driving our results, building our enduring business, and creating long-term shareholder value. Our culture is deeply rooted in our Core Values (Integrity, Golden Rule, Excellence, Objectives, and Profit) and is the foundation for our human capital management strategies to attract, hire, engage, and retain highly qualified employees.

Our People

We believe that our culture and continued success has enabled us to create a workplace composed of highly talented people across diverse markets and with a broad range of backgrounds and experiences. They create innovative products and services, serve our customers, and work hard to help us achieve our vision.

Attract and Hire

We employ extensive recruiting practices with a goal of developing qualified and deep candidate pools and attracting candidates from both established and new sources. We believe that our recruitment efforts generally have enabled us to present pools of high-potential job candidates to our hiring managers. In turn, we train our hiring managers to identify and avoid unconscious biases they may have during the interview and selection process. We also train our hiring managers on the importance of employing individuals with different kinds of backgrounds, experiences, perspectives, and skills. We believe these strategies collectively enhance our ability to hire the best candidate for each of our openings and contribute to our continued success.

Engage and Retain

We appreciate that engaged employees are more productive, provide better service to our customers, and are more likely to stay with Progressive. Each year, we survey our people to measure their engagement. Our 2025 engagement and culture survey results placed us in the top 1% of all companies using the survey, which is designed by a nationally-known third party and administered in like form to over 1,000 employers in the United States. We use the results, along with other information, to evaluate our human capital strategies and the health of our culture.

Employee retention is an important part of our strategy. As of December 31, 2025, our annualized retention rate was 90%, up 1% from the prior year, and more than 18,000 employees had over 10 years of tenure at the company. Promoting from within also is a key part of our strategy. Many of our leaders, including all executive team members, joined Progressive in a more junior position and advanced to significant leadership positions within the organization. In 2025, we filled over 81% of our open positions above entry level by hiring from within, including just over 2,200 managerial positions. As of December 31, 2025, we had about 70,000 employees. We disclose our consolidated EEO-1 data on our website.

Supporting our People and Culture

We strive to support our employees by providing challenging work experiences, career opportunities, and a culture of learning. We aim to provide a work environment that enables employees to present innovative ideas, share differing viewpoints, and constructively challenge assumptions. We believe this approach has helped the company expand and grow our businesses and create additional career opportunities for our employees.

Training and Development

We are focused on coaching and development, which we believe promotes greater engagement in our business and improves individual performance. We actively foster a learning culture and offer several leadership development programs, including a program open to employees with a focus on leading inclusively. Two of our career development boot camps (IT Programmer and Analyst) are intended to increase job learning and accelerate career opportunities. Moreover, we endeavor to provide employees with the tools and support to excel in their roles and build long-term careers at the company. Our professional development resource, “Career Central,” encourages employees to take control of their careers through career exploration guides, video insights, sample career journeys, discovery questionnaires to guide employees to roles that match their skills, and more. Available to new and tenured employees, our learning solutions are tailored to both individual contributors and leaders and cover a broad swath of skills and competencies. We also leverage our extensive contemporary art collection to offer training sessions to spark conversations about our culture, innovation, ethical obligations, and respecting our differences, among other things.

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Employee Resource Groups

Our first Employee Resource Groups (ERGs) were created in 2007 to help build communities for our employees and drive business impact. We have nine inclusive ERGs (Asian American Network, Disabilities Awareness Network, LGBTQ+ Network, Military Network, Network for Empowering Women, Parent Connection, Progressive’s African American Network, Progressive’s Latin American NETworking Association, and Young Professionals Network), and each one is open to all employees at the company. We believe our ERGs provide spaces for networking, understanding differences, and sharing experiences. In addition to enhancing our work environment, we believe our ERGs give the company valuable insights to better serve our customers. Nearly 44% of Progressive people belong to at least one ERG as of December 31, 2025. Additionally, we believe that ERG members are more engaged and more likely to stay with the company; as of December 31, 2025, their annualized employee retention rate was 94%, compared to 87% for non-ERG members.

Ethics

Our Core Values are the foundation for our Code of Business Conduct and Ethics, which provides clear expectations for all our people and confirms our commitment to high ethical standards and compliance with legal requirements. We provide ethics training, as well as regular communications, video series, and outside speakers presenting on themes such as Celebrate Disagreement, Core Conversations, and Courage at our Core, to emphasize our commitment to our ethical and legal responsibilities. Additionally, we have an “open door” policy that empowers every employee to reach out to any manager or any human resources representative when they have a question or concern or they want to share an idea. We also provide a confidential Alertline that is available for employees and others who want to raise a concern anonymously. We encourage our people to speak up, and when they do, we give timely attention to their concerns, take remedial action where appropriate, and do not discriminate or retaliate against them for reporting any concern to us in good faith.

Compensation and Benefits

We seek to provide competitive pay through a combination of fixed and variable compensation and have designed our compensation programs for employees to earn above market total compensation when company performance warrants it. We publish, internally, our competitive annualized base pay ranges and annual cash incentive targets for virtually all of our positions. As part of employee compensation, nearly all Progressive people participate in our annual cash incentive program, named Gainshare, which measures the growth and profitability of our insurance businesses. We believe Gainshare contributes to the cooperative and collaborative way we work together and, in part, defines our culture. Our executives and other senior leaders also receive compensation in the form of equity awards, which we believe supports a strong pay-for-performance linkage and further aligns their interests with those of our shareholders. We monitor overall pay equity among employees with similar performance, experience, and job responsibilities, and publish the results annually on our website.

Our employee benefits are intended to be competitive and to support the needs of our people and their families. We invest in the health and wellbeing of Progressive people by providing a broad range of benefits, including: medical, prescription drug, dental, and vision benefits; a 401(k) plan with up to a 6% company match; life insurance; long- and short-term disability insurance; and paid parental leave following birth, adoption, or placement of a foster child. Our health and wellness offerings include on-site fitness centers, medical clinics, and health seminars. We provide several on-site and online offerings, such as fitness classes and health discussions, to meet the needs of our employees who are working remotely. We continue to offer a variety of health and wellness programs accessible to employees working from the office or remotely. We also offer an Employee Assistance Program that provides 24-hour support, flexible work arrangements, and provide paid time off to help our people balance their work and personal lives.

Supporting An Inclusive Workplace

We believe that in order to be consumers’, agents’, and business owners’ number one destination for insurance and other financial needs, we need to anticipate and understand the needs of our customers. Therefore, we aspire to take full advantage of the rich diversity of our employees’ unique backgrounds, experiences, perspectives, skills, and talents.

We’re committed to creating an environment where all our people feel welcomed, valued, and respected, and we integrate this commitment into our workplace. We support inter-cultural and inter-personal awareness among our employees by offering formal training sessions and workshops focused on building our overall awareness and individual competencies to address difficult topics and foster an inclusive culture. This includes hosting regular IQ Inclusion QuarterlySM events which feature a series of speakers, discussion groups, and storytelling focused on themes such as embracing vulnerability and increasing collaboration. We also have companywide Courageous Conversations and Speakers Bureau programs, where presenters and facilitators lead work teams in discussions around topics such as the development of inclusive behaviors.

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

For over 20 years, we also have contributed to The Progressive Insurance Foundation. Through the Name Your Cause® program, each employee can recommend an eligible charity to receive a fixed amount of the Foundation’s charitable giving without requiring the employee to make an out-of-pocket donation. This is the Foundation’s way of supporting causes and reaching communities across the country where our people, and our customers, live and work. Since 2020, Progressive has also contributed, either directly or through the Foundation, to national charitable organizations identified by our ERGs.

Available Information

Our website is located at progressive.com. Except as expressly noted herein, the information on this website is not incorporated by reference in, and does not form part of, this Form 10-K. As soon as reasonably practicable, we make all documents that we file with, or furnish to, the SEC, including our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to these reports, available free of charge via our website at progressive.com/investors. These reports are also available on the SEC’s website: https://www.sec.gov. Information on our website does not constitute soliciting material and should not be deemed filed or incorporated by reference into any other Progressive filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent we specifically incorporate such information by reference in such a filing.

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ITEM 1A. RISK FACTORS

I. Summary

Our business involves various risks and uncertainties, certain of which are discussed in this section. Management divides these risks into five broad categories in assessing how they may affect our financial condition, cash flows, and results of operations, as well as our ability to achieve our strategic business goals and objectives. Our risk categories include:

•Insurance Risks - risks associated with assuming, or indemnifying for, the losses or liabilities incurred by policyholders,

•Operating Risks - risks stemming from external or internal events or circumstances that may affect our insurance operations directly or indirectly,

•Market Risks - risks that may cause changes in the value of assets held in our investment portfolios,

•Liquidity Risk - risk that our financial condition will be adversely affected by the inability to meet our short-term cash, collateral, or other financial obligations, and

•Credit and Other Financial Risks - risks that the other party to a transaction will fail to perform according to the terms of a contract, or that we will be unable to satisfy our obligations when due or obtain capital when necessary.

We have also included an “Other” section in the discussion below to identify risks that do not fit into one of the categories above.

Although we have organized risks generally according to these categories in the discussion below, many of the risks may have ramifications in more than one category. For example, although presented as an Operating Risk below, governmental regulation of insurance companies also affects our underwriting, investing, and financing activities, which are addressed separately under Insurance Risks, Market Risks, and Credit and Other Financial Risks below. These categories, therefore, should be viewed as a starting point for understanding the significant risks facing us and not as a limitation on the potential impact of the matters discussed.

Our business and that of other insurers may be adversely affected by a downturn in general economic conditions and other forces beyond our control. Issues such as unemployment rates, the number of vehicles sold, technological advances, home ownership trends, inflation or deflation, tariffs, consumer confidence, and construction spending, among many other factors, will have a bearing on the amount of insurance that is purchased by consumers and small businesses and the costs that we incur. Also, to the extent that we have a concentration of business in one or more states or regions of the country, general economic conditions in those states or regions may have a greater impact on our business.

We cannot predict whether the risks and uncertainties discussed in this section, or other risks not presently known to us or that we currently believe to be immaterial, may develop into actual events and impact our business. If any one or more of them does so, the events could materially adversely affect our financial condition, cash flows, or results of operations, and the market prices of our equity or debt securities could decline.

This information should be considered carefully together with the other information contained in this report and in the other reports and materials filed by us with the Securities and Exchange Commission (SEC), as well as news releases and other information we publicly disseminate from time to time.

II. Insurance Risks

Our success depends on our ability to underwrite and price risks accurately and to charge adequate rates to policyholders.

Our financial condition, cash flows, and results of operations depend on our ability to underwrite and set rates accurately for a full spectrum of risks. A primary role of the pricing function is to ensure that rates are adequate to generate sufficient premiums to pay losses, loss adjustment expenses, and underwriting expenses, and to earn a profit.

Pricing involves the acquisition and analysis of historical data regarding vehicle accidents, other insured events, and associated losses, and the projection of future trends for such accidents and events, loss costs, expenses, and inflation, among other factors, for each of our products in multiple risk tiers and many different markets. Our ability to price accurately is subject to a number of risks and uncertainties, including, without limitation:

•the availability of sufficient, reliable data

•our ability to conduct a complete and accurate analysis of available data

•uncertainties inherent in estimates and assumptions, generally

•our ability to timely recognize changes in trends and to predict both the severity and frequency of future losses with reasonable accuracy

•our ability to predict changes in operating expenses with reasonable accuracy

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•our ability to reflect changes in reinsurance costs in a timely manner

•the development, selection, and application of appropriate rating formulae or other pricing methodologies

•our ability to innovate with new pricing strategies and the success of those strategies

•our ability to implement rate changes and obtain any required regulatory approvals on a timely basis

•our ability to predict policyholder retention accurately

•unanticipated court decisions, legislation, or regulatory actions

•the frequency, severity, duration, and geographic location and scope of severe weather, and other catastrophe events, which may become more severe and less predictable as a result of climate change

•our ability to understand the impact of ongoing changes in our claim settlement practices

•changing vehicle usage and driving patterns, which may be influenced by epidemics, pandemics, other widespread health risks, or changes in oil and gas prices, among other factors, changes in residential occupancy patterns, and the ridesharing economy

•advancements in vehicle or home technology or safety features, such as accident and loss prevention technologies or the development of autonomous or semi-autonomous vehicles

•unexpected changes in the medical sector of the economy, including medical costs and systemic changes resulting from national or state healthcare laws or regulations

•unforeseen disruptive technologies and events

•the ability to understand the risk profile of significant customers, such as transportation network companies

•unanticipated changes in auto repair costs, auto parts prices, used car prices, construction requirements, labor and materials costs, and the imposition and impacts of tariffs

Various insurance regulations, legislative and regulatory challenges, political initiatives, and other societal pressures seek to limit or prohibit the use of specific rating factors in insurance policy pricing, such as credit, education, and occupation. In our view, these efforts have the potential to significantly undermine the effectiveness of risk-based pricing. If we are unable to use rating factors that have been shown empirically to be highly predictive of risk, we may not be able to as accurately match insurance rates to the applicable risks, which may significantly adversely impact our insurance operating results.

The realization of one or more of these risks may result in our pricing being based on inadequate or inaccurate data or inappropriate analyses, assumptions, or methodologies, and may cause us to estimate incorrectly future changes in the frequency or severity of claims. As a result, we could underprice risks, which would negatively affect our underwriting profit margins, or we could overprice risks, which could reduce our competitiveness and growth prospects. In either event, our financial condition, cash flows, and results of operations could be materially adversely affected. In addition, underpricing insurance policies over time could erode the capital position of one or more of our insurance subsidiaries, thereby constraining our ability to write new business.

Our success depends on our ability to establish accurate loss reserves.

Our financial statements include loss reserves, which represent our best estimate as of the date of the financial statements of the amounts that our insurance subsidiaries ultimately will pay on claims that have been incurred, and the related costs of adjusting those claims. There is inherent uncertainty in the process of establishing property and casualty insurance loss reserves, which can arise from a number of factors which are, or can be, affected by both internal and external events including:

•the availability of sufficient, reliable data

•the difficulty in predicting the rate and direction of changes in frequency and severity trends, including the effects of inflationary pressures or other factors, for multiple products in multiple markets

•unexpected changes in medical costs, auto repair costs, or the costs of construction labor and materials

•the imposition and impacts of tariffs

•labor shortages, which can impact loss expenses directly through higher labor costs, and indirectly through delays in services or through lower quality, as companies hire less experienced workers to perform services

•unanticipated changes in governing statutes and regulations

•new or changing interpretations of insurance policy provisions and coverage-related issues by courts

•the outcome of lawsuits against us or our competitors, including unanticipatedly high jury verdicts or punitive damage awards

•the effects of changes in our claims settlement practices

•our ability to recognize fraudulent or inflated claims

•the accuracy of our estimates regarding claims that have been incurred but not recorded as of the date of the financial statements, including those arising from severe weather or other catastrophe events

•the accuracy and adequacy of actuarial techniques and databases used in estimating loss reserves

•the accuracy of the modeling tools that we use, which rely on the assumption that past loss development patterns will persist into the future and vary in the rate at which they incorporate changes in data

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•the accuracy and timeliness of our estimates of loss and loss adjustment expenses as determined for different categories of claims

The ultimate paid losses and loss adjustment expenses may deviate, perhaps substantially, from point-in-time estimates of such losses and expenses, as reflected in the loss reserves included in our financial statements. Consequently, ultimate losses paid could materially exceed reported loss reserves and have a material adverse effect on our financial condition, cash flows, or results of operations.

Our insurance operating results have been and likely will continue to be materially adversely affected by severe weather and other catastrophe events, and climate change may be exacerbating these events and their impacts.

Our insurance operating results have periodically been, and in the future likely will continue to be, materially adversely affected by natural events, such as hurricanes, tornadoes, windstorms, floods, earthquakes, hailstorms, severe winter weather, and fires, or by other events, such as explosions, terrorist attacks, cyberattacks, epidemics, pandemics, or other widespread health risks, riots, and hazardous material releases. The frequency, severity, duration, geographic location, and scope of such events are inherently unpredictable. Moreover, climate change may be contributing to the increase in frequency of severe weather events and other natural disasters, how long they last, and how much insured damage they cause, and may change where the events occur. Catastrophe losses have in the past, and may in the future, adversely affect the profitability of our property business more than they affect the profitability of our other businesses. In addition, our property business has a concentration of policies in force in states with significant exposure to hurricanes and hailstorms and its results have in the past been impacted by catastrophe events in these states to a greater relative degree than some other insurers.

The extent of insured losses from a catastrophe event is a function of our total insured exposure in the area affected by the event, the nature, severity, and duration of the event, and the extent of reinsurance that we have obtained with respect to such an event. We use catastrophe modeling tools to help estimate our exposure to such events to price our products and to estimate our losses arising from catastrophe events. Those tools are based on historical data and other assumptions that limit their reliability and predictive value, and they may become even less reliable due to climate change. Therefore, our forecasting efforts may generate projections and loss estimates that prove to be materially inaccurate. As a result, an increase in the frequency, severity or duration, or unanticipated changes in geographic location or scope, of severe weather or other catastrophes could materially adversely affect our financial condition, cash flows, and results of operations.

Our success will depend on our ability to continue to accurately predict our reinsurance needs, obtain sufficient reinsurance coverage for our property and other businesses at reasonable cost, and collect under our reinsurance arrangements.

Our property business relies on reinsurance contracts, state reinsurance funding, and catastrophe bonds (collectively, “reinsurance arrangements”) to reduce its exposure to certain catastrophe events. We also use reinsurance contracts to reinsure portions of our Commercial Lines business, including our workers’ compensation and business owners’ policies and the transportation network company business. See Item 1, Business – Reinsurance for further discussion. Reinsurance arrangements are often subject to a threshold below which reinsurance does not apply (often called the retention), so that we are responsible for all losses below the threshold from a covered event. Also, reinsurance policies typically have an aggregate dollar coverage limit, and, therefore, we are further exposed to the extent that our claims liabilities arising from a covered event exceed our reinsurance coverage. In addition, although the reinsurer is liable to us to the extent of the contractual reinsurance coverage, we remain liable under our policies to the insured as the direct insurer on all risks reinsured. As a result, we are subject to the risk that reinsurers will be unable to pay, or will dispute, our reinsurance claims, and this risk may be heightened to the extent climate change or other factors cause higher than anticipated losses for a reinsurer across its businesses. Further, the availability and cost of reinsurance are subject to prevailing reinsurance market conditions, which have been, and in the future could be, adversely impacted by the underwriting capacity of the reinsurance industry. That underwriting capacity can be influenced by several factors, including industry losses, changes in legal and regulatory guidelines, and the occurrence of significant reinsured events, such as weather-related catastrophes, among other things. Depending on the impact of any of these factors, we may not be able to obtain reinsurance coverage in the future at all or with commercially reasonable rates, terms, and conditions. The unavailability and/or increased cost of reinsurance could adversely affect our business volume, profitability, or financial condition.

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III. Operating Risks

Our business depends on the secure and uninterrupted operation of our systems, facilities, and business functions and the operation of various third-party systems.

Our business is highly dependent upon our ability to perform necessary business functions in an efficient and uninterrupted manner. The shut-down, disruption, degradation, or unavailability of one or more of our systems or facilities, or the inability of large numbers of our employees to communicate in a largely hybrid work environment, for any reason, could significantly impair our ability to perform critical business functions on a timely basis. In addition, many of our critical business systems interface with and depend on third-party systems. An interruption or degradation of service from a third-party system for any reason, or a determination by a vendor to abandon or terminate support for a system, product, obligation, or service that is significant to our business, could significantly impair our ability to perform critical business functions, including, but not limited to, impeding customer interactions, preventing access to company or customer data, and interfering with our ability to send or accept electronic payments through credit card or debit card networks and the Automated Clearing House, among other payment systems. If sustained or repeated, and if an alternate system, process, or vendor is not immediately available to us, such events could result in a deterioration of our ability to write and process policies, provide high-quality customer service, resolve claims in a timely manner, make payments when required, or perform other necessary business functions. Also, system redundancy and other continuity measures may be ineffective or inadequate, and our business continuity and disaster recovery planning may not be sufficient for all eventualities. Any such event could have a material adverse effect on our financial results and business prospects, as well as cause damage to our reputation, brand, and customer goodwill. Catastrophe events that affect one of our larger office locations, a significant technology/data center, critical communications facilities, or one or more of our key vendors, may heighten this risk and any adverse effect.

Our business could be materially adversely affected by a security breach or other attack involving our technology systems or the systems of one or more of our vendors.

Our business requires that we develop and maintain large and complex technology systems, and that we rely on third-party systems and applications, to run our operations and to store the significant volume of data that we acquire, including the personal information of our customers and employees and our intellectual property, trade secrets, and other sensitive business and financial information. All of these systems are subject to “cyberattacks” by third parties with substantial computing resources and capabilities, which have become more frequent and more sophisticated, and to unauthorized or illegitimate actions by employees, consultants, agents, and other persons with legitimate access to our systems. Such attacks or actions may include attempts to:

•access our systems

•improperly access, use, steal, sell, corrupt, or destroy data or information, including our intellectual property, financial data, or the personal information of our customers, employees, or other individuals

•misappropriate funds or extract ransom payments

•commit fraud

•disrupt or shut down our systems

•deny customers, agents, brokers, or others access to our systems

•infect our systems with viruses or malware

Some of our systems and operations rely on third-party vendors, through either a connection to, or an integration with, those third parties’ systems or contracted personnel. This approach has increased, and may continue to increase, the risk of loss, corruption, or unauthorized access to or inappropriate disclosure of our data or information or the confidential information of our customers and employees, or other cyberattacks. Although we may review and assess third-party vendor cybersecurity controls, our efforts may not be successful in preventing or mitigating the effects of such events. Third-party risks may include, among other factors, the vendor’s lax security measures, data location uncertainty, and the possibility of data and information storage in inappropriate jurisdictions where laws or security measures may be inadequate.

We undertake substantial efforts and expend significant resources to protect our systems and sensitive or confidential data and information. Our information security efforts are designed to evolve with the changing security threat environment through ongoing assessment and measurement. This includes internal processes and technological defenses that are preventative or detective, and other controls designed to provide multiple layers of security protection. In addition, we seek to protect the security and confidentiality of data and information provided to our vendors under cloud computing or other arrangements through appropriate risk evaluation, security and financial due diligence, contracts designed to require high security and confidentiality standards, and review of third-party compliance with the required standards.

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Our systems are being threatened on a regular basis and our efforts may be insufficient to prevent or defend against an attack. We, and certain of our third-party vendors, have experienced attacks and incidents in the past, and there can be no assurance that we, or any vendor, will be successful in preventing future attacks or incidents or detecting and stopping them once they have begun. Cybersecurity risks rapidly evolve and are complex, so we must continually adapt and enhance our processes and technological defenses. As we do this, we must make judgments about where to invest resources to most effectively protect ourselves from cybersecurity risks. These are inherently challenging judgements, and we can provide no assurance that processes and technological defenses that we implement will be effective.

Our business could be significantly damaged by a security breach, data loss or corruption, or cyberattack. In addition to the potentially high costs of investigating and stopping such an event and implementing necessary fixes, we could incur substantial liability if confidential customer or employee information is stolen. In addition, such an event could cause a significant disruption of our ability to conduct our insurance operations, adversely affect our competitive position if material trade secrets or other confidential information are stolen, and have severe ramifications on our reputation and brand, potentially causing customers to refrain from buying insurance from us or other businesses to refrain from doing business with us. Therefore, the occurrence of a security breach, data loss or corruption, or cyberattack, if sufficiently severe, could have a material adverse effect on our business results, prospects, and liquidity.

We must maintain a brand and reputation that is recognized and trusted by consumers.

We believe it is critical to our business that consumers recognize and trust the Progressive brand. Accordingly, we have made significant investments in our brand over many years. We undertake distinctive advertising and marketing campaigns and other efforts to maintain and improve our brand recognition, enhance perceptions of us, generate new business, and increase the retention of our current customers. We believe that maintaining and improving the effectiveness of our advertising and marketing campaigns relative to those of our competitors is particularly important in light of the significance of brand and reputation in the marketplace, including the continuing extensive advertising and marketing efforts and related expenditures within the insurance market. If our marketing campaigns are unsuccessful or are less effective than those of competitors, or if our reliance on a particular spokesperson or character is compromised, our business could be materially adversely affected.

Our brand and reputation also could be adversely affected by situations that reflect negatively on us, whether due to our business practices, adverse financial developments, perceptions of our corporate governance, perceptions of our purpose-driven brand, how we address employee matters and concerns, our approach to environmental and social (Sustainability) and corporate responsibility matters, investments in our portfolio, the conduct of our officers, directors, or employees, or other causes. It may also be harmed by the actions of third parties that are generally outside of our control, including agents, significant customers, or other businesses with which we do business or in which we invest, such as third-party providers that interface with our customers, unaffiliated insurers and other companies whose products we offer or make available to our customers, or other causes.

The negative impacts of these or other events may be aggravated as consumers, regulators, and other stakeholders increase or change their expectations, or adopt conflicting expectations, regarding the conduct of large public companies, sustainability and corporate responsibility efforts, programs, and initiatives, and corporate governance and Sustainability standards. These expectations and standards are continually evolving and not always clear. Our practices may not change in the manner or at the rate that our various stakeholders expect. These impacts may be further complicated such that perceptions are formed through rapid and broad interactions using social media and other communication tools over which we have no control. Additionally, we may fail to meet our related commitments, targets, or aspirations in these areas, and also could determine that it is in the best interest of the company and our shareholders to prioritize other business priorities ahead of our efforts in these areas. Any such negative impact or event could decrease demand for our products or services, create difficulties in our ability to recruit and retain employees, negatively impact our stock price, and lead to greater regulatory scrutiny of our businesses, among other things.

Our success depends on our ability to innovate effectively and respond to our competitors’ initiatives.

Our ability to develop and implement innovative products and services, which may include technological advances, that are accepted and valued by our customers and independent agents is critical to maintaining and enhancing our competitive position. Innovations must be implemented in compliance with applicable insurance and other regulations and may require extensive modifications to our systems and processes and extensive coordination with and reliance on the systems of third parties. Technological and societal changes may lead to changes in customers’ preferences as to how they want to interact with us. As a result, if we do not handle these transitions effectively and bring such innovations to market with the requisite speed and agility, the quality of our products and services, our relationships with our customers and agents, and our business prospects, may be materially adversely affected. In addition, innovations by competitors or other market participants may increase the level of

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competition in the industry. If we fail to respond appropriately in a timely manner to those innovations and also to the evolving customer preferences, our competitive position and results may be materially adversely affected.

We must effectively manage complexity as we develop and deliver high-quality products and customer experiences.

Ongoing competitive, technological, regulatory, informational, and other developments result in significant levels of complexity in our products and in the systems and processes we use to run our businesses. The speed of some of these developments has increased and likely will continue to increase. Risks associated with these developments include:

•our increasing reliance on third-party systems including “cloud computing” environments and software as a service applications

•the development of new modes of communication

•changing insurance shopping trends

•our understanding of the operations and needs of significant customers

•the availability and uses of very large volumes of data and the challenges relating to analyzing those data sets, including the availability of sufficient internal and external talent that understand and can manage the complexity and related risks

Complexity and legacy systems may, among other potential difficulties, create barriers to innovation or the provision of high-quality products and customer and agent experiences with the speed and agility that may be required; require us to modify our business practices, adopt new software, systems or technology, or replace outdated software, systems or technology, or upgrade systems or technology to enhance the scale, performance or functionality, each at significant expense; and lead to increased difficulty in executing our business strategies.

We compete in property and casualty insurance markets that are highly competitive.

The markets in which we sell insurance are highly competitive. We face vigorous competition from large, well-capitalized national and international companies, as well as smaller regional insurers. Other companies, potentially including existing insurance companies, vehicle manufacturing companies, “insurtech” companies, and other well-financed companies seeking new opportunities, or new competitors with technological or other innovations, also have entered these markets and may continue to do so in the future. Many of our competitors have substantial resources, experienced management, and strong marketing, underwriting, pricing, and technological capabilities. The property and casualty insurance industry is a mature industry, in which brand recognition, marketing skills, innovation, operational effectiveness, pricing, scale, and cost control are major competitive factors. If our competitors offer similar insurance products at lower prices, offer such insurance products bundled with other products or services that we do not offer, are permitted to offer their products under different legal and regulatory constraints than those that apply to us, or engage in other successful competitive initiatives, our ability to generate new business, or to retain a sufficient number of our existing customers, could be compromised. In addition, because auto insurance constitutes a significant portion of our overall business, we may be more sensitive than other insurers to, and more adversely affected by, trends that could decrease auto insurance rates or reduce demand for auto insurance over time, such as advances in vehicle technology, autonomous or semi-autonomous vehicles, or vehicle-sharing arrangements. Consolidations and strategic relationships in the independent agent channel in our Personal Lines business have increased competition and could continue to do so. We may also be adversely affected in our Commercial Lines business, which represents a significant portion of our growth potential, by trends or events that decrease the demand for services offered by, or decrease the profitability of, the commercial auto market, including trucking businesses and ridesharing services. Additionally, our Commercial Lines business may be adversely affected by a loss of or reduction in geographic coverage from one or more customers, including transportation network company customers.

We expect similar, and perhaps greater, competitive pressures with respect to any new insurance or non-insurance businesses that we decide to enter in the future. In such cases, we would be selling products or services that are new to us, while our competitors could include large, well-financed companies with significant product and marketing experience in such businesses.

Historically, the auto and property insurance markets have been described as cyclical, with periods of relatively strong profitability being followed by increased pricing competition among insurers. This price competition, which is sometimes referred to as a “soft market,” can adversely affect revenue and profitability levels. As insurers recognize this situation (which can occur at different times, for different products and for different companies), the historical reaction has been for insurers to raise their rates (sometimes referred to as a “hard market”) in an attempt to restore profitability to acceptable levels. As more insurers react in this way, profit levels in the industry may increase to a point where some insurers begin to lower their rates, starting the cycle over again. The ability to discern at any point in time whether we are in a “hard” or “soft” market is often difficult, as such a conclusion represents an assessment of innumerable data points including, among others, the operating results of, and the dynamic competitive actions taken by, us and many competitors in multiple markets involving a variety of

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products. Often, detailed information on our competitors becomes available on a delayed basis, and the nature of the market becomes apparent only in retrospect. Our ability to predict future competitive conditions is also constrained as a result.

The highly competitive nature of the insurance marketplace could result in consolidation within the industry, or in the failure of one or more competitors. The concentration of insurance business in a reduced number of major competitors could significantly increase the level of competition in a manner that is not favorable to us. In addition, in the event of a failure of a major insurer or a state-sponsored catastrophe fund, our company and other insurance companies may be required by law to absorb the losses of the failed insurer or fund, resulting in a potentially significant increase in our costs. We might also be faced with an unexpected surge in new business from a failed insurer’s former policyholders. Such events could materially adversely affect our financial results, brand, and future business prospects.

Our success depends on our ability to adjust claims accurately.

We must accurately evaluate and pay claims that are made under our insurance policies. Our failure to pay claims fairly, accurately, and in a timely manner, or to deploy claims resources appropriately and in a cost-effective manner, could result in unanticipated costs to us, lead to material litigation, undermine customer goodwill and our reputation in the marketplace, and impair our brand and, as a result, materially adversely affect our competitiveness, customer retention, financial results, prospects, and liquidity.

We are subject to a variety of complex laws and regulations.

Our insurance businesses operate in highly regulated environments. Our insurance subsidiaries are subject to regulation and supervision by state insurance departments in all 50 states, the District of Columbia, Bermuda, and Canada and its provinces. Each jurisdiction has a unique and complex set of laws and regulations. In addition, certain United States federal laws impose additional requirements on businesses, including insurers, in a wide range of areas, such as the use of credit information, methods of customer communications, employment practices, and the reimbursement of certain medical costs incurred by the government. Our insurance subsidiaries’ ability to implement business plans and remain competitive while complying with these laws and regulations, and to obtain necessary regulatory action in a timely manner, is and will continue to be critical to our success.

Most jurisdictions impose restrictions on, or require prior regulatory approval of, various actions by regulated insurers, which may adversely affect our insurance subsidiaries’ ability to operate, innovate, and obtain necessary rate adjustments in a timely manner. Compliance with laws and regulations often results in increased costs, which can be substantial to our insurance subsidiaries. These costs, in turn, may adversely affect our profitability or our ability or desire to grow or operate our businesses in the applicable jurisdictions. Our compliance efforts are further complicated by changes in the laws or regulations that apply to us and in the regulatory and judicial interpretations of those laws, including expansive regulatory authority and uncertainties in federal regulatory authority due to judicial interpretations of regulators’ actions. The pace of change, together with shorter time frames between enactment or promulgation and effectiveness of the changes, increases this risk.

Insurance laws and regulations may, among other things, limit an insurer’s ability to underwrite and price risks accurately, prevent the insurer from obtaining timely rate changes to respond to increased or decreased costs, delay or restrict the ability to discontinue or exit unprofitable businesses or jurisdictions, limit the profit an insurer may earn, impose marketing restrictions or requirements related to the use of artificial intelligence and third-party data, prevent insurers from terminating policies under certain circumstances, dictate or limit the types of investments that an insurance company may hold, and impose specific requirements relating to information technology systems and related cybersecurity risks. As a result, we have been, and may in the future be, limited in our ability to respond to evolving business conditions. For additional discussion of statutory profit limits, see Management’s Discussion and Analysis of Financial Condition and Results of Operations – II. Financial Condition in the Annual Report.

Moreover, inconsistencies in requirements among the various states, or between state and federal requirements, or changes in regulatory priorities or funding, may further complicate our compliance efforts, potentially damage our reputation in the marketplace or our brand, potentially resulting in additional costs for us or impacting our ability to participate in certain government funded programs, such as the National Flood Insurance Program.

In addition, laws in certain jurisdictions mandate that insurance companies pay assessments in a number of circumstances, including potentially material assessments to pay claims upon the insolvency of other insurance companies or to cover losses in government-provided insurance programs for high-risk auto and homeowners’ coverages. These assessments could have a material adverse impact on our profitability.

Data privacy and security laws and regulations impose complex compliance and reporting requirements and challenges. Various jurisdictions have enacted or are considering privacy and security legislation or regulations. Each jurisdiction’s unique

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requirements, and the variations across the jurisdictions, present further ongoing compliance challenges. Compliance with these laws and regulations will result in increased costs, which may be substantial and may adversely affect our profitability or our ability or desire to grow or operate our business in certain jurisdictions.

The actual or alleged failure to comply with this complex variety of laws and regulations by us or other companies in the insurance, financial services, or related industries, also could result in actions or investigations by regulators, state attorneys general, federal officials, or other law enforcement officials. Such actions and investigations, and any determination that we have not complied with an applicable law or regulation, could potentially lead to significant monetary payments, fines and penalties, adverse publicity and damage to our reputation in the marketplace or our brand, and in certain cases, revocation of a subsidiary’s authority to do business in one or more jurisdictions. In addition, The Progressive Corporation and its subsidiaries could face individual and class action lawsuits by insureds and other parties for alleged violations of certain of these laws or regulations.

New legislation or regulations may be adopted in the future that could materially adversely affect our operations, our growth, our competitive position, or our ability to write business profitably in one or more jurisdictions.

Misconduct or fraudulent acts by employees, agents, and third parties may expose us to financial loss, disruption of business, and/or regulatory assessments.

Our company and the insurance industry are inherently susceptible to past and future misconduct or fraudulent activities by employees, agents, vendors, customers, and other third parties. These activities could include:

•Fraud against our company, employees, and customers

•Unauthorized acts or representations, unauthorized use or disclosure of personal or proprietary data or information, deception, and misappropriation of funds or other benefits

We have policies and procedures in place to promote ethical conduct and compliance with law by our employees, but these policies and procedures may not be fully effective. As a result, we could be exposed to financial loss, disruption of business, litigation, and regulatory assessments. These impacts have the potential to have a material adverse effect on our business.

Our ability to attract, develop, and retain talent, including employees, managers, and executives, and to maintain appropriate staffing levels, is critical to our success.

Our success depends on our ability to attract, develop, compensate, motivate, and retain talented employees, including executives, other key managers, and employees with strong technical, analytical, and other skills and know-how necessary for us to run our insurance businesses, investment operations, and corporate functions, assess potential expansion into new products, services, and business areas, and adapt to technological trends in our industry. Our loss of certain executives and key employees, or the failure to attract or retain talented executives, managers, and employees with varied and appropriate backgrounds, experiences, knowledge, perspectives, and skills, could have a material adverse effect on our business. These risks may be heightened when United States labor markets, or key segments of those markets, are especially competitive.

Our workplace policies or perceptions of those policies by current and potential employees, including policies with respect to virtual, hybrid, and in-person work protocols, could impact our ability to attract, onboard, and retain talent with desired experiences, knowledge, perspectives, and skills.

In addition, we must forecast with reasonable accuracy sales and claims volume and other factors in changing business environments (for multiple products and business units and in many geographic markets), and we must adapt to increases in business due to additions of or expansions with significant customers, such as transportation network companies. In any such case, we must adjust our hiring and training programs and staffing levels appropriately. Our failure to recognize the need for such adjustments, or our failure or inability to react on a timely basis, could lead either to over-staffing or under-staffing in one or more business units or locations. In either such event, our financial results, customer relationships, employee morale, and brand could be materially adversely affected.

We use third-party labor to meet a portion of our staffing needs. Any significant loss in access to qualified external talent on a cost-effective basis could have an adverse effect on our business. Competitive labor markets can cause increased costs for third-party labor and those increases may be material.

Our success also depends, in large part, on our ability to maintain and improve the staffing effectiveness and culture that we have developed over the years. Our ability to do so may be impaired as a result of litigation against us, other judicial decisions, legislation or regulations, or other factors in the employment marketplace, as well as our failure to recognize and respond to changing trends and other circumstances that affect our employees or our culture, including any impact arising from a decrease

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in virtual and hybrid workers relative to recent market trends. In such events, the productivity of our workers and the efficiency of our operations could be adversely affected, which could lead to an erosion of our operating performance and margins.

Lawsuits challenging our business practices, and those of our competitors and other companies, are pending and more may be filed in the future.

The Progressive Corporation and/or its subsidiaries are named as defendants in class actions, collective actions, representative actions, and individual and other lawsuits challenging various aspects of the subsidiaries’ business operations. Certain pending lawsuits are described in Note 12 – Litigation in the Annual Report. Additional litigation may be filed against us in the future challenging similar or other of our business practices or operations. In addition, lawsuits have been filed against our competitors and other businesses or entities, and other such lawsuits may be filed in the future, and even though we are not a party to such litigation, the results of those lawsuits nevertheless may create additional risks for, and/or impose additional costs and/or limitations on, our subsidiaries’ business practices or operations.

Lawsuits against us often seek significant monetary damages and injunctive relief. The potential for injunctive relief can threaten our use of important business practices. In addition, the resolution of individual or class actions, collective actions, and representative action litigation in insurance, in related fields, or in matters broadly applicable to business operations, may lead to the development of judicial regulation, resulting in material increases in our costs of doing business.

Litigation is inherently unpredictable. Adverse court decisions, or significant settlements of pending or future cases, could have a material adverse effect on our financial condition, cash flows, and results of operations. For further information on the risks of pending litigation, see Note 12 – Litigation in the Annual Report.

Our long-term business strategy and efforts to acquire or develop new products or enter new areas of business may not be successful and may create enhanced risks.

We are making business decisions and undertaking certain investments and strategies in connection with our long-standing goal of growing as fast as we can, at or below a companywide 96 combined ratio on a calendar-year basis, as long as we can provide high-quality customer service. Our focus on achieving our underwriting profitability goal takes precedence over growth. Additionally, we have acquired and are developing, and may develop or acquire in the future, new insurance products, including those that insure risks that we have not previously insured, contain new coverages, or change coverage terms, as well as new non-insurance products and services. These new products and services may not be as profitable as our existing products and may not perform as well as we expect. In addition, new insurance products may entail new risks for us, including, without limitation, higher coverage limits and unfamiliar pricing, claims resolution, and loss reserving practices. Other new products and services may likewise change our risk exposures. The business systems, data, and models we use to manage those exposures may be less accurate or less effective than those we use with existing products.

We are evaluating other business models, both insurance and non-insurance related, and we have made, and are considering making additional, investments in different business areas. These activities may take the form of internal development, equity investments, strategic mergers or acquisitions, joint ventures, or strategic partnerships. These new ventures may require us to make significant expenditures, which may negatively impact our results in the near term, and if not successful, could materially and adversely affect our results of operations. While at the onset of the venture we would expect these projects to provide long-term value, there can be no assurance that our expectations will be realized.

Intellectual property rights could affect our competitiveness and our business operations.

There continues to be a proliferation of patents, both inside and outside the insurance industry, that significantly impacts our businesses. The existence of such patents, and other claimed intellectual property rights, from time to time has resulted in legal challenges to certain of our business practices by other insurance companies and non-insurance entities alleging that we are violating their rights. Such legal challenges could result in costly legal proceedings, substantial monetary damages, or expensive changes in our business processes and practices. Similarly, we may seek or obtain patent protection for innovations developed by us. However, we may not be able to obtain patents on these processes and practices, and defending our patents and other intellectual property rights against challenges, and enforcing and defending our rights, including, if necessary, through litigation, can be time consuming and expensive, and the results are inherently uncertain, which can further complicate business plans.

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Our development and use of new technology, such as generative and agentic artificial intelligence, may present additional risks, may not be successful, and could have a material adverse effect on our business.

We have developed, and used for many years, new technologies, including machine learning and other forms of artificial intelligence (AI), predictive models, algorithms and automated processes, and will in the future develop and use AI and other new technologies in our business. As with many technological innovations, the growing development and use of generative and agentic AI (Advanced AI) presents additional risks that may adversely affect our business. Advanced AI might produce or reveal datasets that are flawed or insufficient or contain biased information, which could result in unintentionally and unfairly discriminatory outcomes in our business processes. These deficiencies could also undermine the associated predictions, analysis, or decisions Advanced AI applications produce or the business decisions we make based on this information. We could face challenges on whether we use AI in our business processes in a responsible, compliant, and effective manner. Since Advanced AI is subject to public debate, and depending on how observers view our development and use of AI, we could be subject to criticism or experience an adverse impact on our brand or reputation, which could decrease demand for our products or services, create difficulties in our ability to recruit and retain employees and lead to greater regulatory scrutiny of our businesses. Additionally, one or more of our key vendors may begin to use AI in their business in a manner that does not meet existing or rapidly evolving regulatory standards. Furthermore, our competitors or other third parties may be able to replace legacy systems, incorporate Advanced AI into their products and operations, or optimize or redesign their processes more quickly, or more successfully, than us.

Intellectual property ownership rights, including those associated with related copyrights, patent rights, Advanced AI inputs for model training, and other Advanced AI outputs, have not been fully interpreted by courts or regulations. Additionally, we are subject to new AI-focused regulations and regulatory expectations that could impose varied compliance and reporting requirements and challenges that could impact our operations or ability to write business profitably in one or more jurisdictions. For example, the National Association of Insurance Commissioners (NAIC) has adopted guiding principles on AI, as well as a model bulletin, to inform and articulate general expectations for businesses, professionals, and stakeholders across the insurance industry as they implement AI tools to facilitate operations. Nearly half of all departments of insurance have adopted the NAIC AI model bulletin. Other states have adopted or are considering alternatives, including comprehensive AI legislation or reminders that existing state laws pertain to AI activities, including laws regarding unfair claims and trade practices. We cannot predict what other regulatory actions may be taken with regard to AI but any limitations, or any failure or perceived failure by us to comply with any such requirements, could have an adverse impact on our business.

Any of these impacts could result in significant operational difficulties, reputational harm, litigation, and adverse actions by regulators, potentially increasing our costs or causing customers to refrain from buying insurance from us or other businesses to refrain from doing business with us, which could have a material effect on our business, financial condition, and results of operations.

IV. Market Risks

The performance of our fixed-income and equity investment portfolios is subject to a variety of investment risks.

Our investment portfolio consists principally of fixed-income securities and common equities. General economic conditions and other factors beyond our control can adversely affect the value of our investments, and the amount and realization of investment income, or result in realized or unrealized investment losses. Our fixed-income portfolio is actively managed by our investment group and includes short-term investments, fixed-maturity securities, and preferred stocks. The performance of the fixed-income portfolio is subject to a number of risks, including:

•Interest rate risk - the risk of adverse changes in the value of fixed-income securities as a result of increases in market interest rates.

•Investment credit risk - the risk that the value of certain investments may decrease due to a deterioration in the financial condition, operating performance, or business prospects of, the regulatory environment applicable to, or the liquidity available to, one or more issuers of those securities or, in the case of asset-backed securities, due to the deterioration of the loans or other assets that underlie the securities.

•Concentration risk - the risk that the portfolio may be too heavily concentrated in the securities of one or more issuers, sectors, or industries, which could result in a significant decrease in the value of the portfolio in the event of a deterioration of the financial condition or performance of, the regulatory environment applicable to, or outlook for, those issuers, sectors, or industries.

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•Prepayment or extension risk - applicable to certain securities in the portfolio, such as asset-backed securities and other bonds with call provisions, prepayment risk is the risk that, as interest rates change, the principal of such securities may be repaid earlier than anticipated, requiring that we reinvest the proceeds at less attractive rates. Extension risk is the risk that a security may not be redeemed when anticipated, adversely affecting the value of the security and preventing the reinvestment of the principal at higher market rates.

•Liquidity risk - discussed separately below.

In addition, the success of our investment strategies and asset allocations in the fixed-income portfolio may vary depending on the market environment. The fixed-income portfolio’s performance also may be adversely impacted if, among other factors: credit ratings assigned to such securities by nationally recognized statistical rating organizations are based on incomplete or inaccurate information or otherwise prove unwarranted; or our risk mitigation strategies are ineffective for the applicable market conditions.

Our common equity portfolio is primarily managed externally to track the Russell 1000 Index, although from time to time we may choose to add exchange-traded funds or similar securities designed to track the Russell 1000 or the Standard & Poor’s 500 (S&P 500) Index. Our equity investments are subject to general movements in the values of equity markets and to the changes in the prices of the securities we hold. An investment portfolio or exchange-traded fund that is designed to track an index, such as the Russell 1000 or S&P 500, is not necessarily less risky than other equity investment strategies. Our equity investment strategies may not successfully replicate the performance of the Indexes that they seek to track. Equity markets, sectors, industries, and individual securities may be subject to high volatility and to long periods of depressed or declining valuations, and they are also subject to most of the same risks that affect our fixed-income portfolio, as discussed above. In addition, even though the Russell 1000 and S&P 500 Indexes are generally considered to be broadly diversified, significant portions of each index may be concentrated in one or more sectors, reducing our ability to manage our concentration risk through sector diversification.

If the fixed-income or equity portfolios, or both, were to suffer a substantial decrease in value, our financial position, and results of operations could be materially adversely affected. Under these circumstances, our income from these investments could be materially reduced, and declines in the value of our securities could further reduce our reported earnings and capital levels. A decrease in value of an insurance subsidiary’s investment portfolio could also put the subsidiary at risk of failing to satisfy regulatory minimum capital requirements and could limit the subsidiary’s ability to write new business. In any such event, our business could be materially adversely affected and our financial flexibility could be substantially constrained.

See Management’s Discussion and Analysis of Financial Condition and Results of Operations – IV. Results of Operations – Investments in the Annual Report for additional discussion of the composition of our investment portfolio as of December 31, 2025, and of the market risks associated with our investment portfolio.

New regulations and societal pressures relating to Sustainability and other public policy matters could negatively impact our returns or cause us to change our investing strategies in ways that could negatively impact our results.

