# EDGAR Filing Document

**Accession Number:** 0000080661
**File Stem:** 0000080661-25-000051
**Filing Date:** 2025-8
**Character Count:** 270519
**Document Hash:** 67150e2fdb86a03696164d8f56c126d9
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000080661-25-000051.hdr.sgml**: 20250804

**ACCESSION NUMBER**: 0000080661-25-000051

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 74

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250804

**DATE AS OF CHANGE**: 20250804

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PROGRESSIVE CORP/OH/
- **CENTRAL INDEX KEY:** 0000080661
- **STANDARD INDUSTRIAL CLASSIFICATION:** FIRE, MARINE & CASUALTY INSURANCE [6331]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 340963169
- **STATE OF INCORPORATION:** OH
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-09518
- **FILM NUMBER:** 251178593

**BUSINESS ADDRESS:**
- **STREET 1:** 300 NORTH COMMONS BLVD.
- **CITY:** MAYFIELD VILLAGE
- **STATE:** OH
- **ZIP:** 44143
- **BUSINESS PHONE:** 4404615000

**MAIL ADDRESS:**
- **STREET 1:** 300 NORTH COMMONS BLVD.
- **CITY:** MAYFIELD VILLAGE
- **STATE:** OH
- **ZIP:** 44143

?xml version='1.0' encoding='ASCII'? pgr-20250630

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q** 

**(Mark One)**

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

**For the quarterly period ended June 30, 2025** 

**or**

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

**For the transition period from <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>to<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**Commission File Number: <u>001-09518</u>**

**THE PROGRESSIVE CORPORATION**

**(Exact name of registrant as specified in its charter)**

---

| | | | |
|:---|:---|:---|:---|
| **Ohio** | **Ohio** | **Ohio** | **34-0963169** |
| **(State or other jurisdiction of incorporation or organization)** | **(State or other jurisdiction of incorporation or organization)** | **(State or other jurisdiction of incorporation or organization)** | **(I.R.S. Employer Identification No.)** |
| **300 North Commons Blvd.,** | **Mayfield Village,** | **Ohio** | **44143** |
| **(Address of principal executive offices)** | **(Address of principal executive offices)** | **(Address of principal executive offices)** | **(Zip Code)** |

---

**(440) 461-5000** 

**(Registrant's telephone number, including area code)**

**Not Applicable** 

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

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

---

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

---

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

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

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☒ | Accelerated filer | ☐ |
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
| | | Emerging growth company | ☐ |