The value of securities held in our portfolio could be materially adversely impacted as issuers or the businesses or assets underlying such securities are faced with new, potentially conflicting, laws or regulations or initiatives by regulators, investors, activists, or others, including those addressing Sustainability, corporate governance, corporate responsibility or other public policy concerns. For example, the universe of securities that we are permitted to hold could be significantly narrowed by insurance regulators if we are prohibited from investing in certain industries or types of companies or we could be required to make additional disclosures when we acquire any such securities. Similarly, we could also face pressures from other stakeholders that seek to influence our investment decisions. These factors could cause a decline in the value of investments held in our portfolio, or cause us to change our investment strategy, which could increase our costs or reduce our returns relative to returns from other available investment opportunities.

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V. Liquidity Risk

The inability to access our cash accounts or to convert investments into cash on favorable terms when we desire to do so may materially and adversely affect our business, cash flows, and capital position.

We rely on our ability to access our cash accounts at banks and other financial institutions to operate our business. If we are unable to access the cash in those accounts as needed, whether due to our own systems difficulties, an institution-specific issue at the bank or financial institution (such as a cybersecurity breach or severe weather or other catastrophe impacting their operations), a broader disruption in banking, financial, or wire transfer systems, or otherwise, our ability to pay insurance claims and other financial obligations when due and otherwise operate our business could be materially adversely affected. Likewise, our investment portfolios are subject to risks inherent in the nation’s and world’s capital markets, including the United States, continuing to honor its outstanding debt and other obligations. Any disruption in the functioning of those markets or in our ability to liquidate investments or specific categories of investments on favorable terms when desired, or a default by the United States in its obligations, could impair our ability to pay claims or other financial obligations when due and could result in a significant decline in the value of our investment portfolio and have a material adverse impact on our cash flows and capital position. Any such event or series of such events could also result in significant operational difficulties, reputational harm, and adverse actions by regulators and have a material adverse effect on our financial condition, cash flows, and results of operations.

VI. Credit and Other Financial Risks

Our financial condition may be adversely affected if one or more parties with which we enter into significant contracts or transact business (including under certain government programs) become insolvent, experience other financial difficulties, or default in the performance of contractual or reimbursement obligations.

Our business is dependent on the performance by third parties of their responsibilities under various contractual or service arrangements and government programs. These include, for example, agreements with other insurance carriers to sell their products to our customers in bundled packages or otherwise, arrangements for transferring certain of our risks (including indemnification and self-insured retention obligations of Commercial Lines customers, reinsurance arrangements used by us, our corporate insurance policies, and the performance of state reinsurance facilities/associations), and reimbursement obligations under various state or federal programs, such as the Michigan Catastrophic Claims Association or the National Flood Insurance Program. If one or more of these parties were to default in the performance of, or otherwise become unwilling or unable to satisfy, their obligations to us under the applicable contracts or regulatory framework, we could suffer significant financial losses, a reduction in our capital levels, or other problems, which in turn could materially adversely affect our financial condition, cash flows, or results of operations and cause damage to our brand and reputation.

Our insurance subsidiaries may be limited in the amount of dividends that they can pay, which in turn may limit our ability to repay indebtedness, make capital contributions to other subsidiaries or affiliates, pay dividends to shareholders, repurchase securities, or meet other obligations.

The Progressive Corporation is a holding company with no business operations of its own. Consequently, if its subsidiaries are unable to pay dividends or make other distributions, or are able to pay only limited amounts, The Progressive Corporation may be unable to make payments on its indebtedness, make capital contributions to or otherwise fund its subsidiaries or affiliates, pay dividends to its shareholders, or meet its other obligations. Each insurance subsidiary’s ability to pay dividends may be limited by one or more of the following factors:

•insurance regulatory authorities require insurance companies to maintain specified minimum levels of statutory capital and surplus

•insurance regulations restrict the amounts available for distribution based on either net income or surplus of the insurance company

•competitive pressures require our insurance subsidiaries to maintain high financial strength ratings

•in certain jurisdictions, prior approval must be obtained from regulatory authorities for the insurance subsidiaries to pay dividends or make other distributions to affiliated entities, including the parent holding company

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If we are unable to obtain capital when necessary to support our business, our financial condition and our ability to grow could be materially adversely affected.

We may need to acquire additional capital, from time to time, as a result of many factors, including increased regulatory requirements, unprofitable insurance or investment operations, or significant growth in the insurance premiums that we write, among other factors. If we are unable to obtain capital at favorable rates when needed, whether due to our results, volatility, or disruptions, in debt and equity markets due to factors beyond our control, or other reasons, our financial condition could be materially adversely affected. In such an event, unless and until additional sources of capital are secured, we may be limited in our ability, or unable, to service our debt obligations, pay dividends, grow our business, pay our other obligations when due, or engage in other corporate transactions. Such a deterioration of our financial condition could adversely affect the perception of our company by insurance regulators, potentially resulting in regulatory actions, and the price of our equity or debt securities could fall significantly.

Our access to capital markets, ability to obtain or renew financing arrangements, obligations to post collateral under certain derivative contracts, and business operations are dependent on favorable evaluations and ratings by credit and other rating agencies.

Our credit and financial strength are evaluated and rated by various rating agencies, such as Standard & Poor’s, Moody’s Investors Service, Fitch Ratings, and A.M. Best. Downgrades in our credit ratings could adversely affect our ability to access the capital markets and/or lead to increased borrowing costs in the future (although the interest rates we pay on our current indebtedness would not be affected), as would adverse recommendations by equity analysts at the various brokerage houses and investment firms. Perceptions of our company by other businesses and consumers could also be significantly impaired. In addition, from time to time we may enter into certain derivative transactions providing that a downgrade could trigger contractual obligations requiring us to post substantial amounts of additional collateral or allow a third party to liquidate the derivative transaction. Various rating agencies may change their processes for credit ratings for the insurance industry, including changes to their approach to assessing capital adequacy, the creditworthiness of issuers of certain fixed-income securities, or the equity capital content of certain non-debt securities, and we are unable to predict the impact to our credit ratings or our ability to raise capital at favorable rates, of any change that they may ultimately adopt. Downgrades in the ratings of our insurance subsidiaries could likewise negatively impact our operations, potentially resulting in lower or negative premium growth. In any such event, our financial performance could be materially adversely affected.

Our dividend policy likely will result in varying amounts being paid to our common shareholders, or no payment in some periods, and the dividend policy ultimately may be changed in the discretion of the Board of Directors.

We have 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 frequency and amount of dividends, if any, may vary, perhaps significantly, from the amounts paid in preceding periods. The Board retains the discretion to alter our policy or not to pay such dividends at any time. Such action by the Board could result from, among other reasons, changes in the insurance marketplace, changes in our performance or capital needs, changes in U.S. federal income tax laws, disruptions of national or international capital markets, or other events affecting our liquidity, financial position, or prospects, as described above. Any such change in dividend policy could adversely affect investors’ perceptions of the company and the value of, or the total return of an investment in, our common shares.

Our investments in certain tax-advantaged projects may not generate the anticipated tax benefits and related returns.

We have invested in and may in the future invest in, certain projects that we believe are entitled to tax-advantaged treatment under applicable federal or state law, including renewable energy development, historic property rehabilitation, and affordable housing, and we may make other tax-advantaged investments from time to time. Our investments in these projects are designed to generate a return through the realization of tax credits and, in some cases, through other tax benefits and cash flows from the project. These investments are subject to the risk that the underlying tax credits and related benefits may not be valid, and in some cases previously recorded tax credits can be challenged or are subject to recapture by the applicable taxing authorities if specific requirements are not satisfied. Many of the factors that could lead to the invalidity, challenge, or recapture of tax credits are beyond our control. The inability to realize these tax credits and other tax benefits could have a material adverse impact on our financial condition.

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VII. Other

Our goal is to maximize the long-term value of the enterprise and we do not manage to short-term earnings expectations, which may adversely affect short-term results.

We believe that shareholder value will be increased in the long run if we meet or exceed the financial goals and policies that we establish each year. We do not manage our business to maximize short-term stock performance or the amount of any dividend that may be paid. Due to our focus on the long-term value of the enterprise, we may undertake business decisions and strategies and establish related financial goals that are designed to enhance our longer-term performance and value, while understanding that such decisions and strategies may not always similarly benefit short-term results, such as growth goals, our annual underwriting profit, dividend payouts, or earnings per share. We do not provide earnings estimates to the market and do not comment on earnings estimates by analysts. As a result, our reported results for a particular period may vary, perhaps significantly, from investors’ expectations, which could result in significant volatility in the price of our equity or debt securities. Our personal property business has caused, and is likely to continue to cause, additional volatility in our consolidated results.

Due to our focus on the long-term value of the enterprise, similar tradeoffs may be involved in our consideration of the interests of other stakeholders, including our employees, customers, agents, suppliers, and communities, as well as whether and how we respond to or address Sustainability, corporate governance, and corporate responsibility initiatives, programs and efforts and other public policy matters that impact us. These types of initiatives and considerations are fast-evolving areas and determining appropriate responses and actions can be uncertain. Different stakeholders often have conflicting perspectives on these initiatives, programs and efforts, and considerations. Depending on how observers view our responses or our commitment to addressing such matters, we could be subject to criticism, adverse publicity, or campaigns, among other actions, by investors, activists, or others. Consequently, such factors and the related tradeoffs may adversely affect our financial performance or the market prices of our equity or debt securities.

Our business and results of operations could be adversely affected by epidemics, pandemics, or other widespread health risks.

An epidemic, pandemic, or other widespread health risk could exacerbate the impacts of many of the other risk factors described above and adversely affect our business. Depending on the duration and severity of any such epidemic, pandemic, or other widespread health risk, and the nature and extent of governmental responses to it, our business, our operations, and our financial results could be negatively impacted.

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ITEM 1B. UNRESOLVED STAFF COMMENTS

We currently do not have any unresolved comments from the SEC staff.

ITEM 1C. CYBERSECURITY

Our business requires that we develop and maintain large and complex technology systems, and that we rely on third-party systems and applications, to run our operations and to store the significant volume of data and information that we acquire, including the personal information of our customers and employees and our intellectual property, trade secrets, and other sensitive business and financial information.

Our overall efforts to safeguard the information systems and confidential information critical to our operations include preventative and detective internal processes, technological defenses, and other controls designed to provide multiple layers of security protection. Our information security efforts are designed to evolve with the changing security threat environment through ongoing assessment and measurement. In our efforts to keep our data and technology systems secure, we leverage both the International Organization for Standardization (ISO) 27002 Security Framework for the body of security control requirements and the National Institute of Standards and Technology Cybersecurity Framework to assess the strength of our processes and defenses. This integrated approach to protect data and information systems is also built into our project management, development, and operations. To assess the effectiveness of our cybersecurity program and compliance with applicable rules, regulations, and laws, we employ a variety of internal resources to evaluate our environment, information systems, and processes. In addition, we engage third parties to test the vulnerability of our cybersecurity infrastructure on a regular basis and we have a third-party assessment performed annually.

Through appropriate risk evaluation, security assessments, and financial due diligence, we seek to protect the security and confidentiality of information provided to our vendors under service provider cloud computing or other arrangements. We also employ contractual nondisclosure requirements and use limitations consistent with our published Privacy Policy, and typically reserve the right to review third-party compliance against the required standards, where we consider it appropriate.

Our response to cybersecurity threats is triggered through various means. Through annual user awareness training, we teach our employees to identify and appropriately respond to such threats. Our incident response program is designed to mitigate and recover from suspected and actual cybersecurity incidents and provide all required consumer and regulatory notices regarding cybersecurity threats in a timely manner.

Our Chief Security Officer (CSO) is ultimately responsible for cybersecurity at Progressive, with management oversight of the prevention, detection, mitigation, and remediation of cybersecurity incidents. The CSO reports directly to the Chief Financial Officer. The CSO, or a senior member of his team, provides regular cybersecurity updates to the CEO, other members of the executive team, and the Board of Directors’ Technology Committee. Assuming the role in 2012, our CSO has served in this capacity at Progressive for more than a decade and, prior to joining us in 2010, had over 10 years of cybersecurity experience in the banking industry in security and risk management leadership roles, primarily focused on cybersecurity and banking compliance, with additional experience in the areas of anti-money laundering and financial fraud. Our CSO is also a member of our Management Risk Committee, which leads our Enterprise Risk Management program, and as a member ensures that cybersecurity risks remain a focus of the overall risk management process.

The Technology Committee of the Board of Directors oversees our use of technology in executing the company’s business strategy as well as the major risks arising from our technology, digital and data strategies (including with respect to artificial intelligence), legacy systems, technology investments, data privacy, operational performance, cybersecurity programs, and technology-related business continuity and disaster recovery programs. The Technology Committee, which includes directors with technology experience, also oversees management’s efforts to mitigate these risks. Technology Committee meetings typically occur five times a year. Generally, at these meetings, our CSO briefs the committee on cybersecurity-related matters.

Our systems are being threatened by cybersecurity incidents on a regular basis and our efforts may be insufficient to prevent or defend against incidents or an attack. We, and certain of our third-party vendors, have experienced attacks and incidents in the past, and there can be no assurance that we, or any vendor, will be successful in preventing future attacks or incidents or detecting and stopping them once they have begun. Through the date hereof, risks from cybersecurity threats, including prior incidents and attacks, have not materially affected, and we do not believe are reasonably likely to materially affect, our business strategy, results of operations, or financial condition. However, we cannot guarantee that we will not be materially affected in the future. Cybersecurity risks evolve rapidly and are complex, so we must continually adapt and enhance our processes and defenses. As we do this, we must make judgments about where to invest resources to most effectively protect ourselves from cybersecurity risks. These are inherently challenging processes, and we can provide no assurance that processes and defenses that we implement will be effective. See Item 1A, Risk Factors – III. Operating Risks above for more information.

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ITEM 2. PROPERTIES

All of our properties are owned or leased by subsidiaries of The Progressive Corporation and are used for office functions, as call centers, as data centers, for training, or for warehouse space.

At December 31, 2025, we owned 38 buildings located throughout the U.S. About one third of these buildings are claims offices. Our owned facilities, which contain approximately 3.3 million square feet of space, are generally not segregated by segment. We own significant locations in Mayfield Village, Ohio and surrounding suburbs (including our corporate headquarters); Colorado Springs, Colorado; and St. Petersburg, Florida.

We lease approximately 1.9 million square feet of space throughout the U.S. These leases are generally short-term to medium-term leases of commercial space.

ITEM 3. LEGAL PROCEEDINGS

For discussion of legal proceedings, see Note 12 – Litigation in our Annual Report, which is incorporated herein by reference.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

INFORMATION ABOUT OUR EXECUTIVE OFFICERS

Incorporated by reference from information with respect to executive officers of The Progressive Corporation and its subsidiaries set forth in Part III, Item 10 of this Form 10-K, “Directors, Executive Officers and Corporate Governance.”

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ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Market Information

The Progressive Corporation’s Common Shares, $1.00 par value, are traded on the New York Stock Exchange (NYSE) under the symbol PGR.

Holders

We had 1,557 shareholders of record on January 31, 2026.

Securities Authorized for Issuance Under Equity Compensation Plans

See Part III, Item 12 of this Form 10-K, “Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters,” for information about securities authorized for issuance under our equity compensation plans.

Performance Graph

See the Performance Graph section in our Annual Report.

Recent Sales of Unregistered Securities

None.

Purchase of Equity Securities

ISSUER PURCHASES OF EQUITY SECURITIES
2025 Calendar Month	Total Number of<br>Shares Purchased	Average Price<br>Paid per Share		Total Number of Shares<br>Purchased as Part of<br>Publicly Announced Plans<br>or Programs	Maximum Number of Shares<br>That May Yet Be Purchased<br>Under the Plans or Programs
October	111,240	$	219.47	305,188	24,694,812
November	108,993	214.56		414,181	24,585,819
December	49,100	227.55		463,281	24,536,719
Total	269,333	$	218.96

Progressive’s financial policies state that we will repurchase shares to neutralize dilution from equity-based compensation in the year of issuance or as an option to effectively use under-leveraged capital. See Note 9 – Employee Benefit Plans “Incentive Compensation Plans - Employees” and “Incentive Compensation Plans - Directors” in our Annual Report, for a summary of our restricted equity grants.

In May 2025, the Board of Directors approved an authorization for the company to repurchase up to 25 million of its common shares. This authorization does not have an expiration date. Share repurchases under this authorization may be accomplished through open market purchases, including trading plans entered into with one or more brokerage firms in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934, through privately negotiated transactions, pursuant to our equity incentive awards, or otherwise. During the fourth quarter 2025, all repurchases were accomplished in conjunction with our equity incentive awards or through the open market at the then-current market prices.

ITEM 6. [Reserved]

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Incorporated by reference from Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The quantitative and qualitative disclosures about market risk are incorporated by reference from section “IV. Results of Operations – Investments” in our Management’s Discussion and Analysis of Financial Condition and Results of Operations and the Quantitative Market Risk Disclosures section in our Annual Report.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The Consolidated Financial Statements of Progressive, along with the related Notes, and Report of Independent Registered Public Accounting Firm, are incorporated by reference from our Annual Report.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

We, under the direction of our Chief Executive Officer and our Chief Financial Officer, have established disclosure controls and procedures that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. The disclosure controls and procedures are also intended to ensure that such information is accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures.

Our Chief Executive Officer and our Chief Financial Officer reviewed and evaluated Progressive’s disclosure controls and procedures as of the end of the period covered by this report. Based on that review and evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effectively serving the stated purposes as of the end of the period covered by this report.

Management’s Report on Internal Control over Financial Reporting and the attestation of the independent registered public accounting firm are incorporated by reference from our Annual Report.

There have not been any changes in our internal control over financial reporting during our most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

(b) Insider Trading Arrangements

During the fourth quarter 2025, certain executive officers entered into Rule 10b5-1 trading arrangements that are intended to satisfy the affirmative defense of Rule 10b5-1(c). The executive officers’ plans provide for the sale of all of or a certain percentage of the shares issued upon vesting for certain outstanding equity awards previously granted to the applicable executive officer, excluding any shares withheld by the company to satisfy tax withholding obligations (see our 2025 Proxy Statement for a description of the company’s equity compensation plans).

Below are the details of each applicable Rule 10b5-1 trading arrangement:

Name	Title	Date Entered	Date Expires1
Karen B. Bailo	Commercial Lines President	November 20, 2025	August 3, 2026
Patrick K. Callahan	Personal Lines President	November 20, 2025	October 30, 2026
Carl G. Joyce	Vice President and Chief Accounting Officer	November 20, 2025	March 31, 2026

1 Subject to the plan’s earlier expiration or completion in accordance with its terms.

Additional Information

President and CEO Susan Patricia Griffith’s annual letter to shareholders is included as Exhibit 99 to this Form 10-K and in our online shareholders’ report located on our investor relations website at: investors.progressive.com/financials.

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

None.

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ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Information relating to our directors is incorporated herein by reference from the section entitled “Item 1: Election of Directors” in The Progressive Corporation’s Proxy Statement for the Annual Meeting of Shareholders to be held on May 8, 2026 (the Proxy Statement).

Information relating to executive officers of Progressive follows. Unless noted below, all positions were with Progressive.

Name	Age	Offices Held and Last Five Years’ Business Experience
Susan Patricia Griffith	61	President and Chief Executive Officer
John P. Sauerland	61	Vice President and Chief Financial Officer
Karen B. Bailo	58	Commercial Lines President
Jonathan S. Bauer	48	Chief Investment Officer
Steven A. Broz	55	Chief Information Officer
Patrick K. Callahan	55	Personal Lines President
William L. Clawson II	56	Chief Human Resources Officer since December 2021; Business Leader Compensation and Benefits prior to December 2021
Maribel Pumarejo	54	Chief Marketing Officer since June 2025; Business Leader Compensation and Benefits from February 2025 to June 2025; Senior Human Resource Business Leader from May 2022 to February 2025; Senior Director of Benefits Management prior to May 2022
Carl G. Joyce	44	Vice President and Chief Accounting Officer since March 2025; Director of Financial Reporting – GAAP prior to March 2025
John Murphy	56	Claims President since December 2021; Customer Relationship Management President prior to December 2021
Lori Niederst	52	Customer Relationship Management President since December 2021; Chief Human Resources Officer prior to December 2021
David M. Stringer	51	Vice President, Secretary, and Chief Legal Officer since January 2024; Deputy General Counsel, Litigation and Employment, prior to January 2024
Andrew J. Quigg	46	Chief Strategy and Finance Management Officer since February 2026; Chief Strategy Officer prior to February 2026

Delinquent Section 16(a) Reports. Any delinquent filings (if applicable) are incorporated by reference from the “Security Ownership of Certain Beneficial Owners and Management - Delinquent Section 16(a) Reports” section of our Proxy Statement.

Code of Ethics. Progressive has a Code of Ethics for the Chief Executive Officer, Chief Financial Officer, Chief Accounting Officer, and other senior financial officers. This CEO/Senior Financial Officer Code of Ethics is available at: progressive.com/governance. We intend to continue to satisfy the disclosure requirements under Item 5.05 of Form 8-K regarding amendments to, and waivers from, the provisions of the foregoing Code of Ethics by posting such information on our Internet website at: progressive.com/governance.

Shareholder-Proposed Candidate Procedures. There were no material changes during 2025 to Progressive’s procedures by which a shareholder can recommend a director candidate. The description of those procedures is incorporated by reference from the “Other Matters - Procedures for Recommendations and Nominations of Directors and Shareholder Proposals - To Recommend a Candidate for our Board of Directors” section of our Proxy Statement.

Audit Committee. Incorporated by reference from the “Other Board of Directors Information - Board Committees - Audit Committee” section of our Proxy Statement.

Financial Expert. Incorporated by reference from the “Other Board of Directors Information - Board Committees - Audit Committee” section of our Proxy Statement.

Insider Trading Policies and Procedures. Progressive has adopted insider trading policies and procedures, which are included as Exhibit 19 to this Form 10-K and discussion of which is incorporated by reference from the “Other Matters - Insider Trading Policies and Procedures” section of our Proxy Statement.

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ITEM 11. EXECUTIVE COMPENSATION

Incorporated by reference from the sections of our Proxy Statement entitled “Compensation Discussion and Analysis,” “Executive Compensation,” “Director Compensation,” “Other Board of Directors Information - Compensation Committee Interlocks and Insider Participation,” “Compensation Committee Report,” and “Compensation Programs and Risk Management.”

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The following information is set forth with respect to our equity compensation plans at December 31, 2025.

EQUITY COMPENSATION PLAN INFORMATION
Plan Category	Number of<br>Securities to be<br>Issued upon <br>Exercise<br>of Outstanding<br>Options, Warrants<br>and Rights		Weighted-Average<br>Exercise Price<br>of Outstanding<br>Options,<br>Warrants<br>and Rights	Number of Securities<br><br>Remaining<br><br>Available for<br><br>Future Issuance<br><br>Under Equity<br><br>Compensation Plans 1
Equity compensation plans approved by security holders
Employee Plans:
2024 Equity Incentive Plan	448,787	2	NA	9,596,411	3
2015 Equity Incentive Plan	1,647,530	2	NA	464,499	3
Director Plans:
Amended and Restated 2017 Directors Equity Incentive Plan	11,134		NA	365,749	4
Equity compensation plans not approved by security holders
None
Total	2,107,451		NA	10,426,659

NA = Not applicable because awards do not have an exercise price.

1 Excludes shares included in the Number of Securities to be Issued upon Exercise of Outstanding Options, Warrants and Rights column.

2 Reflects restricted stock unit awards, including reinvested dividend equivalents, under which, upon vesting, the holder has the right to receive common shares on a one-to-one basis.

Reflects the target value of 267,787 and 94,243 units of outstanding performance-based restricted stock unit awards, including dividend equivalents, under our 2015 and 2024 Equity Incentive Plans, respectively. The maximum potential payout for these awards was 663,216 and 234,145 units under the 2015 and 2024 Equity Incentive Plans, respectively. For a description of the performance-based awards, including the performance measurement and vesting ranges, see Note 9 – Employee Benefit Plans in our Annual Report.

3 Gives effect to reservation of common shares subject to performance-based awards at maximum potential payout.

4 Reflects our Amended and Restated 2017 Directors Equity Incentive Plan that was approved by shareholders in 2022 and increased the originally authorized shares by 150,000.

Information regarding ownership of Common Shares by certain beneficial owners and management is incorporated by reference from the section of our Proxy Statement entitled “Security Ownership of Certain Beneficial Owners and Management.”

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Incorporated by reference from the section of our Proxy Statement entitled “Other Board of Directors Information - Transactions with Related Persons” and “Other Board of Directors Information - Board of Directors Independence Determinations.”

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Incorporated by reference from the section of our Proxy Statement entitled “Other Independent Registered Public Accounting Firm Information.”

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ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a)(1) Listing of Financial Statements

The following consolidated financial statements are included in our Annual Report and are incorporated by reference in Item 8:

•Report of Independent Registered Public Accounting Firm (PCAOB ID: 238)

•Consolidated Statements of Comprehensive Income - For the Years Ended December 31, 2025, 2024, and 2023

•Consolidated Balance Sheets - December 31, 2025 and 2024

•Consolidated Statements of Changes in Shareholders’ Equity - For the Years Ended December 31, 2025, 2024, and 2023

•Consolidated Statements of Cash Flows - For the Years Ended December 31, 2025, 2024, and 2023

•Notes to Consolidated Financial Statements

•Supplemental Information (Unaudited)

(a)(2) Listing of Financial Statement Schedules

The following financial statement schedules and Report of Independent Registered Public Accounting Firm are included in Item 15(c):

•Schedule I - Summary of Investments - Other than Investments in Related Parties

•Schedule II - Condensed Financial Information of Registrant

•Schedule III - Supplementary Insurance Information

•Schedule IV - Reinsurance

•Report of Independent Registered Public Accounting Firm on Financial Statement Schedules

•No other schedules are required to be filed herewith pursuant to Article 7 of Regulation S-X.

(a)(3) Listing of Exhibits

See the Exhibit Index contained herein beginning at page 46, which is incorporated by reference from information with respect to this item. Management contracts and compensatory plans and arrangements are identified in the Exhibit Index as Exhibit Nos. 10.1 through 10.37.

(b) Exhibits

The exhibits in response to this portion of Item 15 are submitted concurrently with this report.

(c) Financial Statement Schedules

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SCHEDULE I — SUMMARY OF INVESTMENTS — OTHER THAN INVESTMENTS IN RELATED PARTIES

THE PROGRESSIVE CORPORATION AND SUBSIDIARIES

(millions)

	December 31, 2025
Type of Investment	Cost		Fair Value		Amount At<br>Which Shown<br>In The<br>Balance Sheet
Fixed maturities:
Bonds:
United States Government and government agencies and authorities	$	43,114	$	43,298	$	43,298
States, municipalities, and political subdivisions	3,342		3,303		3,303
Foreign government obligations	17		17		17
Public utilities	1,832		1,859		1,859
Corporate and other debt securities	17,941		18,132		18,132
Asset-backed securities	16,458		16,257		16,257
Total fixed maturities	82,704		82,866		82,866
Equity securities:
Common stocks:
Public utilities	34		128		128
Banks, trusts, and insurance companies	145		611		611
Industrial, miscellaneous, and all other	640		3,359		3,359
Nonredeemable preferred stocks	419		404		404
Total equity securities	1,238		4,502		4,502
Short-term investments	10,005		10,005		10,005
Total investments	$	93,947	$	97,373	$	97,373

Progressive did not have 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 December 31, 2025.

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SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF REGISTRANT

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

THE PROGRESSIVE CORPORATION (PARENT COMPANY)

(millions)

	Years Ended December 31,
	2025		2024		2023
Revenues
Dividends from subsidiaries	$	10,151	$	3,667	$	399
Undistributed income from subsidiaries	1,222		4,947		3,572
Equity in net income of subsidiaries	11,373		8,614		3,971
Intercompany investment income	166		149		205
Total revenues	11,539		8,763		4,176
Expenses
Interest expense	280		280		270
Deferred compensation1	18		54		20
Other operating costs and expenses	8		8		8
Total expenses	306		342		298
Income before income taxes	11,233		8,421		3,878
Benefit for income taxes	75		59		25
Net income	11,308		8,480		3,903
Other comprehensive income (loss)	1,526		193		1,186
Comprehensive income (loss)	$	12,834	$	8,673	$	5,089

1 See Note 4 – Employee Benefit Plans in these condensed financial statements.

See notes to condensed financial statements.

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SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued)

CONDENSED BALANCE SHEETS

THE PROGRESSIVE CORPORATION (PARENT COMPANY)

(millions)

	December 31,
	2025		2024
Assets
Investment in affiliate	$	5	$	5
Investment in subsidiaries	31,821		28,850
Receivable from investment subsidiary	12,524		5,812
Intercompany receivable	899		641
Net federal deferred income taxes	90		82
Other assets	163		176
Total assets	$	45,502	$	35,566
Liabilities and Shareholders’ Equity
Dividends payable on common shares	$	7,972	$	2,695
Accounts payable, accrued expenses, and other liabilities	310		387
Debt1	6,897		6,893
Total liabilities	15,179		9,975
Common shares, $1.00 par value (authorized 900; issued 798, including treasury shares of 212)	586		586
Paid-in capital	2,307		2,145
Retained earnings	27,327		24,283
Total accumulated other comprehensive income (loss)	103		(1,423)
Total shareholders’ equity	30,323		25,591
Total liabilities and shareholders’ equity	$	45,502	$	35,566

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

See notes to condensed financial statements.

- 37 -

SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued)

CONDENSED STATEMENTS OF CASH FLOWS

THE PROGRESSIVE CORPORATION (PARENT COMPANY)

(millions)

	Years Ended December 31,
	2025		2024		2023
Cash Flows From Operating Activities
Net income	$	11,308	$	8,480	$	3,903
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed income from subsidiaries	(1,222)		(4,947)		(3,572)
Amortization of equity-based compensation	3		4		3
Changes in:
Intercompany receivable	(258)		246		(421)
Accounts payable, accrued expenses, and other liabilities	(86)		26		12
Income taxes	1		(318)		301
Other, net	97		28		10
Net cash provided by operating activities	9,843		3,519		236
Cash Flows From Investing Activities
Additional investments in equity securities of consolidated subsidiaries	(94)		(182)		(621)
Received from (paid to) investment subsidiary	(6,712)		(2,021)		307
Net cash used in investing activities	(6,806)		(2,203)		(314)
Cash Flows From Financing Activities
Dividends paid to common shareholders	(2,871)		(674)		(234)
Acquisition of treasury shares for restricted stock tax liabilities	(92)		(121)		(95)
Acquisition of treasury shares acquired in open market	(74)		(13)		(46)
Redemption of preferred shares	0		(500)		0
Dividends paid to preferred shareholders	0		(8)		(43)
Net proceeds from debt issuance	0		0		496
Net cash provided by (used in) financing activities	(3,037)		(1,316)		78
Change in cash	0		0		0
Cash – beginning of year	0		0		0
Cash – end of year	$	0	$	0	$	0

See notes to condensed financial statements.

- 38 -

SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued)

NOTES TO CONDENSED FINANCIAL STATEMENTS

The accompanying condensed financial statements of The Progressive Corporation (parent company) should be read in conjunction with the consolidated financial statements and notes thereto in the Annual Report, which is included as Exhibit 13 to this Form 10-K.

Note 1. Statements of Cash Flows — For the purpose of the condensed statements of cash flows, cash includes only bank demand deposits. The Progressive Corporation does not hold any cash but has unrestricted access to funds maintained in a non-insurance investment subsidiary to meet its holding company obligations. At December 31, 2025, 2024, and 2023, $13.0 billion, $6.2 billion, and $4.2 billion, respectively, of marketable securities were available in this subsidiary.

For the years ended December 31, 2025, 2024, and 2023, non-cash activity included declared but unpaid common share dividends of $7,972 million, $2,695 million, and $498 million, respectively. See Note 14 – Dividends in the Annual Report for further discussion.

For the years ended December 31, The Progressive Corporation paid the following:

(millions)	2025		2024		2023
Income taxes	$	3,022	$	2,540	$	800
Interest	276		276		265

Note 2. Income Taxes — The Progressive Corporation files a consolidated federal income tax return with its eligible subsidiaries and acts as an agent for the consolidated tax group when making payments to the Internal Revenue Service. The Progressive Corporation consolidated group’s net income taxes currently payable/recoverable are included in accounts payable, accrued expenses, and other liabilities or other assets, respectively, in the accompanying condensed balance sheets based on the balance at the end of the year. The Progressive Corporation and its eligible subsidiaries have adopted, pursuant to a written agreement, a method of allocating consolidated federal income taxes. Amounts allocated to the eligible subsidiaries under the written agreement are included in intercompany receivable in the accompanying condensed balance sheets.

Note 3. Debt — The information relating to debt is incorporated by reference from Note 4 – Debt in the Annual Report.

Note 4. Employee Benefit Plans — The information relating to incentive compensation and deferred compensation plans is incorporated by reference from Note 9 – Employee Benefit Plans in the Annual Report.

Note 5. Other Comprehensive Income (Loss) — On the condensed statements of comprehensive income, other comprehensive income (loss) represents activity of the subsidiaries of The Progressive Corporation and includes net unrealized gains (losses) on fixed-maturity securities and net unrealized losses on forecasted transactions.

Note 6. Dividends — The information relating to our dividend policy is incorporated by reference from Note 14 – Dividends in the Annual Report.

- 39 -

SCHEDULE III — SUPPLEMENTARY INSURANCE INFORMATION

THE PROGRESSIVE CORPORATION AND SUBSIDIARIES

(millions)

Segment	Deferred<br>policy<br>acquisition costs1		Future<br>policy<br>benefits,<br>losses,<br>claims,<br>and<br>loss expenses1		Unearned premiums1		Other<br>policy<br>claims<br>and<br>benefits payable1		Premium revenue		Net<br>investment income1,2		Benefits,<br>claims,<br>losses, and<br>settlement expenses		Amortization<br>of deferred<br>policy<br>acquisition costs		Other operating expenses1		Net premiums<br>written
Year ended December 31, 2025:
Personal Lines									$	70,778			$	46,662	$	5,070	$	11,252	$	72,558
Commercial Lines									10,881				7,296		1,026		1,279		10,613
Other indemnity									2				1		0		22		3
Total	$	2,044	$	43,310	$	25,219	$	0	$	81,661	$	3,549	$	53,959	$	6,096	$	12,553	$	83,174
Year ended December 31, 2024:
Personal Lines									$	60,091			$	41,443	$	4,360	$	8,341	$	63,470
Commercial Lines									10,707				7,610		1,023		1,109		10,953
Other indemnity									1				7		0		12		1
Total	$	1,961	$	39,057	$	23,858	$	0	$	70,799	$	2,803	$	49,060	$	5,383	$	9,462	$	74,424
Year ended December 31, 2023:
Personal Lines									$	48,765			$	37,749	$	3,660	$	5,211	$	51,412
Commercial Lines									9,899				7,900		1,005		1,020		10,138
Other indemnity									1				6		0		11		0
Total	$	1,687	$	34,389	$	20,134	$	0	$	58,665	$	1,866	$	45,655	$	4,665	$	6,242	$	61,550

1 Progressive does not allocate assets, liabilities, or investment income to operating segments. Expense allocations are based on certain assumptions and estimates primarily related to revenue and volume; stated segment operating results would change if different methods were applied.

2 Excludes total net realized gains (losses) on securities.

- 40 -

SCHEDULE IV — REINSURANCE

THE PROGRESSIVE CORPORATION AND SUBSIDIARIES

(millions)

Year Ended:	Gross Amount		Ceded to<br>Other Companies		Assumed<br>From<br>Other Companies		Net Amount		Percentage<br>of Amount<br>Assumed to Net
December 31, 2025
Premiums earned:
Property and liability insurance	$	82,847	$	1,186	$	0	$	81,661	0	%
December 31, 2024
Premiums earned:
Property and liability insurance	$	72,169	$	1,370	$	0	$	70,799	0	%
December 31, 2023
Premiums earned:
Property and liability insurance	$	59,881	$	1,216	$	0	$	58,665	0	%

- 41 -

Report of Independent Registered Public Accounting Firm on Financial Statement Schedules

To the Board of Directors and Shareholders of The Progressive Corporation

Our audits of the consolidated financial statements referred to in our report dated March 2, 2026 appearing in the 2025 Annual Report to Shareholders of The Progressive Corporation (which report and consolidated financial statements are incorporated by reference in this Annual Report on Form 10-K) also included an audit of the schedule of condensed financial information of registrant as of December 31, 2025 and 2024 and for each of the three years in the period ended December 31, 2025, schedule of supplementary insurance information as of and for each of the three years in the period ended December 31, 2025, schedule of reinsurance for each of the three years in the period ended December 31, 2025, and schedule of summary of investments – other than investments in related parties as of December 31, 2025 listed in Item 15(a)(2) of this Form 10-K. In our opinion, these financial statement schedules present fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements.

/s/ PricewaterhouseCoopers LLP

Cleveland, Ohio

March 2, 2026

- 42 -

ITEM 16. FORM 10-K SUMMARY

We have elected not to include a summary of information as permitted under this item.

- 43 -

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	THE PROGRESSIVE CORPORATION
March 2, 2026	By:	/s/ Susan Patricia Griffith
		Susan Patricia Griffith
		President and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

/s/ Susan Patricia Griffith	Director, President and Chief Executive Officer	March 2, 2026
Susan Patricia Griffith
/s/ John P. Sauerland	Vice President and Chief Financial Officer	March 2, 2026
John P. Sauerland
/s/ Carl G. Joyce	Vice President and Chief Accounting Officer	March 2, 2026
Carl G. Joyce
*	Chairperson of the Board	March 2, 2026
Lawton W. Fitt
*	Director	March 2, 2026
Philip Bleser
*	Director	March 2, 2026
Stuart B. Burgdoerfer
*	Director	March 2, 2026
Pamela J. Craig
*	Director	March 2, 2026
Charles A. Davis
*	Director	March 2, 2026
Roger N. Farah
*	Director	March 2, 2026
Devin C. Johnson
*	Director	March 2, 2026
Jeffrey D. Kelly
*	Director	March 2, 2026
Barbara R. Snyder
*	Director	March 2, 2026
Kahina Van Dyke

- 44 -

* David M. Stringer, by signing his name hereto, does sign this document on behalf of the persons indicated above pursuant to powers of attorney duly executed by such person.

By:	/s/ David M. Stringer	March 2, 2026
	David M. Stringer
	Attorney-in-fact

- 45 -

EXHIBIT INDEX
Exhibit No.<br><br>Under<br><br>Reg. S-K,<br><br>Item 601	Form 10-K<br><br>Exhibit<br><br>No.	Description of Exhibit	If Incorporated by Reference, Documents with<br><br>Which Exhibit was Previously Filed with SEC		3(i)	3.1	Amended Articles of Incorporation of The Progressive Corporation (as amended March 13, 2018)	Quarterly Report on Form 10-Q (filed on May 1, 2019; Exhibit 3.1 therein)
---	---	---	---
3(ii)	3.2	Code of Regulations of The Progressive Corporation (as amended October 11, 2024)	Quarterly Report on Form 10-Q (filed on November 4, 2024; Exhibit 3.1 therein)
4	4.1	Description of the Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934	Annual Report on Form 10-K (filed on February 26, 2024; Exhibit 4.1 therein)
4	4.2	Indenture dated as of September 15, 1993 between The Progressive Corporation and State Street Bank and Trust Company (successor in interest to The First National Bank of Boston), as Trustee (“1993 Senior Indenture”) (including table of contents and cross-reference sheet)	Registration Statement No. 333-48935 (filed on March 31, 1998; Exhibit 4.1 therein)
4	4.3	First Supplemental Indenture dated March 15, 1996 to the 1993 Senior Indenture between The Progressive Corporation and State Street Bank and Trust Company	Registration Statement No. 333-01745 (filed on March 15, 1996; Exhibit 4.2 therein)
4	4.4	Second Supplemental Indenture dated February 26, 1999 to the 1993 Senior Indenture between The Progressive Corporation and State Street Bank and Trust Company, as Trustee	Registration Statement No. 333-100674 (filed on October 22, 2002; Exhibit 4.3 therein)
4	4.5	Fourth Supplemental Indenture dated November 21, 2002 to the 1993 Senior Indenture between The Progressive Corporation and State Street Bank and Trust Company, as Trustee	Registration Statement No. 333-143824 (filed on June 18, 2007; Exhibit 4.5 therein)
4	4.6	Fifth Supplemental Indenture dated June 13, 2007 to the 1993 Senior Indenture between The Progressive Corporation and U.S. Bank National Association, evidencing the designation of U.S. Bank National Association as successor Trustee under the 1993 Senior Indenture	Registration Statement No. 333-143824 (filed on June 18, 2007; Exhibit 4.6 therein)
4	4.7	Seventh Supplemental Indenture dated April 25, 2014 to the 1993 Senior Indenture between The Progressive Corporation and U.S. Bank National Association, as Trustee	Current Report on Form 8-K (filed on April 25, 2014; Exhibit 4.1 therein)
4	4.8	Eighth Supplemental Indenture dated January 26, 2015 to the 1993 Senior Indenture between The Progressive Corporation and U.S. Bank National Association, as Trustee	Current Report on Form 8-K (filed on January 26, 2015; Exhibit 4.1 therein)
4	4.9	Ninth Supplemental Indenture dated August 25, 2016 to the 1993 Senior Indenture between The Progressive Corporation and U.S. Bank National Association, as Trustee	Current Report on Form 8-K (filed on August 25, 2016; Exhibit 4.1 therein)
4	4.10	Tenth Supplemental Indenture dated April 6, 2017 to the 1993 Senior Indenture between The Progressive Corporation and U.S. Bank National Association, as Trustee	Current Report on Form 8-K (filed on April 6, 2017; Exhibit 4.1 therein)

- 46 -

EXHIBIT INDEX
Exhibit No.<br><br>Under<br><br>Reg. S-K,<br><br>Item 601	Form 10-K<br><br>Exhibit<br><br>No.	Description of Exhibit	If Incorporated by Reference, Documents with<br><br>Which Exhibit was Previously Filed with SEC		4	4.11	Eleventh Supplemental Indenture dated March 14, 2018 to the 1993 Senior Indenture between The Progressive Corporation and U.S. Bank National Association, as Trustee	Current Report on Form 8-K (filed on March 14, 2018; Exhibit 4.1 therein)
---	---	---	---
4	4.12	Form of 6 5/8% Senior Notes due 2029, issued in the aggregate principal amount of $300,000,000 under the 1993 Senior Indenture, as amended and supplemented	Annual Report on Form 10-K (filed on March 2, 2015; Exhibit 4.2 therein)
4	4.13	Form of 6.25% Senior Notes due 2032, issued in the aggregate principal amount of $400,000,000 under the 1993 Senior Indenture, as amended and supplemented	Annual Report on Form 10-K (filed on February 27, 2018; Exhibit 4.3 therein)
4	4.14	Form of 4.35% Senior Notes due 2044, issued in the aggregate principal amount of $350,000,000 under the 1993 Senior Indenture, as amended and supplemented	Current Report on Form 8-K (filed on April 25, 2014; Exhibit 4.2 therein)
4	4.15	Form of 3.70% Senior Notes due 2045, issued in the aggregate principal amount of $400,000,000 under the 1993 Senior Indenture, as amended and supplemented	Current Report on Form 8-K (filed on January 26, 2015; Exhibit 4.2 therein)
4	4.16	Form of 2.45% Senior Notes due 2027, issued in the aggregate principal amount of $500,000,000 under the 1993 Senior Indenture, as amended and supplemented	Current Report on Form 8-K (filed on August 25, 2016; Exhibit 4.2 therein)
4	4.17	Form 4.125% Senior Note Due 2047, issued in the aggregate principal amount of $850,000,000 under the 1993 Senior Indenture, as amended and supplemented	Current Report on Form 8-K (filed on April 6, 2017; Exhibit 4.2 therein)
4	4.18	Form 4.20% Senior Note Due 2048, issued in the aggregate principal amount of $600,000,000 under the 1993 Senior Indenture, as amended and supplemented	Current Report on Form 8-K (filed on March 14, 2018; Exhibit 4.2 therein)
4	4.19	Indenture dated as of September 12, 2018 between The Progressive Corporation and U.S. Bank National Association, Trustee (including table of contents and cross-reference sheet)	Registration Statement No. 333-227315 (filed on September 13, 2018; Exhibit 4.2 therein)
4	4.20	First Supplemental Indenture dated October 23, 2018 between The Progressive Corporation and U.S. Bank National Association, as trustee	Current Report on Form 8-K (filed on October 23, 2018; Exhibit 4.1 therein)
4	4.21	Second Supplemental Indenture dated March 26, 2020 between The Progressive Corporation and U.S. Bank National Association, as trustee	Current Report on Form 8-K (filed on March 26, 2020; Exhibit 4.1 therein)
4	4.22	Third Supplemental Indenture between The Progressive Corporation and U.S. Bank Trust Company, National Association, as trustee	Current Report on Form 8-K (filed on March 9, 2022; Exhibit 4.1 therein)
4	4.23	Fourth Supplemental Indenture between The Progressive Corporation and U.S. Bank Trust Company, National Association, as trustee	Current Report on Form 8-K (filed on May 25, 2023; Exhibit 4.1 therein)
4	4.24	Form 4.00% Senior Note Due 2029, issued in the aggregate principal amount of $550,000,000	Current Report on Form 8-K (filed on October 23, 2018; Exhibit 4.2 therein)

- 47 -

EXHIBIT INDEX
Exhibit No.<br><br>Under<br><br>Reg. S-K,<br><br>Item 601	Form 10-K<br><br>Exhibit<br><br>No.	Description of Exhibit	If Incorporated by Reference, Documents with<br><br>Which Exhibit was Previously Filed with SEC		4	4.25	Form of 3.20% Senior Note due 2030, issued in the aggregate principal amount of $500,000,000	Current Report on Form 8-K (filed on March 26, 2020; Exhibit 4.2 therein)
---	---	---	---
4	4.26	Form of 3.95% Senior Note due 2050, issued in the aggregate principal amount of $500,000,000	Current Report on Form 8-K (filed on March 26, 2020; Exhibit 4.3 therein)
4	4.27	Form of 2.50% Senior Note due 2027	Current Report on Form 8-K (filed on March 9, 2022; Exhibit 4.2 therein)
4	4.28	Form of 3.00% Senior Note due 2032	Current Report on Form 8-K (filed on March 9, 2022; Exhibit 4.3 therein)
4	4.29	Form of 3.70% Senior Note due 2052	Current Report on Form 8-K (filed on March 9, 2022; Exhibit 4.4 therein)
4	4.30	Form of 4.95% Senior Note due 2033	Current Report on Form 8-K (filed on May 25, 2023; Exhibit 4.2 therein)
4	4.31	Form of Confirmation Letter-Discretionary Line of Credit from PNC Bank, National Association to The Progressive Corporation	Quarterly Report on Form 10-Q (filed on May 1, 2019; Exhibit 4.1 therein)
4	4.32	Amendment to Discretionary Line Documents - Discretionary Line of Credit from PNC Bank, National Association, to The Progressive Corporation (2020 Amendment)	Quarterly Report on Form 10-Q (filed on August 4, 2020; Exhibit 5.1 therein)
4	4.33	Amendment to Discretionary Line Documents - Discretionary Line of Credit from PNC Bank, National Association, to The Progressive Corporation (2021 Amendment)	Quarterly Report on Form 10-Q (filed on August 3, 2021; Exhibit 4.1 therein)
4	4.34	Amendment to Discretionary Line Documents - Discretionary Line of Credit from PNC Bank, National Association to The Progressive Corporation (2023 Amendment)	Quarterly Report on Form 10-Q (filed on May 2, 2023; Exhibit 4.1 therein)
4	4.35	Form of Amended and Restated Discretionary Line of Credit Note from The Progressive Corporation to PNC Bank, National Association	Quarterly Report on Form 10-Q (filed on May 2, 2023; Exhibit 4.2 therein)
10(iii)	10.1	The Progressive Corporation 2026Gainshare Plan	Filed herewith
10(iii)	10.2	The Progressive Corporation 2015 Equity Incentive Plan	Current Report on Form 8-K (filed on February 4, 2015; Exhibit 10.1 therein)
10(iii)	10.3	The Progressive Corporation 2024 Equity Incentive Plan	Current Report on Form 8-K (filed on May 14, 2024; Exhibit 10 therein)
10(iii)	10.4	Form of Restricted Stock Unit Award Agreement for Time-Based Awards (for 2025)	Quarterly Report on Form 10-Q (filed on May 5, 2024; Exhibit 10.1 therein)
10(iii)	10.5	Form of Restricted Stock Unit Award Agreement for Time-Based Awards (for 2024)	Quarterly Report on Form 10-Q (filed on May 6, 2024; Exhibit 10.1 therein)
10(iii)	10.6	Form of Restricted Stock Unit Award Agreement for Time-Based Awards under The Progressive Corporation 2015 Equity Incentive Plan (for 2023)	Quarterly Report on Form 10-Q (filed on May 2, 2023; Exhibit 10.1 therein)
10(iii)	10.7	Form of Restricted Stock Unit Award Agreement for Time-Based Awards under The Progressive Corporation 2015 Equity Incentive Plan (for 2022)	Quarterly Report on Form 10-Q (filed on May 2, 2022; Exhibit 10.1 therein)

- 48 -

EXHIBIT INDEX
Exhibit No.<br><br>Under<br><br>Reg. S-K,<br><br>Item 601	Form 10-K<br><br>Exhibit<br><br>No.	Description of Exhibit	If Incorporated by Reference, Documents with<br><br>Which Exhibit was Previously Filed with SEC		10(iii)	10.8	Form of Restricted Stock Unit Award Agreement for Performance-Based Awards (Performance Versus Market) (for 2025)	Quarterly Report on Form 10-Q (filed on May 5, 2025; Exhibit 10.2 therein)
---	---	---	---
10(iii)	10.9	Form of Restricted Stock Unit Award Agreement for Performance-Based Awards (Performance Versus Market) (for 2024)	Quarterly Report on Form 10-Q (filed on May 6, 2024; Exhibit 10.2 therein)
10(iii)	10.10	Form of Restricted Stock Unit Award Agreement for Performance-Based Awards (Performance Versus Market) under The Progressive Corporation 2015 Equity Incentive Plan (for 2023)	Quarterly Report on Form 10-Q (filed on May 2, 2023; Exhibit 10.2 therein)
10(iii)	10.11	Form of Restricted Stock Unit Award Agreement for Performance-Based Awards (Investment Results) (for 2025)	Quarterly Report on Form 10-Q (filed on May 5, 2025; Exhibit 10.3 therein)
10(iii)	10.12	Form of Restricted Stock Unit Award Agreement for Performance-Based Awards (Investment Results) (for 2024)	Quarterly Report on Form 10-Q (filed on May 6, 2024; Exhibit 10.3 therein)
10(iii)	10.13	Form of Restricted Stock Unit Award Agreement for Special Time/Performance-Based Award (for 2025)	Quarterly Report on Form 10-Q (filed on May 5, 2025; Exhibit 10.4 therein)
10(iii)	10.14	Chief Executive Officer Amendment No. 1 to Certain Restricted Stock Unit Award Agreements	Annual Report on Form 10-K (filed on February 26, 2024; Exhibit 10.14 therein)
10(iii)	10.15	The Progressive Corporation 2017 Directors Equity Incentive Plan (2022 Amendment and Restatement)	Current Report on Form 8-K (filed on May 16, 2022; Exhibit 10 therein)
10(iii)	10.16	Form of Restricted Stock Award Agreement under The Progressive Corporation Amended and Restated 2017 Directors Equity Incentive Plan (for 2025)	Quarterly Report on Form 10-Q (filed on August 4, 2025; Exhibit 10.1 therein)
10(iii)	10.17	The Progressive Corporation Executive Deferred Compensation Plan (2003 Amendment and Restatement)	Registration Statement No. 333-185704 (filed on December 27, 2012; Exhibit 4.3 therein)
10(iii)	10.18	First Amendment to The Progressive Corporation Executive Deferred Compensation Plan (2003 Amendment and Restatement)	Registration Statement No. 333-185704 (filed on December 27, 2012; Exhibit 4.4 therein)
10(iii)	10.19	Second Amendment to The Progressive Corporation Executive Deferred Compensation Plan (2003 Amendment and Restatement)	Registration Statement No. 333-185704 (filed on December 27, 2012; Exhibit 4.5 therein)
10(iii)	10.20	Third Amendment to The Progressive Corporation Executive Deferred Compensation Plan (2003 Amendment and Restatement)	Registration Statement No. 333-185704 (filed on December 27, 2012; Exhibit 4.6 therein)
10(iii)	10.21	Fourth Amendment to The Progressive Corporation Executive Deferred Compensation Plan (2003 Amendment and Restatement)	Registration Statement No. 333-185704 (filed on December 27, 2012; Exhibit 4.7 therein)
10(iii)	10.22	The Progressive Corporation Executive Deferred Compensation Plan (2008 Amendment and Restatement)	Registration Statement No. 333-185704 (filed on December 27, 2012; Exhibit 4.8 therein)

- 49 -

EXHIBIT INDEX
Exhibit No.<br><br>Under<br><br>Reg. S-K,<br><br>Item 601	Form 10-K<br><br>Exhibit<br><br>No.	Description of Exhibit	If Incorporated by Reference, Documents with<br><br>Which Exhibit was Previously Filed with SEC		10(iii)	10.23	First Amendment to The Progressive Corporation Executive Deferred Compensation Plan (2008 Amendment and Restatement)	Registration Statement No. 333-185704 (filed on December 27, 2012; Exhibit 4.9 therein)
---	---	---	---
10(iii)	10.24	The Progressive Corporation Executive Deferred Compensation Plan (2010 Amendment and Restatement)	Registration Statement No. 333-185704 (filed on December 27, 2012; Exhibit 4.10 therein)
10(iii)	10.25	First Amendment to The Progressive Corporation Executive Deferred Compensation Plan (2010 Amendment and Restatement)	Registration Statement No. 333-185704 (filed on December 27, 2012; Exhibit 4.11 therein)
10(iii)	10.26	Second Amendment to The Progressive Corporation Executive Deferred Compensation Plan (2010 Amendment and Restatement)	Current Report on Form 8-K (filed on October 14, 2014; Exhibit 10 therein)
10(iii)	10.27	Third Amendment to the Progressive Corporation Executive Deferred Compensation Plan (2010 Amendment and Restatement)	Annual Report on Form 10-K (filed on February 29, 2016; Exhibit 10.53 therein)
10(iii)	10.28	Fourth Amendment to The Progressive Corporation Executive Deferred Compensation Plan (2010 Amendment and Restatement)	Quarterly Report on Form 10-Q (filed on November 2, 2017; Exhibit 10 therein)
10(iii)	10.29	The Progressive Corporation Executive Deferred Compensation Plan (2018 Amendment and Restatement)	Quarterly Report on Form 10-Q (filed on July 31, 2018; Exhibit 10 therein)
10(iii)	10.30	First Amendment to The Progressive Corporation Executive Deferred Compensation Plan (2018 Amendment and Restatement)	Quarterly Report on Form 10-Q (filed on August 5, 2024; Exhibit 10.2 therein)
10(iii)	10.31	The Progressive Corporation Directors Deferral Plan (2008 Amendment and Restatement)	Annual Report on Form 10-K (filed on February 27, 2018; Exhibit 10.91 therein)
10(iii)	10.32	The Progressive Corporation Directors Deferral Plan (2015 Amendment and Restatement)	Annual Report on Form 10-K (filed on February 29, 2016; Exhibit 10.77 therein)
10(iii)	10.33	The Progressive Corporation Directors Restricted Stock Deferral Plan (2008 Amendment and Restatement)	Quarterly Report on Form 10-Q (filed on May 1, 2019; Exhibit 10.4 therein)
10(iii)	10.34	First Amendment to The Progressive Corporation Directors Restricted Stock Deferral Plan (2008 Amendment and Restatement)	Annual Report on Form 10-K (filed on February 27, 2019; Exhibit 10.56 therein)
10(iii)	10.35	Director Compensation Schedule for 2025-2026Term	Filed herewith
10(iii)	10.36	The Progressive Corporation Executive Separation Allowance Plan (2024 Amendment and Restatement)	Quarterly Report on Form 10-Q (filed on August 5, 2024; Exhibit 10.3 therein)
10(iii)	10.37	2026Progressive Capital Management Annual Incentive Plan	Filed herewith
13	13	Annual Report to Shareholders of The Progressive Corporation and subsidiaries for the year ended December 31, 2025	Filed herewith
19	19	The Progressive Corporation Insider Trading Policy	Annual Report on Form 10-K (filed on March 3, 2025; Exhibit 19 therein)
21	21	Subsidiaries of The Progressive Corporation	Filed herewith

- 50 -

EXHIBIT INDEX
Exhibit No.<br><br>Under<br><br>Reg. S-K,<br><br>Item 601	Form 10-K<br><br>Exhibit<br><br>No.	Description of Exhibit	If Incorporated by Reference, Documents with<br><br>Which Exhibit was Previously Filed with SEC		23	23	Consent of Independent Registered Public Accounting Firm	Filed herewith
---	---	---	---
24	24	Powers of Attorney	Filed herewith
31	31.1	Rule 13a-14(a)/15d-14(a) Certification of the Principal Executive Officer, Susan Patricia Griffith	Filed herewith
31	31.2	Rule 13a-14(a)/15d-14(a) Certification of the Principal Financial Officer, John P. Sauerland	Filed herewith
32	32.1	Section 1350 Certification of the Principal Executive Officer, Susan Patricia Griffith	Furnished herewith
32	32.2	Section 1350 Certification of the Principal Financial Officer, John P. Sauerland	Furnished herewith
97	97	The Progressive Corporation Dodd-Frank Clawback Policy	Annual Report on Form 10-K (filed on February 26, 2024; Exhibit 97 therein)
99	99	Letter to Shareholders from Susan Patricia Griffith, President and Chief Executive Officer	Filed herewith
101	101.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.	Filed herewith
101	101.SCH	Inline XBRL Taxonomy Extension Schema Document	Filed herewith
101	101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document	Filed herewith
101	101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document	Filed herewith
101	101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document	Filed herewith
101	101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document	Filed herewith
104	104	Cover Page Interactive Data File (the cover page tags are embedded within the Inline XBRL document).	Filed herewith

- 51 -

Document

Exhibit 10.1

THE PROGRESSIVE CORPORATION

2026 GAINSHARE PLAN

1.    The Plan. The Progressive Corporation and its wholly-owned and majority-owned subsidiaries and down-stream affiliates (collectively, “Progressive” or the “Company”) have adopted The Progressive Corporation 2026 Gainshare Plan (the “Plan”) as part of the Company’s overall compensation program. The Plan is performance-based, is not a form of commission compensation, and is administered under the direction of the Compensation and Talent Committee of the Board of Directors of The Progressive Corporation (the “Committee”). Payment under the Plan, if any, is based on Company performance as defined by the Plan, not individual employee performance. Plan years will coincide with Progressive’s fiscal years.

2.    Participants. Plan participants for each Plan year shall include all officers and regular employees of Progressive, unless determined otherwise by the Committee. Temporary employees are not eligible to participate in the Plan. Throughout this Plan, references to “executive officers” refer to executive officers of The Progressive Corporation within the meaning of any Securities and Exchange Commission (“SEC”) or New York Stock Exchange rule applicable to the Company.

3.    Gainshare Formula. Subject to the terms of the Plan, annual payments pursuant to the Plan (each, an “Annual Gainshare Payment”) will be determined by application of the following formula:

Annual Gainshare Payment = Paid Eligible Earnings x Target Percentage x Performance Factor

4.    Paid Eligible Earnings. “Paid Eligible Earnings” for any Plan year shall mean and include the following: regular pay, Paid Time Off pay (including Protected PTO-PSL, but excluding the payout of unused Paid Time Off or Protected PTO-PSL at termination), Volunteer Time Off pay, sick pay, holiday pay, bereavement pay, overtime pay, military make-up pay, shift differential pay, disaster pay, jury duty pay, and retroactive payments of any of the foregoing items, in each case received by the participant during the Plan year for work or services performed as an officer or employee of Progressive.

For purposes of the Plan, and notwithstanding the foregoing, Paid Eligible Earnings shall exclude all other types of pay or compensation, including, without limitation: any short-term or long-term disability payments made to the participant; the earnings replacement component of any workers’ compensation benefit or award; any amounts paid pursuant to a judgment in, or settlement related to, any action, suit or proceeding, whether in law or equity, to any extent arising from or relating to a participant’s employment with the Company, or work or services performed for or on behalf of the Company; any amount paid under a separation allowance (or severance) plan; any bonus (including PCM Annual Incentive Plan payment), Gainshare or other incentive compensation payment or award (whether denominated, or payable, in cash or equity), including, without limitation, payments from any discretionary cash fund; any dividend payments or dividend equivalent amounts; any unused Paid Time Off; any unused Volunteer Time Off; and any other payment required by applicable law to be paid to a participant by the Company and intended to replace all or any portion of wages or earnings during a period of unemployment, whether due to illness, disability or otherwise (including, but not limited to, payments made pursuant to any statute, rule or regulation of a governmental authority relating to leave on account of maternity, paternity, parental status or responsibility, or sickness).

5.    Target Percentages. Target Percentages vary by position. Target Percentages for Plan participants typically are as follows:

POSITION	TARGET %
Chief Executive Officer and Other Executive Officers	Determined by the Compensation and Talent Committee
Other Senior Executives and Executive Level Managers	60 - 75%
Business Leaders	35 - 60%
Directors and Senior Directors	20 - 45%
Middle Managers and Senior Managers	15 - 25%
Senior Professionals and Entry Level Managers	8 - 25%
Administrative Support and Entry Level Professionals	4 - 8%

Target Percentages will be established within the above ranges by, and may be changed with the approval of, the Chief Human Resources Officer (“CHRO”); provided that the CHRO may establish appropriate procedures to evaluate the need for, and if appropriate, implement individual exceptions to, the foregoing ranges. Target Percentages may be changed from year to year by the CHRO. The CHRO may consult with the Chief Executive Officer (“CEO”) on any of the foregoing decisions. Notwithstanding anything herein to the contrary, only the Committee may establish or modify the Target Percentages for the Company’s executive officers.

If a participant’s Target Percentage changes during a Plan year, the Target Percentages used to calculate such participant’s Annual Gainshare Payment hereunder shall be weighted appropriately to reflect such participant’s tenure in each such position during the Plan year.

6.    The Performance Factor.

A.    Core Business Defined.

The Performance Factor shall be determined by the performance of the Core Business during the Plan year, pursuant to the procedures and calculations described below. The “Core Business” shall be comprised of the following:

•The agency auto business unit, consisting of the auto business produced by independent agents or brokers, including Strategic Alliances agency auto, but excluding all agency special lines businesses;

•The direct auto business unit, consisting of the personal auto business produced by phone, over the Internet, or via a mobile application, but excluding all direct special lines businesses;

•The special lines business unit, consisting of special lines business generated by agents and brokers or directly by phone, over the Internet, or via a mobile application;

•The property business unit, consisting of property business generated by agents or directly by phone, over the Internet; and

•The Commercial Lines business unit, consisting of Commercial Lines business generated by agents and brokers or directly by phone or over the Internet.

Each of the agency auto, direct auto, special lines, property and Commercial Lines business units is individually referred to herein as a “Business Unit.” Notwithstanding the foregoing descriptions, for all purposes under this Plan, the following are excluded from the Core Business results:

(i)from both growth and profitability: results of the Professional Liability business, the Midland Financial Group, Inc. and other businesses in run-off; results of the CAIP Servicing Group; flood insurance policies, renters insurance policies, umbrella policies and related expenses; and business owners’ policies and related expenses; and

(ii)from growth: any results of any Commercial Lines product or program pursuant to which the Company insures any transportation network company or other entity engaged in a ride, cartage, or vehicle sharing business, operation, platform, or program or in a business based on matching and/or sharing time, use and/or assets by and among people and/or businesses (collectively, the “TNC business”) and results from Progressive Fleet & Specialty (formerly known as The Protective Insurance Corporation and its subsidiaries) (“Progressive Fleet & Specialty”). For purposes of this Plan, any business or entity acquired during the Plan year will be excluded to the extent determinable.

B.    Matrices.

For purposes of computing a performance score for the Core Business, operating performance results for each Business Unit are evaluated using a performance matrix for the Plan year. Each matrix assigns performance scores to various combinations of profitability and growth outcomes for the applicable Business Unit. Those scores are then weighted and combined to produce a Performance Factor as described in Paragraph 6.D. below.

For 2026, and for each Plan year thereafter until otherwise determined by the Committee, each Business Unit will be evaluated, and separate Gainshare matrices will be established by the Committee for the following:

•agency auto;

•direct auto;

•special lines;

•property (comprised of two separate strategic growth components); and

•Commercial Lines (comprised of a commercial auto component and a combined TNC and Progressive Fleet & Specialty component).

C.    Performance Measures.

Growth. The growth measure for the Plan year under all applicable matrices will be based on policies in force (“PIFs”).

For all applicable matrices, growth will be measured by the percentage change in average PIFs for the Plan year compared to the average PIFs of the immediately preceding fiscal year

(rounded to the nearest hundredth decimal). Average PIFs for the Plan year and for the immediately preceding fiscal year will be determined by adding the fiscal-month-end number of PIFs for each month during such year and dividing the total by twelve and rounded to the nearest hundredth decimal.

Assigned risk business will not be included in determining the growth of any Business Unit.

Profitability. For all applicable matrices, the measurement of profitability will be the combined ratio (calculated using measures determined in accordance with U.S. generally accepted accounting principles and rounded to the nearest tenth decimal) (the “GAAP Combined Ratio”) for the Plan year for the applicable Business Unit.

Assigned risk business will be included in determining the GAAP Combined Ratio for the applicable Business Unit. The net operating expense of Corporate Products (e.g., self-insurance) shall be apportioned among the appropriate Business Units in accordance with the respective amount(s) of net earned premiums generated by each such Business Unit and will be reflected in the calculation of the GAAP Combined Ratio for such Business Units.

D.    Calculation of Performance Factor.

Performance Scores

Using the actual performance results and the Gainshare matrix for each Business Unit, the GAAP Combined Ratio* for each such Business Unit will be matched with the growth levels achieved by such Business Unit, to determine the performance score for each such Business Unit. The performance score for each Business Unit, which will be used to calculate the Performance Factor as described further below, can vary from 0.00 to 2.00 (within this range, the performance score for each Business Unit will be rounded to the nearest hundredth decimal). Provided, however, that with respect to the Commercial Lines and property Business Units, if the respective GAAP Combined Ratio* is at or above 100.0, the Performance Factor for such Business Unit shall be 0.00.

*With respect to the Commercial Lines’ GAAP Combined Ratio, the commercial auto component score will be weighted with the combined TNC and Progressive Fleet & Specialty components score based upon net earned premiums.

Performance Factor

The resulting performance scores for each of the agency auto, direct auto, special lines, property, and Commercial Lines Business Units will then be multiplied by a weighting factor, which shall be a fraction or decimal equivalent rounded to the nearest hundredth decimal, determined by dividing the net earned premiums generated by such Business Unit during the Plan year by the net earned premiums generated by all of the Business Units comprising the Core Business in the aggregate. The sum of these weighted performance scores (for each weighted Business Unit, rounded to the nearest hundredth decimal) will be the Performance Factor for the Plan year.

E.    Limitations.

The final Performance Factor in total or for any single business unit cannot exceed 2.00.

7.    Payment Procedures; Deferral.

A.Executive Team.

In the case of a participant who is the CEO or any other executive officer (other than the Chief Accounting Officer) within the meaning of Rule 16a-1(f) or otherwise for purposes of Section 16 of the Securities Exchange Act of 1934 as of February 9, 2026 (collectively, the “Executive Team”), subject to Paragraphs 9 and 16 below, Annual Gainshare Payments shall be paid after the Committee determines the Performance Factor but in any event prior to March 15th of the year immediately following the Plan year; provided, however, that the Committee may, in its sole discretion, reduce the amount of, or eliminate in full, any Annual Gainshare Payment to a member of the Executive Team at any time before payment, for any or no reason. The Committee may, in its sole discretion, treat individual members of the Executive Team differently for these purposes. Any such determination by the Committee shall be final and binding on each participant whose Annual Gainshare Payment is affected thereby and on such participant’s estate and beneficiaries.

B.Other Participants.

In the case of participants who are not members of the Executive Team, subject to Paragraphs 9 and 16 below, no later than December 31 of each Plan year, each participant will receive an initial payment in respect of such participant’s Annual Gainshare Payment for that Plan year, if any, equal to 75% of an amount calculated on the basis of Paid Eligible Earnings for the first 24 pay periods of the Plan year, estimated earnings for the remainder of the Plan year, and an estimated performance factor determined using the performance data for each Business Unit through the first 11 months of the Plan year (estimated, if necessary), the applicable Gainshare matrix and the calculations described above. Subject to Paragraphs 9 and 16 below, no later than February 28 of the following year, each participant will receive the amount equal to (x) such participant’s Annual Gainshare Payment, if any, for such Plan year, based on such participant’s Paid Eligible Earnings and performance data for the entire Plan year, minus (y) the amount of the initial payment received by such participant pursuant to the immediately preceding sentence.

C.    Deferral.

Any Plan participant who is then eligible to participate in The Progressive Corporation Executive Deferred Compensation Plan as currently in effect or as hereinafter amended (or any successor or similar deferral plan) (“Deferral Plan”) may elect to defer all or a portion of the Annual Gainshare Payment otherwise payable to such participant under this Plan, subject to and in accordance with the terms of the Deferral Plan. If a Plan participant has made such an election under the Deferral Plan, then to the extent of such election, the Annual Gainshare Payment will, instead of being paid to such participant as described in the immediately preceding paragraphs, be credited to such participant’s account under the Deferral Plan in accordance with the terms of the Deferral Plan.

8.    Other Plans. If, for any Plan year, an employee has been selected to participate in both this Plan and another cash incentive plan offered by the Company, then with respect to such employee, the Gainshare formula set forth in Paragraph 3 hereof shall be appropriately adjusted by applying a weighting factor to reflect the proportion of the employee’s total annual incentive opportunity that is being provided by this Plan. The Committee shall have full authority to determine the incentive plan or plans in which any employee will participate during any Plan year and, if an employee is selected to participate in more than one plan, the weighting factor that will apply to each such plan.

9.    Qualification Date; Leave of Absence; Withholding. Unless otherwise determined by the Committee, and except as expressly provided herein, in order to be entitled to receive an Annual Gainshare Payment for any Plan year, the participant must be an active officer or regular employee of the Company on November 30 of the Plan year (“Qualification Date”). An individual (i) who is hired on or after December 1 of any Plan year or (ii) whose employment terminates for any reason prior to the Qualification Date is not entitled to an Annual Gainshare Payment for that Plan year. Annual Gainshare Payments are not earned until paid.

Any participant who is on a leave of absence covered by the Family and Medical Leave Act of 1993, as amended (or equivalent state or local law), the Americans with Disabilities Act of 1991, as amended (or equivalent state or local law), personal leave of absence with the approval of the Company, military leave or short- or long-term disability (provided that, in the case of a long-term disability, the participant is still an employee of the Company) on the Qualification Date with respect to any Plan year will be entitled to receive an Annual Gainshare Payment for such Plan year, calculated as provided in Paragraphs 3 through 6 above, based on the amount of Paid Eligible Earnings received by such participant during the Plan year and paid in the manner and at the times as are described in Paragraph 7 above but subject to Paragraph 16 below.

Progressive shall have the right to deduct from any Annual Gainshare Payment, prior to payment, the amount of any taxes required to be withheld by any federal, state, local or foreign government with respect to such payments.

10.    Non-Transferability. Annual Gainshare Payments shall be payable only to the participant or, in the event of the participant’s death, to the participant’s estate. The right to any Annual Gainshare Payment hereunder may not be sold, transferred, assigned or encumbered, voluntarily or involuntarily, other than by will or the laws of descent or distribution. Nothing herein shall prevent any participant’s interest hereunder from being subject to involuntary attachment, levy or other legal process.

11.    Administration. The Plan shall be administered by or under the direction of the Committee. The Committee shall have the authority to adopt, alter, amend, modify, revise and repeal such rules, guidelines, procedures and practices governing the Plan as it shall, from time to time, in its sole discretion, deem advisable.

The Committee shall have full authority to determine the manner in which the Plan will operate, to interpret the provisions of the Plan and to make all determinations hereunder. All such interpretations and determinations shall be final and binding on Progressive, all Plan participants, their estates and beneficiaries and all other parties. No such interpretation or determination shall be relied on as a precedent for any similar action or decision. No member of the Committee shall incur any liability for any action taken or omitted, or any determination made, in good faith with respect to the Plan.

Unless otherwise determined by the Committee, all of the authority of the Committee hereunder (including, without limitation, the authority to administer the Plan, select the persons entitled to participate herein, interpret the provisions hereof, waive any of the requirements specified herein and make determinations hereunder and to select, approve, establish, change or modify the Business Units and the Gainshare formulae, weighting factors, performance targets and Target Percentages) may be exercised by the CEO and/or the CHRO; provided, however, that only the Committee may take such actions or make such determinations with respect to the Company’s executive officers. In the event of a dispute or conflict, the determination of the Committee will govern.

12.    Miscellaneous.

A.Recoupment. Progressive shall have the right to recoup any Annual Gainshare Payment (or an appropriate portion thereof, as hereinafter provided) with respect to any Plan year paid to a participant hereunder who was an executive officer of Progressive at any time during such Plan year, if: (i) the Annual Gainshare Payment was calculated by reference to the achievement during such Plan year of certain financial or operating results (which includes, for purposes hereof, the Performance Factor described in Paragraph 6); (ii) such financial or operating results were incorrect and were subsequently the subject of a restatement by Progressive within three (3) years after the date on which such Annual Gainshare Payment was paid to the participant; and (iii) the Annual Gainshare Payment would not have been paid, in whole or in part, to the participant if the restated financial or operating results had been known at the time the payment was made. Such recoupment right shall be available to Progressive whether or not the participant in question was at fault or responsible in any way in causing such restatement. In such circumstances, Progressive will have the right to recover from each such participant for such Plan year, and each such participant will refund to Progressive promptly upon demand, the amount by which the Annual Gainshare Payment paid to such participant for the Plan year in question exceeded the payment that would have been made if the Annual Gainshare Payment had been calculated by reference to the restated results, without interest; provided, however, that Progressive will not seek to recover such amounts from any participant who is not a member of the Executive Team unless the amount due would exceed the lesser of five percent (5%) of the Annual Gainshare Payment previously paid or twenty-thousand dollars ($20,000). Such recovery, at the Committee’s discretion, may be made by lump sum payment, installment payments, credits against future Annual Gainshare Payments or other bonus payments, credits against any other compensation or other appropriate mechanism. References in this paragraph to payments and amounts paid shall be deemed to include amounts deposited into the Deferral Plan as a result of an election by the participant.

B.Further Rights. Notwithstanding the foregoing subsection A., if any participant that was an executive officer at any time during such Plan year engaged in fraud or other misconduct (as determined by the Committee or the Board of Directors, in their respective sole discretion) resulting, in whole or in part, in a restatement of the financial or operating results used hereunder to determine the Annual Gainshare Payments for a specific Plan year, Progressive will further have the right to recover from such participant, and the participant will refund to Progressive upon demand, an amount equal to the entire Annual Gainshare Payment paid to such participant for such Plan year plus interest at the rate of eight percent (8%) per annum or, if lower, the highest rate permitted by law, calculated from the date that such Annual Gainshare Payment

was paid to the participant. Progressive shall further have the right to recover from such participant Progressive’s costs and expenses incurred in connection with recovering such Annual Gainshare Payment from the participant and enforcing its rights under this subsection B., including, without limitation, reasonable attorneys’ fees. There shall be no time limit on the Company’s right to recover such amounts under this subsection B., except as otherwise provided by applicable law. References in this paragraph to payments and amounts paid shall be deemed to include amounts deposited into the Deferral Plan as a result of an election by the participant.

C.Compliance with Law and Exchange Requirements. The Annual Gainshare Payments determined and paid pursuant to the Plan shall be subject to all applicable laws and regulations. Without limiting the foregoing, and notwithstanding anything to the contrary contained in this Plan, the Annual Gainshare Payment paid to a participant (and any payment made to a participant pursuant to a similar plan or an award) shall be subject to The Progressive Corporation Dodd-Frank Clawback Policy, as may be amended from time to time (collectively, the “Clawback Policy”) and recoupment pursuant to the Federal securities laws and the rules of the SEC and any applicable national securities exchange. The Clawback Policy is incorporated herein by reference. References in this paragraph to payments and amounts paid shall be deemed to include amounts deposited into the Deferral Plan as a result of an election by the participant.

D.Rights Not Exclusive. The rights contained in the foregoing subsections A. through C. shall be in addition to, and shall not limit, any other rights or remedies that the Company may have under any applicable law or regulation. Nothing contained in subsections A. through C. shall be deemed to limit any additional legal or equitable rights or remedies the Company may have under applicable law with respect to any participant who may have caused or contributed to the Company’s need to restate its financial results. If any of the provisions of subsections A. through C., or any part thereof, are held to be unenforceable, the court making such determination shall have the power to revise or modify such provision to make it enforceable to the maximum extent permitted by applicable law and, in its revised or modified form, said provision shall then be enforceable.

13.    Termination; Amendment. The Plan may be suspended, terminated, amended or revised, in whole or in part, at any time and from time to time by the Committee, in its sole discretion.

14.    Unfunded Obligations. The Plan will be unfunded and all payments due under the Plan shall be made from Progressive’s general assets.

15.    No Employment Rights. Nothing in the Plan, and no action hereunder, shall be construed as conferring upon any person the right to remain a participant in the Plan or to remain employed by Progressive, nor shall the Plan limit Progressive’s right to discipline or discharge any of its officers or employees or change any of their job titles, duties, authority or compensation, at any time and without assigning a reason therefor.

16.    Set-Off Rights. Progressive shall have the unrestricted right to set off against or recover out of any Annual Gainshare Payment or other sums owed to any participant under the Plan any amounts owed by such participant (including pursuant to Paragraph 12) to Progressive.

17.    Misconduct. No participant shall have the right to receive any portion of any Annual Gainshare Payment if, prior to such payment being made, participant’s employment is terminated as a result of any action or inaction that, under Progressive’s employment practices or policies as then in effect, constitutes grounds for immediate termination of employment, as determined by Progressive (or, in the case of an executive officer, the Committee) in its sole discretion. In addition, no participant who is a member of the Executive Team shall have the right to receive any Annual Gainshare Payment if, prior to such payment being made, participant’s employment is terminated by Progressive for Cause, or if there occurs any action or inaction that constitutes grounds for termination for Cause or otherwise constitutes grounds for immediate termination of employment under the Company’s employment practices or policies as then in effect, as determined by the Committee in its sole discretion. For purposes of this Paragraph 17, “Cause” shall mean a felony conviction of a participant or the failure of a participant to contest prosecution for a felony; a participant’s willful misconduct or dishonesty, any of which, in the judgment of the Committee, is harmful to the business or reputation of Progressive; or any material violation (in the judgment of the Committee (with respect to the Executive Team) or the CEO and/or CHRO (with respect to other participants)) of any of the provisions of the Company’s Code of Business Conduct and Ethics or the Chief Executive Officer/Senior Financial Officer Code of Ethics (if applicable to the participant), or any confidentiality agreement, non-solicitation agreement, non-competition agreement or other agreement between the participant and Progressive.

18.    Employees Subject to Foreign Jurisdictions. To the extent the Committee deems it necessary, appropriate or desirable to comply with foreign law or practice or taxation and to further the purposes of the Plan, the Committee may, without amending the Plan, exclude any employee not temporarily or permanently residing in the United States from participating in the Plan or establish rules applicable to Annual Gainshare Payments to participants who are foreign nationals or foreign residents, are employed outside the United States, or both, including rules that differ from those set forth in this Plan.

19.    Section 409A. Payments under the Plan are intended to be exempt from Section 409A because no legally binding right to any Annual Gainshare Payment arises until the payment date, and, in the alternative, because any payment is a short term deferral under Section 409A; the Plan shall be administered and interpreted accordingly. Notwithstanding any provision of the Plan to the contrary, if the Committee determines that any payment under the Plan may constitute deferred compensation subject to Section 409A, the Committee may take any actions necessary to preserve the intended tax treatment of the benefits provided with respect to such payment. Any benefit under the Plan that is subject to Section 409A because deferred pursuant to the terms of the Deferral Plan shall be paid according to the terms of such plan.

20.    Prior Plans. This Plan supersedes all prior plans, agreements, understandings and arrangements regarding bonuses or other cash incentive compensation payable to participants by, or due from, Progressive with respect to the 2026 and future Plan years. Without limiting the generality of the foregoing, this Plan supersedes and replaces The Progressive Corporation 2025 Gainshare Plan (the “Prior Plan”), which is and shall be deemed to have terminated on the last day of the Company’s 2025 fiscal year (the “Prior Plan Termination Date”); provided, however, that (a) any bonuses or other sums earned and payable under the Prior Plan with respect to the 2025 Plan year shall be unaffected by such termination and shall be paid to the appropriate participants when and as provided thereunder, and (b) any provisions regarding recoupment of payments from executive officers and the administrative and interpretive authority of the Committee, the CEO and/or the CHRO under the Prior Plan shall survive such termination.

21.    Effective Date. This Plan is adopted, and is effective, as of the first day of Progressive’s 2026 fiscal year. This Plan shall be effective for the 2026 Plan year and for each Plan year thereafter unless and until terminated by the Committee.

22.    Governing Law. This Plan shall be governed by, and interpreted and construed in accordance with, the laws of the State of Ohio applicable to contracts made and performed wholly within such state by residents thereof.

Document

Exhibit 10.35

Board of Directors' Compensation

Board of Directors for the May 2025 - May 2026 term:

Board/Committee Fees	Compensation
Chairperson of the Board1	$565,000
Non-Employee Director	325,000
Committee Chair Premium
Audit Committee Chair	40,000
Compensation and Talent Committee Chair	30,000
Investment and Capital Committee Chair	30,000
Nominating and Governance Committee Chair	25,000
Technology Committee Chair	30,000
First Committee Assignment Premium
Audit Committee Member	10,000
Second Committee Assignment Premium2
Committee Member	15,000

1 The Chairperson of the Board fees includes fee for the Chair of the Nominating and Governance Committee and the Second Committee Assignment Premium.

2 The premium is not provided to members of the Executive Committee.

Document

Exhibit 10.37

2026 PROGRESSIVE CAPITAL

MANAGEMENT ANNUAL INCENTIVE PLAN

1.    The Plan. The Progressive Corporation and its subsidiaries (collectively “Progressive” or the “Company”) have adopted the 2026 Progressive Capital Management Annual Incentive Plan (the “Plan”) as part of the Company’s compensation program for its investment professionals for the Company’s 2026 fiscal year (the “Plan year”). The Plan is performance-based, is not a form of commission compensation, and is administered under the direction of the Compensation and Talent Committee of the Board of Directors of The Progressive Corporation (the “Committee”). References in this Plan to the Company’s portfolio mean the respective portfolios of the Company’s subsidiaries and affiliates that are actively managed by Progressive Capital Management Corp. (“PCM”) and references in this Plan to the Company’s investment results mean the investment results of those portfolios only.

The Company’s investment professionals invest the funds of the Company in accordance with investment guidelines approved from time to time by the Investment and Capital Committee of the Board of Directors. Those guidelines address such matters as minimum average credit quality and the duration of the portfolio, as well as limitations on the extent to which the portfolio can be concentrated in individual issuers. Compliance with the guidelines is routinely monitored and variations therefrom must be reported to the Investment and Capital Committee.

2.    Participants. Progressive employees who are assigned primarily to the Company’s capital management function, including the Company’s Chief Investment Officer (“CIO”), are eligible to be selected for participation in the Plan. Eligible employees in addition to the CIO will be selected by the CIO in consultation with the Chief Executive Officer (“CEO”) or Chief Human Resources Officer (“CHRO”) (the “Designated Executives”) to participate in the Plan. Participants may also participate in other Gainshare, bonus or incentive compensation plans maintained by Progressive, if so determined by the Designated Executives (or in the case of the CIO or any other executive officer, by the Committee). Other eligible employees of the Company may be selected for participation in the Plan for or at any time during the Plan year by the Designated Executives. In such cases, the Designated Executives will determine the new participant’s Target Percentage (described below) and other terms of participation (except with respect to the CIO or any other executive officer, as to whom all determinations must be made by the Committee). Throughout this Plan, references to “executive officers” refer to executive officers of The Progressive Corporation within the meaning of any Securities and Exchange Commission (“SEC”) or New York Stock Exchange rule applicable to the Company.

3.    Annual Incentive Payment Determination.

A.Annual Incentive Payment. Each participant may earn an annual cash bonus (the “Annual Incentive Payment”), subject to the terms of this Plan. The amount of the Annual Incentive Payment earned by any participant will be determined by application of the following formula:

Annual Incentive Payment = Paid Eligible Earnings x Target Percentage x Performance Factor

B.    Paid Eligible Earnings. “Paid Eligible Earnings” for any Plan year shall mean and include the following: regular pay, Paid Time Off pay (including Protected PTO-PSL, but excluding the payout of unused Paid Time Off or Protected PTO-PSL at termination), Volunteer Time Off pay, sick pay, holiday pay, bereavement pay, military make-up pay, overtime pay, shift differential pay, disaster pay, jury duty pay and retroactive payments of any of the foregoing items, in each case received by the participant during the Plan year for work or services performed as an officer or employee of Progressive.

For purposes of the Plan, and notwithstanding the foregoing, Paid Eligible Earnings shall exclude all other types of pay or compensation, including, without limitation: any short-term or long-term disability payments made to the participant; the earnings replacement component of any workers’ compensation benefit or award; any amounts paid pursuant to a judgment in, or settlement related to, any action, suit or proceeding, whether in law or equity, to any extent arising from or relating to a participant’s employment with the Company, or work or services performed for or on behalf of the Company; any amount paid under a separation allowance (or severance) plan; any bonus (including PCM Annual Incentive Plan payment), Gainshare or other incentive compensation payment or award (whether denominated, or payable, in cash or equity), including, without limitation, payments from any discretionary cash fund; any dividend payments or dividend equivalent amounts; any unused Paid Time Off; any unused Volunteer Time Off; and any other payment required by applicable law to be paid to a participant by the Company and intended to replace all or any portion of wages or earnings during a period of unemployment, whether due to illness, disability or otherwise (including, but not limited to, payments made pursuant to any statute, rule or regulation of a governmental authority relating to leave on account of maternity, paternity, parental status or responsibility, or sickness).

C.    Target Percentage. The “Target Percentages” for participants in the Plan shall be determined by or under the direction of the Committee, but will not exceed 125% for any participant. Target Percentages may vary among Plan participants and may be changed from year to year by or under the direction of the Designated Executives (or in the case of the CIO or any other executive officer, by the Committee).

D.    Performance Factor. The “Performance Factor” will be determined by the Committee after the expiration of the Plan year based on the performance of the Company’s fixed-income investment portfolio (the “Fixed-Income Portfolio” or “Portfolio”), and such other factors and information relating to the performance of the Company’s investment professionals as the Committee shall determine.

First, an indicated performance factor will be determined based on the fully taxable equivalent total return of the Fixed-Income Portfolio, in comparison to the total returns of the government and corporate indices (or successor indices) set forth below (the “Investment Benchmark”), over the one- and three-year periods ending on December 31 of the Plan year, as described below.

Index	Bloomberg ID	Weight
Bloomberg 1-3 Yr US Gov/Credit Total Return Index	LG3TRUU	30%
Bloomberg Intermediate US Govt/Credit TR Index	LF97TRUU	70%
Investment Benchmark		100%

Investment results for the Fixed-Income Portfolio will be marked to market, including 50% of the benefit of any state premium tax abatements for municipal securities held in the Portfolio that are realized by the Company during the Plan year, in order to calculate the Portfolio’s fully taxable equivalent total return for the one-year (2026) and three-year (2024-2026) periods. The investment performance achieved by the Fixed-Income Portfolio for the one- and three-year periods (each, a “comparison period”) will then be compared against the total returns of the Investment Benchmark for the same periods, as determined by the Company from publicly available information, to determine, for each comparison period, how the Fixed Income Portfolio’s performance compared to the Investment Benchmark (“Relative Performance”).

The Portfolio’s Relative Performance will be used to determine a performance score of between 0.00 and 2.00 for each comparison period, based on the following schedule:

Score = 0.00	Score = 1.00	Score = 2.00
≤ -120 basis points	± 0 basis points	≥ +120 basis points

Relative Performance between the values identified in the schedule will be interpolated on a straight-line basis to generate the applicable performance score, as further described on Exhibit I. Once these performance scores are determined, an overall indicated Performance Factor will be determined by averaging the performance scores for the one- and three-year comparison periods.

The overall indicated Performance Factor will be reported to the Committee after the expiration of the Plan year, together with such supporting documentation as the Committee may require. The Committee may consider such additional information as it deems necessary or appropriate in its discretion. Such information may include, without limitation:

•the primary investment factors that are responsible for favorable or unfavorable results relative to the Investment Benchmark, such as the Company’s duration and yield curve position and the extent of its exposure to sectors of the fixed-income markets, including corporate bonds, residential mortgage-backed securities, commercial mortgage-backed securities, other asset-backed securities, government bonds, preferred stocks and non-investment-grade bonds;

•the Company’s holdings within each sector relative to the general market composition of each sector;

•the extent to which material investment decisions may have been driven by Company strategic or capital considerations; and

•the impact on investment results of significant portfolio cash flows driven by Company operations, strategic decisions or capital transactions.

In addition, the Committee may choose to consult with others, including, without limitation, management, the Investment and Capital Committee, other members of the Board of Directors, and outside compensation and investment professionals, in evaluating the performance of the Company’s investment professionals for the year. The Committee will then determine the Performance Factor, which may vary among participants; provided that under no circumstances may the Performance Factor for any participant exceed 2.00 for the year.

E.    In the event that any of the indices comprising the Investment Benchmark are discontinued, or significantly modify their respective methodology in such a way as to render the comparisons required by this Plan to be not meaningful, in the Committee’s sole judgment, the Committee may select, in its sole discretion, such alternative benchmarks, indices, or other data as it deems appropriate for making the required determinations.

F.    Notwithstanding any other provision of this Plan, the Fixed Income Portfolio shall not include any portfolio managed by, or any investment made at the direction of, any business unit or area other than PCM.

4.    Payment Procedures; Deferral. The Annual Incentive Payments will be determined and paid to Plan participants as soon as practicable after the Performance Factor has been determined by the Committee, but no later than March 15th of the year immediately following the Plan year.

Any Plan participant who is then eligible to participate in The Progressive Corporation Executive Deferred Compensation Plan (“Deferral Plan”) may elect to defer all or a portion of the Annual Incentive Payment otherwise payable to such participant under this Plan, subject to and in accordance with the terms of the Deferral Plan. If a Plan participant has made such an election under the Deferral Plan, then to the extent of such election, the Annual Incentive Payment will, instead of being paid to such participant as described in the immediately preceding paragraph, be credited to such participant’s account under the Deferral Plan in accordance with the terms of the Deferral Plan.

5.    Qualification Date; Leave of Absence; Withholding. Unless otherwise determined by the Committee, and except as otherwise expressly provided herein, in order to be entitled to receive an Annual Incentive Payment for any Plan year, the participant must be an active officer or regular employee of the Company on November 30 of the Plan year (“Qualification Date”). An individual (a) who is hired on or after December 1 of any Plan year, or (b) whose employment terminates for any reason prior to the Qualification Date is not entitled to an Annual Incentive Payment for that Plan year. Annual Incentive Payments are not earned until paid.

Any participant who is on a leave of absence covered by the Family and Medical Leave Act of 1993, as amended (or equivalent state or local law), the Americans with Disabilities Act of 1991, as amended (or equivalent state or local law), personal leave of absence with the approval of the Company, military leave or short- or long-term disability (provided that, in the case of a long-term disability, the participant is still an employee of the Company) on the Qualification Date with respect to any Plan year will be entitled to receive an Annual Incentive Payment for such Plan year based on the Paid Eligible Earnings received by the participant during the Plan year.

Progressive shall have the right to deduct from any Annual Incentive Payment, prior to payment, the amount of any taxes required to be withheld by any federal, state, local or foreign government with respect to such payments.

6.    Other Plans. Participants may be selected to participate in this Plan and in one or more other incentive plans offered by the Company. In the case of the CIO or any other executive officer, all determinations with respect to such incentive plans and the executive’s participation therein shall be made by the Committee. In all other cases, the Designated Executives shall have full authority to determine the incentive plan or plans in which any employee shall participate during any Plan year and the weighting factor (if any) that will apply to each such plan.

7.    Non-Transferability. Annual Incentive Payments shall be payable only to the participant or, in the event of the participant’s death, to the participant’s estate. The right to any Annual Incentive Payment hereunder may not be sold, transferred, assigned or encumbered, voluntarily or involuntarily, other than by will or the laws of descent or distribution. Nothing herein shall prevent any participant’s interest hereunder from being subject to involuntary attachment, levy or other legal process.

8.    Administration. The Plan will be administered by or under the direction of the Committee. The Committee will have the authority to adopt, alter, amend, modify, revise and repeal such rules, guidelines, procedures and practices governing the Plan as it, from time to time, in its sole discretion deems advisable.

The Committee will have full authority to determine the manner in which the Plan will operate, to interpret the provisions of the Plan and to make all determinations hereunder. All such interpretations and determinations shall be final and binding on Progressive, all Plan participants, their estates and beneficiaries and all other parties. No such interpretation or determination shall be relied on as a precedent for any similar action or decision. No member of the Committee shall incur any liability for any action taken or omitted, or any determination made, in good faith with respect to the Plan.

Unless otherwise determined by the Committee, all of the authority of the Committee hereunder (including, without limitation, the authority to administer the Plan, select the persons entitled to participate herein, interpret the provisions hereof, waive any of the requirements specified herein and make determinations hereunder and to select, approve, establish, change or modify the Investment Benchmarks, Performance Targets and Target Percentages) may be exercised by the Designated Officers. If one or more of the Designated Officers is unavailable or unable to participate, or if such position is vacant, the Chief Financial Officer may act instead of such officer.

Notwithstanding anything in this Plan to the contrary: (a) all determinations made under this Plan with respect to the CIO or any other individual deemed to be an executive officer of the Company must be made only by the Committee; and (b) only the Committee may make the determination of the Performance Factor required by Paragraph 3.D. above.