---

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

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

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

Common Shares, $1.00 par value: 586,208,487 outstanding at June 30, 2025

------

**<u>PART I—FINANCIAL INFORMATION</u>**

**Item 1. Financial Statements.**

The Progressive Corporation and Subsidiaries

**Consolidated Statements of Comprehensive Income**

(unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months** | **Three Months** | **Six Months** | **Six Months** |
|<br>**Periods Ended June 30,** | **2025** | **2024** | **2025** | **2024** |
| **(millions — except per share amounts)** |  |  |  |  |
| **Revenues** |  |  |  |  |
| Net premiums earned | $20310 | $17209 | $39719 | $33358 |
| Investment income | 871 | 685 | 1685 | 1303 |
| Net realized gains (losses) on securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized gains (losses) on security sales | 19 | (227) | 20 | (373) |
| &nbsp;&nbsp;&nbsp;Net holding period gains (losses) on securities | 368 | 100 | 155 | 402 |
| Total net realized gains (losses) on securities | 387 | (127) | 175 | 29 |
| Fees and other revenues | 303 | 260 | 590 | 496 |
| Service revenues | 133 | 107 | 244 | 191 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 22004 | 18134 | 42413 | 35377 |
| **Expenses** |  |  |  |  |
| Losses and loss adjustment expenses | 13605 | 12595 | 26409 | 23567 |
| Policy acquisition costs | 1511 | 1308 | 2967 | 2540 |
| Other underwriting expenses | 2689 | 2180 | 5408 | 4111 |
| Investment expenses | 9 | 7 | 16 | 13 |
| Service expenses | 139 | 115 | 256 | 207 |
| Interest expense | 69 | 69 | 139 | 139 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 18022 | 16274 | 35195 | 30577 |
| **Net Income** |  |  |  |  |
| Income before income taxes | 3982 | 1860 | 7218 | 4800 |
| Provision for income taxes | 807 | 401 | 1476 | 1010 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | 3175 | 1459 | 5742 | 3790 |
| **Other Comprehensive Income (Loss)** |  |  |  |  |
| Changes in: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total net unrealized gains (losses) on fixed-maturity securities | 428 | 108 | 1327 | (100) |
| &nbsp;&nbsp;&nbsp;Net unrealized losses on forecasted transactions | 1 | 0 | 1 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss) | 429 | 108 | 1328 | (100) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive income (loss) | $3604 | $1567 | $7070 | $3690 |
| **Computation of Earnings Per Common Share** |  |  |  |  |
| Net income | $3175 | $1459 | $5742 | $3790 |
| Less: Preferred share dividends and other<sup>1</sup> | 0 | 0 | 0 | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income available to common shareholders | $3175 | $1459 | $5742 | $3773 |
| Average common shares outstanding - Basic | 586.2 | 585.4 | 586.1 | 585.4 |
| Net effect of dilutive stock-based compensation | 1.6 | 2.0 | 1.6 | 2.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total average equivalent common shares - Diluted | 587.8 | 587.4 | 587.7 | 587.4 |
| Basic: Earnings per common share | $5.42 | $2.49 | $9.80 | $6.45 |
| Diluted: Earnings per common share | $5.40 | $2.48 | $9.77 | $6.42 |

---

<sup>1</sup> All of our outstanding Serial Preferred Shares, Series B, were redeemed in February 2024.

See notes to consolidated financial statements.

------

The Progressive Corporation and Subsidiaries

**Consolidated Balance Sheets**

(unaudited)

---

| | | | |
|:---|:---|:---|:---|
| | **June 30,** | **June 30,** | |
| <br>**(millions)** | **2025** | **2024** | **December 31,**<br>**2024** |
| **Assets** |  |  |  |
| Available-for-sale securities, at fair value: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed maturities (amortized cost: $82,372, $69,668, and $77,126) | $82272 | $67489 | $75332 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term investments (amortized cost: $2,103, $733, and $615) | 2103 | 733 | 615 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total available-for-sale securities | 84375 | 68222 | 75947 |
| Equity securities, at fair value: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonredeemable preferred stocks (cost: $517, $887, and $756) | 500 | 838 | 728 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common equities (cost: $775, $708, and $745) | 3735 | 3296 | 3575 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity securities | 4235 | 4134 | 4303 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments | 88610 | 72356 | 80250 |
| Cash and cash equivalents | 125 | 90 | 143 |
| Restricted cash and cash equivalents | 10 | 12 | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cash, cash equivalents, restricted cash, and restricted cash equivalents | 135 | 102 | 154 |
| Accrued investment income | 636 | 564 | 594 |
| Premiums receivable, net of allowance for credit losses of $501, $328, and $460 | 16406 | 14545 | 14369 |
| Reinsurance recoverables | 4197 | 4881 | 4765 |
| Prepaid reinsurance premiums | 263 | 291 | 349 |
| Deferred acquisition costs | 2110 | 1938 | 1961 |
| Property and equipment, net of accumulated depreciation of $1,369, $1,558, and $1,461 | 820 | 713 | 790 |
| Net federal deferred income taxes | 633 | 1001 | 954 |
| Other assets | 1670 | 1502 | 1559 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $115480 | $97893 | $105745 |
| **Liabilities and Shareholders' Equity** |  |  |  |
| Unearned premiums | $26335 | $23681 | $23858 |
| Loss and loss adjustment expense reserves | 41154 | 36605 | 39057 |
| Accounts payable, accrued expenses, and other liabilities | 8492 | 7376 | 10346 |
| Debt<sup>1</sup> | 6895 | 6891 | 6893 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 82876 | 74553 | 80154 |
| Common shares, $1.00 par value (authorized 900; issued 798, including treasury shares of 212) | 586 | 586 | 586 |
| Paid-in capital | 2192 | 2060 | 2145 |
| Retained earnings | 29921 | 22410 | 24283 |
| Accumulated other comprehensive income (loss): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net unrealized gains (losses) on fixed-maturity securities | (81) | (1701) | (1408) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net unrealized losses on forecasted transactions | (13) | (14) | (14) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustment | (1) | (1) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total accumulated other comprehensive income (loss) | (95) | (1716) | (1423) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity | 32604 | 23340 | 25591 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and shareholders' equity | $115480 | $97893 | $105745 |