9.    Miscellaneous.

A.Recoupment. Progressive shall have the right to recoup any Annual Incentive Payment (or an appropriate portion thereof, as hereinafter provided) with respect to any Plan year paid to a participant hereunder who was an executive officer of Progressive at any time during such Plan year, if: (i) the Annual Incentive Payment was calculated by reference to the

achievement during such Plan year of certain financial or operating results (which includes, for purposes hereof, the performance of the Fixed-Income Portfolio); (ii) such financial or operating results were incorrect and were subsequently the subject of a restatement by Progressive within three (3) years after the date on which such Annual Incentive Payment was paid to the participant; and (iii) the Annual Incentive Payment would not have been paid, in whole or in part, to the participant if the restated financial or operating results had been known at the time the payment was made. Such recoupment right shall be available to Progressive whether or not the participant in question was at fault or responsible in any way in causing such restatement. In such circumstances, Progressive will have the right to recover from each such participant for such Plan year, and each such participant will refund to Progressive promptly upon demand, the amount by which the Annual Incentive Payment paid to such participant for the Plan year in question exceeded the payment that would have been made if the Annual Incentive Payment had been calculated by reference to the restated results, without interest; provided, however, that Progressive will not seek to recover such amounts from any participant who was not an executive officer at any time during the Plan year unless the amount due would exceed the lesser of five percent (5%) of the Annual Incentive Payment previously paid or twenty-thousand dollars ($20,000). Such recovery, at the Committee’s discretion, may be made by lump sum payment, installment payments, credits against future Annual Incentive Payments, annual Gainshare payments or other bonus payments, credits against any other compensation, or other appropriate mechanism. References in this paragraph to payments and amounts paid shall be deemed to include amounts deposited in the Deferral Plan as a result of an election by the participant.

B.Further Rights. Notwithstanding the foregoing subsection A., if any participant that was an executive officer at any time during such Plan year engaged in fraud or other misconduct (as determined by the Committee or the Board of Directors, in their respective sole discretion) resulting, in whole or in part, in a restatement of the financial or operating results used hereunder to determine the Annual Incentive Payments for a specific Plan year, Progressive will further have the right to recover from such participant, and the participant will refund to Progressive upon demand, an amount equal to the entire Annual Incentive Payment paid to such participant for such Plan year plus interest at the rate of eight percent (8%) per annum or, if lower, the highest rate permitted by law, calculated from the date that such bonus was paid to the participant. Progressive shall further have the right to recover from such participant Progressive’s costs and expenses incurred in connection with recovering such Annual Incentive Payment from the participant and enforcing its rights under this subsection B., including, without limitation, reasonable attorneys’ fees. There shall be no time limit on the Company’s right to recover such amounts under this subsection B., except as otherwise provided by applicable law. References in this paragraph to payments and amounts paid shall be deemed to include amounts deposited into the Deferral Plan as a result of an election by the participant.

C.Compliance with Law and Exchange Requirements. The Annual Incentive Payments determined and paid pursuant to the Plan shall be subject to all applicable laws and regulations. Without limiting the foregoing, and notwithstanding anything to the contrary contained in this Plan, the Annual Incentive Payment paid to a participant (and any payment made to such participant pursuant to a similar plan) shall be subject to The Progressive Corporation Dodd-Frank Clawback Policy, as may be amended from time to time (collectively, the “Clawback Policy”) and recoupment pursuant to the Federal securities laws and the rules of the SEC and any applicable national securities exchange. The Clawback

Policy is incorporated herein by reference. References in this paragraph to payments and amounts paid shall be deemed to include amounts deposited into the Deferral Plan as a result of an election by the participant.

D.Rights Not Exclusive. The rights contained in the foregoing subsections A. through C. shall be in addition to, and shall not limit, any other rights or remedies that the Company may have under any applicable law or regulation. Nothing contained in subsections A. through C. shall be deemed to limit any additional legal or equitable rights or remedies the Company may have under applicable law with respect to any participant who may have caused or contributed to the Company’s need to restate its financial results. If any of the provisions of subsections A. through C., or any part thereof, are held to be unenforceable, the court making such determination shall have the power to revise or modify such provision to make it enforceable to the maximum extent permitted by applicable law and, in its revised or modified form, said provision shall then be enforceable.

10.    Termination; Amendments. The Plan may be suspended, terminated, amended or revised, in whole or in part, at any time and from time to time by the Committee, in its sole discretion.

11.    Unfunded Obligations. The Plan will be unfunded and all payments due under the Plan will be made from Progressive’s general assets.

12.    No Employment Rights. Nothing in the Plan, and no action hereunder, shall be construed as conferring upon any person the right to remain a participant in the Plan or to remain employed by Progressive, nor shall the Plan limit Progressive’s right to discipline or discharge any of its officers or employees or change any of their job titles, duties, authority or compensation, at any time and without assigning a reason therefor.

13.    Set-off Rights. Progressive shall have the unrestricted right to set off against or recover out of any Annual Incentive Payment or other sums owed to any participant under the Plan any amounts owed by such participant (including pursuant to Paragraph 9) to Progressive.

14.    Misconduct. No participant shall have the right to receive any Annual Incentive Payment if, prior to such payment being made, participant’s employment is terminated as a result of any action or inaction that, under Progressive’s employment practices or policies as then in effect, constitutes grounds for immediate termination of employment, as determined by Progressive (or, in the case of an executive officer, the Committee) in its sole discretion. In addition, no participant who is an executive officer shall have the right to receive any Annual Incentive Payment if, prior to such payment being made, participant’s employment is terminated by Progressive for Cause, or if there occurs any action or inaction that constitutes grounds for termination for Cause or otherwise constitutes grounds for immediate termination of employment under the Company’s employment practices or policies as then in effect, as determined by the Committee in its sole discretion. For purposes of this Paragraph 14, “Cause” shall mean a felony conviction of a participant or the failure of a participant to contest prosecution for a felony; a participant’s willful misconduct or dishonesty, any of which, in the judgment of the Committee, is harmful to the business or reputation of Progressive; or any material violation (in the judgment of the Committee) of any of the provisions of the Company’s Code of Business Conduct and Ethics or the Chief Executive Officer/Senior Financial Officer Code of Ethics (if applicable to the participant), or any confidentiality agreement, non-solicitation agreement, non-competition agreement or other agreement between the participant and Progressive.

15.    Employees Subject to Foreign Jurisdictions. To the extent the Committee deems it necessary, appropriate or desirable to comply with foreign law or practice or taxation and to further the purposes of the Plan, the Committee may, without amending the Plan, exclude any employee not temporarily or permanently residing in the United States from participating in the Plan or establish rules applicable to Annual Incentive Payments to participants who are foreign nationals or foreign residents, are employed outside the United States, or both, including rules that differ from those set forth in this Plan.

16.    Section 409A. Payments under the Plan are intended to be exempt from Section 409A because no legally binding right to any Annual Incentive Payment arises until the payment date, and, in the alternative, because any payment is a short term deferral under Section 409A; the Plan shall be administered and interpreted accordingly. Notwithstanding any provision of the Plan to the contrary, if the Committee determines that any payment under the Plan may constitute deferred compensation subject to Section 409A, the Committee may take any actions necessary to preserve the intended tax treatment of the benefits provided with respect to such payment. Any benefit under the Plan that is subject to Section 409A because deferred pursuant to the terms of the Deferral Plan shall be paid according to the terms of such plan.

17.    Prior Plans. This Plan supersedes all prior plans, agreements, understandings and arrangements regarding bonuses or other cash incentive compensation payable or due to any participant from Progressive with respect to the performance of Progressive’s investment portfolio. Without limiting the generality of the foregoing, this Plan supersedes and replaces the 2025 Progressive Capital Management Annual Incentive Plan (the “Prior Plan”), which is and shall be deemed to have terminated on the last day of the Company’s 2025 fiscal year (the “Prior Plan Termination Date”); provided, however, that (a) any bonuses or other sums earned and payable under the Prior Plan with respect to any Plan year ended on or prior to the Prior Plan Termination Date shall be unaffected by such termination and shall be paid to the appropriate participants when and as provided thereunder, and (b) any provisions regarding recoupment of payments from executive officers and the administrative and interpretive authority of the Committee and/or the Designated Officers under the Prior Plan shall survive.

18.    Effective Date. This Plan is adopted, and is effective, as of the first day of the Company’s 2026 fiscal year and will be effective for the 2026 Plan year (which coincides with Progressive’s 2026 fiscal year, except that investment returns are calculated on a calendar year basis).

19.    Governing Law. This Plan shall be governed by, and interpreted and construed in accordance with, the laws of the State of Ohio applicable to contracts made and performed wholly within such state by residents thereof.

EXHIBIT I

Determination of Performance Factor

Performance Period		Performance Period Weighting		Index		Index (%)<br>Return	Index <br>Weighting	Weighted Index Return (%)	PCM FI TRR - with 50% PTA	Variance to Index (bps)	+/- Raw Score	Weighted Score
1 Year		50%		Bloomberg 1-3 Yr US Gov/Credit Total Return Index		4.36%	30%	3.41%	3.93%	52.0	1.43	0.72
	Bloomberg Intermediate US Govt/Credit TR Index		3.00%		70%
3 Year		50%		Bloomberg 1-3 Yr US Gov/Credit Total Return Index		5.14%	30%	1.18%	2.57%	139.0	2.00	1.00
	Bloomberg Intermediate US Govt/Credit TR Index		-0.52%		70%
Performance Factor												1.72
Progressive Capital Management (PCM)		Plan Year		1-year Return	Cumulative 3-year Return
---	---	---	---	---	---
PCM FI TRR – with 50% PTA		2024		3.93%	2.57%
	2023		5.56%
	2022		-6.51%
Bloomberg Indices	2024 1-year return	2022 – 2024 3-year return
---	---	---
Bloomberg 1-3 Yr US Gov/Credit Total Return Index	4.36%	5.14%
Bloomberg Intermediate US Govt/Credit TR Index	3.00%	-0.52%

Step 1: Calculate the 1-year and 3-year Bloomberg Index (%) Returns and PCM FI TRR – with 50% state premium tax abatement (PTA), each rounded to four decimal places:

•Bloomberg indices are pulled from the Bloomberg system for the period ending December 31.

oBloomberg 1-3 Yr US Gov/Credit Total Return Index, Bloomberg ID LGC3TRUU weighted 30%

oBloomberg Intermediate US Govt/Credit TR Index, Bloomberg ID LF97TRUU weighted 70%

•Progressive Capital Management (PCM FI TRR – with 50% PTA)

o1-year returns calculated for period ending December 31.

oCalculate the 3-year cumulative return: ((1 + 0.0393) * (1 + 0.0556) * (1 + -0.0651)) - 1 = 2.57%

Step 2: Calculate the Weighted Index Return (%) by multiplying the Index (%) Return by the Index Weighting.

o1-year return calculation: (4.36% * 30%) + (3.00% * 70%) = 3.41%

o3-year return calculation: (5.14% * 30%) + (-0.52% * 70%) = 1.18%

Step 3: Calculate Variance to Index (bps) by subtracting the Weighted Index Return (%) from the PCM FI TRR – with 50% PTA return:

o1-year variance: 3.93% - 3.41% * 10,000 = 52 basis points

o3-year variance: 2.57% - 1.18% * 10,000 = 139 basis points

Step 4: Calculate ± Raw Score by completing a straight-line interpolation between the 0.00 performance score and 2.00 performance score.

Comparison Period	Score = 0.00<br><br>Variance to Index (bps)	Score = 1.00<br><br>Variance to Index (bps)	Score = 2.00<br><br>Variance to Index (bps)
1-year	-120 basis points	0 basis points	+120 basis points
3-year	-120 basis points	0 basis points	+120 basis points

oExcerpt from Full Interpolation Table for example calculation: (Note that because the 3-year variance of 139 basis points is greater than 120, the ± Raw Score = 2.00).

Step 5: Calculate Weighted Score by multiplying the ± Raw Score by the Performance Period Weighting for each of the 1-year and 3-year periods.

o1-year weighted score: 1.43 * 0.50 = 0.72

o3-year weighted score: 2.00 * 0.50 = 1.00

Step 6: Calculate Performance Factor by adding the Weighted Scores calculated in Step 5, rounded to two decimal places.

0.72 + 1.00 = 1.72

pgr-20251231_d2

Exhibit 13

THE PROGRESSIVE CORPORATION

2025 ANNUAL REPORT TO SHAREHOLDERS

App.-A-1

The Progressive Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income

For the years ended December 31,

(millions - except per share amounts)	2025		2024		2023
Revenues
Net premiums earned	$	81,661	$	70,799	$	58,665
Investment income	3,583		2,832		1,892
Net realized gains (losses) on securities:
Net realized gains (losses) on security sales	248		(414)		14
Net holding period gains (losses) on securities	480		679		348
Net impairment losses	(1)		(1)		(9)
Total net realized gains (losses) on securities	727		264		353
Fees and other revenues	1,196		1,064		889
Service revenues	504		413		310
Total revenues	87,671		75,372		62,109
Expenses
Losses and loss adjustment expenses	53,959		49,060		45,655
Policy acquisition costs	6,096		5,383		4,665
Other underwriting expenses	11,329		9,462		6,242
Policyholder credit expense1	1,224		0		0
Investment expenses	34		29		26
Service expenses	528		446		349
Interest expense	278		279		268
Total expenses	73,448		64,659		57,205
Net Income
Income before income taxes	14,223		10,713		4,904
Provision for income taxes	2,915		2,233		1,001
Net income	11,308		8,480		3,903
Other Comprehensive Income (Loss)
Changes in:
Total net unrealized gains (losses) on fixed-maturity securities	1,525		193		1,186
Net unrealized losses on forecasted transactions	1		0		0
Other comprehensive income (loss)	1,526		193		1,186
Comprehensive income (loss)	$	12,834	$	8,673	$	5,089
Computation of Earnings Per Common Share
Net income	$	11,308	$	8,480	$	3,903
Less: Preferred share dividends and other2	0		17		38
Net income available to common shareholders	$	11,308	$	8,463	$	3,865
Average common shares outstanding – Basic	586.3		585.5		584.9
Net effect of dilutive stock-based compensation	1.8		2.2		2.6
Total average equivalent common shares – Diluted	588.1		587.7		587.5
Basic: Earnings per common share	$	19.29	$	14.45	$	6.61
Diluted: Earnings per common share	$	19.23	$	14.40	$	6.58

1 See Note 10 – Segment Information for further discussion.

2 All of our outstanding Serial Preferred Shares, Series B, were redeemed in February 2024. See Note 1 – Reporting and Accounting Policies, Earnings Per Common Share and Note 14 – Dividends for further discussion.

See notes to consolidated financial statements.

App.-A-2

The Progressive Corporation and Subsidiaries

Consolidated Balance Sheets

December 31,

(millions)	2025		2024
Assets
Available-for-sale securities, at fair value:
Fixed maturities (amortized cost: $82,704 and $77,126)	$	82,866	$	75,332
Short-term investments (amortized cost: $10,005 and $615)	10,005		615
Total available-for-sale securities	92,871		75,947
Equity securities, at fair value:
Nonredeemable preferred stocks (cost: $419 and $756)	404		728
Common equities (cost: $819 and $745)	4,098		3,575
Total equity securities	4,502		4,303
Total investments	97,373		80,250
Cash and cash equivalents	125		143
Restricted cash and cash equivalents	13		11
Total cash, cash equivalents, restricted cash, and restricted cash equivalents	138		154
Accrued investment income	670		594
Premiums receivable, net of allowance for credit losses of $552 and $460	15,362		14,369
Reinsurance recoverables	4,083		4,765
Prepaid reinsurance premiums	197		349
Deferred acquisition costs	2,044		1,961
Property and equipment, net of accumulated depreciation of $1,460 and $1,461	783		790
Net federal deferred income taxes	748		954
Other assets	1,641		1,559
Total assets	$	123,039	$	105,745
Liabilities and Shareholders’ Equity
Unearned premiums	$	25,219	$	23,858
Loss and loss adjustment expense reserves	43,310		39,057
Dividends payable on common shares	7,972		2,695
Accounts payable, accrued expenses, and other liabilities	9,318		7,651
Debt1	6,897		6,893
Total liabilities	92,716		80,154
Commitments and contingent liabilities2
Common shares, $1.00 par value (authorized 900; issued 798, including treasury shares of 212)	586		586
Paid-in capital	2,307		2,145
Retained earnings	27,327		24,283
Accumulated other comprehensive income (loss):
Net unrealized gains (losses) on fixed-maturity securities	117		(1,408)
Net unrealized losses on forecasted transactions	(13)		(14)
Foreign currency translation adjustment	(1)		(1)
Total accumulated other comprehensive income (loss)	103		(1,423)
Total shareholders’ equity	30,323		25,591
Total liabilities and shareholders’ equity	$	123,039	$	105,745

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

2 See Note 1 – Reporting and Accounting Policies, Commitments and Contingencies and Litigation Reserves, and Note 12 – Litigation for further discussion.

See notes to consolidated financial statements.

App.-A-3

The Progressive Corporation and Subsidiaries

Consolidated Statements of Changes in Shareholders’ Equity

For the years ended December 31,

(millions - except per share amounts)		2024		2023
Serial Preferred Shares, No Par Value
Balance, beginning of year	0	$	494	$	494
Redemption of Serial Preferred Shares, Series B1		(494)		0
Balance, end of year		0		494
Common Shares, 1.00 Par Value
Balance, beginning of year		585		585
Treasury shares purchased		(1)		(1)
Net restricted equity awards issued/vested		2		1
Balance, end of year		586		585
Paid-In Capital
Balance, beginning of year		2,013		1,893
Amortization of equity-based compensation		122		121
Treasury shares purchased		(2)		(3)
Net restricted equity awards issued/vested		(2)		(1)
Reinvested dividends on restricted stock units		14		3
Balance, end of year		2,145		2,013
Retained Earnings
Balance, beginning of year		18,801		15,721
Net income		8,480		3,903
Treasury shares purchased		(131)		(137)
Cash dividends declared on common shares (13.90, 4.90, and 1.15 per share)1		(2,869)		(673)
Cash dividends declared on Serial Preferred Shares, Series B (0, 15.688377, and 60.354787 per share)1		(8)		(30)
Reinvested dividends on restricted stock units		(14)		(3)
Other, net		24		20
Balance, end of year		24,283		18,801
Accumulated Other Comprehensive Income (Loss)
Balance, beginning of year		(1,616)		(2,802)
Other comprehensive income (loss)		193		1,186
Balance, end of year		(1,423)		(1,616)
Total shareholders’ equity	30,323	$	25,591	$	20,277

All values are in US Dollars.

1 See Note 14 – 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.

App.-A-4

The Progressive Corporation and Subsidiaries

Consolidated Statements of Cash Flows

For the years ended December 31,

(millions)	2025		2024		2023
Cash Flows From Operating Activities
Net income	$	11,308	$	8,480	$	3,903
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	313		284		285
Net amortization (accretion) of fixed-income securities	(124)		(30)		41
Amortization of equity-based compensation	132		122		121
Net realized (gains) losses on securities	(727)		(264)		(353)
Net (gains) losses on disposition of property and equipment	16		13		36
Changes in:
Premiums receivable	(993)		(2,411)		(1,541)
Reinsurance recoverables	682		329		738
Prepaid reinsurance premiums	152		(99)		46
Deferred acquisition costs	(83)		(274)		(143)
Income taxes	(200)		(358)		181
Unearned premiums	1,361		3,724		2,840
Loss and loss adjustment expense reserves	4,253		4,668		4,030
Accounts payable, accrued expenses, and other liabilities	1,556		1,236		700
Other, net	(98)		(301)		(241)
Net cash provided by operating activities	17,548		15,119		10,643
Cash Flows From Investing Activities
Purchases:
Fixed maturities	(49,625)		(47,778)		(25,777)
Equity securities	(187)		(168)		(86)
Sales:
Fixed maturities	35,701		25,634		8,235
Equity securities	266		267		791
Maturities, paydowns, calls, and other:
Fixed maturities	8,518		7,006		4,990
Equity securities	275		110		65
Net (purchases) sales of short-term investments	(9,282)		1,217		1,156
Net change in unsettled security transactions	75		171		(11)
Purchases of property and equipment	(348)		(285)		(252)
Sales of property and equipment	80		77		47
Net cash used in investing activities	(14,527)		(13,749)		(10,842)
Cash Flows From Financing Activities
Dividends paid to common shareholders1	(2,871)		(674)		(234)
Acquisition of treasury shares for equity award tax liabilities	(92)		(121)		(95)
Acquisition of treasury shares acquired in open market	(74)		(13)		(46)
Redemption of preferred shares1	0		(500)		0
Dividends paid to preferred shareholders1	0		(8)		(43)
Net proceeds from debt issuance	0		0		496
Net cash provided by (used in) financing activities	(3,037)		(1,316)		78
Increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents	(16)		54		(121)
Cash, cash equivalents, restricted cash, and restricted cash equivalents – beginning of year	154		100		221
Cash, cash equivalents, restricted cash, and restricted cash equivalents – end of year	$	138	$	154	$	100

1 See Note 14 – Dividends for further discussion.

See notes to consolidated financial statements.

App.-A-5

The Progressive Corporation and Subsidiaries

Notes to Consolidated Financial Statements

1.  REPORTING AND ACCOUNTING POLICIES

Nature of Operations  The Progressive insurance organization began business in 1937. The financial results of The Progressive Corporation include its subsidiaries and affiliates (references to “subsidiaries” in these notes include affiliates as well). Our insurance subsidiaries write personal and commercial auto insurance, personal residential property insurance, business-related general liability and commercial property insurance predominantly for small businesses, workers’ compensation insurance primarily for the transportation industry, and other specialty property-casualty insurance and provide related services.

We report two operating segments. Our Personal Lines segment writes insurance for personal autos and special lines products (i.e., recreational vehicles), collectively referred to as our personal vehicle business, and personal residential property insurance for homeowners and renters. 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. We operate our businesses throughout the United States, through both the independent agency and direct channels.

Basis of Consolidation and Reporting The accompanying consolidated financial statements include the accounts of The Progressive Corporation and its wholly owned insurance and non-insurance subsidiaries in which we have a controlling financial interest. All intercompany accounts and transactions are eliminated in consolidation. All revenues are generated from external customers and we do not have a reliance on any major customer.

Estimates  We are required to make estimates and assumptions when preparing our financial statements and accompanying notes in conformity with accounting principles generally accepted in the United States of America (GAAP). As estimates develop into fact, results may, and will likely, differ from those estimates.

Investments  Our fixed-maturity securities and short-term investments are accounted for on an available-for-sale basis. Fixed-maturity securities are debt securities, which may have fixed or variable principal payment schedules, may be held for indefinite periods of time, and may be used as a part of our asset/liability strategy or sold in response to changes in interest rates, anticipated prepayments, risk/reward characteristics, liquidity needs, or other economic factors. These securities are carried at fair value with the corresponding unrealized gains (losses),

net of deferred income taxes, reported in accumulated other comprehensive income.

Short-term investments may include commercial paper, repurchase transactions, and other securities expected to mature within one year. From time to time, we may also invest in municipal bonds that have maturity dates that are longer than one year but have either liquidity facilities or mandatory put features within one year.

Equity securities include common equities (common stocks and other risk investments), and nonredeemable preferred stocks. Common stocks and nonredeemable preferred stocks are carried at fair value, with the changes in fair value reported in net holding period gains (losses) on securities on the consolidated statements of comprehensive income. Our other risk investments are accounted for under the equity method of accounting. These securities are carried at cost and adjusted for our share of the investee’s earnings or losses, with the changes in carrying value reported in investment income.

We did not have any open derivative instruments at December 31, 2025, 2024, or 2023. From time to time, we enter into treasury futures to manage the portfolio duration or interest rate swaps to hedge the exposure to variable cash flows of a forecasted transaction (i.e., cash flow hedge).

Investment securities are exposed to various risks such as interest rate, market, credit, and liquidity risk. Fair values of securities fluctuate based on the nature and magnitude of changing market conditions; significant changes in market conditions could materially affect the portfolio’s value in the near term.

We routinely monitor our fixed-maturity portfolio for pricing changes that might indicate potential credit losses exist and perform reviews of securities with unrealized losses. We initially review securities in an unrealized loss position to determine whether we intend, or if it is more likely than not that we would be required, to sell any of the securities prior to the recovery of their respective cost bases. If we are more likely than not, or intend, to sell prior to a potential recovery, we write off the unrealized loss.

For those securities that we determine we are not likely to, or do not intend to, sell prior to a potential recovery, we perform additional analysis to determine if the unrealized loss is credit related. As part of this analysis, we consider several factors and inputs related to the individual securities to determine if an allowance for credit loss should be established.

App.-A-6

For an unrealized loss that we determine is related to current market conditions, we will not record an allowance for credit losses. We will continue to monitor these securities to determine if the unrealized loss is due to credit deterioration.

We categorize 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 securities, 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) or indirectly. This includes: (i) quoted prices for similar instruments in active markets, (ii) quoted prices for identical or similar instruments in markets that are not active, (iii) inputs other than quoted prices that are observable for the instruments, and (iv) inputs that are derived principally from or corroborated by observable market data by correlation or other means.

•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.

Investment income consists of interest, dividends, accretion, and amortization. For fixed-maturity securities, interest is recognized on an accrual basis using the effective yield method, except for asset-backed securities as discussed below. For equity securities, dividends are recorded at either the ex-dividend date or on an accrual basis, depending on the nature of the equity instrument.

Interest income for asset-backed securities is based on estimated cash flows, including expected changes in interest rates and estimated prepayments of principal.

Prepayment assumptions are reviewed and updated

quarterly, and effective yields are recalculated when differences arise between the prepayments originally estimated, and the actual prepayments received and currently estimated. For asset-backed securities of high credit quality, the effective yield is recalculated on a retrospective basis to the inception of the investment holding period, and applies the required adjustment, if any, to the cost basis, with the offset recorded to investment income. For those securities below high credit quality, interest-only securities, and certain asset-backed securities where there is a greater risk of non-performance, the effective yield is recalculated on a prospective basis for future period adjustments, resulting in no current period impact.

Realized gains (losses) on securities are computed based on the first-in, first-out method. Realized gains (losses) also include holding period valuation changes on equity securities and hybrid instruments (e.g., securities with embedded options, where the option is a feature of the overall change in the value of the instrument), as well as initial and subsequent changes in credit allowance losses and write-offs for losses deemed uncollectible or securities in a loss position that are expected to be sold prior to the recovery of the credit loss.

Insurance Premiums and Receivables  Insurance premiums written are earned into income on a pro rata basis over the period of risk, based on a daily earnings convention. Accordingly, unearned premiums represent the portion of premiums written with unexpired risk. We write insurance and provide related services to individuals and commercial accounts and offer a variety of payment plans. Generally, premiums are collected prior to providing risk coverage, minimizing our exposure to credit risk.

For our Personal Lines vehicles and Commercial Lines businesses, we perform a policy-level evaluation to determine the extent to which the premiums receivable balance exceeds the unearned premiums balance. To determine an allowance for credit losses, we evaluate the collectibility of premiums receivables based on historical and current collections experience of the aged exposures, using actuarial analysis. Our estimate of the future recoverability of our projected ultimate at-risk exposures also takes into consideration any unusual circumstances that we may encounter, such as moratoriums or other programs that may suspend collections.

For our Personal Lines property business, the risk of uncollectibility is relatively low. If premiums are unpaid by the policy due date, we provide advance notice of cancellation in accordance with each state’s requirements and, if the premiums remain unpaid after the indicated cancellation date, we cancel the policy and write off any remaining balance.

App.-A-7

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

(millions)	2025		2024
Balance at January 1	$	460	$	369
Increase in allowance1	761		590
Write-offs2	(669)		(499)
Balance at December 31	$	552	$	460

1 Represents the incremental increase in other underwriting expenses.

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

Deferred Acquisition Costs  Deferred acquisition costs include commissions, premium taxes, and other variable underwriting and direct sales costs incurred in connection with the successful acquisition or renewal of insurance contracts. These acquisition costs, net of ceding allowances, are deferred and amortized over the policy period in which the related premiums are earned. We consider anticipated investment income in determining recoverability of these costs. Management believes these costs will be fully recoverable in the near term.

We do not defer any advertising costs. Total advertising costs, which are expensed as incurred, for the years ended December 31, were:

(millions)	Advertising Costs
2025	$	5,133
2024	4,003
2023	1,600

Loss and Loss Adjustment Expense Reserves  Loss reserves represent the estimated liability on claims reported to us, plus reserves for losses incurred but not recorded. These estimates are reported net of amounts estimated to be recoverable from salvage and subrogation. Loss adjustment expense reserves represent the estimated expenses required to settle these claims. The methods of making estimates and establishing these reserves are reviewed regularly and resulting adjustments are reflected in income in the current period. Such loss and loss adjustment expense reserves are susceptible to change.

Reinsurance  Our reinsurance activity includes transactions which are categorized as Regulated and Non-Regulated. Regulated refers to plans in which we participate that are governed by insurance regulations and

include state-provided reinsurance facilities (e.g., Michigan Catastrophic Claims Association, North Carolina Reinsurance Facility, Florida Hurricane Catastrophe Fund), as well as state-mandated involuntary plans for commercial vehicles (Commercial Automobile Insurance Procedures/Plans – CAIP) and federally regulated plans for flood (National Flood Insurance Program – NFIP); we act as a participant in the “Write Your Own” program for the NFIP.

Non-Regulated includes voluntary contractual arrangements primarily related to our Personal Lines property business and to the transportation network company (TNC) business written by our Commercial Lines segment. Prepaid reinsurance premiums are earned on a pro rata basis over the period of risk, based on a daily earnings convention, which is consistent with premiums earned. See Note 7 – Reinsurance for further discussion.

We routinely monitor changes in the credit quality and concentration risks of the reinsurers who are counterparties to our reinsurance recoverables to determine if an allowance for credit losses should be established.

Income Taxes  The income tax provision is calculated under the balance sheet approach. Deferred tax assets and liabilities are recorded based on the temporary difference between the financial statement and tax bases of assets and liabilities at the enacted tax rates. The principal items giving rise to such differences include:

•unearned premiums reserves;

•investment securities (e.g., net holding period gains (losses) and net unrealized gains (losses) on securities);

•non-deductible accruals;

•deferred acquisition costs; and

•loss and loss adjustment expense reserves.

We review our deferred tax assets regularly for recoverability. See Note 5 – Income Taxes for further discussion.

Property and Equipment  Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is recognized over the estimated useful lives of the assets using the straight-line method for all fixed assets other than computer equipment, which uses an accelerated method. We evaluate impairment whenever events or circumstances warrant such a review and write off the impaired assets if appropriate.

App.-A-8

The cost and useful lives for property and equipment at December 31, were:

($ in millions)	2025		2024		Useful Lives
Land	$	41	$	52	NA
Buildings, improvements, and integrated components	543		576		7-40 years
Capitalized software	475		469		3-10 years
Software licenses (internal use)	495		396		1-7 years
Computer equipment	308		370		3 years
All other property and equipment	381		388		4-10 years
Total cost	2,243		2,251
Accumulated depreciation	(1,460)		(1,461)
Balance at end of year	$	783	$	790
NA = Not applicable; land is not a depreciable asset.

Guaranty Fund Assessments  We are subject to state guaranty fund assessments, which provide for the payment of covered claims or other insurance obligations of insurance companies deemed insolvent. These assessments are accrued after a determination of insolvency has occurred, and we have written the premiums on which the assessments will be based. Assessments are expensed when incurred except for assessments that are available for recoupment from policyholders or are eligible to offset premium taxes payable, which are capitalized to the extent allowable.

Fees and Other Revenues  Fees and other revenues are considered as part of our underwriting operations and primarily represent fees collected from policyholders relating to installment charges in accordance with our bill plans, as well as late payment and insufficient funds fees, and revenue from ceding commissions. Fees and other revenues are generally earned when invoiced, except for excess ceding commissions, which are earned over the policy period.

Service Revenues and Expenses  Our service businesses primarily provide insurance-related services. Service revenues and expenses from our commission-based businesses are recorded in the period in which they are earned or incurred.

Equity-Based Compensation  We issue time-based and performance-based restricted stock unit awards to key members of management as our form of equity compensation and time-based restricted stock awards to non-employee directors. Collectively, we refer to these awards as restricted equity awards. Generally, restricted equity awards are expensed pro rata over their respective vesting periods (i.e., requisite service period), based on the market value of the awards at the time of grant, with accelerated expense for participants who satisfy qualified retirement eligibility. We record an estimate for expected forfeitures of restricted equity awards based on our historical forfeiture rates.

We credit dividend equivalent units to the unvested management restricted equity awards. Dividend equivalent

units for these unvested time-based and performance-based awards are based on the amount of common share dividends declared by the Board of Directors, credited to outstanding restricted equity awards at the time a dividend is paid to shareholders, and distributed upon, or after, vesting of the underlying award.

The total compensation expense recognized for all equity-based compensation for the years ended December 31, was:

(millions)	2025		2024		2023
Pretax expense	$	132	$	122	$	121
Tax benefit1	18		17		17

1 Differs from statutory rate of 21% due to the expected disallowance of certain executive compensation deductions.

Earnings Per Common Share  Basic earnings per common share is computed using the weighted average number of common shares outstanding during the reporting period, excluding unvested, non-employee director restricted equity awards. Diluted earnings per common share includes common stock equivalents assumed outstanding during the period. Our common stock equivalents, which are calculated using the treasury stock method, include the incremental shares assumed to be issued for:

•granted but unvested time-based restricted equity awards; and

•performance-based restricted equity awards that satisfied certain contingency conditions for unvested common stock equivalents during the period and are highly likely to continue to satisfy the conditions until the date of vesting.

During 2024, we redeemed all of our outstanding Serial Preferred Shares, Series B. See Note 14 – Dividends for further discussion. To determine net income available to common shareholders, which is used in the calculation of the per common share amounts, we reduced net income by preferred share dividends, and, for 2024:

•underwriting discounts and commissions on the preferred share issuance;

App.-A-9

•initial issuance costs related to the preferred shares; and

•excise taxes related to the preferred share redemption.

For periods when a net loss is reported, earnings per common share would be calculated using basic average equivalent common shares since diluted earnings per share would be antidilutive.

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 December 31, 2025, 2024, and 2023, were $44 million, $127 million, and $68 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 NFIP’s “Write Your Own” program, for which certain subsidiaries are participants.

For the years ended December 31, non-cash activity included the following:

(millions)	2025		2024		2023
Common share dividends1	$	7,972	$	2,695	$	498
Operating lease liabilities2	91		96		114

1 Declared but unpaid. See Note 14 – Dividends for further discussion.

2 From obtaining right-of-use assets. See Note 13 – Leases for further discussion.

For the years ended December 31, we paid the following:

(millions)	2025		2024		2023
Income taxes1	$	3,107	$	2,585	$	821
Interest	276		276		265
Operating lease liabilities	91		84		77

1 See Note 5 – Income Taxes for further discussion.

Commitments and Contingencies We have certain noncancelable purchase obligations for goods and services with minimum commitments of $2,999 million at December 31, 2025, primarily consisting of software licenses, maintenance on information technology equipment, and media placements.

Aggregate payments on these obligations for the years ended December 31, are as follows:

(millions)	Payments
2026	$	1,407
2027	454
2028	350
2029	298
2030	269
Thereafter	221
Total	$	2,999

In addition, we have commitments for reinsurance agreements, primarily related to multiple-layer property catastrophe reinsurance contracts with various reinsurers with terms ranging from one to three years. The minimum commitment under these agreements at December 31, 2025, was $317 million, of which $264 million, $37 million, $12 million, and $4 million will be paid in 2026, 2027, 2028, and 2029, respectively.

Litigation Reserves  We establish accruals for pending lawsuits when it is probable that a loss has been, or will be, incurred and we can reasonably estimate potential loss exposure, which may include a range of loss, even though outcomes of these lawsuits are uncertain until final disposition. As to lawsuits for which the loss is considered neither probable nor estimable, or is considered probable but not estimable, we do not establish an accrual. For lawsuits that have settled, but for which settlement is not complete, an accrual is established at our best estimate of the loss exposure. We regularly evaluate pending litigation to determine if any losses not deemed probable and estimable become so, at which point we would establish an accrual at either our best estimate of the loss or the lower end of the range of loss.

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

App.-A-10

2.  INVESTMENTS

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

($ in millions)	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Net Holding Period Gains (Losses)		Fair Value		% of Total Fair Value
December 31, 2025
Available-for-sale securities:
Fixed maturities:
U.S. government	$	43,114	$	541	$	(357)	$	0	$	43,298	44.5	%
State and local government	3,342		19		(58)		0		3,303		3.4
Foreign government	17		0		0		0		17		0
Corporate and other debt	19,773		273		(68)		13		19,991		20.5
Residential mortgage-backed	3,152		28		(6)		1		3,175		3.3
Commercial mortgage-backed	6,194		12		(233)		0		5,973		6.1
Other asset-backed	7,112		28		(31)		0		7,109		7.3
Total fixed maturities	82,704		901		(753)		14		82,866		85.1
Short-term investments	10,005		0		0		0		10,005		10.3
Total available-for-sale securities	92,709		901		(753)		14		92,871		95.4
Equity securities:
Nonredeemable preferred stocks	419		0		0		(15)		404		0.4
Common equities	819		0		0		3,279		4,098		4.2
Total equity securities	1,238		0		0		3,264		4,502		4.6
Total portfolio1	$	93,947	$	901	$	(753)	$	3,278	$	97,373	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	$	47,103	$	36	$	(1,151)	$	0	$	45,988	57.3	%
State and local government	2,893		2		(117)		0		2,778		3.5
Foreign government	16		0		0		0		16		0
Corporate and other debt	14,111		65		(215)		(7)		13,954		17.4
Residential mortgage-backed	1,600		9		(11)		3		1,601		2.0
Commercial mortgage-backed	4,721		7		(376)		0		4,352		5.4
Other asset-backed	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 December 31, 2025 and 2024, we had $200 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 December 31, 2025 and 2024, included $13.0 billion and $6.2 billion, respectively, of securities held in a consolidated, non-insurance subsidiary of the holding company, net of any unsettled security transactions. A portion of these investments were sold and proceeds used to pay our common share dividends in January 2026 and 2025; see Note 14 – Dividends for additional information.

App.-A-11

At December 31, 2025, bonds and certificates of deposit in the principal amount of $787 million were on deposit to meet state insurance regulatory requirements. We did not hold any securities of any one issuer, excluding U.S. government securities, with an aggregate cost or fair value exceeding 10% of total shareholders’ equity at December 31, 2025 or 2024. At December 31, 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 at December 31:

(millions)	2025		2024
Fixed Maturities:
Corporate and other debt	$	733	$	608
Residential mortgage-backed	792		479
Other asset-backed	0		1
Total hybrid securities	$	1,525	$	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 December 31, 2025, was:

(millions)	Cost		Fair Value
Less than one year	$	9,705	$	9,706
One to five years	37,985		37,958
Five to ten years	34,744		34,929
Ten years or greater	270		273
Total	$	82,704	$	82,866

Asset-backed securities are classified in the maturity distribution table based upon their projected cash flows. All other securities that do not have a single maturity date are reported based upon expected average maturity. Contractual maturities may differ from expected maturities because the issuers of the securities may have the right to call or prepay obligations.

App.-A-12

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<br>Fair <br>Value			Gross Unrealized Losses		Less than 12 Months						12 Months or Greater
( in millions)	No. of Sec.			Fair <br>Value			Gross Unrealized Losses			No. of Sec.		Fair<br> Value	Gross Unrealized Losses
December 31, 2025
U.S. government		$	17,402		$	(357)	8	$	11,327	$	(54)		54	$	6,075	$	(303)
State and local government		1,589			(58)		60	318		(1)			192	1,271		(57)
Corporate and other debt		3,821			(68)		36	1,177		(5)			105	2,644		(63)
Residential mortgage-backed		293			(6)		12	233		(1)			18	60		(5)
Commercial mortgage-backed		3,551			(233)		34	1,210		(3)			113	2,341		(230)
Other asset-backed		1,924			(31)		32	1,148		(3)			32	776		(28)
Total fixed maturities		$	28,580		$	(753)	182	$	15,413	$	(67)		514	$	13,167	$	(686)

All values are in US Dollars.

		Total<br>Fair<br>Value			Gross<br>Unrealized<br>Losses		Less than 12 Months						12 Months or Greater
( in millions)	No. of Sec.			Fair<br>Value			Gross Unrealized<br>Losses			No. of Sec.		Fair<br>Value	Gross Unrealized<br>Losses
December 31, 2024
U.S. government		$	38,782		$	(1,151)	39	$	30,257	$	(418)		74	$	8,525	$	(733)
State and local government		2,339			(117)		127	783		(6)			252	1,556		(111)
Corporate and other debt		7,034			(215)		122	2,935		(33)			182	4,099		(182)
Residential mortgage-backed		428			(11)		12	377		(4)			28	51		(7)
Commercial mortgage-backed		3,294			(376)		8	264		(16)			145	3,030		(360)
Other asset-backed		1,907			(65)		34	912		(8)			50	995		(57)
Total fixed maturities		$	53,784		$	(1,935)	342	$	35,528	$	(485)		731	$	18,256	$	(1,450)

All values are in US Dollars.

A review of the securities in an unrealized loss position indicated that, at the end of each period presented, 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 2025 or 2024 and did not have a material credit loss allowance balance as of December 31, 2025 or 2024. During 2025, we realized a $1 million impairment loss, previously recognized as an unrealized loss, for an investment deemed to be uncollectible. During 2024, we recorded a $1 million write off for securities we intended to sell prior to a potential recovery.

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

In addition, we reviewed our accrued investment income outstanding on those securities in an unrealized loss position at December 31, 2025 and 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 December 31, 2025 or 2024.

App.-A-13

Realized Gains (Losses)  The components of net realized gains (losses) for the years ended December 31, were:

(millions)	2025		2024		2023
Gross realized gains on security sales
Available-for-sale securities:
U.S. government	$	310	$	64	$	12
Corporate and other debt	16		13		1
Residential mortgage-backed	1		1		1
Commercial mortgage-backed	0		1		0
Total available-for-sale securities	327		79		14
Equity securities:
Nonredeemable preferred stocks	3		0		0
Common equities	104		33		381
Total equity securities	107		33		381
Subtotal gross realized gains on security sales	434		112		395
Gross realized losses on security sales
Available-for-sale securities:
U.S. government	(145)		(443)		(64)
State and local government	(2)		(1)		0
Corporate and other debt	(12)		(54)		(86)
Commercial mortgage-backed	(11)		(22)		(107)
Other asset-backed	0		0		(6)
Total available-for-sale securities	(170)		(520)		(263)
Equity securities:
Nonredeemable preferred stocks	(6)		(18)		(118)
Common equities	(10)		(24)		(22)
Total equity securities	(16)		(42)		(140)
Subtotal gross realized losses on security sales	(186)		(562)		(403)
Net realized gains (losses) on security sales
Available-for-sale securities:
U.S. government	165		(379)		(52)
State and local government	(2)		(1)		0
Corporate and other debt	4		(41)		(85)
Residential mortgage-backed	1		1		1
Commercial mortgage-backed	(11)		(21)		(107)
Other asset-backed	0		0		(6)
Total available-for-sale securities	157		(441)		(249)
Equity securities:
Nonredeemable preferred stocks	(3)		(18)		(118)
Common equities	94		9		359
Total equity securities	91		(9)		241
Subtotal net realized gains (losses) on security sales	248		(450)		(8)
Other assets
Gain	0		36		22
Net holding period gains (losses)
Hybrid securities	18		25		45
Equity securities	462		654		303
Subtotal net holding period gains (losses)	480		679		348
Impairment losses
Fixed-maturity securities	(1)		(1)		0
Other assets	0		0		(9)
Subtotal impairment losses	(1)		(1)		(9)
Total net realized gains (losses) on securities	$	727	$	264	$	353

During 2025 and 2024, the majority of our security sales were U.S. Treasury Notes that were sold for duration management. We also selectively sold securities that we viewed as having less attractive risk/reward profiles.

During 2023, the gross losses were primarily related to: (i) commercial mortgage-backed securities, as we reduced certain positions that we believed would be sensitive to potential future economic uncertainty; (ii) corporate debt securities, as we sold some longer duration securities that had less attractive risk/reward profiles; and (iii) nonredeemable preferred stocks, predominantly due to the sale of certain holdings in U.S. bank preferred stocks. The gross gains in common equities reflected sales of securities, as part of our 2023 plan to incrementally reduce risk in the portfolio.

App.-A-14

The following table reflects our holding period realized gains (losses) recognized on equity securities held at the respective periods ended December 31:

(millions)	2025		2024		2023
Total net gains (losses) recognized during the period on equity securities	$	553	$	645	$	544
Less: Net gains (losses) recognized on equity securities sold during the period	91		(9)		241
Net holding period gains (losses) recognized during the period on equity securities held at period end	$	462	$	654	$	303

Net Investment Income  The components of net investment income for the years ended December 31, were:

(millions)	2025		2024		2023
Available-for-sale securities:
Fixed maturities:
U.S. government	$	1,790	$	1,489	$	864
State and local government	89		61		48
Corporate and other debt	818		572		376
Residential mortgage-backed	137		47		29
Commercial mortgage-backed	246		195		196
Other asset-backed	326		332		193
Total fixed maturities	3,406		2,696		1,706
Short-term investments	103		53		92
Total available-for-sale securities	3,509		2,749		1,798
Equity securities:
Nonredeemable preferred stocks	23		39		51
Common equities	51		44		43
Total equity securities	74		83		94
Investment income	3,583		2,832		1,892
Investment expenses	(34)		(29)		(26)
Net investment income	$	3,549	$	2,803	$	1,866

On a year-over-year basis, investment income (interest and dividends) increased 27% in 2025 and increased 50% in 2024, compared to the prior years. The increases in both years primarily reflect growth in invested assets and an increase in recurring investment book yield. The book yield increases primarily reflect investing new cash from insurance operations, and proceeds from maturing bonds, in higher coupon rate securities.

App.-A-15

3. FAIR VALUE

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
December 31, 2025
Fixed maturities:
U.S. government	$	43,298	$	0	$	0	$	43,298	$	43,114
State and local government	0		3,303		0		3,303		3,342
Foreign government	0		17		0		17		17
Corporate and other debt	0		19,987		4		19,991		19,773
Residential mortgage-backed	0		3,175		0		3,175		3,152
Commercial mortgage-backed	0		5,973		0		5,973		6,194
Other asset-backed	0		7,109		0		7,109		7,112
Total fixed maturities	43,298		39,564		4		82,866		82,704
Short-term investments	9,810		195		0		10,005		10,005
Total available-for-sale securities	53,108		39,759		4		92,871		92,709
Equity securities:
Nonredeemable preferred stocks	0		344		60		404		419
Common equities:
Common stocks	4,057		0		5		4,062		783
Other risk investments	0		0		36		36		36
Subtotal common equities	4,057		0		41		4,098		819
Total equity securities	4,057		344		101		4,502		1,238
Total portfolio	$	57,165	$	40,103	$	105	$	97,373	$	93,947
Debt	$	0	$	6,345	$	0	$	6,345	$	6,897			Fair Value
---	---	---	---	---	---	---	---	---	---	---
(millions)	Level 1		Level 2		Level 3		Total		Cost
December 31, 2024
Fixed maturities:
U.S. government	$	45,988	$	0	$	0	$	45,988	$	47,103
State and local government	0		2,778		0		2,778		2,893
Foreign government	0		16		0		16		16
Corporate and other debt	0		13,949		5		13,954		14,111
Residential mortgage-backed	0		1,601		0		1,601		1,600
Commercial mortgage-backed	0		4,352		0		4,352		4,721
Other asset-backed	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

App.-A-16

Our portfolio valuations, excluding short-term investments valued at adjusted original cost, classified as either Level 1 or Level 2 in the above tables are priced exclusively by external sources, including pricing vendors, dealers/market makers, and exchange-quoted prices. We concluded there was sufficient activity related to the sectors and securities for which we obtained valuations.

Our short-term investments classified as Level 1 include commercial paper, treasury bills, and money market funds, which are highly liquid, actively marketed, and have short durations. These securities are valued at their original cost, adjusted for any accretion of discount, which approximates fair value because of the relatively short period of time until maturity. 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 December 31, 2025 and 2024, vendor-quoted prices represented 91% and 93%, respectively, of our Level 1 classifications (excluding short-term investments valued at adjusted 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 both December 31, 2025 and 2024, vendor-quoted prices comprised 100% of our Level 2 classifications (excluding short-term investments valued at adjusted original cost). 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 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 state and local government (municipal) securities, 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.

App.-A-17

For short-term investments valued at adjusted 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 adjusted 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 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 our external sales transactions and compare the actual final market sales prices to previous market valuation prices on a monthly basis. This review provides us further validation that our pricing sources are providing market level prices, and gives us additional comfort regarding the source’s process, the quality of its review, and its willingness to improve its analysis based on feedback from clients. We believe this effort helps ensure that we are reporting the most representative fair values for our securities.

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 for 2025 and 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.

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 2025 and 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.

App.-A-18

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

(millions)	Fair Value at Dec. 31, 2024		Calls/<br>Maturities/<br>Paydowns/<br>Other		Purchases		Sales		Net Realized<br>(Gain)/Loss <br>on sales		Change in<br><br>Valuation1		Net<br>Transfers<br>In (Out)		Fair Value at Dec. 31, 2025
Fixed maturities:
Corporate and other debt	$	5	$	(1)	$	0	$	0	$	0	$	0	$	0	$	4
Equity securities:
Nonredeemable preferred stocks	52		0		8		0		0		0		0		60
Common equities:
Common stocks	23		0		0		0		0		(18)		0		5
Other risk investments	25		11		0		0		0		0		0		36
Total Level 3 securities	$	105	$	10	$	8	$	0	$	0	$	(18)	$	0	$	105
(millions)	Fair Value at Dec. 31, 2023		Calls/<br>Maturities/<br>Paydowns/<br>Other		Purchases		Sales		Net Realized<br>(Gain)/Loss <br>on Sales		Change in<br><br>Valuation1		Net<br>Transfers<br>In (Out)		Fair Value at Dec. 31, 2024
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Fixed maturities:
Corporate and other debt	$	3	$	0	$	2	$	0	$	0	$	0	$	0	$	5
Equity securities:
Nonredeemable preferred stocks	64		0		0		0		0		(12)		0		52
Common equities:
Common stocks	22		0		0		0		0		1		0		23
Other risk investments	21		4		0		0		0		0		0		25
Total Level 3 securities	$	110	$	4	$	2	$	0	$	0	$	(11)	$	0	$	105

1For fixed maturities, amounts included are unrealized gains (losses) included in accumulated other comprehensive income (loss) on our consolidated balance sheets. For equity securities, amounts included are net holding period gains (losses) on securities on our consolidated statements of comprehensive income.

App.-A-19

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

($ in millions)	Fair Value at Dec. 31, 2025		Valuation Technique	Unobservable Input	Range of Input Values Increase (Decrease)	Weighted <br>Average Increase (Decrease)
Fixed maturities:
Corporate and other debt	$	4	Market comparables	Weighted average market capitalization price change %	(0.1)% to 0.1%	0	%
Equity securities:
Nonredeemable preferred stocks	60		Market comparables	Weighted average market capitalization price change %	(14.5)% to 7.6%	(4.5)	%
Common stocks	5		Market comparables	Weighted average market capitalization price change %	(40.9)% to 36.3%	7.6	%
Subtotal Level 3 securities	69
Pricing exemption securities	36
Total Level 3 securities	$	105
($ in millions)	Fair Value at Dec. 31, 2024		Valuation Technique	Unobservable Input	Range of Input Values Increase (Decrease)	Weighted <br>Average Increase (Decrease)
---	---	---	---	---	---	---	---
Fixed maturities:
Corporate and other debt	$	5	Market comparables	Weighted average market capitalization price change %	(1.4)% to (1.3)%	(1.4)	%
Equity securities:
Nonredeemable preferred stocks	52		Market comparables	Weighted average market capitalization price change %	(14.1)% to 6.0%	(2.7)	%
Common stocks	23		Market comparables	Weighted average market capitalization price change %	(41.3)% to 95.9%	6.0	%
Subtotal Level 3 securities	80
Pricing exemption securities	25
Total Level 3 securities	$	105

App.-A-20

4.  DEBT

Debt at December 31, consisted of the following Senior Notes:

( in millions)					2025				2024
Principal Amount	Interest Rate		Issuance Date	Maturity Date	Carrying<br>Value		Fair<br>Value		Carrying<br>Value		Fair<br>Value
	2.45	%	August 2016	2027	$	499	$	493	$	499	$	479
500	2.50		March 2022	2027	499		492		499		479
300	6 5/8		March 1999	2029	299		323		298		320
550	4.00		October 2018	2029	548		551		547		534
500	3.20		March 2020	2030	498		484		498		462
500	3.00		March 2022	2032	497		462		497		439
400	6.25		November 2002	2032	397		442		397		430
500	4.95		May 2023	2033	497		513		497		495
350	4.35		April 2014	2044	347		304		347		298
400	3.70		January 2015	2045	396		314		396		308
850	4.125		April 2017	2047	843		702		842		684
600	4.20		March 2018	2048	591		498		591		490
500	3.95		March 2020	2050	492		392		491		386
500	3.70		March 2022	2052	494		375		494		369
Total					$	6,897	$	6,345	$	6,893	$	6,173

All values are in US Dollars.

All of the outstanding debt was issued by The Progressive Corporation and includes amounts that were borrowed for general corporate purposes, which may include contributions to the capital of its insurance subsidiaries, payments of debt at maturity, or may be used, or made available for use, for other business purposes. Fair values for these debt instruments are obtained from external sources. There are no restrictive financial covenants or credit rating triggers on the outstanding debt.

Interest on all debt is payable semiannually at the stated rates. All principal is due at the stated maturity. Each note is redeemable, in whole or in part, at any time; however, the redemption price will equal the greater of the principal amount of the note or a “make whole” amount calculated by reference to the present values of remaining scheduled principal and interest payments under the note. There was no short-term debt outstanding at December 31, 2025 or 2024.

Aggregate required principal payments on debt outstanding at December 31, 2025, were as follows:

(millions)	Payments
2026	$	0
2027	1,000
2028	0
2029	850
2030	500
Thereafter	4,600
Total	$	6,950

Prior to certain issuances of our debt securities, we entered into forecasted transactions to hedge against possible changes in interest rates. When the contracts were closed upon the issuance of the applicable debt securities, we recognized the unrealized gains (losses) on these contracts as part of accumulated other comprehensive income. These unrealized gains (losses) are amortized as adjustments to interest expense over the life of the related notes.

The following table shows the original gain (loss) recognized at debt issuance and the unamortized balance at December 31, 2025, on a pretax basis:

(millions)	Unrealized<br>Gain (Loss)<br>at Issuance		Unamortized<br><br>Balance at<br><br>December 31, 2025
6 5/8% Senior Notes due 2029	$	(4)	$	(1)
6.25% Senior Notes due 2032	5		2
4.35% Senior Notes due 2044	(2)		(1)
3.70% Senior Notes due 2045	(13)		(10)
4.125% Senior Notes due 2047	(8)		(7)

In 2025, we reclassified $1 million of net pretax unrealized losses from accumulated other comprehensive income to interest expense on our closed debt issuance cash flow hedges, with minimal net reclassifications in 2024 and 2023.

App.-A-21

During 2025, The Progressive Corporation renewed its line of credit with PNC Bank, National Association (PNC), in the maximum principal amount of $300 million. Subject to the terms and conditions of the line of credit documents, advances under the line of credit, if any, will bear interest at a variable rate equal to the 1-month term Secured Overnight Financing Rate (SOFR) plus 1.10%. Each advance must be repaid on the 30th day after the date of the advance or, if earlier, on April 30, 2026, the expiration date of the line of credit. Prepayments are permitted without penalty. The line of credit is uncommitted and, as such, all advances are subject to PNC’s discretion. We had no borrowings under the line of credit in 2025 or 2024.

5.  INCOME TAXES

The components of our income tax provision for the years ended December 31, were as follows:

(millions)	2025		2024		2023
Current tax provision
Federal	$	3,042	$	2,247	$	1,102
State	75		58		19
Total current tax provision	3,117		2,305		1,121
Deferred tax provision (benefit)
Federal	(199)		(70)		(120)
State	(3)		(2)		0
Total deferred tax provision (benefit)	(202)		(72)		(120)
Total income tax provision
Federal	2,843		2,177		982
State	72		56		19
Total income tax provision	$	2,915	$	2,233	$	1,001

The provision for income taxes in the consolidated statements of comprehensive income differed from the statutory rate for the years ended December 31, as follows:

	2025				2024				2023
($ in millions)	Expense (Benefit)		Rate Impact		Expense (Benefit)		Rate<br>Impact		Expense (Benefit)		Rate Impact
Income from continuing operations before income taxes1	$	14,223			$	10,713			$	4,904
Tax at statutory federal rate	$	2,987	21	%	$	2,250	21	%	$	1,030	21	%
Tax effect of:
State and local income taxes, net of federal income tax effect2	57		0		44		0		15		0
Tax credits	(6)		0		(7)		0		(17)		0
Nontaxable or nondeductible items	(123)		(1)		(54)		0		(27)		(1)
Total income tax provision	$	2,915	20	%	$	2,233	21	%	$	1,001	20	%
1 All income from continuing operations for the periods presented was derived from domestic operations.
2 State taxes in Illinois and Florida made up the majority (greater than 50%) of the tax effect in this category.

Income taxes paid for the years ended December 31, were as follows:

($ in millions)	2025		2024		2023
Income taxes paid:
Federal	$	3,022	$	2,540	$	800
State	85		45		21
Total income taxes paid	$	3,107	$	2,585	$	821

App.-A-22

Deferred income taxes reflect the tax effects of temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities. The following table shows the components of the net deferred tax assets and liabilities at December 31:

(millions)	2025		2024
Federal deferred income tax assets:
Unearned premiums reserve	$	1,056	$	991
Non-deductible accruals	535		274
Loss and loss adjustment expense reserves	407		342
Operating lease liabilities	43		41
Software development costs	10		89
Hedges on forecasted transactions	3		4
Net unrealized losses on fixed-maturity securities	0		376
Other	58		27
Total federal deferred income tax assets	2,112		2,144
Federal deferred income tax liabilities:
Net holding period gains on equity securities	(686)		(588)
Deferred acquisition costs	(429)		(412)
Property and equipment	(94)		(85)
Operating lease assets	(43)		(41)
Investment basis differences	(38)		(22)
Net unrealized gains on fixed-maturity securities	(31)		0
Prepaid expenses	(22)		(10)
Loss and loss adjustment expense reserve transition adjustment	0		(8)
Other	(21)		(24)
Total federal deferred income tax liabilities	(1,364)		(1,190)
Net federal deferred income taxes	748		954
State deferred income tax assets1	38		42
State deferred income tax liabilities1	(1)		0
Total	$	785	$	996

1 State deferred tax assets and liabilities are recorded in other assets and accounts payable, accrued expenses, and other liabilities, respectively, on our consolidated balance sheets.

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 December 31, 2025 or 2024.

At December 31, 2025 and 2024, we had net current income taxes payable of $28 million and $26 million, respectively, which were reported in accounts payable, accrued expenses, and other liabilities on our consolidated balance sheets. This balance, which represented our estimated tax liability for the year less payments made during the year, and less any taxes paid in prior years recoverable through carryback, may fluctuate from period to period due to normal timing differences.

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

For the years ended December 31, 2025, 2024, and 2023, we recognized immaterial amounts of interest and penalties as a component of the income tax provision.

The Progressive Corporation and its subsidiaries file a consolidated federal income tax return. All federal income tax years prior to 2022 are generally closed to examination; however, 2016 remains open for a tax credit partnership investment and 2021 remains open for a capital loss carryback claim. The statute of limitations for state income tax purposes generally remains open for three to four years from the return filing date, depending upon the jurisdiction. There has been no significant state income tax audit activity.

Effective for our 2025 year-end reporting, we adopted the ASU issued by the FASB related to enhanced disclosures on income taxes, on a retrospective basis. Disclosures for 2024 and 2023 have been revised to conform with the current year presentation.

App.-A-23

6.  LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES

As a property-casualty insurance company, we are exposed to hurricanes or other catastrophes. We are unable to predict the frequency or severity of any such events that may occur in the near term or thereafter. As we are primarily an insurer of motor vehicles and residential property, we have minimal exposure to environmental and asbestos claims.

Loss and loss adjustment expense (LAE) reserves represent our best estimate of the ultimate liability for losses and LAE costs, related to events occurring prior to the end of the accounting period, which have not been paid. For our Personal and Commercial Lines vehicle businesses, which represented about 97% of our total carried reserves at December 31, 2025, we establish loss and LAE reserves after completing reviews at a disaggregated level of grouping. Progressive’s actuarial staff reviews approximately 400 subsets of business data, which are at a combined state, product, and line coverage level, to calculate loss and LAE reserves. During reserve reviews, ultimate loss amounts are estimated using several industry standard actuarial projection methods. These methods take into account historical comparable loss data at the subset level and estimate the impact of various loss development factors, such as frequency (number of losses per exposure) and severity (dollars of loss per each claim), as well as the frequency and severity of loss adjustment expense costs.

We begin our review by examining a set of data by producing multiple estimates of reserves, using both paid and incurred data, to determine if a reserve change is required. In the event of a wide variation among results generated by the different projections, our actuarial group further analyzes the data using additional quantitative analysis. Each review develops a point estimate for a relatively small subset of the business, which allows us to establish meaningful reserve levels for those subsets. We believe our comprehensive process of reviewing at a subset level provides more meaningful estimates of our aggregate loss reserves.

The actuarial staff completes separate projections of case and incurred but not recorded (IBNR) reserves. Since a large majority of the parties involved in an accident report their claims within a short time period after the occurrence, we do not carry a significant amount of IBNR reserves for older accident years. Based on the methodology we use to estimate case reserves for our personal vehicle and Commercial Lines auto businesses, we generally do not have expected development on reported claims included in our IBNR reserves. We do, however, include anticipated salvage and subrogation recoveries in our IBNR estimates, which could result in negative carried IBNR reserves, primarily in our physical damage reserves.

Changes from our historical data trends, or third-party modeled data trends, may reduce the predictiveness of our projected future loss costs. Internal considerations that are process-related, which generally result from changes in our claims organization’s activities, include claim closure rates, the number of claims that are closed without payment, and the number of individual case reserves set by our claims adjusters. These changes and their effect on the historical data are studied at the state level versus on a larger, less indicative, countrywide basis. External factors considered include the litigation atmosphere, state-by-state changes in medical costs, and the availability of services to resolve claims. These factors are also better understood at the state level versus at a more macro, countrywide level. The actuarial staff takes these changes into consideration when making their assumptions to determine reserve levels.

Similar to our vehicle businesses, our actuarial staff analyzes loss and LAE data for our Commercial Lines non-vehicle business and our Personal Lines property business on a claim occurrence period basis. Many of the methodologies and key parameters reviewed are similar. In addition, for our Progressive Fleet & Specialty Programs (Fleet & Specialty) and Personal Lines property businesses, since claims adjusters primarily establish the case reserves, the actuarial staff includes expected development on case reserves as a component of the overall IBNR reserves.

App.-A-24

Activity in the loss and LAE reserves is summarized as follows:

(millions)	2025		2024		2023
Balance at January 1	$	39,057	$	34,389	$	30,359
Less reinsurance recoverables on unpaid losses	4,487		4,789		5,559
Net balance at January 1	34,570		29,600		24,800
Incurred related to:
Current year	55,353		49,476		44,561
Prior years	(1,394)		(416)		1,094
Total incurred	53,959		49,060		45,655
Paid related to:
Current year	31,941		28,909		26,875
Prior years	17,085		15,181		13,980
Total paid	49,026		44,090		40,855
Net balance at December 31	39,503		34,570		29,600
Plus reinsurance recoverables on unpaid losses	3,807		4,487		4,789
Balance at December 31	$	43,310	$	39,057	$	34,389

We experienced favorable development of $1,394 million and $416 million in 2025 and 2024, respectively, compared to unfavorable reserve development of $1,094 million in 2023, all reflected as “Incurred related to prior years” in the table above.

2025

•The favorable prior year reserve development included approximately $800 million attributable to accident year 2024, $270 million to accident year 2023, and the remainder to accident years 2022 and prior.

•Our personal auto products incurred about $1,190 million of favorable loss and LAE reserve development, with the agency and direct auto businesses each contributing about half. The favorable development was primarily due to lower than anticipated loss severity and frequency in Florida and, to a lesser extent, lower than anticipated litigation defense costs across most states and lower than anticipated payments on previously closed but reopened property damage claims.

•Our personal property products experienced about $80 million of favorable development primarily attributable to favorable development on 2024 catastrophe events.

•Our Commercial Lines business experienced about $120 million of favorable development primarily driven by lower than anticipated severity in our transportation network company (TNC) business, partially offset by higher than anticipated litigation defense costs and severity in our core commercial auto bodily injury coverages.

2024

•The favorable prior year reserve development included approximately $180 million attributable to accident year 2023, $55 million to accident year 2022, and the remainder to accident years 2021 and prior.

•Our personal auto products incurred about $550 million of favorable loss and LAE reserve development, with about 60% attributable to the agency auto business and the balance to the direct auto business. The favorable development was, in part, due to lower than anticipated severity and frequency in Florida and lower than anticipated property damage severity across the majority of states.

•Our personal property products experienced about $80 million of unfavorable development primarily due to higher LAE costs than anticipated.

•Our Commercial Lines business experienced about $50 million of unfavorable development primarily driven by higher than anticipated severity in our commercial auto business for California, New York, and Texas.

2023

•The unfavorable reserve development for 2023 included approximately $950 million attributable to accident year 2022 and $125 million to accident year 2021.

•Our personal auto products incurred about $715 million of unfavorable loss and LAE reserve development, with the agency and direct auto businesses each contributing about half. About half of this unfavorable development was attributable to higher than anticipated severity in personal auto property and physical damage coverages. The remaining unfavorable development was primarily due to increased loss costs in Florida injury and medical coverages and, to a lesser extent, higher than anticipated late reported injury claims; partially offset by lower than expected LAE.

•Our Commercial Lines business experienced about $365 million of unfavorable development, primarily driven by higher than anticipated severity and frequency of late reported injury claims and large loss emergence on injury claims, with about half attributable to our TNC business.

App.-A-25

Incurred and Paid Claims Development by Accident Year The following tables present our incurred, net of reinsurance, and paid claims development by accident year for the number of years that generally have historically represented the maximum development period for claims. The tables below include inception-to-date information for companies acquired and wholly exclude companies disposed of, rather than including information from the date of acquisition, or until the date of disposition. We believe the most meaningful presentation of claims development is through the retrospective approach by presenting all relevant historical information for all periods presented.

We have elected to present our incurred and paid claims development in consideration with our GAAP reportable segments (see Note 10 – Segment Information for a discussion of our segment reporting), with a further disaggregation of our Personal Lines vehicles and Commercial Lines auto business claims development between liability and physical damage, since the loss patterns are significantly different between those

coverages. The Commercial Lines other business includes coverages for Fleet & Specialty, other than liability and physical damage. Reserves for our run-off products are not considered material and, therefore, are not included in a separate claims development table.

Only 2025 is audited; all prior years are considered required supplementary information and, therefore, are unaudited. Expected development on our case reserves is excluded from the IBNR reserves on our vehicle businesses, as discussed above. For the Personal Lines property business and the Commercial Lines other business, the IBNR reserves include expected case development based on the methodology used in establishing the case reserves. The cumulative number of incurred claims are based on accident coverages (e.g., bodily injury, collision, comprehensive, personal injury protection, property damage) related to opened claims. Coverage counts related to claims closed without payment are excluded from the cumulative number of incurred claims.

App.-A-26

Personal Lines - Vehicles - Agency - Liability
( in millions)										As of
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance										December 31, 2025
										Total of IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Incurred Claim Counts
Accident Year		20221		20231		20241		2025
2021	6,716	$	6,862	$	6,936	$	6,943	$	6,831	$	0	885,914
2022		7,077		7,302		7,226		7,222		135		842,281
2023				8,616		8,365		8,260		183		902,996
2024						9,700		9,345		541		936,963
2025								11,277		2,097		1,023,941
						Total		$	42,935
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
Accident Year		20221		20231		20241		2025
2021	2,855	$	5,239	$	6,183	$	6,569	$	6,727
2022		3,019		5,564		6,486		6,870
2023				3,527		6,311		7,408
2024						3,753		6,935
2025								4,427
						Total		$	32,367
								94
								$	10,662

All values are in US Dollars.

1 Required supplementary information (unaudited)

Personal Lines - Vehicles - Agency - Physical Damage
( in millions)										As of
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance										December 31, 2025
										Total of IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Incurred Claim Counts
Accident Year		20221		20231		20241		2025
2021	4,708	$	4,624	$	4,629	$	4,619	$	4,619	$	0	2,106,210
2022		5,429		5,545		5,584		5,546		(8)		2,033,905
2023				5,775		5,880		5,909		21		2,118,287
2024						6,214		6,272		(18)		2,134,899
2025								6,508		(203)		2,246,453
						Total		$	28,854
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
Accident Year		20221		20231		20241		2025
2021	4,438	$	4,621	$	4,612	$	4,617	$	4,618
2022		5,176		5,542		5,549		5,552
2023				5,584		5,883		5,884
2024						5,932		6,281
2025								6,137
						Total		$	28,472
								2
								$	384

All values are in US Dollars.

1 Required supplementary information (unaudited)

App.-A-27

Personal Lines - Vehicles - Direct - Liability
( in millions)										As of
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance										December 31, 2025
										Total of IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Incurred Claim Counts
Accident Year		20221		20231		20241		2025
2021	6,965	$	7,180	$	7,244	$	7,235	$	7,132	$	0	981,428
2022		7,563		7,870		7,799		7,788		127		974,054
2023				9,628		9,424		9,337		184		1,100,504
2024						11,584		11,260		586		1,238,183
2025								14,669		2,481		1,462,005
						Total		$	50,186
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
Accident Year		20221		20231		20241		2025
2021	2,915	$	5,461	$	6,488	$	6,899	$	7,047
2022		3,132		5,983		7,023		7,432
2023				3,926		7,160		8,420
2024						4,496		8,491
2025								5,862
						Total		$	37,252
								82
								$	13,016

All values are in US Dollars.

1 Required supplementary information (unaudited)

Personal Lines - Vehicles - Direct - Physical Damage
( in millions)										As of
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance										December 31, 2025
										Total of IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Incurred Claim Counts
Accident Year		20221		20231		20241		2025
2021	5,752	$	5,568	$	5,573	$	5,570	$	5,566	$	0	2,603,218
2022		6,613		6,724		6,763		6,723		(14)		2,609,541
2023				7,578		7,678		7,710		15		2,861,342
2024						8,241		8,214		(29)		2,980,272
2025								9,109		(398)		3,300,039
						Total		$	37,322
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
Accident Year		20221		20231		20241		2025
2021	5,422	$	5,579	$	5,560	$	5,565	$	5,565
2022		6,326		6,732		6,732		6,734
2023				7,362		7,692		7,690
2024						7,851		8,231
2025								8,624
						Total		$	36,844
								1
								$	479

All values are in US Dollars.

1 Required supplementary information (unaudited)

App.-A-28

Personal Lines - Property
( in millions)										As of
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance										December 31, 2025
										Total of IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Incurred Claim Counts
Accident Year		20221		20231		20241		2025
2021	1,540	$	1,516	$	1,503	$	1,498	$	1,497	$	3	89,935
2022		1,665		1,622		1,612		1,608		13		90,242
2023				1,583		1,605		1,581		35		82,190
2024						1,696		1,649		104		80,681
2025								1,235		175		55,059
						Total		$	7,570
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
Accident Year		20221		20231		20241		2025
2021	1,035	$	1,375	$	1,444	$	1,476	$	1,487
2022		1,042		1,470		1,545		1,577
2023				1,078		1,441		1,513
2024						1,050		1,456
2025								806
						Total		$	6,839
								6
								$	737

All values are in US Dollars.

1 Required supplementary information (unaudited)

App.-A-29

Commercial Lines - Liability
( in millions)										As of
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance										December 31, 2025
										Total of IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Incurred Claim Counts
Accident Year		20221		20231		20241		2025
2021	3,447	$	3,527	$	3,574	$	3,581	$	3,566	$	19	156,360
2022		4,526		4,835		4,862		4,875		117		182,524
2023				5,456		5,502		5,487		220		191,475
2024						5,552		5,551		467		191,353
2025								5,631		1,200		174,961
						Total		$	25,110
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
Accident Year		20221		20231		20241		2025
2021	574	$	1,546	$	2,414	$	2,990	$	3,316
2022		749		2,086		3,232		3,976
2023				848		2,307		3,474
2024						853		2,150
2025								784
						Total		$	13,700
								136
								$	11,546

All values are in US Dollars.

1 Required supplementary information (unaudited)

Commercial Lines - Physical Damage
( in millions)										As of
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance										December 31, 2025
										Total of IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Incurred Claim Counts
Accident Year		20221		20231		20241		2025
2021	921	$	910	$	910	$	910	$	910	$	0	121,976
2022		1,315		1,330		1,329		1,326		0		147,395
2023				1,352		1,336		1,332		(1)		162,852
2024						1,200		1,167		(4)		148,143
2025								1,008		(13)		137,312
						Total		$	5,743
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
Accident Year		20221		20231		20241		2025
2021	764	$	903	$	902	$	906	$	909
2022		1,114		1,315		1,321		1,325
2023				1,184		1,328		1,328
2024						1,066		1,162
2025								903
						Total		$	5,627
								1
								$	117

All values are in US Dollars.

1 Required supplementary information (unaudited)

App.-A-30

Commercial Lines - Other
( in millions)																				As of
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																				December 31, 2025
																				Total of IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Incurred Claim Counts
Accident Year		20171		20181		20191		20201		20211		20221		20231		20241		2025
2016	52	$	43	$	41	$	42	$	40	$	40	$	40	$	40	$	40	$	42	$	2	7,652
2017		63		55		51		49		46		48		55		54		51		6		17,691
2018				82		81		77		77		77		82		83		81		7		15,507
2019						81		83		85		88		88		88		87		6		10,738
2020								75		81		82		83		83		80		7		9,576
2021										84		87		89		85		82		10		9,425
2022												84		81		82		80		11		7,770
2023														85		85		86		19		7,604
2024																61		57		19		5,532
2025																		41		19		3,705
																Total		$	687
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
Accident Year		20171		20181		20191		20201		20211		20221		20231		20241		2025
2016	9	$	21	$	27	$	31	$	33	$	34	$	35	$	36	$	36	$	37
2017		10		24		31		35		37		40		42		42		43
2018				18		40		50		57		62		65		67		69
2019						20		42		56		65		71		75		77
2020								16		39		52		60		64		67
2021										17		40		52		61		65
2022												18		40		51		58
2023														18		42		55
2024																13		27
2025																		8
																Total		$	506
				All outstanding liabilities before 2016, net of reinsurance1														23
				Liabilities for claims and claim adjustment expenses, net of reinsurance														$	204

All values are in US Dollars.

1 Required supplementary information (unaudited)

App.-A-31

The following table reconciles the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses:

(millions)	2025		2024
Net outstanding liabilities
Personal Lines
Vehicles
Agency, Liability	$	10,662	$	9,294
Agency, Physical Damage	384		324
Direct, Liability	13,016		10,617
Direct, Physical Damage	479		415
Property	737		911
Commercial Lines
Liability	11,546		10,412
Physical Damage	117		156
Other	204		246
Other business	173		177
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance	37,318		32,552
Reinsurance recoverables on unpaid claims
Personal Lines
Vehicles
Agency, Liability	949		912
Agency, Physical Damage	0		0
Direct, Liability	1,717		1,559
Direct, Physical Damage	0		0
Property	44		567
Commercial Lines
Liability	680		845
Physical Damage	1		1
Other	204		218
Other business	207		354
Total reinsurance recoverables on unpaid claims	3,802		4,456
Unallocated claims adjustment expense related to:
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance	2,185		2,018
Reinsurance recoverables on unpaid claims	5		31
Total gross liability for unpaid claims and claim adjustment expense	$	43,310	$	39,057

The following table shows the average historical claims duration as of December 31, 2025:

(Required Supplementary Information - Unaudited)
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance		Years
	1		2			3			4			5
Personal Lines
Vehicles
Agency, Liability		40.9		%	34.4		%	13.3		%	5.5		%	2.3	%
Agency, Physical Damage		94.5			5.4			0			0.1			0
Direct, Liability		40.5			35.5			13.7			5.5			2.1
Direct, Physical Damage		95.3			4.5			(0.1)			0.1			0
Property		66.2			24.3			4.6			2.1			0.7
Commercial Lines
Liability		15.2			26.0			22.8			15.6			9.1
Physical Damage		87.6			12.2			0.1			0.4			0.3
Other		21.4			27.2			14.6			9.5			5.4

App.-A-32

7.  REINSURANCE

The effect of reinsurance on premiums written and earned for the years ended December 31, was as follows:

	2025				2024				2023
(millions)	Written		Earned		Written		Earned		Written		Earned
Direct premiums	$	84,208	$	82,847	$	75,893	$	72,169	$	62,721	$	59,881
Ceded premiums:
Regulated	(578)		(582)		(620)		(619)		(535)		(545)
Non-Regulated	(456)		(604)		(849)		(751)		(636)		(671)
Total ceded premiums	(1,034)		(1,186)		(1,469)		(1,370)		(1,171)		(1,216)
Net premiums	$	83,174	$	81,661	$	74,424	$	70,799	$	61,550	$	58,665

Regulated refers to federal or state run plans and primarily includes the following:

•Federal reinsurance plan

◦National Flood Insurance Program (NFIP)

•State-provided reinsurance facilities

◦Michigan Catastrophic Claims Association (MCCA)

◦North Carolina Reinsurance Facility (NCRF)

◦Florida Hurricane Catastrophe Fund (FHCF)

•State-mandated involuntary plans

◦Commercial Automobile Insurance Procedures/Plans (CAIP)

Non-Regulated refers to voluntary external reinsurance. We generally do not reinsure our personal vehicle

businesses. For our personal property business, we have both property catastrophic excess of loss and aggregate excess of loss reinsurance agreements. In our Commercial Lines business, we reinsure certain of our TNC business and our Fleet & Specialty workers’ compensation insurance and commercial auto products under either a quota share reinsurance agreement or a combination of quota share and excess of loss agreements.

The decrease in ceded written and earned premiums in 2025, compared to 2024, was primarily attributable to our Non-Regulated plans, driven by certain TNC business policies not renewing during 2025 and a decrease in the percentage of premiums to be ceded for the 2025-2026 catastrophe excess of loss program.

Our reinsurance recoverables and prepaid reinsurance premiums were comprised of the following at December 31:

	Reinsurance Recoverables								Prepaid Reinsurance Premiums
($ in millions)	2025				2024				2025				2024
Regulated:
MCCA	$	2,623	64	%	$	2,381	50	%	$	27	14	%	$	29	9	%
CAIP	248		6		415		9		0		0		0		0
NCRF	229		6		214		4		82		42		85		24
FHCF	16		0		169		3		0		0		0		0
NFIP	12		0		361		8		69		35		69		20
Other	5		0		5		0		1		0		1		0
Total Regulated	3,133		76		3,545		74		179		91		184		53
Non-Regulated:
Commercial Lines	916		23		1,137		24		7		3		157		45
Personal property	30		1		78		2		11		6		8		2
Other	4		0		5		0		0		0		0		0
Total Non-Regulated	950		24		1,220		26		18		9		165		47
Total	$	4,083	100	%	$	4,765	100	%	$	197	100	%	$	349	100	%

The decrease in our reinsurance recoverables in 2025, compared to 2024, was largely due to the ongoing settlement of Hurricanes Helene and Milton losses and allocated LAE claims that were incurred in 2024. Additional decreases were due to the run-off of certain Commercial Lines and CAIP reinsurance programs. These decreases were partially offset by increased recoverables on the MCCA program.

Our prepaid reinsurance premiums decreased in 2025, primarily due to the previously described nonrenewal of certain policies in our TNC business.

Reinsurance contracts do not relieve us from our obligations to policyholders. Failure of reinsurers to honor their obligations could result in losses to us. Our exposure to losses from the failure of Regulated plans is minimal

App.-A-33

since these plans are funded by the federal government or by mechanisms supported by insurance companies in applicable states. We evaluate the financial condition of our other reinsurers and monitor concentrations of credit risk to minimize our exposure to significant losses from reinsurer insolvencies.

For our Non-Regulated reinsurers, we routinely monitor changes in the credit quality and concentration risks of the reinsurers who are counterparties to our reinsurance recoverables to determine if an allowance for credit losses should be established. For at-risk uncollateralized

recoverable balances, we evaluate several reinsurer specific factors, including reinsurer credit quality rating, credit rating outlook, historical experience, reinsurer surplus, recoverable duration, and collateralization composition in respect to our net exposure (i.e., the reinsurance recoverable amount less premiums payable to the reinsurer, where the right to offset exists). At December 31, 2025 and 2024, the allowance for credit losses related to these contracts was not material to our financial condition or results of operations.

8.  STATUTORY FINANCIAL INFORMATION

Consolidated statutory surplus was $28,370 million and $27,171 million at December 31, 2025 and 2024, respectively. Statutory net income was $10,643 million, $7,670 million, and $3,502 million, for the years ended December 31, 2025, 2024, and 2023, respectively.

At December 31, 2025, $1,614 million of consolidated statutory surplus represented net admitted assets of our insurance subsidiaries and affiliates that are required to meet minimum statutory surplus requirements in such entities’ states of domicile. The companies may be licensed in states other than their states of domicile, which may have higher minimum statutory surplus requirements. Generally, the net admitted assets of insurance companies that, subject to other applicable insurance laws

and regulations, are available for transfer to the parent company cannot include the net admitted assets required to meet the minimum statutory surplus requirements of the states where the companies are licensed.

During 2025, the insurance subsidiaries paid aggregate dividends of $10,027 million to their parent company. Based on the dividend laws currently in effect, the insurance subsidiaries could pay aggregate dividends of $9,327 million in 2026 without prior approval from regulatory authorities, subject to other potential state specific limitations, capital requirements, and restrictions on the amount of dividends that can be paid within a 12-month period by the applicable subsidiary.

9.  EMPLOYEE BENEFIT PLANS

Retirement Plans  Progressive has a defined contribution pension plan (401(k) Plan) that covers employees who have been employed with the company for at least 30 days. Under Progressive’s 401(k) Plan, we match up to a maximum of 6% of an employee’s eligible compensation contributed to the plan, with employees vesting in the company match after providing two years of service. Matching contributions to the 401(k) Plan for the years ended December 31, 2025, 2024, and 2023, were $263 million, $235 million, and $206 million, respectively.

Employee and company matching contributions are invested, at the direction of the employee, in a number of investment options available under the plan, including various mutual funds, a self-directed brokerage option, and a Progressive common stock fund. Progressive’s common stock fund is an employee stock ownership program (ESOP) within the 401(k) Plan. At December 31, 2025, the ESOP held 15 million of our common shares, all of which are included in shares outstanding. Dividends on these shares are reinvested in common shares or paid out in cash, at the election of the participant, and the related tax benefit is recorded as part of our tax provision.

Postemployment Benefits  Progressive provides various postemployment benefits to former or inactive employees who meet eligibility requirements and to their beneficiaries and covered dependents. Postemployment benefits include salary continuation and disability-related benefits, including workers’ compensation and, if elected, continuation of health-care benefits for specified limited periods. The liability for these benefits was $23 million and $21 million at December 31, 2025 and 2024, respectively.

Incentive Compensation Plans – Employees  Progressive’s incentive compensation programs include both non-equity incentive plans (cash) and equity incentive plans. Progressive’s cash incentive compensation includes an annual cash incentive program (Gainshare Program) for nearly all employees. Progressive’s equity incentive compensation plans provide for the granting of restricted stock unit awards to key members of management.

App.-A-34

The amounts charged to expense for incentive compensation plans for the years ended December 31, were:

	2025				2024				2023
(millions)	Pretax		After Tax		Pretax		After Tax		Pretax		After Tax
Non-equity incentive plans – cash	$	1,296	$	1,024	$	1,040	$	822	$	897	$	709
Equity incentive plans1	129		112		122		105		121		104
1 After-tax amounts differ from the statutory rate of 21% due to the expected disallowance of certain executive compensation deductions.

Under Progressive’s 2024 Equity Incentive Plan, there are 10 million shares, in the aggregate, authorized for issuance, which includes 4 million shares previously authorized under the 2015 Equity Incentive Plan. The restricted equity awards are issued as either time-based or performance-based awards. Generally, equity awards are expensed pro rata over their respective vesting periods (i.e., requisite service period), based on the market value of the awards at the time of grant, with accelerated expense for participants who satisfy qualified retirement eligibility. The time-based awards vest in equal installments upon the lapse of specified periods of time, typically three, four, and five years, subject to the provisions for death, disability, and retirement in the applicable award agreements.

Performance-based awards, which contain variable vesting criteria, are expensed based on management’s expectation of the percentage of the award, if any, that will ultimately vest. These estimates can change periodically throughout the measurement period. Vesting of performance-based awards is contingent upon the achievement of predetermined performance goals within specified time periods.

In addition to their time-based awards, performance-based awards are granted to executives and other senior managers to provide additional incentive to achieve pre-established profitability and growth targets and/or relative investment performance. The targets for the performance-based awards, as well as the number of units that ultimately may vest, vary by grant.

The following primarily shows the performance measurement criteria for our performance-based restricted equity awards outstanding at December 31, 2025:

Performance Measurement	Year(s) of Grant	Vesting range<br>(as a percentage of target)
Growth of our personal auto and commercial auto businesses, both compared to its respective market	2023-2025	0-250%
Investment results relative to peer group	2024-2025	0-250%
Investment results relative to peer group	2023	0-200%

All restricted equity awards are settled at or after vesting in Progressive common shares from existing treasury shares on a one-to-one basis.

A summary of all employee restricted equity award activity during the years ended December 31, follows:

	2025			2024			2023
Restricted Equity Awards	Number of Shares1	Weighted<br>Average<br>Grant<br>Date Fair<br>Value		Number of<br><br>Shares1	Weighted<br>Average<br>Grant<br>Date Fair<br>Value		Number of<br><br>Shares1	Weighted<br>Average<br>Grant<br>Date Fair<br>Value
Beginning of year	2,505,662	$	129.66	2,893,742	$	101.18	3,198,150	$	81.71
Add (deduct):
Granted2	659,301	208.06		826,377	160.13		1,080,658	110.93
Vested	(1,014,448)	96.51		(1,186,442)	81.84		(1,338,466)	63.10
Forfeited	(54,198)	171.83		(28,015)	111.35		(46,600)	84.86
End of year3,4	2,096,317	$	169.27	2,505,662	$	129.66	2,893,742	$	101.18

1 Includes restricted stock units. All performance-based awards are included at their target amounts.

2 We reinvest dividend equivalents on restricted stock units. For 2025, 2024, and 2023, the number of units “granted” shown in the table above includes 51,511, 23,153, and 36,656 of dividend equivalent units, respectively, at a weighted average grant date fair value of $0, since the dividends were factored into the grant date fair values of the original grants.

3 At December 31, 2025, the number of shares included 362,029 performance-based restricted stock units at their target amounts. We expect 703,551 units to vest based upon our current estimates of the likelihood of achieving the predetermined performance measures applicable to each award.

4 At December 31, 2025, the total unrecognized compensation cost related to unvested restricted equity awards was $98 million, which includes performance-based awards at their currently estimated vesting value. This compensation expense will be recognized into our consolidated statements of comprehensive income over the weighted average vesting period of 2.4 years.

App.-A-35

The aggregate fair value of the restricted equity awards that vested during the years ended December 31, 2025, 2024, and 2023, was $249 million, $226 million, and $195 million, respectively, based on the actual stock price on the applicable vesting dates.

Incentive Compensation Plans – Directors  Progressive’s Amended and Restated 2017 Directors Equity Incentive Plan, which was approved by shareholders in 2022, provides for the granting of equity-based awards, including restricted stock awards, to non-employee directors. Under the amended and restated plan, an additional 150,000 shares are eligible to be granted, bringing the total authorized shares under the directors plan to 650,000 shares.

The Progressive Corporation permits each non-employee director to indicate a preference to receive either 100% of their compensation in the form of a restricted stock award

or 60% in the form of a restricted stock award and 40% in the form of cash. If the director does not state a preference, it is presumed that they preferred to receive 100% of their compensation in the form of restricted stock. The Compensation and Talent Committee of the Board of Directors will consider such preferences when making a determination with respect to the allocation (restricted stock, or restricted stock and cash) and approval of the annual awards for each non-employee director.

The restricted stock awards are issued as time-based awards. The vesting period is typically 11 months from the date of each grant, subject to the death or disability provisions of the applicable award agreement. To the extent a director is newly appointed during the year, or a director’s committee assignments change, the vesting period may be shorter. Both the restricted stock awards and cash, if elected, are expensed pro rata over their respective vesting periods based on the market value of the awards at the time of grant.

A summary of all directors’ restricted stock activity during the years ended December 31, follows:

	2025			2024			2023
Restricted Stock	Number of<br>Shares	Weighted<br>Average<br>Grant<br>Date Fair<br>Value		Number of<br>Shares	Weighted<br>Average<br>Grant<br>Date Fair<br>Value		Number of<br>Shares	Weighted<br>Average<br>Grant<br>Date Fair<br>Value
Beginning of year	14,649	$	215.77	25,075	$	133.43	30,439	$	109.75
Add (deduct):
Granted	11,134	284.51		15,553	215.77		25,075	133.43
Vested	(14,649)	215.77		(25,979)	136.29		(30,439)	109.75
End of year1	11,134	$	284.51	14,649	$	215.77	25,075	$	133.43

1 The remaining unrecognized compensation cost was $1 million at December 31, 2025, 2024, and 2023.

The aggregate fair value of the restricted stock vested during the years ended December 31, 2025, 2024, and 2023, was $4 million, $5 million, and $4 million, respectively, based on the actual stock price at time of vesting.

Deferred Compensation  The Progressive Corporation Executive Deferred Compensation Plan (Deferral Plan) permits eligible Progressive executives to defer receipt of some or all of their annual cash incentive payments and all of their annual equity awards. Deferred cash compensation is deemed invested in one or more investment funds, including Progressive common shares, offered under the Deferral Plan and elected by the participant. All Deferral Plan distributions attributable to deferred cash compensation will be paid in cash.

For equity awards deferred pursuant to the Deferral Plan, the deferred amounts are deemed invested in our common shares and are ineligible for transfer to other investment

funds in the Deferral Plan; distributions of these deferred awards will be made in Progressive common shares. We reserved 11 million of our common shares for issuance under the Deferral Plan.

An irrevocable grantor trust has been established to provide a source of funds to assist us in meeting our liabilities under the Deferral Plan. The Deferral Plan Irrevocable Grantor Trust account held the following assets at December 31:

(millions)	2025		2024
Progressive common shares1	$	34	$	117
Other investment funds2	162		176
Total	$	196	$	293

1 Included 319,021 and 1,138,191 common shares as of December 31, 2025 and 2024, respectively, to be distributed in common shares, and are reported at grant date fair value. The decrease in 2025, compared to 2024, was primarily due to the final distribution for a participant.

2 Amount is included in other assets on our consolidated balance sheets.

App.-A-36

10.  SEGMENT INFORMATION

We write personal and commercial auto insurance, personal residential property insurance, business-related general liability and commercial property insurance predominantly for small businesses, workers’ compensation insurance primarily for the transportation industry, and other specialty property-casualty insurance and provide related services throughout the United States.

Our operating segments are Personal Lines and Commercial Lines, which we report based on product. Our Chief Executive Officer assesses performance and makes key operating decisions for each of our reportable operating segments and, therefore, is considered our chief operating decision maker.

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.

The Personal Lines segment is written through both the independent agency and direct channels. The agency channel includes business written by our network of more than 40,000 independent insurance agencies, as well as brokerages in New York and California, and strategic alliance business relationships (including other insurance companies, financial institutions, and national agencies). The direct channel includes business written directly by us online or by phone. We operate this segment throughout the United States.

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. This segment operates throughout the United States and is distributed through both the independent agency, including brokerages, and direct channels.

We evaluate operating segment profitability based on pretax underwriting profit (loss). 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.

Our service businesses primarily 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. Pretax profit (loss) is the difference between service business revenues and service business expenses.

Assets and income taxes are not allocated to operating segments, as such allocation would be impractical. Expense allocations are based on certain assumptions and estimates primarily related to revenue and volume; stated segment operating results would change if different methods were applied. We also do not separately identify depreciation expense by segment. Companywide depreciation expense for 2025, 2024, and 2023, was $313 million, $284 million, and $285 million, respectively. The accounting policies of the operating segments are consistent with those described in Note 1 – Reporting and Accounting Policies.

App.-A-37

Operating segment results for the years ended December 31, were as follows:

(millions)	Personal Lines		Commercial Lines		Other1		Companywide
December 31, 2025
Net premiums earned	$	70,778	$	10,881	$	2	$	81,661
Fees and other revenues	1,060		136		0		1,196
Total underwriting revenue	71,838		11,017		2		82,857
Losses and loss adjustment expenses:
Losses (excluding catastrophe losses)	39,222		6,080		1		45,303
Catastrophe losses	1,437		41		0		1,478
Loss adjustment expenses	6,003		1,175		0		7,178
Total losses and loss adjustment expenses	46,662		7,296		1		53,959
Underwriting expenses:
Distribution expenses2	9,720		1,225		4		10,949
Other underwriting expenses3	6,602		1,080		18		7,700
Total underwriting expenses	16,322		2,305		22		18,649
Pretax underwriting profit (loss)	$	8,854	$	1,416	$	(21)	10,249
Investment profit (loss)4							4,276
Service businesses							(24)
Interest expense							(278)
Total pretax profit (loss)							$	14,223
(millions)	Personal Lines		Commercial Lines		Other1		Companywide
---	---	---	---	---	---	---	---	---
December 31, 2024
Net premiums earned	$	60,091	$	10,707	$	1	$	70,799
Fees and other revenues	893		171		0		1,064
Total underwriting revenue	60,984		10,878		1		71,863
Losses and loss adjustment expenses:
Losses (excluding catastrophe losses)	33,684		6,421		10		40,115
Catastrophe losses	2,434		80		0		2,514
Loss adjustment expenses	5,325		1,109		(3)		6,431
Total losses and loss adjustment expenses	41,443		7,610		7		49,060
Underwriting expenses:
Distribution expenses2	7,969		1,168		1		9,138
Other underwriting expenses3	4,732		964		11		5,707
Total underwriting expenses	12,701		2,132		12		14,845
Pretax underwriting profit (loss)	$	6,840	$	1,136	$	(18)	7,958
Investment profit (loss)4							3,067
Service businesses							(33)
Interest expense							(279)
Total pretax profit (loss)							$	10,713

App.-A-38

(millions)	Personal Lines		Commercial Lines		Other1		Companywide
December 31, 2023
Net premiums earned	$	48,765	$	9,899	$	1	$	58,665
Fees and other revenues	740		149		0		889
Total underwriting revenue	49,505		10,048		1		59,554
Losses and loss adjustment expenses:
Losses (excluding catastrophe losses)	31,509		6,866		3		38,378
Catastrophe losses	1,753		41		0		1,794
Loss adjustment expenses	4,487		993		3		5,483
Total losses and loss adjustment expenses	37,749		7,900		6		45,655
Underwriting expenses:
Distribution expenses2	4,904		1,073		1		5,978
Other underwriting expenses3	3,967		952		10		4,929
Total underwriting expenses	8,871		2,025		11		10,907
Pretax underwriting profit (loss)	$	2,885	$	123	$	(16)	2,992
Investment profit (loss)4							2,219
Service businesses							(39)
Interest expense							(268)
Total pretax profit (loss)							$	4,904

1 Includes other underwriting businesses and run-off operations.

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

3 Primarily consists of employee compensation and benefit costs, policyholder credit expense, 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.