---

<sup>1</sup> Consists solely of long-term debt. See *Note 4 – Debt* for further discussion.

See notes to consolidated financial statements.

------

The Progressive Corporation and Subsidiaries

**Consolidated Statements of Changes in Shareholders' Equity**

(unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months** | **Three Months** | **Six Months** | **Six Months** |
|<br>**Periods Ended June 30,** | **2025** | **2024** | **2025** | **2024** |
| **(millions — except per share amounts)** |  |  |  |  |
| **Serial Preferred Shares, No Par Value** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Balance, beginning of period | $0 | $0 | $0 | $494 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemption of Serial Preferred Shares, Series B<sup>1</sup> | 0 | 0 | 0 | (494) |
| &nbsp;&nbsp;&nbsp;Balance, end of period | 0 | 0 | 0 | 0 |
| **Common Shares, $1.00 Par Value** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Balance, beginning of period | 586 | 586 | 586 | 585 |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury shares purchased | 0 | 0 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net restricted equity awards issued/vested | 0 | 0 | 0 | 1 |
| &nbsp;&nbsp;&nbsp;Balance, end of period | 586 | 586 | 586 | 586 |
| **Paid-In Capital** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Balance, beginning of period | 2160 | 2029 | 2145 | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of equity-based compensation | 32 | 31 | 48 | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury shares purchased | 0 | 0 | (1) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net restricted equity awards issued/vested | 0 | 0 | 0 | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinvested dividends on restricted stock units | 0 | 0 | 0 | 1 |
| &nbsp;&nbsp;&nbsp;Balance, end of period | 2192 | 2060 | 2192 | 2060 |
| **Retained Earnings** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Balance, beginning of period | 26732 | 21020 | 24283 | 18801 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | 3175 | 1459 | 5742 | 3790 |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury shares purchased | (13) | (11) | (66) | (47) |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash dividends declared on common shares ($0.10, $0.10, $0.20, and $0.20 per share)<sup>1</sup> | (58) | (58) | (117) | (117) |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash dividends declared on Serial Preferred Shares, Series B ($0, $0, $0, and $15.688377 per share)<sup>1</sup> | 0 | 0 | 0 | (8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinvested dividends on restricted stock units | 0 | 0 | 0 | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | 85 | 0 | 79 | (8) |
| &nbsp;&nbsp;&nbsp;Balance, end of period | 29921 | 22410 | 29921 | 22410 |
| **Accumulated Other Comprehensive Income (Loss)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Balance, beginning of period | (524) | (1824) | (1423) | (1616) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss) | 429 | 108 | 1328 | (100) |
| &nbsp;&nbsp;&nbsp;Balance, end of period | (95) | (1716) | (95) | (1716) |
| **Total shareholders' equity** | $32604 | $23340 | $32604 | $23340 |

---

<sup>1</sup> See *Note 9 – Dividends* for further discussion.

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

See notes to consolidated financial statements.