For the year ended December 31, 2025, in the table above, other underwriting expenses for the Personal Lines segment included $1,224 million of policyholder credit expense. During 2025, we determined that our personal auto profit in Florida, for the 2023 to 2025 accident-year period, exceeded the statutory profit limit that a Florida statute imposes on the profit that any insurance group can earn on personal auto insurance over any contiguous three-accident-year period. The accrual represents our estimate of the profit we will earn on a three-accident-year period ending December 31, 2025. As a result, our estimate of the profit earned in excess of the permitted limit will be credited to all Florida personal auto policyholders active at December 31, 2025, pro rata based on 2025 earned premium. The expense is reported in policyholder credit expense on our consolidated statements of comprehensive income and the accrual is included in accounts payable, accrued expenses, and other liabilities on our consolidated balance sheets.

The reconciliation of total underwriting revenues to consolidated revenues for the years ended December 31, were as follows:

(millions)	2025		2024		2023
Total underwriting revenue	$	82,857	$	71,863	$	59,554
Investment income	3,583		2,832		1,892
Total net realized gains (losses) on securities	727		264		353
Service revenues	504		413		310
Total revenues	$	87,671	$	75,372	$	62,109

Our management uses underwriting margin and combined ratio as primary measures of underwriting profitability. The underwriting margin is the pretax underwriting profit (loss), as previously defined, expressed as a percentage of net premiums earned (i.e., revenues from underwriting operations). 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. Combined ratio is the complement of the underwriting margin. Following are the underwriting margins and combined ratios for our underwriting operations for the years ended December 31:

	2025			2024			2023
	Underwriting<br>Margin		Combined<br>Ratio	Underwriting<br>Margin		Combined<br>Ratio	Underwriting<br>Margin		Combined<br>Ratio
Personal Lines	12.5	%	87.5	11.4	%	88.6	5.9	%	94.1
Commercial Lines	13.0		87.0	10.6		89.4	1.2		98.8
Total underwriting operations	12.6		87.4	11.2		88.8	5.1		94.9

App.-A-39

11.  OTHER COMPREHENSIVE INCOME (LOSS)

The components of other comprehensive income (loss), including reclassification adjustments by income statement line item, for the years ended December 31, were as follows:

							Components of Changes in<br>Accumulated Other<br>Comprehensive Income (after tax)
(millions)	Pretax total<br>accumulated<br>other<br>comprehensive<br>income (loss)		Total tax<br>(provision)<br>benefit		After tax total<br>accumulated<br>other<br>comprehensive<br>income (loss)		Total net<br>unrealized<br>gains <br>(losses)<br>on securities		Net unrealized<br>gains (losses)<br>on<br>forecasted<br>transactions		Foreign<br>currency<br>translation<br>adjustment
Balance at December 31, 2024	$	(1,809)	$	386	$	(1,423)	$	(1,408)	$	(14)	$	(1)
Other comprehensive income (loss) before reclassifications for investment securities	2,092		(435)		1,657		1,657		0		0
Less: Reclassification adjustment for amounts realized in net income by income statement line item:
Net impairment losses recognized in earnings	(1)		0		(1)		(1)		0		0
Net realized gains (losses) on securities	155		(22)		133		133		0		0
Interest expense	(1)		0		(1)		0		(1)		0
Total reclassification adjustment for amounts realized in net income	153		(22)		131		132		(1)		0
Total other comprehensive income (loss)	1,939		(413)		1,526		1,525		1		0
Balance at December 31, 2025	$	130	$	(27)	$	103	$	117	$	(13)	$	(1)
							Components of Changes in<br>Accumulated Other<br>Comprehensive Income (after tax)
---	---	---	---	---	---	---	---	---	---	---
(millions)	Pretax total<br>accumulated<br>other<br>comprehensive<br>income (loss)		Total tax<br>(provision)<br>benefit		After tax total<br>accumulated<br>other<br>comprehensive<br>income (loss)		Total net<br>unrealized<br>gains <br>(losses)<br>on securities		Net unrealized<br>gains (losses)<br>on<br>forecasted<br>transactions		Foreign<br>currency<br>translation<br>adjustment
Balance at December 31, 2023	$	(2,053)	$	437	$	(1,616)	$	(1,601)	$	(14)	$	(1)
Other comprehensive income (loss) before reclassifications for investment securities	(197)		41		(156)		(156)		0		0
Less: Reclassification adjustment for amounts realized in net income by income statement line item:
Net impairment losses recognized in earnings	(1)		0		(1)		(1)		0		0
Net realized gains (losses) on securities	(440)		92		(348)		(348)		0		0
Total reclassification adjustment for amounts realized in net income	(441)		92		(349)		(349)		0		0
Total other comprehensive income (loss)	244		(51)		193		193		0		0
Balance at December 31, 2024	$	(1,809)	$	386	$	(1,423)	$	(1,408)	$	(14)	$	(1)

App.-A-40

							Components of Changes in<br>Accumulated Other<br>Comprehensive Income (after tax)
(millions)	Pretax total<br>accumulated<br>other<br>comprehensive<br>income (loss)		Total tax<br>(provision)<br>benefit		After tax total<br>accumulated<br>other<br>comprehensive<br>income (loss)		Total net<br>unrealized<br>gains <br>(losses)<br>on securities		Net unrealized<br>gains (losses)<br>on<br>forecasted<br>transactions		Foreign<br>currency<br>translation<br>adjustment
Balance at December 31, 2022	$	(3,557)	$	755	$	(2,802)	$	(2,787)	$	(14)	$	(1)
Other comprehensive income (loss) before reclassifications for investment securities	1,257		(266)		991		991		0		0
Less: Reclassification adjustment for amounts realized in net income by income statement line item:
Net realized gains (losses) on securities	(247)		52		(195)		(195)		0		0
Total reclassification adjustment for amounts realized in net income	(247)		52		(195)		(195)		0		0
Total other comprehensive income (loss)	1,504		(318)		1,186		1,186		0		0
Balance at December 31, 2023	$	(2,053)	$	437	$	(1,616)	$	(1,601)	$	(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 approximately $1 million (pretax) into interest expense, related to net unrealized losses on forecasted transactions (see Note 4 – Debt for further discussion).

12.  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.

We describe litigation contingencies for which a loss is probable. We also describe litigation contingencies for which a loss is reasonably possible (but not probable). When disclosing reasonably possible litigation contingencies, we will disclose the amount or range of possible loss, if we are able to make that determination and if material. We may also be exposed to litigation contingencies that are remote. Remote litigation contingencies are those for which the likelihood of a loss is slight at the balance sheet date. We do not disclose, or establish accruals for, remote litigation contingencies. See Note 1 – Reporting and Accounting Policies, Litigation Reserves for a discussion of our litigation reserving policy.

Each year, certain of our pending litigation matters may be brought to conclusion. Settlements that are complete are fully reflected in our financial statements. The amounts accrued and/or paid for settlements during the periods presented were not material to our consolidated financial condition, cash flows, or results of operations.

The pending lawsuits summarized below are in various stages of development, and the outcomes are uncertain until final disposition or, if probable and estimable, are accrued and immaterial as of December 31, 2025. At year-end 2025, except to the extent an immaterial accrual has been established, we do not consider the losses from these pending cases to be both probable and estimable, and we are unable to estimate a range of loss at this time. It is not possible to determine loss exposure for a number of reasons, including, without limitation, one or more of the following:

•liability appears to be remote;

•putative class action lawsuits generally pose immaterial exposure until a class is actually certified, which, historically, has not been granted by courts in the vast majority of our cases in which class certification has been sought;

•even certified class action lawsuits are subject to decertification, denial of liability, and/or appeal;

•class definitions are often indefinite and preclude detailed exposure analysis; and

•complaints rarely state an amount sought as relief, and when such amount is stated, it often is a function of pleading requirements and may be unrelated to the potential exposure.

We plan to contest these suits vigorously, but may pursue settlement negotiations in some cases, as we deem appropriate. In the event that any one or more of these cases 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.

App.-A-41

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 December 31, 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. This includes three states in which classes have been certified, 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 December 31, 2025.

At December 31, 2025, the pending lawsuits summarized below, including those discussed above, are in various stages of development, and the outcomes are uncertain until final disposition or, if probable and estimable, are accrued and immaterial:

Lawsuits seeking class/collective action status alleging that:

•we improperly handle, adjust, and pay physical damage claims, including how we value total loss claims, the application of a negotiation adjustment in calculating total loss valuations, the payment of fees and taxes associated with total losses, and the payment of diminution of value damages;

•we improperly adjust personal injury protection (PIP) claims in Florida;

•we improperly adjust medical bills submitted by insureds or medical providers in medical claims;

•we improperly pay and reimburse Medicare Advantage Plans or Medicaid on first party medical, PIP, and bodily injury claims;

•we denied claims or wrongfully withheld or delayed payments owed to insureds under uninsured/underinsured motorist coverage;

•we improperly use marital status as a rating factor when setting premium in California;

•we improperly coordinated with other insurers to reduce homeowners’ insurance offerings;

•we improperly funded a grant program for small businesses;

•we improperly raised insureds’ premiums during their current policy term;

•we improperly restrict the sale of optional physical damage coverage during weather-related events;

•we improperly fail to timely process and pay PIP claims;

•we improperly fail to conduct a reasonable investigation of consumer disputes;

•we improperly impose surcharges on employees in violation of the Employee Retirement Income Security Act of 1974 (ERISA);

•we improperly deny claims on renewal policies;

•we fail to comply with various employment regulations or statutes;

•we violate the Telephone Consumer Protection Act; and

•we collect or utilize manufacturer driving data without consumer consent.

Lawsuits certified or conditionally certified as class/collective actions alleging that:

•we improperly value total loss claims by applying a negotiation adjustment in Colorado, North Carolina, and Ohio;

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

•we improperly reduce or deny PIP benefits when medical expenses are paid initially by health insurance in Arkansas;

•we sell illusory underinsured motorist coverage in New Mexico; and

•we improperly communicate with insureds regarding payments during prohibited hours in Florida.

Non-class/collective/representative lawsuits filed by different plaintiffs and subject to various state laws, alleging that certain business operations, commercial matters, and/or employment policies, practices, or decisions are improper.

App.-A-42

13.  LEASES

We have certain operating leases for office space, computer equipment, and vehicles. Leased assets and leased liabilities are reported as a component of other assets and accounts payable, accrued expenses, and other liabilities, respectively, in our consolidated balance sheets. The leased assets represent our right to use an underlying asset for the lease term and the lease liabilities represent our obligation to make lease payments arising from the lease using an incremental borrowing rate to calculate the present value of the remaining lease payments.

Contracts are reviewed at inception to determine if they contain a lease and, if so, whether the lease qualifies as an operating or financing lease. We do not have material financing leases.

Operating leases are expensed on a straight-line basis over the term of the lease. In determining the lease term, we consider the probability of exercising renewal options. We elect to account for leases with both lease and non-lease components as a single lease component and to apply a portfolio approach to account for our vehicle leases.

The following table summarizes the carrying amounts of our operating leased assets and liabilities at December 31, along with key inputs used to discount our lease liabilities:

($ in millions)	2025			2024
Operating lease assets	$	199		$	193
Operating lease liabilities	$	205		$	196
Weighted-average remaining term	3.3 years			3.7 years
Weighted-average discount rate	5.0		%	5.1		%

At December 31, 2025, the following table shows our operating lease liabilities, on an undiscounted basis for the periods indicated:

(millions)	Commitments
2026	$	90
2027	55
2028	36
2029	23
2030	12
Thereafter	6
Total	222
Interest	(17)
Present value of lease liabilities	$	205

The operating lease expense for the years ended December 31, was as follows:

(millions)	Expense
2025	$	110
2024	104
2023	94

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14. DIVIDENDS

Following is a summary of our common and preferred share dividends that were declared and/or paid in the last three years:

(millions, except per share amounts)		Amount
Declared	Payable	Per Share		Accrued/Paid1
Common – Annual-Variable Dividends:
December 2025	January 2026	$	13.50	$	7,913
December 2024	January 2025	4.50		2,637
December 2023	January 2024	0.75		439
Common – Quarterly Dividends:
December 2025	January 2026	0.10		59
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
August 2023	October 2023	0.10		58
May 2023	July 2023	0.10		59
March 2023	April 2023	0.10		59
December 2022	January 2023	0.10		58
Preferred Dividends:
January 2024	February 2024	15.688377		8
October 2023	December 2023	20.753157		10
August 2023	September 2023	20.67700		10
May 2023	June 2023	18.92463		10
December 2022	March 2023	26.875		13

1 The accrual is based on an estimate of shares outstanding as of the record date and recorded as dividends payable on common shares on our consolidated balance sheets until paid; the prior year accrual was reclassified into this line item from accounts payable, accrued expenses, and other liabilities to conform to the current year presentation.

Common Share Dividends The Board of Directors adopted a policy of declaring regular quarterly common share dividends, and on at least an annual basis, to consider declaring an additional, variable common share dividend.

Preferred Share Dividends During 2024, we redeemed all of the previously issued 500,000 Series B Fixed-to-Floating Rate Cumulative Perpetual Serial Preferred Shares, without par value (the Series B Preferred Shares), at the stated liquidation preference of $1,000 per share, for

an aggregate payout of $508 million, including accrued and

unpaid dividends of $8 million through, but excluding February 22, 2024, which was the redemption date.

Beginning March 15, 2023 and until redemption, holders of the Series B Preferred Shares were entitled to receive cumulative cash dividends quarterly at a floating dividend rate. Prior to March 15, 2023, dividends were payable semiannually at a fixed annual dividend rate. Cash dividends were payable if and when declared by the Board of Directors.

App.-A-44

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of The Progressive Corporation

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of The Progressive Corporation and its subsidiaries (the “Company”) as of December 31, 2025 and 2024, and the related consolidated statements of comprehensive income, of changes in shareholders’ equity and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes (collectively referred to as the “consolidated financial statements”). We also have audited the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Basis for Opinions

The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

App.-A-45

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Valuation of Loss and Loss Adjustment Expense Reserves

As described in Notes 1 and 6 to the consolidated financial statements, as of December 31, 2025, the Company reported a $43.3 billion loss and loss adjustment expense (“LAE”) reserve liability, of which about 97% relates to Personal and Commercial Lines vehicle businesses. Reserves are based on estimates of ultimate liability for losses and LAE relating to events that occurred prior to the end of any given accounting period but have not yet been paid. Management establishes loss and LAE reserves after completing reviews at a disaggregated level of grouping. During a reserve review, ultimate loss amounts are estimated using several industry standard actuarial projection methods. These methods take into account historical comparable loss data at the subset level and estimate the impact of various loss development factors, such as frequency (number of losses per exposure) and severity (dollars of loss per each claim), as well as the frequency and severity of LAE costs.

The principal considerations for our determination that performing procedures relating to the valuation of loss and LAE reserves is a critical audit matter are (i) the significant judgment by management when developing the estimate of loss and LAE reserves, which in turn led to a significant degree of auditor judgment and subjectivity in performing procedures relating to the valuation; (ii) the significant audit effort and judgment in evaluating audit evidence relating to the various actuarial projection methods and aforementioned loss development factors; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s valuation of loss and LAE reserves, including controls over the various actuarial projection methods, and development of the loss development factors. These procedures also included, among others, testing the completeness and accuracy of historical data provided by management and the involvement of professionals with specialized skill and knowledge to assist in (i) independently estimating reserves for certain lines of business using actual historical comparable loss data, independently derived loss development factors, and industry data and comparing this independent estimate to management’s actuarial determined reserves and (ii) evaluating the appropriateness of the actuarial projection methods and reasonableness of the aforementioned loss development factors used by management for determining the reserve balances for certain lines of business.

/s/ PricewaterhouseCoopers LLP
Cleveland, Ohio
March 2, 2026

We have served as the Company’s auditor since 1984.

App.-A-46

Management’s Report on Internal Control over Financial Reporting

Progressive’s management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) under the Securities Exchange Act of 1934. Our internal control structure was designed under the supervision of our Chief Executive Officer and Chief Financial Officer to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America.

Our internal control over financial reporting includes policies and procedures that pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect our transactions and dispositions of assets; provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and our directors; and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on our financial statements.

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on our evaluation under the framework in Internal Control – Integrated Framework (2013), management concluded that our internal control over financial reporting was effective as of December 31, 2025.

PricewaterhouseCoopers LLP, an independent registered public accounting firm that audited the financial statements included in this Annual Report, has audited, and issued an attestation report on the effectiveness of, our internal control over financial reporting as of December 31, 2025; such report appears herein.

CEO and CFO Certifications

Susan Patricia Griffith, President and Chief Executive Officer of The Progressive Corporation, and John P. Sauerland, Vice President and Chief Financial Officer of The Progressive Corporation, have issued the certifications required by Sections 302 and 906 of The Sarbanes-Oxley Act of 2002 and applicable SEC regulations with respect to Progressive’s Annual Report on Form 10-K for the year ended December 31, 2025, including the financial statements provided in this Report. Among other matters required to be included in those certifications, Mrs. Griffith and Mr. Sauerland have each certified that, to the best of their knowledge, the financial statements, and other financial information included in the 2025 Annual Report on Form 10-K, fairly present in all material respects the financial condition, results of operations, and cash flows of Progressive as of, and for, the periods presented. See Exhibits 31 and 32 to Progressive’s 2025 Annual Report on Form 10-K for the complete Section 302 and 906 Certifications, respectively.

App.-A-47

The Progressive Corporation and Subsidiaries

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to help the reader understand our financial condition and results of operations. MD&A should be read in conjunction with the consolidated financial statements and the related notes, and supplemental information.

I. OVERVIEW

The Progressive insurance organization has been offering insurance to consumers since 1937. The Progressive Corporation is a holding company that does not have any revenue producing operations, physical property, or employees of its own. The Progressive Corporation, together with its insurance and non-insurance subsidiaries and affiliates, comprise what we refer to as Progressive.

We report two operating segments. Our Personal Lines segment, which represents 87% of companywide net premiums written, 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. Our personal auto product represents about 90% of our Personal Lines net premiums written and just under 80% of our companywide premiums, and contributes the largest impact to our underwriting results. Our special lines and personal property insurance products each represent about 5% of our total Personal Lines premiums.

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. Commercial Lines includes our core commercial auto products, transportation network company (TNC) business, Progressive Fleet & Specialty Programs (Fleet & Specialty) products, and business owners’ policy (BOP) product and represents 13% of our companywide net premiums written. Our core commercial auto products represented about 80% of our total Commercial Lines net premiums written and about 10% of companywide premiums.

We operate both segments throughout the United States, through both the independent agency and direct distribution channels. Based on 2024 premiums written, in the United States, we are the second largest private passenger auto insurer, the largest writer of motorcycle insurance, the twelfth largest homeowners insurance carrier, and the largest writer of commercial auto insurance.

Our underwriting operations, combined with our service and investment operations, make up the consolidated group.

A. Operating Results

During 2025, Progressive maintained an underwriting profit better than our 4% companywide calendar-year underwriting profit goal and reported excellent results year over year in both premiums and policies in force. Our underwriting profit margin was 12.6%, which was 1.4 points better than the 11.2% margin earned in 2024. We wrote $83.2 billion of net premiums written during 2025, which was $8.8 billion, or 12%, more than we generated during 2024, with a 15% increase in net premiums earned. We ended 2025 with 3.7 million, or 10%, more policies in force than at December 31, 2024.

Both our Personal Lines and Commercial Lines operating segments generated strong profitability during the year, reporting underwriting profit margins of 12.5% and 13.0%, respectively, compared to 11.4% and 10.6% for 2024. Several factors contributed to the increase in our underwriting profit, including lower personal and commercial auto accident frequency, lower weather-related catastrophe losses, and favorable prior accident years development. Partially offsetting the positive impact on profitability in Personal Lines was 1.7 points of policyholder credit expense related to personal auto excess profits earned in Florida.

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. Despite actions to lower rates, beginning in the fourth quarter 2024 and through 2025, our personal auto profit in Florida for the 2023 to 2025 period exceeded 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-accident-year period. As a result, in 2025, we recorded a $1.2 billion policyholder credit expense (Florida policyholder credits), which represents our current estimate of the profit we earned on the three-accident-year period ending December 31, 2025, in excess of the permitted profit limit. See II. Financial Condition for further information.

App.-A-48

Our Personal Lines segment experienced year-over-year growth for 2025, with net premiums written increasing 14% and policies in force up 11%, over the significant growth of 23% in net premiums written and 18% in policies in force we experienced during 2024. This growth was primarily driven by our personal auto products’ strong renewal application growth, driven by new applications gained over 2024 renewing during 2025.

In Commercial Lines, we experienced a decrease in net premiums written of 3% for 2025, compared to 2024, despite experiencing policies in force growth of 4%. The decline in net premiums written was primarily due to certain TNC policies that were not renewed in 2025. To a lesser extent, the net premiums written decline was due to a shift to a greater mix of policies with 6-month terms in our contractor and business auto business market targets (BMT), which have about half the amount of net premiums written as 12-month policies, and to a mix shift to lower average written premium BMTs in our core commercial auto business. Excluding TNC, Commercial Lines net premiums written would have decreased 1% for 2025, compared to 2024.

During 2025, in the aggregate, we decreased personal auto rates less than 1% and increased our personal property rates about 10%. In our core commercial auto business, we increased rates about 9% in the aggregate during 2025.

While we currently continue to believe we are adequately priced in our personal auto products in most states, starting in the 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 adds uncertainty in 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 may result in higher loss costs, which could result in a reduction in profitability and the possible need for rate increases throughout 2026.

While we expect to continue increasing rates modestly in our personal property and core commercial auto products during 2026, 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.

For 2025, the year-over-year increase in companywide underwriting profitability was the primary contributor to the $2.8 billion increase in net income. The remainder of the net income increase reflected an increase in recurring investment income during 2025, primarily reflecting investing new cash from insurance operations and proceeds from maturing bonds in higher coupon rate securities. Total

comprehensive income increased $4.2 billion, primarily reflecting the increase in net income and the increase in net unrealized gains on our fixed-maturity securities in 2025.

We ended 2025 with total capital (debt plus shareholders’ equity) of $37.2 billion, which was an increase of $4.7 billion from year-end 2024, primarily driven by the $12.8 billion of comprehensive income earned in 2025, partially offset by $8.1 billion of quarterly and annual-variable common share dividends declared during 2025.

B. Insurance Operations

Our companywide underwriting profit margin was 12.6% during 2025, compared to 11.2% during 2024. For 2025, our loss and loss adjustment expense (LAE) ratio decreased 3.2 points, and our underwriting expense ratio increased 1.8 points, compared to 2024. The decrease in the loss and LAE ratio was primarily driven by lower personal and commercial auto accident frequency, lower weather-related catastrophe losses, and favorable prior accident years development, compared to the prior year. The increase in the underwriting expense ratio was primarily driven by the Florida policyholder credits, previously discussed, which contributed 1.5 points to the companywide ratio. Our Personal Lines and Commercial Lines operating segments both generated strong profitability for 2025, with margins of 12.5% and 13.0%, respectively. Excluding the Florida policyholder credits, the Personal Lines underwriting margin would have been 14.2%.

We closely manage our expenses, monitoring both acquisition expenses and non-acquisition expenses, which we view as important measures of operational efficiency as we seek to deliver our most competitive rates to consumers. During 2025, our advertising spend was $5.1 billion, an increase of $1.1 billion, or 0.6 points, greater than 2024. We plan to continue to advertise to maximize growth as long as the advertising spend is efficient and we remain on track to achieve our target profitability.

Our Personal Lines segment is comprised of our personal vehicle and property products. Personal Lines vehicles include both personal auto and special lines products. For 2025, our personal vehicle and personal property underwriting margins were 11.9% and 24.9%, respectively, with Florida policyholder credits reducing the personal vehicles margin by 1.8 points. Profitability in our special lines products had a favorable 0.4 point impact on our personal vehicle combined ratio during 2025. The substantially higher underwriting profit margin in our personal property products during 2025 was primarily driven by the low level of catastrophe losses incurred, lower loss frequency, favorable development on prior year losses, and increased rates.

Our Personal Lines segment experienced year-over-year growth for 2025, with our agency and direct personal vehicle businesses and personal property business net premiums written growing 11%, 19%, and 1%,

App.-A-49

respectively, compared to 2024, and policies in force growing 9%, 13%, and 4%.

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

Relative to the significant growth we experienced in our Personal Lines new business applications during 2024, we experienced a moderate increase in total new business applications during 2025. Total Personal Lines renewal business applications increased substantially, primarily driven by the significant new business application growth experienced in our personal vehicle products in prior periods. New and renewal personal auto applications increased 9% and 20%, respectively, in 2025, compared to the prior year.

In our personal property business, strong growth in new applications in our renters policies was more than offset by a decrease in our homeowners product, which we define as our total personal property business excluding renters and umbrella products. For 2025, the new business applications in our homeowners product decreased about 45%, compared to 2024, with a significant decrease in both the less volatile and more volatile (e.g., coastal and hail-prone states) weather-related markets throughout the year.

During 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. During late 2025, we began to take actions in certain markets 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, lifting certain agency restrictions put in place in 2024, and reopening new business in our direct channel. We plan to continue these actions in 2026.

The total Commercial Lines net premiums written decreased 3% for 2025, compared to 2024, primarily reflecting certain TNC policies not renewing in 2025, and, to a lesser extent, a shift to a greater mix of policies with 6-month terms, and a mix shift to lower average written premium BMTs, all compared to 2024. Excluding the TNC business, total Commercial Lines net premiums written was down 1% for 2025, on a year-over-year basis.

New and renewal business applications in our core commercial auto products increased 1% and 6%, respectively, for 2025, compared to the prior year. The low new business application growth was predominantly influenced by the for-hire transportation BMT, reflecting the impact of 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 5% for 2025.

During 2025, on a year-over-year basis, average written premium per policy decreased 1%, 7%, and 6% in the personal auto, personal property, and core commercial auto products, respectively. In aggregate, we took minimal personal auto rate actions during 2025. The decrease in personal property average written premium per policy primarily 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 10% taken during 2025 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, as previously discussed. This decrease was partially offset by rate increases of 9%, in the aggregate, for 2025. 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. For 2025, the personal auto adoption rates for consumers enrolling in the program decreased 2% 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 81% of our countrywide personal auto net premiums written (excluding California) at year-end 2025. 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,

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increasing retention continues to be one of our most important priorities. Our efforts to increase our share of Progressive personal 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 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 7% year over year for 2025, with agency personal auto down 6% and direct auto down 8%. On a trailing 3-month basis, our personal auto policy life expectancy was down 10% for 2025, compared to 2024. We believe these decreases are primarily due to increased shopping and competition in the marketplace, and a shift in our mix of business, including changes in billing plans offered to customers. Due, in part, to the efforts of our customer preservation team, during 2025 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 resulted in retention of the customer but negatively impacted the policy life expectancy measure.

Our trailing 12-month policy life expectancy was down 12% for our personal property products year over year for 2025. We believe this decrease primarily reflected a mix shift to more renters policies, which generally have a lower policy life expectancy.

For our core commercial auto products, our trailing 12-month policy life expectancy increased 10% in 2025, compared to 2024, which we believe is due to a shift in the mix of business to BMTs with historically higher policy life expectancies, the moderation of our rate increases, and various initiatives, such as payment and renewal reminders. The increase in the core commercial auto policy life expectancy was across all BMTs, except in for-hire specialty.

C. Investments

The fair value of our investment portfolio was $97.4 billion at December 31, 2025, compared to $80.3 billion at December 31, 2024. The increase from year-end 2024 primarily reflected positive cash flows from insurance operations and investment returns, partially offset by the payment of our quarterly and 2024 annual-variable common share dividends.

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 December 31, 2025 and 2024, 6% 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 4.1% for 2025, compared to 3.9% for 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 7.3% for 2025 and of 4.6% for 2024. Our fixed-income and common stock portfolios had FTE total returns of 7.0% and 16.8%, respectively, for 2025, compared to 3.8% and 22.9%, respectively, for 2024. The increase in the fixed-income portfolio FTE total return primarily reflected movement in U.S. Treasury yields year over year. The decrease in the common stock portfolio FTE total return reflected general market conditions.

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

At December 31, 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 2026.

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II.  FINANCIAL CONDITION

A. Liquidity and Capital Resources

The Progressive Corporation receives cash through subsidiary dividends, capital raising, and other transactions, and uses these funds to contribute to its subsidiaries (e.g., to support growth), to make payments to shareholders and debt holders (e.g., dividends and interest, respectively), to repurchase its common shares, and to redeem or pay off debt, as well as for acquisitions and other business purposes that may arise.

During 2025, The Progressive Corporation received $10.0 billion, in the form of dividends, from its insurance and non-insurance subsidiaries.

The Progressive Corporation deployed capital through the following actions in 2025:

•Common Share Dividends - declared aggregate dividends of $13.90 per common share, or $8.1 billion.

•Common Share Repurchases - acquired 0.7 million of our common shares at a total cost of $166 million either in the open market or to satisfy tax withholding obligations in connection with the vesting of equity awards under our employee equity compensation plan.

◦Pursuant to our financial policies, we repurchase common shares to neutralize dilution from equity-based compensation granted during the year or opportunistically when we believe our shares are trading below our determination of long-term fair value.

•Capital Contributions - contributed a net $94 million to its insurance and non-insurance subsidiaries.

Over the last three years, The Progressive Corporation received dividends from its subsidiaries, net of capital contributions, of $13.2 billion.

Aggregate payments, not including accruals, made for the last three years, were as follows:

•$3.8 billion for common share dividends and $0.4 billion to repurchase our common shares;

•$0.8 billion for interest on our outstanding debt; and

•$0.6 billion for preferred share redemptions and dividends.

The covenants on The Progressive Corporation’s existing debt securities do not include any rating or credit triggers that would require an adjustment of the interest rate or an acceleration of principal payments in the event that our debt securities are downgraded by a rating agency. While we had an unsecured discretionary line of credit available to us during each of the last three years in the amount of $300 million, we did not borrow under this arrangement, or engage in other short-term borrowings, to fund our operations or for liquidity purposes.

Progressive’s insurance operations create liquidity by collecting and investing premiums from new and renewal business in advance of paying claims, as well as from 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. At December 31, 2025, our loss and LAE reserves were $43.3 billion. Typically, at any point in time, approximately 50% of our outstanding loss and LAE reserves are paid within the following twelve months and less than 20% are still outstanding after three years. See Note 6 – Loss and Loss Adjustment Expense Reserves for further information on the timing of claims payments.

For the three years ended December 31, 2025, operations generated positive cash flows of $43.3 billion. In 2025, operating cash flows increased $2.4 billion, compared to 2024, primarily driven by the increase in underwriting profit. We believe cash flows will remain positive in the foreseeable future and do not anticipate the 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 December 31, 2025, we held $53.3 billion in short-term investments and U.S. Treasury securities, which represented nearly 55% of our total portfolio’s fair value at year end. Based on our portfolio allocation and investment strategies, we believe that we have sufficient readily available marketable securities to cover our claims payments and short-term obligations in the event our cash flows from operations were to be negative. See Item 1A, Risk Factors in our 2025 Form 10-K filed with the U.S. Securities and Exchange Commission for a discussion of certain matters that may affect our portfolio and capital position.

Insurance companies are required to satisfy regulatory surplus and premiums-to-surplus ratio requirements. As of December 31, 2025, our consolidated statutory surplus was $28.4 billion, compared to $27.2 billion at December 31, 2024. Our net premiums written-to-surplus ratio was 2.9 to 1 at year-end 2025, 2.7 to 1 at year-end 2024, and 2.8 to 1 at year-end 2023. At December 31, 2025, we also had access to $13.0 billion of securities held in a consolidated, non-insurance subsidiary of the holding company that can be used to fund corporate obligations, provide additional capital to the insurance subsidiaries to fund potential future growth, and to fund other opportunities. In January 2026, a portion of these securities were used to pay the $8.0 billion common share dividends declared in December 2025.

Insurance companies are also required to satisfy risk-based capital ratios. These ratios are determined by a series of dynamic surplus-related calculations required by the laws of various states that contain a variety of factors that are applied to financial balances based on the degree of certain risks (e.g., asset, credit, and underwriting). One prominent ratio monitored by regulators is the amount of net

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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. This limit is generally 3 to 1 for property and casualty insurance and 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 2025, these subsidiaries represented 91% of our companywide total net premiums written. The pace and extent to which we move to this ratio is yet to be determined. Our insurance subsidiaries’ risk-based capital ratios were in excess of applicable minimum regulatory requirements at year-end 2025. The payment of dividends by our insurance subsidiaries are subject to certain limitations. See Note 8 – Statutory Financial Information for additional information on insurance subsidiary dividends.

We seek to deploy our 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. Management views our capital position as consisting of three layers, each with a specific size and purpose:

•The first layer of capital is the amount of capital we need to satisfy state insurance regulatory requirements and support our objective of writing all the business we can write and service, consistent with our underwriting discipline of achieving a combined ratio of 96 or better. This first layer of capital, which we refer to as “regulatory capital,” is held by our various insurance entities.

•While our regulatory capital layer is, by definition, a cushion for absorbing financial consequences of adverse events, such as loss reserve development, litigation, weather catastrophes, and investment market changes, we view that as a base and hold a second layer of capital for even more extreme conditions. The modeling used to quantify capital needs for these conditions is extensive, including tens of thousands of simulations, representing our best estimates of such contingencies based on historical experience. This capital is held either at a consolidated non-insurance subsidiary of the holding company or in our insurance entities, where it is potentially eligible for a dividend to the holding company.

•The third layer is capital in excess of the sum of the first two layers and provides maximum flexibility to fund other business opportunities, repurchase stock or other securities, and pay dividends to shareholders, among other purposes. This capital is largely held at a consolidated non-insurance subsidiary of the holding company.

We monitor our total capital position regularly throughout the year to ensure we have adequate capital to support our insurance operations. At December 31, 2025, we held total capital (debt plus shareholders’ equity) of $37.2 billion, compared to $32.5 billion at December 31, 2024. Our debt-to-total capital ratios at December 31, 2025, 2024, and 2023, were 18.5%, 21.2%, and 25.4%, respectively. Our debt-to-total capital ratios were consistent with our financial policy of maintaining a ratio of less than 30%.

At December 31, 2025, we had various noncancelable contractual obligations that were outstanding. We had outstanding $7.0 billion principal amount of Senior Notes with maturity dates ranging from 2027 through 2052, with $3.6 billion of future interest payment obligations related to our outstanding debt. The next debt repayments of $1.0 billion, in the aggregate, are due in 2027 upon the maturity of our 2.45% Senior Notes and our 2.50% Senior Notes. See Note 4 – Debt for additional information on our long-term debt.

At year-end 2025, we also had $3.0 billion of purchase obligations that are noncancelable commitments for goods and services (e.g., software licenses, maintenance on information technology equipment, and media placements). Just over 45% of our purchase obligations are payable within one year and just over 25% will be outstanding for longer than three years. In addition, we have $317 million of minimum commitments for reinsurance agreements, primarily related to multiple-layer property catastrophe reinsurance contracts with various reinsurers for terms ranging from one to three years. See Note 1 – Reporting and Accounting Policies, Commitments and Contingencies for a discussion of these obligations. We do not have, and do not expect to enter into, any material commitments for capital expenditures in the reasonably foreseeable future.

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 did not have a material adverse effect on our financial condition or results of operations.

As previously discussed, during 2025, we recorded $1.2 billion of Florida policyholder credit expense, which represents the profit we expect we earned on the three-accident-year period ending December 31, 2025, in excess of the permitted profit limit. In early 2026, we began to provide credits to Florida personal auto policyholders active at December 31, 2025. See Item 1A, Risk Factors in

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our 2025 Form 10-K, for a description of other factors that may impact our ability to establish accurate loss reserves.

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, Florida policyholder credits, 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, depositary 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 includes our personal vehicles (auto and special lines) and personal property products. Since our personal auto products represented about 90% of our Personal Lines segment net premiums written for 2025, 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 includes our core commercial auto products, TNC business, Fleet & Specialty products, and BOP business. Of our total Commercial Lines segment, our core commercial auto products represented 82% of net premiums written and our TNC business represented 14% as of year-end 2025. Therefore, much of the following discussion will focus only on our core commercial auto products.

The following table shows the composition of our companywide net premiums written, by segment, for the years ended December 31:

	2025		2024		2023
Personal Lines
Vehicles
Agency	36	%	36	%	36	%
Direct	47		45		43
Property	4		4		5
Total Personal Lines	87		85		84
Commercial Lines	13		15		16
Total underwriting operations	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 term personal auto policies in our Platinum agencies. At year-end 2025 and 2024, 10% and 12%, 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 written premiums in the agency channel, as 12-month policies have about twice the amount of net premiums written, compared to 6-month policies.

Our special lines and personal property products are written for 12-month terms. In our special lines products and personal property business 57% and 72%, respectively, of net premiums written was generated through the independent agency channel, with the balance through the direct channel.

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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 year-end 2025, about 85% of our 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 for each of the last three years.

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, 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 three years ended December 31, our underwriting profitability results were as follows:

	2025				2024				2023
				Underwriting<br>Profit (Loss)				Underwriting<br>Profit (Loss)
( in millions)		Margin				Margin				Margin
Personal Lines
Vehicles
Agency1		14.6	%			13.9	%			4.9	%
Direct1	3,786	9.9			3,231	10.3			1,828	7.3
Property	775	24.9			50	1.7			28	1.1
Total Personal Lines	8,854	12.5			6,840	11.4			2,885	5.9
Commercial Lines	1,416	13.0			1,136	10.6			123	1.2
Other indemnity2	(21)	NM			(18)	NM			(16)	NM
Total underwriting operations		12.6	%			11.2	%			5.1	%

All values are in US Dollars.

1 Included in the underwriting profit of the personal vehicles agency and direct businesses is $560 million and $664 million, respectively, of expense related to Florida policyholder credit expense for 2025.

2 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 in our underwriting profit margin on a year-over-year basis for 2025 was primarily due to a 3.2 point decrease in our companywide loss and LAE ratio, mostly driven by lower personal and commercial auto accident frequency, lower weather-related catastrophe losses, and favorable prior accident years development. The impact of the more favorable loss and LAE experience in 2025 was partially offset by a 1.8 point increase in our companywide underwriting expense ratio, driven in part by the 1.5 point increase related to the Florida policyholder credits expense in 2025.

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.

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

Underwriting Performance1	2025	2024	2023
Personal Lines
Vehicles
Agency
Loss & loss adjustment expense ratio	65.3	67.7	77.0
Underwriting expense ratio2	20.1	18.4	18.1
Combined ratio2	85.4	86.1	95.1
Direct
Loss & loss adjustment expense ratio	68.0	69.8	78.4
Underwriting expense ratio2	22.1	19.9	14.3
Combined ratio2	90.1	89.7	92.7
Property
Loss & loss adjustment expense ratio	45.7	69.3	69.6
Underwriting expense ratio	29.4	29.0	29.3
Combined ratio	75.1	98.3	98.9
Total Personal Lines
Loss & loss adjustment expense ratio	65.9	68.9	77.4
Underwriting expense ratio2	21.6	19.7	16.7
Combined ratio2	87.5	88.6	94.1
Commercial Lines
Loss & loss adjustment expense ratio	66.4	70.1	79.0
Underwriting expense ratio	20.6	19.3	19.8
Combined ratio	87.0	89.4	98.8
Total Underwriting Operations
Loss & loss adjustment expense ratio	65.9	69.1	77.6
Underwriting expense ratio	21.5	19.7	17.3
Combined ratio	87.4	88.8	94.9
Accident year – Loss & loss adjustment expense ratio3	67.6	69.7	75.7

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 Included in both the underwriting expense and the combined ratios for the personal vehicles agency and direct businesses are 1.9 points and 1.7 points, respectively, of expense related to the Florida policyholder credit for 2025. Excluding the policyholder credit, the total Personal Lines underwriting expense and combined ratios would have been 1.7 points lower for 2025.

3 The accident year ratios include only the losses that occurred during each respective year. 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 year are reviewed.

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Losses and Loss Adjustment Expenses (LAE)

(millions)	2025		2024		2023
Change in net loss and LAE reserves	$	4,933	$	4,970	$	4,800
Paid losses and LAE	49,026		44,090		40,855
Total incurred losses and LAE	$	53,959	$	49,060	$	45,655

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. See V. Critical Accounting Estimates for a discussion of the effect of changing estimates.

Our total loss and LAE ratio decreased 3.2 points in 2025 and 8.5 points in 2024, each compared to the prior year. During 2025, the decrease in the ratio was primarily driven by lower auto accident frequency, a decrease in catastrophe losses, and favorable prior accident years reserve development. On an accident year basis, our loss and LAE ratio decreased 2.1 points and 6.0 points in 2025 and 2024, respectively, compared to the prior years.

We experienced severe weather conditions in several areas of the country during each of the last three years. Hurricanes, hail storms, tornadoes, and wind activity generally contribute to catastrophe losses. The following table shows our consolidated catastrophe losses and related combined ratio point impact, excluding loss adjustment expenses, for the years ended December 31:

	2025			2024			2023
($ in millions)		Points1			Points1			Points1
Personal Lines
Vehicles		1.6	pts.		3.0	pts.		2.4 pts.
Property	324	10.4		741	24.8		659	25.8
Total Personal Lines	1,437	2.0		2,434	4.1		1,753	3.6
Commercial Lines	41	0.4		80	0.7		41	0.4
Total catastrophe losses incurred		1.8	pts.		3.6	pts.		3.1	pts.

All values are in US Dollars.

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

During 2025, our catastrophe losses reflected severe weather throughout the United States. We have responded, and plan to continue to respond, promptly to catastrophic events when they occur in order to provide high-quality claims service to our customers.

Changes in our estimate of our ultimate losses on catastrophes currently reserved, along with potential future catastrophes, could have a material impact on our financial condition, cash flows, or results of operations. We reinsure various risks including, but not limited to, catastrophic losses. We do not have catastrophe-specific reinsurance for our personal auto, special lines, or core commercial auto businesses. For our personal property business and certain BOP product coverages, reinsurance programs include catastrophe per occurrence excess of loss contracts and aggregate excess of loss contracts. We also purchase excess of loss reinsurance on our workers’ compensation insurance and our 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. As a result, during 2025, we entered into new reinsurance contracts under our per occurrence excess of loss program for our property business that covers losses from June 1, 2025 through May 31, 2026. This program is comprised of privately placed reinsurance, reinsurance placed through catastrophe bond transactions, and coverage obtained through the Florida Hurricane Catastrophe Fund (FHCF). The 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. For losses that exceed $200 million, we also retain a percent of the first reinsurance layer, up to $48 million, after applying FHCF coverage. In general, as of December 31, 2025, this program includes coverage for $2.0 billion in losses and ALAE with additional substantial coverage for a second or third hurricane. When including coverage specific to Florida, including the FHCF, this program’s coverage reaches an estimated $2.2 billion.

From June 1, 2025 through December 31, 2025, which covers the hurricane season, we had shared limit coverage in our reinsurance program that provided $175 million of coverage for named storms. We renewed this coverage from May 31, 2026 through December 31, 2026. This reinsurance arrangement can, depending on the

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circumstances, provide coverage for a significant covered event, or provide coverage for aggregate losses under our occurrence excess of loss retention. During 2025, we ceded no losses under this coverage.

During 2025, our personal property business also had an aggregate excess of loss program structure with multiple layers providing for catastrophe losses and ALAE. No losses were ceded under this aggregate excess of loss agreement during 2025. In January 2026, a new aggregate excess of loss program was entered for claims occurring in 2026. The 2026 program provides a higher coverage limit than the 2025 program and includes coverage for named storms and other types of perils (e.g., wildfires, winter storms, severe thunderstorms). This program has retention thresholds of $550 million and $750 million and provides coverage up to $300 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 2025 and in early 2026, 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 2025 Form 10-K, for a discussion of certain risks related to catastrophe events. For further details and additional discussion on our reinsurance programs, see Item 1, Business – Reinsurance in our 2025 Form 10-K and Note 7 – Reinsurance 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 periods was as follows:

Coverage Type	2025		2024		2023
Bodily injury	10	%	6	%	10	%
Collision	3		(2)		5
Personal injury protection	(2)		(2)		2
Property damage	4		(1)		9
Total	6		1		8

The year-over-year increase in total severity was predominantly driven by more large losses, higher medical costs, and increased bodily injury coverage reserves due to a higher rate of plaintiff-attorney represented claims.

On a calendar-year basis, the incurred severity in our core commercial auto products increased 4% in 2025, compared to 9% and 6% in 2024 and 2023, respectively. The increase in 2025 was due, in part, to an increase in large losses and more litigated claims in bodily injury, partially offset by a shift in the mix of business to lower severity BMTs. 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 auto products.

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 products incurred frequency, on a calendar-year basis, over the prior-year periods, was as follows:

Coverage Type	2025		2024		2023
Bodily injury	(1)	%	(3)	%	2	%
Collision	(5)		(8)		(7)
Personal injury protection	(4)		(4)		2
Property damage	(2)		(4)		0
Total	(3)		(5)		(2)

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The year-over-year decrease in frequency for 2025, in part, reflects a shift in the mix of business to a more preferred tier of customers (i.e., Wrights and Robinsons).

On a calendar-year basis, our core commercial auto products’ incurred frequency decreased 10% in 2025 and 7% in 2024, compared to an increase of 2% in 2023. The decrease in frequency for 2025 was, in part, due to a shift in the mix of business and lower vehicle miles traveled, compared to 2024.

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.

The table below presents the actuarial adjustments implemented and the loss reserve development experienced on a companywide basis in the years ended December 31:

($ in millions)	2025			2024			2023
Actuarial Adjustments
Reserve decrease (increase)
Prior accident years	$	317		$	(123)		$	(454)
Current accident year	390			530			(587)
Calendar-year actuarial adjustments	$	707		$	407		$	(1,041)
Prior Accident Years Development
Favorable (unfavorable)
Actuarial adjustments	$	317		$	(123)		$	(454)
All other development	1,077			539			(640)
Total development	$	1,394		$	416		$	(1,094)
(Increase) decrease to calendar-year combined ratio	1.7		pts.	0.6		pts.	(1.9)		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,” 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. 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 estimates described above.

As reflected in the table above, we experienced favorable prior accident years development during 2025 and 2024, compared to unfavorable development in 2023. The favorable development during 2025 was, in part, due to lower than anticipated severity and frequency in Florida, and to a lesser extent, lower than anticipated litigation defense costs in the majority of states and lower than anticipated personal auto payments related to reopened property damage claims that were previously closed. See Note 6 – Loss and Loss Adjustment Expense Reserves and V. Critical Accounting Estimates for a more detailed discussion of our prior accident years development.

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Underwriting Expenses

Underwriting expenses include policy acquisition costs, 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 2025, our underwriting expense ratio increased 1.8 points, compared to 2024, primarily attributable to the $1.2 billion of Florida policyholder credit expense recorded during 2025, which contributed a 1.5 point unfavorable impact.

We invested heavily in advertising during 2025 to capture consumer shopping, and will continue to advertise to maximize growth, as long as we remain on track to achieve our profitability goal and can acquire customers at or below our target acquisition cost. For 2025, our total companywide advertising costs were $5.1 billion,

compared to $4.0 billion in 2024, or 0.6 points greater, and exceeded the amount of advertising spend for any previous annual period.