------

The Progressive Corporation and Subsidiaries

**Consolidated Statements of Cash Flows&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**

(unaudited)

---

| | | |
|:---|:---|:---|
| **Six Months Ended June 30,** | **2025** | **2024** |
| **(millions)** |  |  |
| **Cash Flows From Operating Activities** |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $5742 | $3790 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 149 | 138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net amortization (accretion) of fixed-income securities | (55) | (20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of equity-based compensation | 48 | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized (gains) losses on securities | (175) | (29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (gains) losses on disposition of property and equipment | 1 | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums receivable | (2037) | (2587) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance recoverables | 568 | 213 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid reinsurance premiums | 86 | (41) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred acquisition costs | (149) | (251) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes | (173) | (342) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unearned premiums | 2477 | 3547 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss and loss adjustment expense reserves | 2097 | 2216 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable, accrued expenses, and other liabilities | 550 | 1058 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | 54 | (237) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 9183 | 7502 |
| **Cash Flows From Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;Purchases: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed maturities | (26354) | (24532) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity securities | (87) | (32) |
| &nbsp;&nbsp;&nbsp;Sales: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed maturities | 17086 | 13687 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity securities | 151 | 98 |
| &nbsp;&nbsp;&nbsp;Maturities, paydowns, calls, and other: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed maturities | 4006 | 3235 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity securities | 177 | 23 |
| &nbsp;&nbsp;&nbsp;Net (purchases) sales of short-term investments | (1429) | 1087 |
| &nbsp;&nbsp;&nbsp;Net change in unsettled security transactions | 178 | 120 |
| &nbsp;&nbsp;&nbsp;Purchases of property and equipment | (161) | (118) |
| &nbsp;&nbsp;&nbsp;Sales of property and equipment | 52 | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (6381) | (6387) |
| **Cash Flows From Financing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;Dividends paid to common shareholders | (2754) | (557) |
| &nbsp;&nbsp;&nbsp;Acquisition of treasury shares for equity award tax liabilities | (55) | (38) |
| &nbsp;&nbsp;&nbsp;Acquisition of treasury shares acquired in open market | (12) | (10) |
| &nbsp;&nbsp;&nbsp;Redemption of preferred shares | 0 | (500) |
| &nbsp;&nbsp;&nbsp;Dividends paid to preferred shareholders | 0 | (8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (2821) | (1113) |
| Increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents | (19) | 2 |
| Cash, cash equivalents, restricted cash, and restricted cash equivalents – January 1 | 154 | 100 |
| Cash, cash equivalents, restricted cash, and restricted cash equivalents – June 30 | $135 | $102 |

---

See notes to consolidated financial statements.

------

The Progressive Corporation and Subsidiaries

**Notes to Consolidated Financial Statements**

(unaudited)

**1. BASIS OF REPORTING AND ACCOUNTING**

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

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

<u>Premiums Receivable</u>

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>**(millions)** | **2025** | **2024** | **2025** | **2024** |
| Allowance for credit losses, beginning of period | $473 | $328 | $460 | $369 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in allowance<sup>1</sup> | 176 | 128 | 329 | 235 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Write-offs<sup>2</sup> | (148) | (128) | (288) | (276) |
| Allowance for credit losses, end of period | $501 | $328 | $501 | $328 |

---

<sup>1</sup> Represents the incremental increase in other underwriting expenses.

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

<u>Property – Held for Sale</u>

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

<u>New Accounting Standards</u>

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

------

**2. INVESTMENTS** 

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | **Cost** | **Gross<br>Unrealized<br>Gains** | **Gross<br>Unrealized<br>Losses** | **Net<br>Holding<br>Period<br>Gains<br>(Losses)** | **Fair<br>Value** | **% of<br>Total<br>Fair<br>Value** |
| <u>June 30, 2025</u> |  |  |  |  |  |  |
| Available-for-sale securities: |  |  |  |  |  |  |
| Fixed maturities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. government obligations | $46684 | $598 | $(472) | $0 | $46810 | 52.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State and local government obligations | 3030 | 12 | (78) | 0 | 2964 | 3.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign government obligations | 17 | 0 | 0 | 0 | 17 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate and other debt securities | 18004 | 222 | (112) | 8 | 18122 | 20.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage-backed securities | 2644 | 21 | (7) | 2 | 2660 | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial mortgage-backed securities | 5325 | 10 | (286) | 0 | 5049 | 5.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other asset-backed securities | 6668 | 26 | (44) | 0 | 6650 | 7.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fixed maturities | 82372 | 889 | (999) | 10 | 82272 | 92.8 |
| Short-term investments | 2103 | 0 | 0 | 0 | 2103 | 2.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total available-for-sale securities | 84475 | 889 | (999) | 10 | 84375 | 95.2 |
| Equity securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonredeemable preferred stocks | 517 | 0 | 0 | (17) | 500 | 0.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common equities | 775 | 0 | 0 | 2960 | 3735 | 4.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity securities | 1292 | 0 | 0 | 2943 | 4235 | 4.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total portfolio<sup>1</sup> | $85767 | $889 | $(999) | $2953 | $88610 | 100.0% |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | **Cost** | **Gross<br>Unrealized<br>Gains** | **Gross<br>Unrealized<br>Losses** | **Net<br>Holding<br>Period<br>Gains<br>(Losses)** | **Fair<br>Value** | **% of<br>Total<br>Fair<br>Value** |
| <u>June 30, 2024</u> |  |  |  |  |  |  |
| Available-for-sale securities: |  |  |  |  |  |  |
| Fixed maturities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. government obligations | $42063 | $60 | $(1229) | $0 | $40894 | 56.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State and local government obligations | 2345 | 1 | (144) | 0 | 2202 | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign government obligations | 17 | 0 | (1) | 0 | 16 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate and other debt securities | 13439 | 33 | (306) | (20) | 13146 | 18.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage-backed securities | 981 | 2 | (9) | 2 | 976 | 1.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial mortgage-backed securities | 4457 | 2 | (489) | 0 | 3970 | 5.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other asset-backed securities | 6366 | 8 | (89) | 0 | 6285 | 8.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fixed maturities | 69668 | 106 | (2267) | (18) | 67489 | 93.2 |
| Short-term investments | 733 | 0 | 0 | 0 | 733 | 1.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total available-for-sale securities | 70401 | 106 | (2267) | (18) | 68222 | 94.2 |
| Equity securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonredeemable preferred stocks | 887 | 0 | 0 | (49) | 838 | 1.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common equities | 708 | 0 | 0 | 2588 | 3296 | 4.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity securities | 1595 | 0 | 0 | 2539 | 4134 | 5.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total portfolio<sup>1</sup> | $71996 | $106 | $(2267) | $2521 | $72356 | 100.0% |

---

------

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | **Cost** | **Gross<br>Unrealized<br>Gains** | **Gross<br>Unrealized<br>Losses** | **Net<br>Holding<br>Period<br>Gains<br>(Losses)** | **Fair<br>Value** | **% of<br>Total<br>Fair<br>Value** |
| <u>December 31, 2024</u> |  |  |  |  |  |  |
| Available-for-sale securities: |  |  |  |  |  |  |
| Fixed maturities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. government obligations | $47103 | $36 | $(1151) | $0 | $45988 | 57.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State and local government obligations | 2893 | 2 | (117) | 0 | 2778 | 3.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign government obligations | 16 | 0 | 0 | 0 | 16 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate and other debt securities | 14111 | 65 | (215) | (7) | 13954 | 17.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage-backed securities | 1600 | 9 | (11) | 3 | 1601 | 2.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial mortgage-backed securities | 4721 | 7 | (376) | 0 | 4352 | 5.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other asset-backed securities | 6682 | 26 | (65) | 0 | 6643 | 8.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fixed maturities | 77126 | 145 | (1935) | (4) | 75332 | 93.9 |
| Short-term investments | 615 | 0 | 0 | 0 | 615 | 0.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total available-for-sale securities | 77741 | 145 | (1935) | (4) | 75947 | 94.6 |
| Equity securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonredeemable preferred stocks | 756 | 0 | 0 | (28) | 728 | 0.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common equities | 745 | 0 | 0 | 2830 | 3575 | 4.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity securities | 1501 | 0 | 0 | 2802 | 4303 | 5.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total portfolio<sup>1</sup> | $79242 | $145 | $(1935) | $2798 | $80250 | 100.0% |

---

<sup>1</sup> At June 30, 2025 and 2024 and December 31, 2024, we had $303 million, $74 million, and $125 million, respectively, of net unsettled security transactions included in accounts payable, accrued expenses, and other liabilities on our consolidated balance sheets.