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 commissions) from our underwriting expense ratio. By excluding acquisition costs from our underwriting expense ratio, we are able to understand costs other than those necessary to acquire new policies and grow the business. In 2025, our NAER decreased 0.2 points in our personal vehicle business (excluding policyholder credit expense), compared to 2024, and increased 1.0 points and 0.7 points in our personal property and core commercial auto businesses, respectively. We remain committed to efficiently managing operational non-acquisition expenses.

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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 generally 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.

For the years ended December 31,	2025			2024			2023
($ in millions)		% Change			% Change			% Change
Net Premiums Written
Personal Lines
Vehicles
Agency		11	%		21	%		22	%
Direct	39,631	19		33,432	27		26,303	26
Property	3,102	1		3,071	8		2,831	18
Total Personal Lines	72,558	14		63,470	23		51,412	23
Commercial Lines	10,613	(3)		10,953	8		10,138	8
Other indemnity1	3	NM		1	NM		0	NM
Total underwriting operations		12	%		21	%		20	%
Net Premiums Earned
Personal Lines
Vehicles
Agency		15	%		21	%		19	%
Direct	38,280	22		31,458	26		25,015	24
Property	3,116	4		2,993	17		2,552	12
Total Personal Lines	70,778	18		60,091	23		48,765	21
Commercial Lines	10,881	2		10,707	8		9,899	9
Other indemnity1	2	NM		1	NM		1	NM
Total underwriting operations		15	%		21	%		19	%
NM = Not meaningful
1 Includes other underwriting business and run-off operations.
December 31,	2025			2024			2023
(# in thousands)	#	% Change		#	% Change		#	% Change
Policies in Force
Personal Lines
Agency – auto	10,787	10	%	9,778	17	%	8,336	7	%
Direct – auto	15,993	14		13,996	25		11,190	10
Special lines	6,998	7		6,520	9		5,969	7
Property	3,650	4		3,517	14		3,096	9
Total Personal Lines	37,428	11		33,811	18		28,591	9
Commercial Lines	1,191	4		1,141	4		1,099	5
Total	38,619	10	%	34,952	18	%	29,690	9	%

All values are in US Dollars.

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 segment offers personal vehicle (personal auto and special lines) and residential property insurance products to 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 2025, 42% of our personal auto business net premiums was written through the agency channel and 58% was written through the direct channel. For 2025, consumer segment results varied by channel, as discussed below, and our total personal auto business experienced overall growth in policies in force, new business applications, quotes, and conversion, compared to 2024.

Personal Auto - Agency

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

	2025		2024		2023
Applications
New	5	%	32	%	15	%
Renewal	17		8		6
Total	15		13		8
Written premium per policy
New	(5)		5		7
Renewal	(3)		9		13
Total	(3)		8		12
Policy life expectancy
Trailing 3 months	(7)		(3)		23
Trailing 12 months	(6)		2		29

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 2025, we generated new agency personal auto application growth in 31 states and the District of Columbia, including 7 of our top 10 largest agency states.

Compared to the prior year, new application and policies in force growth varied by consumer segment:

•Sams experienced a single digit increase in policies in force, with substantial growth in new applications during 2025;

•Dianes experienced moderate policies in force and new application growth during 2025;

•Wrights experienced strong policies in force growth, with flat new application growth; and

•Robinsons experienced flat policies in force growth, with negative new application growth due to restrictions on new homeowners applications.

During 2025, on a year-over-year basis, we experienced an increase in agency personal auto quote volume of 6%, with a rate of conversion (i.e., converting a quote to a sale) decrease of 1%. All consumer segments saw an increase in quote volume, except Robinsons, who saw a moderate decrease, compared to 2024. Conversion decreased for Robinsons and Wrights, while Sams and Dianes saw a low single digit increase.

The decline in new applications, quotes, and conversion for Robinsons, compared to 2024, 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 second half of 2024, focused primarily on home and condo coverages and impacted growth in bundled personal auto and homeowners policies.

Our personal agency auto rates experienced a slight decrease during 2025. The decrease in written premium per policy for new and renewal personal auto agency business during 2025, compared to 2024, 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 the amount of net premiums written as policies with 12-month terms.

The trailing 3- and 12-month policy life expectancy in the personal auto agency business experienced decreases during 2025 on year-over-year basis. We believe the decreases were primarily driven by a shift in the mix of business, including changes in billing plans offered to customers, as well as policy replacements due to increased consumer shopping and price sensitivity. As previously discussed, due in part to the efforts of our customer preservation team, during the year 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 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:

	2025		2024		2023
Applications
New	11	%	51	%	15	%
Renewal	21		11		13
Total	19		19		13
Written premium per policy
New	3		9		5
Renewal	1		8		11
Total	1		7		10
Policy life expectancy
Trailing 3 months	(12)		(3)		6
Trailing 12 months	(8)		(7)		19

The personal auto direct business includes business written directly by Progressive online or by phone. For 2025, we generated new direct personal auto application growth in 42 states and the District of Columbia, including 8 of our top 10 largest direct states, with Sams and Dianes experiencing strong new application growth, while Wrights and Robinsons experienced moderate growth during the period. At the end of 2025, policies in force grew around 15% in each consumer segment, compared to the end of 2024.

During 2025, we experienced an increase in direct personal auto quote volume of 5% with a rate of conversion increase of 6%, compared to 2024, primarily driven by the increased advertising spend and our competitiveness in the marketplace. All consumer segments saw an increase in quote volume in 2025, with all consumer segments experiencing an increase in the rate of conversion, except Robinsons, who saw a slight decline.

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 bundled with personal auto in the direct channel is written through unaffiliated third-party carriers, which remained available even when we restricted writing our personal property products.

Our personal direct auto rates were relatively stable during 2025, resulting in relatively steady written premium per policy for 2025, compared to 2024.

Our trailing 3- and 12-month policy life expectancy in the direct auto business experienced decreases in retention during 2025, compared to 2024. We believe the driver of these changes was due to a shift in the mix of business, including changes in billing plans offered to customers, and increased shopping and price sensitivity where we saw an increase in the number of 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 negatively impacted policy life expectancy, but retained the customer.

Personal Property

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

	2025		2024		2023
Applications
New	(4)	%	31	%	15	%
Renewal	12		6		5
Total	6		14		8
Written premium per policy
New	(26)		(15)		5
Renewal	(5)		2		13
Total	(7)		(5)		10
Policy life expectancy<br><br>Trailing 12 months	(12)		(12)		15

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 markets, homeowners product policies in force decreased 1% on a year-over-year basis as of December 31, 2025. Policies in force decreased 16% in the volatile weather-related markets as of the end of 2025, compared to 2024.

We believe our actions taken to address profitability, which began in the second half of 2024 and continued through 2025, adversely impacted new business application growth. During 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 the majority of 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 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 markets to generate new business growth at the state level based on our concentration risks, product segmentation, rate

App.-A-63

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.

Our written premium per policy decreased on a year-over-year basis for 2025, primarily attributable to a shift in the mix of business to more renters policies, which have lower average written premiums, and a decline in homeowners policies 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 2025, we increased rates, in aggregate, about 10% in our personal property business. 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 as of the end of 2025, compared to 2024, which we believe is primarily driven by a shift in the mix of business to more renters policies, our previously discussed rate increases, increased competition in the marketplace, and the non-renewals for certain policies in volatile weather markets.

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 2025 net premiums written. Year-over-year changes in our core commercial auto products were as follows:

	2025		2024		2023
Applications
New	1	%	8	%	4	%
Renewal	6		1		4
Total	4		4		4
Written premium per policy
New	(7)		(1)		(3)
Renewal	(6)		8		6
Total	(6)		5		3
Policy life expectancy<br><br>Trailing 12 months	10		(14)		(12)

For 2025, on a year-over-year basis, core commercial auto new application growth was positive in all BMTs, except for-hire transportation, which was impacted by 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. Policies in force grew in all of our BMTs, except in the for-hire transportation and for-hire specialty BMTs, compared to 2024. For 2025, quote volume and the rate of conversion increased about 3% and decreased about 2%, respectively, in our core commercial auto products, compared to 2024.

The effect the previously discussed rate increases had on written premium per policy for our core commercial auto business was offset by a shift in the mix of business, primarily driven by decreased demand for products in our for-hire transportation BMT. Written premium per policy was also impacted by a shift to a greater mix of policies with 6-month terms in our contractor and business auto BMTs, which have about half the amount of net premiums written as 12-month policies. During 2025, we increased rates, in aggregate, about 9% in our core commercial auto products. We will continue to evaluate our rate need and adjust rates as we deem necessary.

Our policy life expectancy increased in all BMTs, except in for-hire specialty, as of the end of 2025, compared to 2024. We believe this improvement was due to a shift in the mix of business to BMTs with historically higher policy life expectancies, moderation of our rate increases, and various initiatives, such as payment and renewal reminders.

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IV.  RESULTS OF OPERATIONS – INVESTMENTS

A. Investment Results

Our management philosophy governing the portfolio is to evaluate investment results on a total return basis. The fully taxable equivalent (FTE) total return includes recurring investment income, adjusted to a fully taxable amount for certain securities that receive preferential tax treatment (e.g., municipal securities), and total net realized, and changes in total net unrealized, gains (losses) on securities.

The following summarizes investment results for the years ended December 31:

	2025		2024		2023
Pretax recurring investment book yield	4.1	%	3.9	%	3.1	%
FTE total return:
Fixed-income securities	7.0		3.8		5.4
Common stocks	16.8		22.9		26.7
Total portfolio	7.3		4.6		6.3

The increase in the book yield during 2025 and 2024, primarily reflected investing new cash from insurance operations, and proceeds from maturing bonds, in higher coupon rate securities. For each year, the change in the fixed-income portfolio FTE total return, compared to prior year, primarily reflected movement in U.S. Treasury yields year-over-year. The common stock FTE total return reflected general market conditions.

A further break-down of our FTE total returns for our fixed-income portfolio for the years ended December 31, follows:

	2025		2024		2023
Fixed-income securities:
U.S. government	7.1	%	2.2	%	4.6	%
State and local government	6.2		3.9		5.9
Foreign government	8.2		(3.7)		6.4
Corporate and other debt	7.0		4.9		7.1
Residential mortgage-backed	6.7		7.8		9.2
Commercial mortgage-backed	7.7		10.4		6.9
Other asset-backed	5.5		6.2		7.2
Nonredeemable preferred stocks	6.8		8.8		1.4
Short-term investments	4.5		5.8		5.0

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B. Portfolio Allocation

The composition of the investment portfolio at December 31, was:

($ in millions)	Fair Value		% of Total Portfolio		Duration (years)	Average Rating1
2025
U.S. government	$	43,298	44.5	%	5.4	AA+
State and local government	3,303		3.4		2.6	AA+
Foreign government	17		0		0.7	AAA
Corporate and other debt	19,991		20.5		2.6	BBB+
Residential mortgage-backed	3,175		3.3		2.3	AA+
Commercial mortgage-backed	5,973		6.1		1.4	AA-
Other asset-backed	7,109		7.3		1.2	AA
Nonredeemable preferred stocks	404		0.4		1.0	BB+
Short-term investments	10,005		10.3		<0.1	AA-
Total fixed-income securities	93,275		95.8		3.4	AA-
Common equities	4,098		4.2		na	na
Total portfolio2	$	97,373	100.0	%	3.4	AA-
2024
U.S. government	$	45,988	57.3	%	4.1	AA+
State and local government	2,778		3.5		2.5	AA+
Foreign government	16		0		1.6	AAA
Corporate and other debt	13,954		17.4		2.6	BBB+
Residential mortgage-backed	1,601		2.0		2.6	AA
Commercial mortgage-backed	4,352		5.4		1.9	A+
Other asset-backed	6,643		8.3		1.2	AA+
Nonredeemable preferred stocks	728		0.9		1.4	BBB-
Short-term investments	615		0.7		<0.1	AA-
Total fixed-income securities	76,675		95.5		3.3	AA-
Common equities	3,575		4.5		na	na
Total portfolio2	$	80,250	100.0	%	3.3	AA-
na = not applicable

1 Represents ratings at period end. Credit quality ratings are assigned by nationally recognized statistical rating organizations. To calculate the weighted average credit quality ratings, we weight individual securities based on fair value and assign a numeric score of 0-5, with non-investment-grade and non-rated securities assigned a score of 0-1. To the extent the weighted average of the ratings falls between AAA and AA+, we assign an internal rating of AAA-.

2 At December 31, 2025 and 2024, we had $200 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 December 31, 2025 and 2024, included $13.0 billion and $6.2 billion, respectively, of securities held in a consolidated, non-insurance subsidiary of the holding company, net of any unsettled security transactions. A portion of these investments were sold and proceeds used to pay our common share dividends in January 2026 and 2025; see Note 14 – Dividends for additional information.

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.

Group I securities, 6% of the total portfolio at December 31, 2025, include:

•common equities,

•nonredeemable preferred stocks,

•redeemable preferred stocks, except for 50% of investment-grade redeemable preferred stocks with cumulative dividends, which are included in Group II, and

•all other non-investment-grade fixed-maturity securities.

Group II securities, 94% of the total portfolio at December 31, 2025, include:

•short-term investments, and

•all other fixed-maturity securities, including 50% of investment-grade redeemable preferred stocks with cumulative dividends.

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We believe this asset allocation strategy allows us to appropriately assess the risks associated with these securities for capital purposes and is in line with the treatment by our regulators. Non-investment-grade fixed-maturity securities are determined by National Association of Insurance Commissioners (NAIC) and nationally recognized statistical rating organizations (NRSROs) as applicable.

Our common equities portfolio is primarily indexed to the Russell 1000, with a goal of a +/- 50bps GAAP income targeted total return tracking error.

See Note 2 – Investments for a further break-out of our portfolio.

Unrealized Gains and Losses

As of December 31, 2025, our fixed-maturity portfolio had a total after-tax net unrealized gain, which is recorded as part of accumulated other comprehensive income (loss) on our consolidated balance sheet, of $0.1 billion, compared to a total after-tax net unrealized loss of $1.4 billion at December 31, 2024. The improvement of the total net unrealized balance over the prior year, and shift from a loss to a gain, was due to valuation increases across all fixed-maturity sectors. Our U.S. government, corporate and other debt, and commercial mortgage-backed portfolios had the most significant valuation increases. Lower interest rates and, in some cases, tighter credit spreads drove strong portfolio performance.

See Note 2 – Investments for a further break-out of our gross unrealized gains (losses).

Fixed-Income Securities

The fixed-income portfolio is managed internally and includes fixed-maturity securities, short-term investments, and nonredeemable preferred stocks. Following are the primary exposures for the fixed-income portfolio.

Interest Rate Risk This risk includes the change in value resulting from movements in the underlying market rates of debt securities held. We manage this risk by maintaining the portfolio’s duration (a measure of the portfolio’s exposure to changes in interest rates) between 1.5 and 5.0 years. The duration of the fixed-income portfolio was 3.4 years at December 31, 2025, compared to 3.3 years at December 31, 2024. The distribution of duration and convexity (i.e., a measure of the speed at which the duration of a security is expected to change based on a rise or fall in interest rates) is monitored on a regular basis.

The duration distribution of our fixed-income portfolio, excluding short-term investments, represented by the interest rate sensitivity of the comparable benchmark U.S. Treasury Notes, at December 31, was:

Duration Distribution	2025		2024
1 year	11.8	%	9.6	%
2 years	9.2		8.2
3 years	19.5		29.5
5 years	28.2		43.6
7 years	19.4		8.2
10 years	11.9		0.9
Total fixed-income portfolio	100.0	%	100.0	%

Credit Risk This exposure is managed by maintaining a minimum weighted average portfolio credit quality rating, as defined by NRSROs. Effective January 1, 2025, we moved our internal rating guideline to A, down from an A+, in light of the downgrade of the U.S. government securities.

At both December 31, 2025 and 2024, our weighted average credit quality rating was AA-. The credit quality distribution of our fixed-income portfolio at December 31, was:

Average Rating1	2025		2024
AAA	13.2	%	12.6	%
AA	59.6		64.2
A	8.8		6.4
BBB	17.1		15.7
Non-investment-grade/non-rated:
BB	1.1		0.8
B	0.1		0.2
Non-rated	0.1		0.1
Total fixed-income portfolio	100.0	%	100.0	%

1 The ratings in the table above are assigned by NRSROs.

Concentration Risk Our investment constraints limit investment in a single issuer, other than U.S. Treasury Notes or a state’s general obligation bonds, to 2.5% of shareholders’ equity, while the single issuer guideline on preferred stocks and/or non-investment-grade debt is 1.25% of shareholders’ equity. Additionally, the guideline applicable to any state’s general obligation bonds is 6% of shareholders’ equity. We consider concentration risk both overall and in the context of individual asset classes and sectors in our portfolio. At December 31, 2025 and 2024, we were within all of the constraints described above.

App.-A-67

Prepayment and Extension Risk We are exposed to this risk especially in our asset-backed (i.e., structured product) and preferred stock portfolios. Prepayment risk includes the risk of early redemption of security principal that may need to be reinvested at less attractive rates. Extension risk includes the risk that a security will not be redeemed when anticipated, and that the security that is extended will have a lower yield than a security we might be able to obtain by reinvesting the expected redemption principal. Our holdings of different types of structured debt and preferred securities help manage this risk. During 2025 and 2024, we did not experience significant adverse prepayment or extension of principal relative to our cash flow expectations in the portfolio.

Liquidity Risk Our overall portfolio remains very liquid and we believe that it is sufficient to meet expected near-term liquidity requirements. The short-to-intermediate duration of our portfolio provides a source of liquidity. During 2026, we expect approximately $9.6 billion, or 24%, of principal repayment from our fixed-income

portfolio, excluding U.S. government securities and short-term investments. Cash from interest and dividend payments provides an additional source of recurring liquidity.

The duration of our U.S. government securities, which are included in the fixed-income portfolio, was comprised of the following at December 31, 2025:

($ in millions)	Fair<br>Value		Duration<br>(years)
Less than one year1	$	257	0.6
One to two years	462		1.2
Two to three years	2,311		2.5
Three to five years	10,265		3.9
Five to seven years	20,958		5.5
Seven to ten years	9,045		8.0
Total U.S. government	$	43,298	5.4

1 Excludes $7,919 million of U.S. treasury bills included in short-term investments.

ASSET-BACKED SECURITIES

The following table details the credit quality rating of our asset-backed securities at December 31, 2025:

(millions)<br><br>Average Rating1	Residential <br>Mortgage-Backed		Commercial <br>Mortgage-Backed		Other <br>Asset-Backed		Total
AAA	$	2,361	$	3,182	$	4,751	$	10,294
AA	118		1,013		95		1,226
A	555		578		811		1,944
BBB	139		831		1,415		2,385
Non-investment-grade/non-rated:
BB	0		356		37		393
B	0		13		0		13
CCC and lower	1		0		0		1
Non-rated	1		0		0		1
Total fair value	$	3,175	$	5,973	$	7,109	$	16,257

1 The credit quality ratings are assigned by NRSROs.

Our residential mortgage-backed portfolio consists of deals that are backed by high-credit quality borrowers and/or those that have strong structural protections through underlying loan collateralization. The fair value of this portfolio grew by $1.6 billion in 2025 and new purchases were concentrated in high-quality investment-grade securities and contained both fixed-rate and adjustable residential mortgages. We viewed this sector as having attractive risk-adjusted spreads and potential returns.

The commercial mortgage-backed portfolio fair value grew by $1.6 billion in 2025 as we viewed the absolute and relative value of commercial mortgage-backed spreads as attractive. The growth in the portfolio was primarily a result of purchases of new issue investment-grade securities backed by single-borrower transactions across various sectors including apartments, logistics, grocery-anchored retail, life sciences, and self-storage. We maintained a preference for geographically diversified portfolios or high-quality single assets leased to creditworthy tenants.

App.-A-68

A further break-down of our other asset-backed securities (OABS) at December 31, 2025:

(millions)<br>Average Rating	Automobile		Collateralized Loan Obligations		Student Loan		Whole Business Securitizations		Equipment		Other		Total
AAA	$	2,271	$	1,339	$	41	$	0	$	815	$	285	$	4,751
AA	3		49		1		0		42		0		95
A	0		0		0		0		174		637		811
BBB	0		0		0		1,374		0		41		1,415
Non-investment-grade/non-rated:
BB	0		0		0		0		0		37		37
Total fair value	$	2,274	$	1,388	$	42	$	1,374	$	1,031	$	1,000	$	7,109

The OABS portfolio fair value grew by $0.5 billion in 2025. The growth in the portfolio was primarily the result of security purchases that were partially offset by principal paydowns on securities during the year. We selectively added securities in highly-rated senior and short-tenor debt tranches that we viewed as having attractive spreads and potential returns. Additions were made in both the new issue and secondary markets.

STATE AND LOCAL GOVERNMENT SECURITIES

The following table details the credit quality rating of our state and local government (municipal) securities at December 31, 2025:

(millions)<br>Average Rating	General Obligations		Housing Revenue		Other Revenue		Total
AAA	$	779	$	329	$	495	$	1,603
AA	465		595		440		1,500
A	0		0		200		200
Total fair value	$	1,244	$	924	$	1,135	$	3,303

The municipal portfolio fair value grew by $0.5 billion in 2025. There was an increase in new issuances in the market and we selectively added high-quality securities with shorter maturities, which we viewed as having more favorable risk/reward profiles.

CORPORATE AND OTHER DEBT SECURITIES

The following table details the credit quality rating of our corporate and other debt securities at December 31, 2025:

(millions)<br>Average Rating	Consumer		Industrial		Communication		Financial Services		Technology		Basic Materials		Energy		Total
AAA	$	31	$	0	$	0	$	0	$	0	$	0	$	97	$	128
AA	92		0		186		1,130		0		0		44		1,452
A	751		484		127		3,520		209		100		483		5,674
BBB	4,145		1,967		438		2,126		1,654		192		1,522		12,044
Non-investment-grade/non-rated:
BB	198		128		59		35		3		45		116		584
B	106		0		0		0		0		0		0		106
Non-rated	0		0		0		0		3		0		0		3
Total fair value	$	5,323	$	2,579	$	810	$	6,811	$	1,869	$	337	$	2,262	$	19,991

The corporate and other debt portfolio fair value grew by $6.0 billion in 2025. At December 31, 2025, corporate and other debt securities made up approximately 21% of our fixed-income portfolio compared to 18% at December 31, 2024. We continued to predominately focus on shorter-maturity investment-grade securities, which we viewed as having more favorable risk/reward profiles.

App.-A-69

NONREDEEMABLE PREFERRED STOCKS

The following table details the credit quality rating of our nonredeemable preferred stocks at December 31, 2025:

	Financial Services
(millions)<br>Average Rating	U.S. Banks		Foreign <br>Banks		Insurance		Other <br>Financial		Industrials		Utilities		Total
BBB	$	218	$	14	$	0	$	33	$	0	$	39	$	304
Non-investment-grade/non-rated:
BB	40		0		0		0		0		0		40
Non-rated	0		0		20		19		21		0		60
Total fair value	$	258	$	14	$	20	$	52	$	21	$	39	$	404

The majority of our nonredeemable preferred securities have fixed-rate dividends until a call date and then, if not called, generally convert to floating-rate dividends. The interest rate duration is calculated to reflect the call, floor, and floating-rate features. Although a nonredeemable preferred stock will remain outstanding if not called, its interest rate duration will reflect the variable nature of the dividend. At year-end 2025, our non-investment-grade nonredeemable preferred stocks were with issuers that maintain investment-grade senior debt ratings.

We also face the risk that dividend payments could be deferred for one or more periods or skipped entirely. As of December 31, 2025, we expect all of these securities to pay their dividends in full and on time. Approximately 97% of our nonredeemable preferred stocks pay dividends that have tax preferential characteristics, while the balance pay dividends that are fully taxable.

The nonredeemable preferred stock portfolio fair value decreased by $0.3 billion in 2025. This decline was primarily due to nonredeemable preferred stocks that were called during the year.

V. CRITICAL ACCOUNTING ESTIMATES

Progressive is required to make certain estimates and assumptions when preparing its financial statements and accompanying notes in conformity with accounting principles generally accepted in the United States of America. Actual results could differ from those estimates in a variety of areas. The area we view as most critical with respect to the application of estimates and assumptions is the establishment of our loss and LAE reserves.

A. Loss and LAE Reserves

Loss and LAE reserves represent our best estimate of our ultimate liability for losses and LAE relating to events that occurred prior to the end of any given accounting period but have not yet been paid. At December 31, 2025, we had $39.5 billion of net loss and LAE reserves (net of reinsurance recoverables on unpaid losses), which included $30.7 billion of case reserves and $8.8 billion of IBNR reserves. The following discussion focuses on our personal auto liability and commercial auto liability, including TNC, reserves since these businesses represent approximately 93% of our total carried net reserves.

We do not review our loss reserves on a macro level and, therefore, do not derive a companywide range of reserves to compare to a standard deviation. Instead, we review a large majority of our reserves by product/state subset combinations on a quarterly time frame, with the remaining reserves generally reviewed on a semiannual basis. A change in our scheduled reviews of a particular subset of the business depends on the size of the subset or emerging issues relating to the product or state. By reviewing the

reserves at such a detailed level, we have the ability to identify and measure variances in the trends by state, product, and line coverage that otherwise would not be seen on a consolidated basis. We believe our comprehensive process of reviewing at a subset level provides us more meaningful estimates of our aggregate loss reserves.

In analyzing the ultimate accident-year loss and LAE experience, our actuarial staff reviews in detail, at the subset level, frequency (number of losses per exposure) and severity (dollars of loss per each claim), as well as the frequency and severity of our LAE costs. The loss ratio, a primary measure of loss experience, is equal to the product of frequency times severity divided by the average premium (dollars of premium per exposure). The average premium for personal and commercial auto businesses is not estimated. The actual frequency experienced will vary depending on the change in the mix in class of drivers we insure, but the IBNR frequency projections for these lines of business are generally stable in the short term, because a large majority of the parties involved in an accident report their claims within a short time period after the occurrence. The severity experienced by Progressive is much more difficult to estimate, especially for injury claims, since severity is affected by changes in underlying costs, such as medical costs, jury verdicts, judicial interpretations, and regulatory changes. In addition, severity will vary relative to the change in our mix of business by limit.

App.-A-70

Assumptions regarding needed reserve levels made by the actuarial staff take into consideration influences on available historical data that reduce the predictive nature of our projected future loss costs. Internal considerations that are process related, which generally result from changes in our claims organization’s activities, include claim closure rates, the number of claims that are closed without payment, and the level of the claims representatives’ estimates of the needed case reserve for each claim. These changes and their effect on the historical data are studied at the state level versus on a larger, less indicative, countrywide basis.

External items considered include the litigation atmosphere, changes in medical costs, and the availability of services to resolve claims. These also are better understood at the state level versus at a more macro,

countrywide level. These items, as well as additional considerations such as the type of accident and change in reporting patterns, are closely monitored.

At December 31, 2025, we had $43.3 billion of carried gross reserves and $39.5 billion of net reserves. Our net reserve balance assumes that the loss and LAE severity for accident year 2025 over accident year 2024 would be 7.2% higher for personal auto liability and 6.5% higher for commercial auto liability. As discussed above, the severity estimates are influenced by many variables that are difficult to precisely quantify and which influence the final amount of claims settlements. That, coupled with changes in internal claims practices, the legal environment, and state regulatory requirements, requires significant judgment in the estimate of the needed reserves to be carried.

The following table highlights what the effect would be to our carried loss and LAE reserves, on a net basis, as of December 31, 2025, if during 2026 we were to experience the indicated change in our estimate of severity for the 2025 accident year (i.e., claims that occurred in 2025):

	Estimated Changes in Severity for Accident Year 2025
(millions)	-4%		-2%		As Reported		+2%		+4%
Personal auto liability	$	23,828	$	24,402	$	24,976	$	25,550	$	26,124
Commercial auto liability	11,368		11,486		11,604		11,722		11,840
Other1	2,923		2,923		2,923		2,923		2,923
Total	$	38,119	$	38,811	$	39,503	$	40,195	$	40,887

1 Includes reserves for personal and commercial auto physical damage claims and our non-auto lines of business; no change in estimates is presented due to the immaterial level of these reserves.

Note: Every percentage point change in our estimate of severity for the 2025 accident year would affect our personal auto liability reserves by $287 million and our commercial auto liability reserves by $59 million.

App.-A-71

Our 2025 year-end loss and LAE reserve balance also includes claims from prior years. Claims that occurred in 2025, 2024, and 2023, in the aggregate, accounted for approximately 93% of our reserve balance. If during 2026 we were to experience the indicated change in our estimate of severity for the total of the prior three accident years (i.e., 2025, 2024, and 2023), the effect to our year-end 2025 reserve balances would be as follows:

	Estimated Changes in Severity for Accident Years 2025, 2024, and 2023
(millions)	-4%		-2%		As Reported		+2%		+4%
Personal auto liability	$	22,140	$	23,558	$	24,976	$	26,394	$	27,812
Commercial auto liability	10,908		11,256		11,604		11,952		12,300
Other1	2,923		2,923		2,923		2,923		2,923
Total	$	35,971	$	37,737	$	39,503	$	41,269	$	43,035

1 Includes reserves for personal and commercial auto physical damage claims and our non-auto lines of business; no change in estimates is presented due to the immaterial level of these reserves.

Note: Every percentage point change in our estimate of severity for the 2025, 2024, and 2023 accident years would affect our personal auto liability reserves by $709 million and our commercial auto liability reserves by $174 million.

Our best estimate of the appropriate amount for our reserves as of year-end 2025 is included in our financial statements for the year. Our goal is to ensure that total reserves are adequate to cover all loss costs, while sustaining minimal variation from the time reserves are initially established until losses are fully developed. At the point in time when reserves are set, we have no way of knowing whether our reserve estimates will prove to be high or low, or whether one of the alternative scenarios discussed above is reasonably likely to occur. The above tables show the potential favorable or unfavorable development we will realize if our estimates miss by 2% or 4%.

App.-A-72

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Investors are cautioned that certain statements in this report not based upon historical fact are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements often use words such as “estimate,” “expect,” “intend,” “plan,” “believe,” “goal,” “target,” “anticipate,” “will,” “could,” “likely,” “may,” “should,” and other words and terms of similar meaning, or are tied to future periods, in connection with a discussion of future operating or financial performance. Forward-looking statements are not guarantees of future performance, are based on current expectations and projections about future events, and are subject to certain risks, assumptions and uncertainties that could cause actual events and results to differ materially from those discussed herein. These risks and uncertainties include, without limitation, uncertainties related to:

•our ability to underwrite and price risks accurately and to charge adequate rates to policyholders;

•our ability to establish accurate loss reserves;

•the impact of severe weather, other catastrophe events, and climate change;

•the effectiveness of our reinsurance programs and the continued availability of reinsurance and performance by reinsurers;

•the secure and uninterrupted operation of the systems, facilities, and business functions and the operation of various third-party systems that are critical to our business;

•the impacts of a security breach or other attack involving our technology systems or the systems of one or more of our vendors;

•our ability to maintain a recognized and trusted brand and reputation;

•whether we innovate effectively and respond to our competitors’ initiatives;

•whether we effectively manage complexity as we develop and deliver products and customer experiences;

•the highly competitive nature of property-casualty insurance markets;

•whether we adjust claims accurately;

•compliance with complex and changing laws and regulations;

•the impact of misconduct or fraudulent acts by employees, agents, and third parties to our business and/or exposure to regulatory assessments;

•our ability to attract, develop, and retain talent and maintain appropriate staffing levels;

•litigation challenging our business practices, and those of our competitors and other companies;

•the success of our business strategy and efforts to acquire or develop new products or enter into new areas of business and our ability to navigate the related risks;

•how intellectual property rights affect our competitiveness and our business operations;

•the success of our development and use of new technology and our ability to navigate the related risks;

•the performance of our fixed-income and equity investment portfolios;

•the impact on our investment returns and strategies from regulations and societal pressures relating to environmental, social, governance and other public policy matters;

•our continued ability to access our cash accounts and/or convert investments into cash on favorable terms;

•the impact if one or more parties with which we enter into significant contracts or transact business fail to perform;

•legal restrictions on our insurance subsidiaries’ ability to pay dividends to The Progressive Corporation;

•our ability to obtain capital when necessary to support our business, our financial condition, and potential growth;

•evaluations and ratings by credit rating and other rating agencies;

•the variable nature of our common share dividend policy;

•whether our investments in certain tax-advantaged projects generate the anticipated returns;

•the impact from not managing to short-term earnings expectations in light of our goal to maximize the long-term value of the enterprise;

•the impacts of epidemics, pandemics, or other widespread health risks; and

•other matters described from time to time in our releases and publications, and in our periodic reports and other documents filed with the United States Securities and Exchange Commission, including, without limitation, the Risk Factors section of our Annual Report on Form 10-K for the year ending December 31, 2025.

Any forward-looking statements are made only as of the date presented. Except as required by applicable law, we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or developments or otherwise.

In addition, investors should be aware that accounting principles generally accepted in the United States prescribe when a company may reserve for particular risks, including litigation exposures. Accordingly, results for a given reporting period could be significantly affected if and when we establish reserves for one or more contingencies. Also, our regular reserve reviews may result in adjustments of varying magnitude as additional information regarding claims activity becomes known. Reported results, therefore, may be volatile in certain accounting periods.

App.-A-73

Supplemental Information

The Progressive Corporation and Subsidiaries

Ten Year Summary – Selected Financial Information

(unaudited)

(millions – except ratios, policies in force, per share<br>amounts, and number of people employed)	2025			2024			2023			2022			2021
Net premiums written	$	83,174		$	74,424		$	61,550		$	51,081		$	46,405
Growth	12		%	21		%	20		%	10		%	14		%
Net premiums earned	$	81,661		$	70,799		$	58,665		$	49,241		$	44,369
Growth	15		%	21		%	19		%	11		%	13		%
Policies in force (thousands):
Personal Lines	37,428			33,811			28,591			26,307			25,512
Growth	11		%	18		%	9		%	3		%	7		%
Commercial Lines	1,191			1,141			1,099			1,046			971
Growth	4		%	4		%	5		%	8		%	18		%
Total revenues	$	87,671		$	75,372		$	62,109		$	49,611		$	47,702
Underwriting margins:1
Personal Lines	12.5		%	11.4		%	5.9		%	3.2		%	3.5		%
Commercial Lines	13.0		%	10.6		%	1.2		%	8.9		%	11.1		%
Total underwriting operations	12.6		%	11.2		%	5.1		%	4.2		%	4.7		%
Net income attributable to Progressive	$	11,308		$	8,480		$	3,903		$	722		$	3,351
Per common share - diluted	$	19.23		$	14.40		$	6.58		$	1.18		$	5.66
Average equivalent common shares - diluted	588.1			587.7			587.5			587.1			587.1
Comprehensive income (loss) attributable to Progressive	$	12,834		$	8,673		$	5,089		$	(2,121)		$	2,460
Total assets	$	123,039		$	105,745		$	88,691		$	75,465		$	71,132
Debt outstanding	$	6,897		$	6,893		$	6,889		$	6,388		$	4,899
Total shareholders’ equity	$	30,323		$	25,591		$	20,277		$	15,891		$	18,232
Statutory surplus	$	28,370		$	27,171		$	22,250		$	17,880		$	16,424
Common shares outstanding	586.1			585.8			585.3			584.9			584.4
Common share close price (at December 31)	$	227.72		$	239.61		$	159.28		$	129.71		$	102.65
Rate of return2	(3.0)		%	51.4		%	23.2		%	26.8		%	10.8		%
Market capitalization	$	133,467		$	140,364		$	93,227		$	75,867		$	59,989
Book value per common share	$	51.74		$	43.69		$	33.80		$	26.32		$	30.35
Ratios:
Return on average common shareholders’ equity:
Net income attributable to Progressive	35.3		%	35.5		%	22.9		%	4.4		%	18.6		%
Comprehensive income (loss) attributable to Progressive	40.1		%	36.4		%	30.0		%	(13.5)		%	13.6		%
Debt to total capital3	18.5		%	21.2		%	25.4		%	28.7		%	21.2		%
Price to earnings	11.8			16.6			24.2			109.9			18.1
Price to book	4.4			5.5			4.7			4.9			3.4
Net premiums written to statutory surplus	2.9			2.7			2.8			2.9			2.8
Statutory combined ratio	87.1			88.2			94.3			95.3			94.8
Dividends declared per common share4	$	13.90		$	4.90		$	1.15		$	0.40		$	1.90
Number of people employed	70,053			66,308			61,432			55,063			49,077

1 Underwriting margins are calculated as pretax underwriting profit (loss), as defined in Note 10 – Segment Information, as a percentage of net premiums earned. Policyholder credit expense is included in pretax underwriting profit (loss), as applicable.

2 Represents annual rate of return, assuming dividend reinvestment.

3 Ratio reflects debt as a percent of debt plus shareholders’ equity; redeemable noncontrolling interest is not part of this calculation.

4 Represents dividends pursuant to the dividend policy in place for the applicable year (see Note 14 – Dividends for further discussion).

App.-A-74

(millions – except ratios, policies in force, per share<br>amounts, and number of people employed)	2020			2019			2018			2017			2016
Net premiums written	$	40,569		$	37,578		$	32,610		$	27,132		$	23,354
Growth	8		%	15		%	20		%	16		%	14		%
Net premiums earned	$	39,262		$	36,192		$	30,933		$	25,730		$	22,474
Growth	8		%	17		%	20		%	14		%	13		%
Policies in force (thousands):
Personal Lines	23,898			21,611			19,695			17,537			15,859
Growth	11		%	10		%	12		%	11		%	7		%
Commercial Lines	822			751			697			647			608
Growth	9		%	8		%	8		%	6		%	9		%
Total revenues	$	42,658		$	39,022		$	31,979		$	26,839		$	23,441
Underwriting margins:1
Personal Lines	12.2		%	8.9		%	8.9		%	6.4		%	4.7		%
Commercial Lines	13.0		%	10.4		%	13.3		%	7.7		%	6.4		%
Total underwriting operations	12.3		%	9.1		%	9.4		%	6.6		%	4.9		%
Net income attributable to Progressive	$	5,705		$	3,970		$	2,615		$	1,592		$	1,031
Per common share - diluted	$	9.66		$	6.72		$	4.42		$	2.72		$	1.76
Average equivalent common shares - diluted	587.6			587.2			586.7			585.7			585.0
Comprehensive income (loss) attributable to Progressive	$	6,292		$	4,433		$	2,520		$	1,941		$	1,164
Total assets	$	64,098		$	54,895		$	46,575		$	38,701		$	33,428
Debt outstanding	$	5,396		$	4,407		$	4,410		$	3,306		$	3,148
Total shareholders’ equity	$	17,039		$	13,673		$	10,822		$	9,285		$	7,957
Statutory surplus	$	15,195		$	13,671		$	11,572		$	9,664		$	8,560
Common shares outstanding	585.2			584.6			583.2			581.7			579.9
Common share close price (at December 31)	$	98.88		$	72.39		$	60.33		$	56.32		$	35.50
Rate of return2	41.4		%	25.1		%	9.3		%	61.6		%	14.7		%
Market capitalization	$	57,865		$	42,319		$	35,185		$	32,761		$	20,587
Book value per common share	$	28.27		$	22.54		$	17.71		$	15.96		$	13.72
Ratios:
Return on average common shareholders’ equity:
Net income attributable to Progressive	35.6		%	31.3		%	24.7		%	17.8		%	13.2		%
Comprehensive income (loss) attributable to Progressive	39.3		%	35.0		%	23.8		%	21.7		%	14.9		%
Debt to total capital3	24.1		%	24.4		%	28.9		%	26.3		%	28.3		%
Price to earnings	10.2			10.8			13.6			20.7			20.2
Price to book	3.5			3.2			3.4			3.5			2.6
Net premiums written to statutory surplus	2.7			2.7			2.8			2.8			2.7
Statutory combined ratio	87.9			90.5			89.9			92.8			94.8
Dividends declared per common share4	$	4.90		$	2.65		$	2.5140		$	1.1247		$	0.6808
Number of people employed	43,326			41,571			37,346			33,656			31,721

App.-A-75

The Progressive Corporation and Subsidiaries

Performance Graph

(unaudited)

The following performance graph compares the performance of Progressive’s Common Shares (PGR) to the Standard & Poor’s 500 Stock Index (S&P 500 Index) and the Standard & Poor’s 500 Property & Casualty Insurance Index (S&P 500 P/C Group) for the last five years.

Cumulative Five-Year Total Return*

PGR, S&P 500 Index, S&P 500 P/C Group (Performance Results through 12/31/25)

	(Assumes 100 was invested at the close of trading on December 31, 2020)
For the years ended December 31,	2021	2022		2023		2024		2025
PGR		$	140.52	$	173.05	$	261.98	$	254.12
S&P 500 Index	128.68	105.35		133.02		166.27		195.96
S&P 500 P/C Group	117.51	139.68		154.70		209.20		228.85

All values are in US Dollars.

*Assumes reinvestment of dividends

App.-A-76

The Progressive Corporation and Subsidiaries

Quantitative Market Risk Disclosures

(unaudited)

Quantitative market risk disclosures are only presented for market risk categories when risk is considered material. Materiality is determined based on the fair value of the financial instruments at December 31, 2025, and the potential for near-term losses from reasonably possible near-term changes in market rates or prices. The discussion

below relates to instruments entered into for purposes other than trading; we had no trading financial instruments at December 31, 2025 and 2024. See Management’s Discussion and Analysis of Financial Condition and Results of Operations – Investments for our discussion of the qualitative information about market risk.

Financial instruments subject to interest rate risk were:

	Fair Value
	-200 bps		-100 bps				+100 bps		+200 bps
(millions)	Change		Change		Actual		Change		Change
U.S. government	$	48,312	$	45,723	$	43,298	$	41,038	$	38,938
State and local government	3,465		3,383		3,303		3,224		3,146
Foreign government	17		17		17		17		17
Corporate and other debt	21,067		20,523		19,991		19,475		18,971
Residential mortgage-backed	3,324		3,249		3,175		3,101		3,029
Commercial mortgage-backed	6,143		6,056		5,973		5,894		5,817
Other asset-backed	7,273		7,193		7,109		7,022		6,931
Nonredeemable preferred stocks	412		408		404		400		396
Short-term investments	10,005		10,005		10,005		10,005		10,005
Total at December 31, 2025	$	100,018	$	96,557	$	93,275	$	90,176	$	87,250
Total at December 31, 2024	$	81,927	$	79,248	$	76,675	$	74,217	$	71,867

Exposure to risk is represented in terms of changes in fair value due to selected hypothetical movements in market rates. Bonds and preferred stocks are individually priced to yield to the worst case scenario, which includes any issuer-specific features, such as a call option. Asset-backed

securities and state and local government housing securities are priced assuming deal specific prepayment scenarios, considering the deal structure, prepayment penalties, yield maintenance agreements, and the underlying collateral.

Financial instruments subject to equity market risk were:

	Fair Value
(millions)	-10%		Actual		+10%
Common equities at December 31, 2025	$	3,660	$	4,098	$	4,536
Common equities at December 31, 2024	3,196		3,575		3,954

The model represents the estimated value of our common equity portfolio given a +/-10% change in the market, based on the common equity portfolio’s weighted average beta of 1.1 for 2025 and 2024. The beta is derived from recent historical experience, using the S&P 500 as the market surrogate. The historical relationship of

the common equity portfolio’s beta to the S&P 500 is not necessarily indicative of future correlation, as individual company or industry factors may affect price movements. Betas are not available for all securities. In such cases, the change in fair value reflects a direct +/-10% change; the portion of our securities without betas is 1.0%.

App.-A-77

The Progressive Corporation and Subsidiaries

Net Premiums Written by State

(unaudited)

($ in millions)	2025				2024				2023				2022				2021
Texas	$	10,315	12.4	%	$	9,641	13.0	%	$	7,809	12.7	%	$	6,089	11.9	%	$	5,343	11.5	%
Florida	10,261		12.3		10,222		13.7		9,096		14.8		7,145		14.0		6,291		13.6
California	4,777		5.8		4,124		5.5		3,408		5.5		2,867		5.6		2,585		5.6
Georgia	4,084		4.9		3,635		4.9		2,928		4.8		2,444		4.8		2,148		4.6
New York	3,359		4.0		2,830		3.8		2,416		3.9		2,056		4.0		2,009		4.3
New Jersey	2,830		3.4		2,206		3.0		1,911		3.1		1,600		3.1		1,417		3.1
Michigan	2,775		3.3		2,628		3.5		2,255		3.7		2,015		4.0		1,963		4.2
Ohio	2,445		3.0		2,168		2.9		1,851		3.0		1,709		3.3		1,563		3.4
Pennsylvania	2,414		2.9		2,192		2.9		1,804		2.9		1,670		3.3		1,505		3.2
Arizona	2,240		2.7		1,989		2.7		1,583		2.6		1,234		2.4		1,040		2.2
All other	37,674		45.3		32,789		44.1		26,489		43.0		22,252		43.6		20,541		44.3
Total	$	83,174	100.0	%	$	74,424	100.0	%	$	61,550	100.0	%	$	51,081	100.0	%	$	46,405	100.0	%

App.-A-78

Insurance Quotes, Claims Reporting, and Customer Service

	Personal autos, motorcycles, recreational vehicles, homeowners, and renters	Commercial autos/trucks, business property, and general liability
To receive a quote	1-800-PROGRESSIVE (1-800-776-4737) progressive.com	1-888-806-9598 progressivecommercial.com
To report a claim	1-800-PROGRESSIVE (1-800-776-4737)<br>progressive.com	1-800-PROGRESSIVE (1-800-776-4737) progressivecommercial.com
For customer service:
If you bought your policy directly through Progressive online or by phone	1-800-PROGRESSIVE (1-800-776-4737) progressive.com	1-800-444-4487 progressivecommercial.com
If you bought your policy through an independent agent or broker	1-800-925-2886<br>1-800-300-3693 in California <br>progressiveagent.com	1-800-444-4487 progressivecommercial.com
If you bought your policy through an independent agent or broker for the state of California	1-800-300-3693<br>Driveinsurance.com	1-800-444-4487 progressivecommercial.com
In addition, iPhone® and Android® users can download the Progressive mobile app to start a quote, report a claim, or service a policy.				Principal Office
---
The Progressive Corporation
300 North Commons Blvd.
Mayfield Village, Ohio 44143
440-461-5000
progressive.com
Annual Meeting  The Annual Meeting of Shareholders will take place on Friday, May 8, 2026, at 10:00 a.m., eastern time. This meeting will be held by online webcast only. You will be able to attend and participate in the Annual Meeting via live webcast by visiting virtualshareholdermeeting.com/PGR2026. To participate in the meeting, you must have your 16-digit control number that is shown on your Notice of Internet Availability of Proxy Materials or proxy card. You will not be able to attend the Annual Meeting in person.
Online Annual Report and Proxy Statement  Our 2025 Annual Report to Shareholders can be found at: progressive.com/annualreport.
Our 2026 Proxy Statement and 2025 Annual Report to Shareholders, in a PDF format, can be found at: progressiveproxy.com.
Shareholder/Investor Relations  Progressive does not maintain a mailing list for distribution of shareholders’ reports. To view Progressive’s publicly filed documents, shareholders can access our website: progressive.com/sec. To view our earnings and other releases, access our website: progressive.com/financial-releases.
For financial-related information or to request copies of Progressive’s publicly filed documents free of charge, write to: The Progressive Corporation, Investor Relations, 300 North Commons Blvd., Box W94, Mayfield Village, Ohio 44143, email: investor_relations@progressive.com, or call: 440-395-2222.
For all other company information, call: 440-461-5000 or access our website at: progressive.com/contactus.
Transfer Agent and Registrar Registered Shareholders:  If you have questions or changes to your account and your Progressive common shares are registered in your name, write to: Equiniti Trust Company, LLC, 48 Wall Street, Floor 23, New York, New York 10005; phone: 1-866-709-7695; email: HelpAST@equiniti.com; or visit their website<br><br>at: equiniti.com/us.