&nbsp;&nbsp;&nbsp;&nbsp;The total fair value of the portfolio at June 30, 2025 and 2024 and December 31, 2024, included $5.0 billion, $4.1 billion, and $6.2 billion, respectively, of securities held in a consolidated, non-insurance subsidiary of the holding company, net of unsettled security transactions. A portion of the investments held at December 31, 2024 were sold and proceeds were used to pay our common share dividends in January 2025; see *Note 9 – Dividends* for additional information.

The June 30, 2024, corporate and other debt securities in our *Note 2 – Investments* and *Note 3 – Fair Value* tables include amounts that were previously reported as redeemable preferred stocks. The reclassification was to reflect the accurate categorization based on the underlying features of these securities; see *Note 2 – Investments* in our 2024 Annual Report to Shareholders for further discussion.

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

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

---

| | | | |
|:---|:---|:---|:---|
| | **June 30,** | **June 30,** | |
|<br>**(millions)** | **2025** | **2024** |<br>**December 31, 2024** |
| Fixed Maturities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate and other debt securities | $731 | $610 | $608 |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage-backed securities | 615 | 273 | 479 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other asset-backed securities | 0 | 5 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total hybrid securities | $1346 | $888 | $1088 |

---

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

------

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

---

| | | |
|:---|:---|:---|
| **(millions)** | **Cost** | **Fair Value** |
| Less than one year | $8582 | $8547 |
| One to five years | 49855 | 49697 |
| Five to ten years | 23657 | 23747 |
| Ten years or greater | 278 | 281 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $82372 | $82272 |

---

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.

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

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Total No. of Sec.** | **Total<br>Fair<br>Value** | **Gross<br>Unrealized<br>Losses** | **Less than 12 Months** | **Less than 12 Months** | **Less than 12 Months** | **12 Months or Greater** | **12 Months or Greater** | **12 Months or Greater** |
|<br>**($ in millions)** | **Total No. of Sec.** | **Total<br>Fair<br>Value** | **Gross<br>Unrealized<br>Losses** | **No. of Sec.** | **Fair<br>Value** | **Gross Unrealized<br>Losses** | **No. of Sec.** | **Fair<br> Value** | **Gross Unrealized<br>Losses** |
| <u>June 30, 2025</u> |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. government obligations | 73 | $10463 | $(472) | 9 | $2878 | $(20) | 64 | $7585 | $(452) |
| &nbsp;&nbsp;&nbsp;&nbsp;State and local government obligations | 275 | 1677 | (78) | 53 | 289 | (1) | 222 | 1388 | (77) |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate and other debt securities | 159 | 3737 | (112) | 28 | 610 | (6) | 131 | 3127 | (106) |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage-backed securities | 29 | 385 | (7) | 11 | 342 | (2) | 18 | 43 | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial mortgage-backed securities | 153 | 3331 | (286) | 16 | 448 | (2) | 137 | 2883 | (284) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other asset-backed securities | 79 | 1797 | (44) | 40 | 880 | (2) | 39 | 917 | (42) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fixed maturities | 768 | $21390 | $(999) | 157 | $5447 | $(33) | 611 | $15943 | $(966) |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Total No. of Sec.** | **Total<br>Fair<br>Value** | **Gross<br>Unrealized<br>Losses** | **Less than 12 Months** | **Less than 12 Months** | **Less than 12 Months** | **12 Months or Greater** | **12 Months or Greater** | **12 Months or Greater** |
|<br>**($ in millions)** | **Total No. of Sec.** | **Total<br>Fair<br>Value** | **Gross<br>Unrealized<br>Losses** | **No. of Sec.** | **Fair<br>Value** | **Gross Unrealized<br>Losses** | **No. of Sec.** | **Fair<br> Value** | **Gross Unrealized<br>Losses** |
| <u>June 30, 2024</u> |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. government obligations | 117 | $29776 | $(1229) | 17 | $12936 | $(110) | 100 | $16840 | $(1119) |
| &nbsp;&nbsp;&nbsp;&nbsp;State and local government obligations | 336 | 2079 | (144) | 58 | 411 | (2) | 278 | 1668 | (142) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign government obligations | 1 | 16 | (1) | 0 | 0 | 0 | 1 | 16 | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate and other debt securities | 405 | 9032 | (306) | 150 | 3307 | (19) | 255 | 5725 | (287) |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage-backed securities | 39 | 308 | (9) | 7 | 244 | 0 | 32 | 64 | (9) |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial mortgage-backed securities | 183 | 3883 | (489) | 7 | 315 | (1) | 176 | 3568 | (488) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other asset-backed securities | 176 | 3133 | (89) | 62 | 1447 | (3) | 114 | 1686 | (86) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fixed maturities | 1257 | $48227 | $(2267) | 301 | $18660 | $(135) | 956 | $29567 | $(2132) |