App.-A-79

Beneficial Shareholders:  If your Progressive common shares are held in a brokerage or other financial institution account, contact your broker or financial institution directly regarding questions or changes to your account.
Common Shares, Holders, and Dividends The Progressive Corporation’s common shares are traded on the New York Stock Exchange (symbol PGR). There were 1,557 shareholders of record on January 31, 2026. Progressive currently has a dividend policy under which the Board expects to declare regular, quarterly common share dividends and, on at least an annual basis, to consider declaring an additional variable common share dividend.
Counsel Baker & Hostetler LLP, Cleveland, Ohio
Corporate Governance  Progressive’s Corporate Governance Guidelines and Board Committee Charters are available at: progressive.com/governance.
Accounting Complaint Procedure  Any employee or other interested party with a complaint or concern regarding accounting, internal accounting controls, or auditing matters relating to Progressive may report such complaint or concern directly to the Chairperson of the Audit Committee, as follows:<br><br>Stuart B. Burgdoerfer, Chair of the Audit Committee, auditchair@progressive.com.<br><br>Any such complaint or concern also may be reported anonymously over the following toll-free Alertline: 1-800-683-3604 or online at: progressivealertline.com.
Progressive will not retaliate against any individual by reason of his or her having made such a complaint or reported such a concern in good faith. View the complete procedures at: progressive.com/governance.
Contact Non-Management Directors  Interested parties have the ability to contact the non-management directors as a group by sending a written communication clearly addressed to the non-management directors to either of the following:
Lawton W. Fitt, Chairperson of the Board, The Progressive Corporation, email: chair@progressive.com; or
David M. Stringer, Secretary, The Progressive Corporation, 300 North Commons Blvd., Box W94, Mayfield Village, Ohio 44143 or email: secretary@progressive.com.
The recipient will forward communications so received to the non-management directors.
Whistleblower Protections  Progressive will not retaliate against any officer or employee of Progressive because of any lawful act done by the officer or employee to provide information or otherwise assist in investigations regarding conduct that the officer or employee reasonably believes to be a violation of federal securities laws or of any rule or regulation of the Securities and Exchange Commission. View the complete Whistleblower Protections at: progressive.com/governance.
Charitable Contributions  We contribute to: (i) The Insurance Institute for Highway Safety to further its work in reducing the human trauma and economic costs of auto accidents; (ii) Humble Design, a nonprofit organization we partnered with to furnish homes for families and veterans transitioning from homelessness; (iii) Family Promise, a nonprofit organization that helps families experiencing homelessness and low-income families achieve sustainable independence through a community-based response; and (iv) The Progressive Insurance Foundation.<br><br>To more broadly represent our employees and their communities, The Progressive Insurance Foundation provides funds to national charitable organizations identified by our Employee Resource Groups and, through the Name Your Cause® program, to qualifying charities chosen by each participating employee’s recommendation, without requiring the employee to contribute. Over the last five years, The Progressive Insurance Foundation provided on average approximately $6 million per year to these charitable organizations.
Social Responsibility and Sustainability  Progressive uses an online format to communicate our social responsibility efforts, and we see sustainability as part of the value we bring to our shareholders, customers, employees, agents, and communities. Information on our social responsibility and sustainability efforts can be found at: progressive.com/sustainability.

App.-A-80

Directors
Philip Bleser1,5,7	Roger N. Farah2,3,5,7	Jeffrey D. Kelly1,7
Retired Chairman of Global Corporate	Former Executive Chair of the Board,	Retired Chief Operating Officer and
Banking,	CVS Health Corporation	Chief Financial Officer,
JPMorgan Chase & Co.	(healthcare)	RenaissanceRe Holdings Ltd.
(financial services)		(reinsurance services)
Stuart B. Burgdoerfer1,6,7	Lawton W. Fitt2,4,5,7	Barbara R. Snyder3,7
Retired Executive Vice President and	Chairperson of the Board,	President,
Chief Financial Officer,	The Progressive Corporation and	The Association of American Universities
L Brands, Inc.	Retired Partner,	(higher education)
(retailing)	Goldman Sachs Group
	(financial services)
Pamela J. Craig3,6,7	Susan Patricia Griffith2	Kahina Van Dyke4,6,7
Retired Chief Financial Officer,	President and	Operating Partner,
Accenture PLC	Chief Executive Officer,	Advent International
(global management consulting)	The Progressive Corporation	(global private equity)
Charles A. Davis4,7	Devin C. Johnson1,6,7
Chief Executive Officer,	Former President,
Stone Point Capital LLC	The SpringHill Company
(private equity investing)	(global consumer and entertainment)
		1 Audit Committee Member
		2 Executive Committee Member
		3 Compensation and Talent Committee
		Member
		4 Investment and Capital Committee
		Member
		5 Nominating and Governance
		Committee Member
		6 Technology Committee Member
		7 Independent Director

App.-A-81

Corporate Officers	Other Executive Officers
Lawton W. Fitt	Karen B. Bailo
Chairperson of the Board	Commercial Lines President
(non-executive)
	Jonathan S. Bauer
Susan Patricia Griffith	Chief Investment Officer
President
and Chief Executive Officer	Steven A. Broz
	Chief Information Officer
John P. Sauerland
Vice President	Patrick K. Callahan
and Chief Financial Officer	Personal Lines President
David M. Stringer	William L. Clawson II
Vice President, Secretary,	Chief Human Resources Officer
and Chief Legal Officer
	John Murphy
Allyson L. Bach	Claims President
Assistant Secretary
	Lori Niederst
Carl G. Joyce	Customer Relationship Management
Vice President	President
and Chief Accounting Officer
	Maribel Pumarejo
Maureen McCoy Spooner	Chief Marketing Officer
Treasurer
	Andrew J. Quigg
	Chief Strategy and Finance Management
	Officer
©2026 The Progressive Corporation

App.-A-82

Document

Exhibit 21

SUBSIDIARIES OF THE PROGRESSIVE CORPORATION

	Jurisdiction
Name of Subsidiary	of Incorporation
ARX Holding Corp.	Delaware
American Strategic Insurance Corp.	Indiana
ASI Assurance Corp.	Florida
ASI Home Insurance Corp.	Florida
ASI Lloyds, Inc.	Texas
ASI Preferred Insurance Corp.	Florida
ASI Select Auto Insurance Corp.	California
ASI Select Insurance Corp.	Indiana
ASI Underwriters Corp.	Florida
Progressive Property Insurance Company	Louisiana
PropertyPlus Insurance Agency, Inc.	Delaware
Sunshine Security Insurance Agency, Inc.	Florida
Drive Insurance Company	Ohio
Garden Sun Insurance Services, Inc.	Hawaii
Pacific Motor Club	California
ProgNY Agency, Inc.	New York
Progressive Adjusting Company, Inc.	Ohio
Progressive Agency Holdings, Inc.	Delaware
Drive New Jersey Insurance Company	New Jersey
Progressive American Insurance Company	Ohio
Progressive Bayside Insurance Company	Ohio
Progressive Casualty Insurance Company	Ohio
PC Investment Company	Delaware
Progressive Gulf Insurance Company	Ohio
Progressive Specialty Insurance Company	Ohio
Trussville/Cahaba, AL, LLC	Ohio
Progressive Classic Insurance Company	Wisconsin
Progressive Commercial Advantage Agency, Inc.	Ohio
Progressive Commercial Casualty Company	Ohio
Progressive Freedom Insurance Company	Ohio
Progressive Hawaii Insurance Corp.	Ohio
Progressive Michigan Insurance Company	Michigan
Progressive Mountain Insurance Company	Ohio
Progressive Northern Insurance Company	Wisconsin
Progressive Northwestern Insurance Company	Ohio
Progressive Preferred Insurance Company	Ohio
Progressive Security Insurance Company	Louisiana
Progressive Southeastern Insurance Company	Indiana
	Jurisdiction
---	---
Name of Subsidiary	of Incorporation
Progressive Capital Management Corp.	New York
Progressive Commercial Holdings, Inc.	Delaware
Artisan and Truckers Casualty Company	Wisconsin
Blue Hill Specialty Insurance Company Inc.	Illinois
National Continental Insurance Company	New York
Progressive Express Insurance Company	Ohio
Protective Insurance Corporation	Indiana
B&L Brokerage Services, Inc.	Indiana
Transport Specialty Insurance Agency, Inc.	Michigan
B&L Insurance Ltd.	Bermuda
B&L Management, Inc.	Delaware
Protective Insurance Company	Indiana
Protective Specialty Insurance Company	Indiana
Sagamore Insurance Company	Indiana
United Financial Casualty Company	Ohio
Progressive Direct Holdings, Inc.	Delaware
Mountain Laurel Assurance Company	Ohio
Progressive Advanced Insurance Company	Ohio
Progressive Advantage Agency, Inc.	Ohio
Progressive Auto Pro Insurance Agency, Inc.	Florida
Progressive Choice Insurance Company	Ohio
Progressive Direct Insurance Company	Ohio
Gadsden, AL, LLC	Ohio
Progressive Garden State Insurance Company	New Jersey
Progressive Marathon Insurance Company	Michigan
Progressive Max Insurance Company	Ohio
Progressive Paloverde Insurance Company	Indiana
Progressive Premier Insurance Company of Illinois	Ohio
Progressive Select Insurance Company	Ohio
Progressive Universal Insurance Company	Wisconsin
Progressive Investment Company, Inc.	Delaware
Progressive Life Insurance Company	Ohio
Progressive Next Inc.	Delaware
Progressive Premium Budget, Inc.	Ohio
Progressive RSC, Inc.	Ohio
Progressive Vehicle Service Company	Ohio
Village Transport Corp.	Delaware
Wilson Mills Land Co.	Ohio
358 Ventures, Inc.	Ohio

Document

Exhibit 23

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration Statements on Form S-8 (Nos. 33-16509, 33-51034, 33-57121, 333-41238, 333-172663, 333-185703, 333-185704, 333-204406, 333-217922, 333-268127, and 333-279481) and Form S-3 (No. 333-279482) of The Progressive Corporation of our report dated March 2, 2026 relating to the financial statements and the effectiveness of internal control over financial reporting, which appears in the 2025 Annual Report to Shareholders, which is incorporated by reference in this Annual Report on Form 10-K. We also consent to the incorporation by reference of our report dated March 2, 2026 relating to the financial statement schedules, which appears in this Form 10-K.

/s/ PricewaterhouseCoopers LLP

Cleveland, Ohio

March 2, 2026

Document

Exhibit 24

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that I hereby constitute and appoint Carl G. Joyce, John P. Sauerland, David M. Stringer, Laurie F. Humphrey and Allyson L. Bach, and each of them, my true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for me and in my name, place and stead, in any and all capacities, to sign and file with the Securities and Exchange Commission the Annual Report on Form 10-K of The Progressive Corporation for the year ended December 31, 2025, and any and all amendments relating thereto and other documents in connection there with, granting unto said attorney-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing necessary and requisite to be done in connection with the foregoing, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their respective substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, I have hereunto subscribed my name in the capacity(ies) set forth below as of the date set forth below under my signature.

/s/ Lawton Wehle Fitt
Date:	February 23, 2026
Lawton W. Fitt
Chairperson of the Board

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that I hereby constitute and appoint Carl G. Joyce, John P. Sauerland, David M. Stringer, Laurie F. Humphrey and Allyson L. Bach, and each of them, my true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for me and in my name, place and stead, in any and all capacities, to sign and file with the Securities and Exchange Commission the Annual Report on Form 10-K of The Progressive Corporation for the year ended December 31, 2025, and any and all amendments relating thereto and other documents in connection there with, granting unto said attorney-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing necessary and requisite to be done in connection with the foregoing, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their respective substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, I have hereunto subscribed my name in the capacity(ies) set forth below as of the date set forth below under my signature.

/s/ Philip Bleser
Date:	February 23, 2026
Philip Bleser
Director

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that I hereby constitute and appoint Carl G. Joyce, John P. Sauerland, David M. Stringer, Laurie F. Humphrey and Allyson L. Bach, and each of them, my true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for me and in my name, place and stead, in any and all capacities, to sign and file with the Securities and Exchange Commission the Annual Report on Form 10-K of The Progressive Corporation for the year ended December 31, 2025, and any and all amendments relating thereto and other documents in connection there with, granting unto said attorney-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing necessary and requisite to be done in connection with the foregoing, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their respective substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, I have hereunto subscribed my name in the capacity(ies) set forth below as of the date set forth below under my signature.

/s/ Stuart B. Burgdoerfer
Date:	February 25, 2026
Stuart B. Burgdoerfer
Director

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that I hereby constitute and appoint Carl G. Joyce, John P. Sauerland, David M. Stringer, Laurie F. Humphrey and Allyson L. Bach, and each of them, my true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for me and in my name, place and stead, in any and all capacities, to sign and file with the Securities and Exchange Commission the Annual Report on Form 10-K of The Progressive Corporation for the year ended December 31, 2025, and any and all amendments relating thereto and other documents in connection there with, granting unto said attorney-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing necessary and requisite to be done in connection with the foregoing, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their respective substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, I have hereunto subscribed my name in the capacity(ies) set forth below as of the date set forth below under my signature.

/s/ Pamela J. Craig
Date:	February 23, 2026
Pamela J. Craig
Director

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that I hereby constitute and appoint Carl G. Joyce, John P. Sauerland, David M. Stringer, Laurie F. Humphrey and Allyson L. Bach, and each of them, my true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for me and in my name, place and stead, in any and all capacities, to sign and file with the Securities and Exchange Commission the Annual Report on Form 10-K of The Progressive Corporation for the year ended December 31, 2025, and any and all amendments relating thereto and other documents in connection there with, granting unto said attorney-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing necessary and requisite to be done in connection with the foregoing, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their respective substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, I have hereunto subscribed my name in the capacity(ies) set forth below as of the date set forth below under my signature.

/s/ Charles A. Davis
Date:	February 23, 2026
Charles A. Davis
Director

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that I hereby constitute and appoint Carl G. Joyce, John P. Sauerland, David M. Stringer, Laurie F. Humphrey and Allyson L. Bach, and each of them, my true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for me and in my name, place and stead, in any and all capacities, to sign and file with the Securities and Exchange Commission the Annual Report on Form 10-K of The Progressive Corporation for the year ended December 31, 2025, and any and all amendments relating thereto and other documents in connection there with, granting unto said attorney-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing necessary and requisite to be done in connection with the foregoing, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their respective substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, I have hereunto subscribed my name in the capacity(ies) set forth below as of the date set forth below under my signature.

/s/ Roger N. Farah
Date:	February 23, 2026
Roger N. Farah
Director

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that I hereby constitute and appoint Carl G. Joyce, John P. Sauerland, David M. Stringer, Laurie F. Humphrey and Allyson L. Bach, and each of them, my true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for me and in my name, place and stead, in any and all capacities, to sign and file with the Securities and Exchange Commission the Annual Report on Form 10-K of The Progressive Corporation for the year ended December 31, 2025, and any and all amendments relating thereto and other documents in connection there with, granting unto said attorney-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing necessary and requisite to be done in connection with the foregoing, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their respective substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, I have hereunto subscribed my name in the capacity(ies) set forth below as of the date set forth below under my signature.

/s/ Devin C. Johnson
Date:	February 23, 2026
Devin C. Johnson
Director

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that I hereby constitute and appoint Carl G. Joyce, John P. Sauerland, David M. Stringer, Laurie F. Humphrey and Allyson L. Bach, and each of them, my true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for me and in my name, place and stead, in any and all capacities, to sign and file with the Securities and Exchange Commission the Annual Report on Form 10-K of The Progressive Corporation for the year ended December 31, 2025, and any and all amendments relating thereto and other documents in connection there with, granting unto said attorney-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing necessary and requisite to be done in connection with the foregoing, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their respective substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, I have hereunto subscribed my name in the capacity(ies) set forth below as of the date set forth below under my signature.

/s/ Jeffrey D. Kelly
Date:	February 23, 2026
Jeffrey D. Kelly
Director

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that I hereby constitute and appoint Carl G. Joyce, John P. Sauerland, David M. Stringer, Laurie F. Humphrey and Allyson L. Bach, and each of them, my true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for me and in my name, place and stead, in any and all capacities, to sign and file with the Securities and Exchange Commission the Annual Report on Form 10-K of The Progressive Corporation for the year ended December 31, 2025, and any and all amendments relating thereto and other documents in connection there with, granting unto said attorney-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing necessary and requisite to be done in connection with the foregoing, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their respective substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, I have hereunto subscribed my name in the capacity(ies) set forth below as of the date set forth below under my signature.

/s/ Barbara R. Snyder
Date:	February 23, 2026
Barbara R. Snyder
Director

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that I hereby constitute and appoint Carl G. Joyce, John P. Sauerland, David M. Stringer, Laurie F. Humphrey and Allyson L. Bach, and each of them, my true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for me and in my name, place and stead, in any and all capacities, to sign and file with the Securities and Exchange Commission the Annual Report on Form 10-K of The Progressive Corporation for the year ended December 31, 2025, and any and all amendments relating thereto and other documents in connection there with, granting unto said attorney-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing necessary and requisite to be done in connection with the foregoing, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their respective substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, I have hereunto subscribed my name in the capacity(ies) set forth below as of the date set forth below under my signature.

/s/ Kahina Van Dyke
Date:	February 26, 2026
Kahina Van Dyke
Director

Document

Exhibit 31.1

CERTIFICATION

I, Susan Patricia Griffith, certify that:

1.I have reviewed this annual report on Form 10-K of The Progressive Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	March 2, 2026	/s/ Susan Patricia Griffith
		Susan Patricia Griffith
		President and Chief Executive Officer

Document

Exhibit 31.2

CERTIFICATION

I, John P. Sauerland, certify that:

1.I have reviewed this annual report on Form 10-K of The Progressive Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	March 2, 2026	/s/ John P. Sauerland
		John P. Sauerland
		Vice President and Chief Financial Officer

Document

Exhibit 32.1

SECTION 1350 CERTIFICATION

I, Susan Patricia Griffith, President and Chief Executive Officer of The Progressive Corporation (the “Company”), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

(1) the Annual Report on Form 10-K of the Company for the period ended December 31, 2025 (the “Report”), which this certification accompanies, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2) information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Susan Patricia Griffith
Susan Patricia Griffith
President and Chief Executive Officer
March 2, 2026

Document

Exhibit 32.2

SECTION 1350 CERTIFICATION

I, John P. Sauerland, Vice President and Chief Financial Officer of The Progressive Corporation (the “Company”), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

(1) the Annual Report on Form 10-K of the Company for the period ended December 31, 2025 (the “Report”), which this certification accompanies, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2) information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ John P. Sauerland
John P. Sauerland
Vice President and Chief Financial Officer
March 2, 2026

Document

Exhibit 99

LETTER TO SHAREHOLDERS

The best part of my job is meeting with employees, whether at our headquarters in Mayfield Village, Ohio, in my office during business reviews or various leadership sessions, at large leadership events, in local claims offices or virtually when I conduct new hire classes. It is such a joy to see the respect people have for each other and our customers. The people of Progressive are my raison d’être and truly motivate me to go above and beyond for them because I witness daily the work that they do and more importantly the why behind their work. They are the driving force behind our continued success and, as I often say, our most important asset along with our culture.

I’m so proud of what we have been able to accomplish together this year, and am bullish on our future given our vast bench of talent and strategy for future profitable growth. It continues to energize me, and I’ll bring that sentiment into 2026.

That said, there is a lot going on in the world and at times the everyday news can be overwhelming, and it can be so easy to lose sight of the future and our role in making that future bright for our employees, customers, independent agents, and communities. Our annual report theme for 2025 is Hope. Hope fuels us to stay optimistic, strengthen relationships, and remain resilient in turbulent times. It also helps us to visualize what can be for our Progressive family and the customers and communities that we serve.

For me, it is about being positive as a leader and celebrating the incredible ways we are able to influence the lives of people around us, whether it be during a catastrophe when we are there for our customers or one of our many community events like Keys to Progress® where, each year, we give vehicles to about 100 veterans and veteran-related organizations who need transportation. That vehicle is hope for many of them. Hope for employment, hope for taking their children to events, for recipients of commercial vehicles hope for their small business, and for all of them, feeling the freedom that having a car gives you.

CONTINUITY OF SUCCESS

Building off 2024, which we have dubbed the most successful year in the history of Progressive, we knew it would be a challenge to continue that growth, but that challenge was accepted and executed upon with fervor and dedication by the entire Progressive team. We follow our Core Values because our customers depend on us. Our goals are to consistently care for our customers, respect their time, and make the process easy for them and we were able to do that in tough times.

Throughout the year, our commitment to customer care shows up not only in everyday service, but also in the unexpected moments when our customers need us most. When the federal government shut down in the fourth quarter, we offered relief to affected federal employees to help ease their short-term financial pressures. One customer shared, “During the government shutdown, I was struggling to make ends meet and facing food insecurity. Progressive’s billing relief gave me the breathing room I needed to prioritize feeding my family, and I’m overwhelmed with gratitude for their support during such a difficult time.” Times like this is when our Purpose—“we exist to help people move forward and live fully”—truly comes to life.

We ended 2025 with a companywide combined ratio (CR) of 87.4, reflecting solid rates on the street and favorable reserve development. Our net premiums written (NPW) growth was 12% year over year. Comparisons to the best year ever can be difficult, but I could not be prouder of what we achieved in 2025, especially growing policies in force (PIF) by 10%. During the past five years we added nearly 13.9 million PIFs, which equates to over 21.7 million vehicles in force and is nothing short of phenomenal, in our opinion. Every single customer we are privileged to serve also assists in increasing our share of the

market. We serve them for their everyday needs, but it’s even more important during the times they need us most.

In fact, I’d like to share a powerful story from Adina and Chris, who work on our National Catastrophe Response Team. After the devastating floods in Texas that claimed around 150 lives this past July, they met a customer whose RV was a total loss. Both he and his son had narrowly escaped being swept away by the floodwaters. After giving this customer a comfortable place to sit and share his story, they learned that he was battling liver cancer and had surgery just a few days before the flood. Not only that, with the RV gone, he was left with only $3.00 in his checking account, and out of options.

Adina and Chris promptly got to work for this customer, ensuring that he got his claims resolved quickly. The customer was moved to tears, overwhelmed with surprise and gratitude, and visited again a while later to show off his new RV—a symbol of his resilience, hope, and a new beginning—and to express his heartfelt thanks. Through this emotional experience, Chris and Adina found a renewed faith in the strength of the human spirit and the importance of community support. As we continue to serve our customers with compassion and dedication, we’re reminded of our goal to not only provide high-quality customer service, but to also be a source of hope, empathy, and assistance in times of need.

Below are some highlights of each operating area. You’ll find much more detail in the 2025 Annual Report on Form 10-K.

Personal Lines, which includes our personal auto, special lines, and personal property products, delivered exceptional performance, achieving another year of very robust premium and policy in force growth, while remaining well below our 96.0 CR profit target. Total premiums written for the year reached $72.6 billion, a year-over-year (YOY) increase of over $9 billion, representing 14% growth, driven primarily by personal auto. We added 3.6 million policyholders in 2025, ending the year with 37.4 million PIFs, representing 11% YOY growth. Profitability across all three business areas was better than our targets and the segment delivered an outstanding 87.5 CR for the year. This rare combination of both strong premium growth and underwriting margins resulted in a 29% growth in underwriting profit from our Personal Lines segment this year.

Personal Lines profitability benefited from continued lower personal auto frequency, favorable prior year development, the absence of significant weather and catastrophe events, and our Florida personal auto business experienced additional benefits from 2023 legislative insurance reforms. In response to better-than-expected loss performance in Florida, during the year we accrued $1.2 billion in Florida personal auto policyholder credit expense related to a Florida excess profit statute. Since this exposure was accrued in 2025, this expense is reflected in our 2025 CRs.

Personal auto ended the year with premiums written of $66.0 billion at an 88.5 CR and 13% PIF growth. We estimate that we have grown our personal auto market share by 1.9 points year to date through the first nine months of 2025, compared to the same period in the prior year, as the industry is growing premiums written in the 4% range while we’re growing at a rate four times as fast.

In personal property we continued to deliver on our “Blueprint for the Future” strategy to drive sustainable long-term profitable growth. The ‘Blueprint’ includes deploying advanced risk selection, reducing our footprint in volatile weather-related areas, and additional actions to support sustainable long-term profitable growth, and, where permitted, includes a focus on cost sharing with customers and only writing homeowners when bundled with a Progressive personal auto policy. Property policies in force grew 4% YOY, with strong renters’ growth offsetting intentional PIF declines in our homeowners’ product, while we reposition the business for more sustainable profitability, particularly in regions prone to catastrophe weather for homeowners. We finished the year with premiums written of $3.1 billion at a

profitable 75.1 CR, resulting from a combination of favorable weather and favorable prior year development.

Our Commercial Lines (CL) business finished 2025 with 1.2 million PIFs, representing 4% growth at an 87.0 CR. Our CR improved by 2.4 points, compared to 2024, underscoring our commitment to rate adequacy, underwriting discipline, and expense management, while advancing capabilities that we believe position us for sustainable and future growth.

We estimate the CR for the commercial auto insurance industry, excluding Progressive, is a 104 year to date through the first three quarters of 2025, and we believe it is likely that the full year CR will also come in above 100. We believe we typically see and react to profitability challenges ahead of the market and that this remained true in 2025. We continued our commitment to small business owners through programs like Keys to Progress and Driving Small Business Forward, awarding vehicle giveaways and grants that support entrepreneurial success.

Below is a great example of our CL claims department working hand in glove with body shops and our independent agents to make sure to quickly get people back to their businesses.

“So mid, September, our brand new (to us) truck had an accident happen to it… making it impossible to use with the cows. The whole right side was smashed and side view mirror destroyed. This is a huge thank you to Rosensteel Insurance, Progressive and to Weavers Auto Body in Hanover. In a little more than a month, the whole side was replaced, repainted and interior cleaned at return. If you have a farm, you know how vital your work truck is. From the initial report to the finished pickup, communication was outstanding. So, I wanted to thank all who were associated with this claim! We are grateful as your dedication to YOUR job has helped us do ours.”

Looking ahead, we are confident that our disciplined approach, innovative product offerings, and commitment to both our small business customers and independent agents will continue to drive our success. By proactively addressing market challenges and investing in advanced capabilities, we believe we are well positioned to capture new opportunities and sustain profitable growth in the evolving commercial insurance landscape. Our optimism for the future is grounded in our track record of adaptability and our unwavering focus on delivering value to our stakeholders.

INVESTMENTS AND CAPITAL MANAGEMENT

As we wrapped up 2025 and head into 2026, we remain in a very strong capital position that we believe will allow us to support our organic growth while also having the ability to invest in other opportunities for growth and consider distributing excess capital to shareholders.

In 2025, our investment portfolio saw a return of 7.3%, consistent with strong returns across financial markets. Our fixed-income return was 7.0% for 2025 as the portfolio benefited from our 3.4 year duration, in an environment where Treasury yields shifted significantly lower. Our equity portfolio returned 16.8%.

This was a record year of capital generation for Progressive. We saw strong growth in our operating business at attractive profit margins in 2025, which combined with our investment returns to create a robust financial position. Our ability to now write a larger portion of our insurance business at a higher operating leverage going forward contributed to our strong capital position. The combination of these factors meant that we were in a meaningful excess capital position as we moved through the fourth quarter of 2025. We always examine the most efficient use of our capital and while we did modestly increase the pace of our share repurchases, the Board of Directors decided to return capital to shareholders in the form of a $13.50 per share annual-variable dividend. Even after accruing for the

dividend, our financial leverage remains low, with our debt-to-total capitalization ratio ending the year below 20%.

LIVING OUR FOUR CORNERSTONES AND STRATEGIC PILLARS

The construct of our four cornerstones continues to guide us in how we invest in order to achieve our ultimate vision. We know that is it very easy to shop for insurance and switch carriers. Our goal is to continue to take care of our employees and safeguard our special culture, be available where customers want us to be, have a brand that consumers want to be associated with, and offer competitive prices. Those four activities together can be a challenging balancing act, but we do it well.

People and Culture

Every year, I’ve underscored that our success depends on our people. Our people and our culture are the driving force behind our business results, and we actively measure our culture in several ways. The first is our annual engagement & culture survey. The results continue to show that our culture is thriving, strong, and unique. For a fifth consecutive year, Progressive was named a Gallup Exceptional Workplace. According to Gallup, we ranked in the 99th percentile of all companies surveyed in 2025! A record 86% of employees participated in the annual survey, lending their voices to the ongoing conversation.

Our second measure is our voluntary external turnover. When people are happy and engaged in the work they do, we believe they are more productive, provide better customer service and stay with us. A record 76% of Progressive employees were actively engaged, well above the approximately 30% achieved by U.S. companies overall in 2025 according to Gallup. No doubt this contributed to our near record low turnover rate of just 6.8% excluding retirements. Keeping great people helps us protect the knowledge we’ve built together and keeps our culture thriving.

Another measure is the external recognition we receive for our extraordinary work environment. We are extremely proud of the more than 50 accolades that we received from groups including Forbes, Fortune, Gallup, Glassdoor, Time, and Top Workplaces. In 2025, two awards really resonated with me—a Five Star Rating from Newsweek for their America’s Greatest Workplaces for Culture, Belonging & Community recognition and our number one place in the Top Workplaces for Remote Work. These surveys help us confirm that our unique and inclusive culture is second to none.

We see it as important, if not vital, that we take care of and provide hope to Progressive employees and their families in their times of need. Some years ago, we established the Progressive Employee Relief Fund to provide grants of up to $2,500 for instances when certain unplanned events stretch what an employee’s family can absorb. This approach has helped keep employees out of harm’s way. Below are a few stories that clearly showcase what a difference this relief fund can make in the lives of our employees.

“My family and I were already in the middle of moving when the hurricane hit, so we had no emergency supplies and no life-saving essentials. We had to lean on our community for support. This grant helped to give us a fresh start in our new home after we could finally move in. Your contribution makes a bigger impact than words could ever express. From my family to yours, we thank you so much.”

“Thank you for seeing me as a person and not just a body to do a job or fill a seat. But actually, seeing me and my family. Your help allowed us to move forward and not have to stress.”

“I am so incredibly grateful for this grant. As a single mom it can be so hard to figure things out alone. Trying to take on the stresses life throws at you can sometimes leave you feeling hopeless. This grant was able to give me hope that I can continue to provide for my son even after a disaster. From the bottom of my heart thank you.”

Last year I wrote about our paid Volunteer Time Off (VTO) initiative and how it recognized Progressive employees’ desire to serve the communities that they are a part of. In 2025, we increased our efforts not only to reach more charitable organizations across the country, but to make sure more employees participated and provided hope in their local communities. In addition to service, our goal has always been one of inclusion by enabling those who might find it challenging to give of their time, a mechanism to do just that. In the second year of the program, we increased participation by almost 50% with almost 18,000 employees donating 132,000 hours of service to local charities.

Never resting on our laurels, we expanded the VTO program by incorporating organized activities and piloting group Volunteer Days, with the goal of enabling employees who lived and worked in proximity, the opportunity to participate in sessions with other Progressive employees. In April alone, employees filled over 500 volunteer slots. We saw a particularly robust engagement level with our CRM and Claims organizations.

Christina, one of our CRM employees, shared:

“This is exactly what I was looking for! Last year I really wanted to volunteer...I started to research and I talked with co-workers, but it just never worked out. This made it so easy! I was able to coordinate with peers and reunite with co-workers I haven’t seen in years all while helping the community.”

Amanda, an Ohio Claims employee, shared:

“I enjoyed meeting Progressive employees from other departments. It felt meaningful working with peers and was a nice change of pace from working from home.”

And Rodney, a Florida Claims employee, shared:

“I am newer to Progressive (started in October 2024), but I LOVE the fact that Progressive is putting together events like these.”

Our Employee Resource Groups (ERG) remain foundational to our inclusion efforts and provide valuable perspectives that help us better serve our customers. In addition, ERG members tend to be more engaged and demonstrate higher retention with us. This year our Military Network ERG, MILNET, coordinated a Military Appreciation Summer Jubilee to honor our veterans and active-duty military at a special event that includes performances, games, a motorcycle show, health fair booths, physical fitness competitions (for all levels), and much more. While MILNET hosted this incredible event, it was conducted in partnership with our Benefits Team, Health Services and Fitness professionals.

It’s so rewarding to see how our employees come together through ERG-sponsored engagement activities in support of the charities and the communities they serve. As an example, our giving efforts extended through to Progressive’s Latin American Networking Association’s (PLANETA) partnership with the National Coalition for the Homeless (NCOH), where they held 10 CAREbag drives, engaging hundreds of employees as they packed bags with essential and seasonal items for those struggling with shelter insecurity. Too, through Progressive African American Network’s (PAAN) partnership with Big Brothers Big Sisters, employees donated over 1,600 back-to-school supply items to help those in need get off to a fast start during the new school year.

Cynthia, one of our employees participating in a CAREbag drive, shared:

“Participating in the PLANETA Care Bag event for the past two years has been an incredibly meaningful experience for me. It’s inspiring to see our entire office come together to support the National Coalition for the Homeless and make a direct impact in our community. This event is a powerful reminder of how fortunate we are and the importance of giving back to those who need it most. I’m proud to work for a company that values compassion and actively supports those in need.”

We truly came together as a company in so many ways throughout the year in furtherance of our Purpose and Core Values. During our companywide IQ Inclusion Quarterly® events, we continued to go beyond our internal speakers to bring in broad experiences from outside our walls. In February 2025, we hosted Michael Kutcher, the twin brother of actor Ashton Kutcher, who challenged employees to face unique obstacles not as a victim, but as a victor and to look for the positive that can come from unexpected moments. He made it clear that no matter your abilities, you deserve a spot on the podium. To continue the theme, in November, we hosted Two & Company, an organization founded to help those with unique abilities to build skills and seek fulfilling lives for all.

Our Benefits Team has done its part to think about not just enhancing health care, but also broader wellness benefits, to support the wellbeing of our employees and their families. One example is their partnership with our employee assistance plan (EAP) provider to support employees as they navigate workplace events. As just one example, a “Dealing with Difficult Emotions and Coping and Resilience During Challenging Times” event was well received as our mostly hybrid and remote workforce confronted daily issues in the world around them.

Another extension of our efforts is the growing participation in Name Your Cause®, the guided giving program managed by The Progressive Insurance Foundation. Over 40% of our employees participated in the program in 2025 and nearly $5 million was donated to thousands of employee-nominated charities in the communities where our employees and customers live and work. The story below tells you what a difference a program like Name Your Cause can make in someone’s life.

Brenda, one of our Seguros consultants, shared with me her personal connection to this program and the impact these donations make in people’s lives:

“I have a rare condition called Scleroderma, which often means dealing with numerous issues like mobility challenges, skin tightening, organ complications, and more. Due to rising costs, I could no longer afford a critical medication, and my health began to decline. In a moment of uncertainty, my doctor reached out to the National Scleroderma Foundation. Through their generous programs, I received $18,000 worth of medication completely free. This was made possible by donations, including contributions from wonderful initiatives like Name Your Cause. It filled me with immense gratitude and joy that I could choose to have Progressive donate on my behalf.

“Experiencing firsthand the positive effects of such programs has been truly inspiring. It’s amazing to see Progressive supporting a variety of causes, making a real difference in people’s lives, like mine.”

Broad Needs of Customers

Our Vision is to become consumers’, agents’, and business owners’ #1 destination for insurance and other financial needs. As a destination company, we deliver choice and convenience when meeting our customers’ personal and business insurance needs. That starts with making insurance easy, showing we care, and giving customers confidence that they have the right coverage at a fair price, whether they choose to engage with us online, over the phone, or through one of more than 40,000 independent agencies.

In Personal Lines, HomeQuote Explorer® (HQX) is our digital front door for homeowners, condos, manufactured homes, renters, and umbrella, presenting both Progressive and unaffiliated carrier options so customers can compare rates and coverages and buy online where supported. Our in‑house agents can create or retrieve an HQX quote and complete the sale when a conversation is the preferred path. During 2025, we improved availability by adding carrier capacity and elevating experience features, including modified coverage alternatives.

The AutoQuote Explorer® platform (AQX) extends our destination strategy by giving shoppers a transparent, side‑by‑side view of competitive personal auto rates and coverages so shoppers can choose the right policy. In 2025, we broadened the AQX offering to 11 carriers across 40 states over the phone and 7 carriers across 10 states digitally. With continued investment in the customer experience, we’re making it easier to shop, compare, and save, giving customers confidence they’re getting the coverage they need at a fair price, even if the policy selected is with another carrier.

In Commercial Lines, we are advancing our strategy to meet the broader needs of business owners. BusinessQuote Explorer® (BQX), which we introduced in 2019, serves business owners online and provides four products from 13 different carriers, in both admitted and excess and surplus markets as of the end of 2025. We continue to explore ways to add underwriting appetite while also investing in streamlining customer experiences and providing online purchasing capabilities for additional product-carrier combinations.

We are continuing to grow and develop our business owners’ policy (BOP) product, which was available in 46 states that represented 80% of the commercial multi-peril market in 2025, through our in-house agency, and over 20,000 independent agents. Our current investments in technology, data, and talent are focused on delivering innovative products and experiences that meet the evolving needs of our customers throughout their lifetimes while maintaining a high-performing portfolio for sustainable growth. We recognize that customers who purchase additional products from us are likely to stay with us longer so bundling to us includes personal auto insurance paired with personal property, specialty, or commercial insurance products.

In our claims organization, in 2025 we implemented a comprehensive set of digital capabilities aimed at modernizing the claims experience and enabling customers to interact when, where, and how they choose. Customers now have digital options starting at the first notice of loss, throughout the investigation, damage assessment, and repair processes. These new tools also empower our employees with a new text and email communication platform, which includes a customer-facing generative AI assistant for automated tasks, information retrieval, and tailored follow-up actions. We believe these investments enhance both the customer and employee experience, while increasing efficiency.

Meeting our customers’ needs across any of our channels deepens our relationship with them and builds long‑term value. We will continue investing in independent agent relationships, digital capabilities, carrier relationships, and process improvements to deliver on that potential.

Leading Brand

As our brand continues to grow and mature, our primary objective remains delivering measurable business results by building meaningful connections and trust with consumers. We employ a dual strategy: leveraging mass media to maximize visibility and executing targeted digital initiatives to ensure our content remains top of mind. This approach allows us to consistently engage audiences wherever they are, building engagement and reinforcing brand loyalty through resonant, relatable, and insightful content.

Our most impactful campaigns—such as Flo and the Superstore Squad, as well as Dr. Rick—served as the foundation for our marketing efforts during 2025. We complemented these proven strategies by embracing innovation, notably through the integration of artificial intelligence, which enabled greater efficiency and unlocked new creative opportunities.

We used our award-winning assets as the foundation of that work, with profitable growth. One important message Flo and her Superstore Squad carried throughout the year was the rollout of our Accident ResponseSM feature in the mobile app. By teaming up with one of the biggest movies of the summer, Flo showed she could help customers faster than a speeding bullet and even Superman himself. Movie partnership creative continues to produce strong results and gives us a way to keep our brand relevant and in pop culture.

We also tapped into consumer passions, such as pet ownership, by featuring Mara from the Squad in a neighborhood dog park to promote our pet insurance offering. The campaign was a great success, and the campaign’s song went viral on Spotify, amplifying our message through popular culture. Dr. Rick’s ongoing resonance was further evidenced by his appearance as a Jeopardy question this fall, underscoring his status as a cultural icon. Our successful Backup campaign returned for another NFL season, reminding fans of the importance of having a reliable backup—like Progressive—in life.

Recognizing the shift in media consumption, we prioritized a robust online presence. According to Nielsen (May 2025), streaming captured 44.8% of viewing time, surpassing linear TV for the first time, with platforms like YouTube, Facebook, and Instagram becoming primary destinations for U.S. adults. With these trends in mind, during 2025, we developed platform-native campaigns that drive business within these audiences. One successful effort was a strategically timed YouTube homepage takeover aligned with the much-anticipated Taylor Swift album release, which drove some of our highest social engagement rates of the year, increased brand favorability across the board, and lifted key brand metrics among target audiences.

We duplicated this formula IRL (in real life as they say) through our NASCAR sponsorship, teaming up with the champion team of Joe Gibbs Racing and sponsoring their dominant driver, Denny Hamlin. Progressive’s logo was not to be missed on the hood of his #11 car, and Denny made sure plenty of wins kept our brand front and center among fans and viewers all year long, even joining us at the end of the year to help us gift a car to one of a hundred deserving veterans who received a car donation as part of a Keys to Progress event.

We continued to push creative boundaries by producing our first AI-generated TV ad. In the spot, “Drive Like an Animal” we harnessed the power of AI in the production process, while featuring a voiceover from Stephanie Courtney (aka “Flo”) in an unexpected llama-inspired twist. We developed a spot where animals rule the road to highlight our Snapshot® program, which personalizes customer rates based on their individual driving behaviors. The spot helped us learn how to use new creative tools more effectively while gaining several efficiencies and keeping our very talented creative teams at the forefront of innovation.

Our Purpose remains at the heart of our culture and is a vital highlight of our brand. Our Purpose is not just a statement; it’s a guiding principle that shapes everything we do. It drives our decisions, our interactions, and our commitment to making a positive impact every day.

In 2025, we launched the multi-year Open the House campaign designed to advance homeownership education and affordability. Through the UpPayment® program, during the year we assisted 100 first-generation homebuyers in securing homes, and provided educational resources to over 300,000 people, supporting first-time buyers with online tools to help them learn about the responsibilities of home ownership. And we engaged employees across Progressive, with almost 90% surveyed saying Open the House aligns with our Core Values, makes them feel proud to work for Progressive, and has a positive impact on our community. To debut the program, we launched a beautiful spot aptly named “Inherit,” acknowledging we inherit many cherished traits from our parents; however, the knowledge of homeownership may not be one.

J. Joseph, who recently had her first child and became the first in her family to purchase a home, with assistance from the UpPayment program, shared how the Open the House campaign has impacted her family:

“I am so happy to be a recipient of the Progressive UpPayment program. I am a first-generation homebuyer and my family and I are deeply grateful for this opportunity. This will help lessen the pressure of buying my first house and having my first child in the same year. We thank you!”

At the heart of our efforts is a commitment to genuine connections—with customers, communities, independent agents, employees, and all stakeholders. By embracing the Progressive spirit to risk, learn, and grow, we have amplified our signature campaigns and deepened our community impact. Our goal is not only to sell insurance but to be a trusted partner, ensuring that everyone we encounter knows the Progressive brand exists to help them move forward and live fully.

Competitive Prices

While our brand and our purpose are vital to who we are, we are also very aware that consumers want value when they shop for insurance. We believe that the cost structure of the insurance industry, especially in the personal lines arena, continues to get increasingly more competitive, while consumer shopping behavior has risen to likely all-time highs. Consequently, it is imperative that we continue to focus on our cost structure to remain competitive and grow profitably. We set internal goals around continuing to improve our non-acquisition and loss adjustment expense ratios. We strive to balance these goals with providing high-quality customer service and a great work environment, including competitive compensation, especially when we achieve excellent results.

Our aggregate expense ratio increased 1.8 points in 2025, compared to 2024, primarily driven by the $1.2 billion policyholder credit expense for Florida personal auto customers and an increase of $1.1 billion in advertising expense to drive growth. Our non-acquisition expense ratio (NAER), which excludes policyholder credits, advertising and agent commission expenses, for our Personal Lines vehicle business was down 0.2 points compared to 2024. Our Commercial Lines auto and personal property businesses NAER was up 0.7 points and 1.0 points, respectively, generally reflecting slower premium growth and investments to better position those businesses for future growth. Our companywide loss adjustment expense (LAE) ratio declined 0.2 points versus 2024, reflecting lower claims frequency, higher average premiums, and productivity improvements, in part driven by technology investments and process improvements. Included in both our NAER and LAE ratio are costs associated with paying our 2025 annual Gainshare bonus plan at close to the maximum of two times the target.

Over the past several years, we have grown our staff aggressively to handle tremendous growth, manage tenure, and address elevated turnover during the COVID pandemic. Our employee tenure is now solid, our engagement is at all-time highs, and our turnover is near the historic low, excluding the pandemic years. We are also investing in technology and process improvements to improve efficiency, accuracy, speed, and our work environment. As a result, while our staff at year end was up by nearly 4,000 more people from the prior year end, headcount has been declining modestly since the end of the third quarter, and we expect to handle significantly more customers through 2026 without increasing our headcount. People are a significant portion of our NAER and LAE and consequently this will help improve those ratios, especially in light of less tailwind from changes in average premium.

We are very clear that our strategy is not to be the low-cost leader in the industry, but to have a competitive cost structure which, in concert with industry-leading pricing segmentation and accurate claims handling, ensures competitive prices for new and existing customers. We have been successful in driving down our NAER and LAE ratio over the long term and plan to continue to do so to fuel future growth.

In addition to expense discipline, we continued what we believe to be industry leading pricing segmentation, always working on new product models to stay ahead of the competition. Understanding and matching rate to risk is everything in this business, and we believe we do this better than most.

CONTINUING TO LIVE OUR CULTURE…FULLY

To wrap up this letter, I’ve collected a few short stories from Progressive people and those they’ve impacted—in their own words—that exemplify our one-of-a-kind culture. It’s a culture where, whatever the circumstances, we all pull together for our shared purpose of helping others move forward and live fully.

I’ll begin with a story from one of this year’s Keys to Progress veteran vehicle giveaway recipients, Gideon. In a thank you note to our program facilitators, he shared a peek into his daily worries and what this vehicle meant to his family:

“Receiving this vehicle has been one of the most profound gifts our family has ever experienced. The fear I carry daily—about what will happen to my kids when my wife and I are gone—is deep. My sons have high needs, and my daughter may be the one who takes care of them someday. This vehicle has already brought relief in ways I didn’t expect. It’s going to change our daily lives, our ability to get to appointments, and our peace of mind. More than just transportation, it’s a symbol of stability and hope for my family. I know it will have a lasting impact on our children’s futures.”

The next story came from one of our employee ambassadors at our yearly Progressive Field Day event, where 250 employees from across the country are invited to Cleveland to visit our headquarters, mingle with leadership, take in the sights, and enjoy a baseball game at Progressive Field®. To be chosen to attend, we asked employees to share stories about how they live our Purpose—“we exist to help people move forward and live fully”—and many of the stories truly touched my heart. This one in particular about generosity, kindness, and friendship from Kristine in our IT organization especially inspired me:

“Years ago, I was fortunate to meet a woman named MaryAnn. I formed an unlikely yet profound friendship with her, although she was many years my senior. She had limited mobility, no car, and low financial means. Our friendship started with weekly Sunday calls, which I always looked forward to, and I started dedicating many hours to supporting her through life’s challenges like securing stable housing, consolidating her debt, bringing her shopping when needed, and attending crucial meetings to ensure she wasn’t taken advantage of.

“As time passed, her health began to decline. I remained by her side. I brought her to appointments, picked up prescriptions and most importantly, sat with her for hours and listened to the stories of her life. MaryAnn passed away in 2024. My friendship with her taught me that helping others is not just about direct acts of traditional assistance. Sometimes the most important way to help someone live fully is by just being fully present and truly listening…which is what she needed most.”

To sum up, I am extremely hopeful and confident for our future. With the incredible people we work with and our unwavering commitment to our Core Values, there is just no reason not to be. We are excited about the future and will continue to pursue our goals with great alacrity.

Stay well and be kind to others,

/s/ Tricia Griffith

Tricia Griffith

President and Chief Executive Officer

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