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---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Total No. of Sec.** | **Total<br>Fair<br>Value** | **Gross<br>Unrealized<br>Losses** | **Less than 12 Months** | **Less than 12 Months** | **Less than 12 Months** | **12 Months or Greater** | **12 Months or Greater** | **12 Months or Greater** |
|<br>**($ in millions)** | **Total No. of Sec.** | **Total<br>Fair<br>Value** | **Gross<br>Unrealized<br>Losses** | **No. of Sec.** | **Fair<br>Value** | **Gross Unrealized<br>Losses** | **No. of Sec.** | **Fair<br> Value** | **Gross Unrealized<br>Losses** |
| <u>December 31, 2024</u> |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. government obligations | 113 | $38782 | $(1151) | 39 | $30257 | $(418) | 74 | $8525 | $(733) |
| &nbsp;&nbsp;&nbsp;&nbsp;State and local government obligations | 379 | 2339 | (117) | 127 | 783 | (6) | 252 | 1556 | (111) |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate and other debt securities | 304 | 7034 | (215) | 122 | 2935 | (33) | 182 | 4099 | (182) |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage-backed securities | 40 | 428 | (11) | 12 | 377 | (4) | 28 | 51 | (7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial mortgage-backed securities | 153 | 3294 | (376) | 8 | 264 | (16) | 145 | 3030 | (360) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other asset-backed securities | 84 | 1907 | (65) | 34 | 912 | (8) | 50 | 995 | (57) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fixed maturities | 1073 | $53784 | $(1935) | 342 | $35528 | $(485) | 731 | $18256 | $(1450) |

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

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

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

• credit support (via current levels of subordination);

• historical credit ratings; and

• updated cash flow expectations based upon these performance indicators.

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

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

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

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

------

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months** | **Three Months** | **Six Months** | **Six Months** |
|<br>**(millions)** | **2025** | **2024** | **2025** | **2024** |
| <u>Gross realized gains on security sales</u> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Available-for-sale securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. government obligations | $24 | $1 | $77 | $1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate and other debt securities | 2 | 1 | 3 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage-backed securities | 1 | 1 | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total available-for-sale securities | 27 | 3 | 81 | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonredeemable preferred stocks | 0 | 0 | 2 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common equities | 4 | 0 | 39 | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity securities | 4 | 0 | 41 | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal gross realized gains on security sales | 31 | 3 | 122 | 18 |
| <u>Gross realized losses on security sales</u> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Available-for-sale securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. government obligations | (1) | (192) | (78) | (327) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State and local government obligations | 0 | 0 | (2) | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate and other debt securities | (2) | (23) | (3) | (38) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial mortgage-backed securities | (6) | (10) | (10) | (15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total available-for-sale securities | (9) | (225) | (93) | (380) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonredeemable preferred stocks | (3) | (5) | (5) | (11) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common equities | 0 | 0 | (4) | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity securities | (3) | (5) | (9) | (11) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal gross realized losses on security sales | (12) | (230) | (102) | (391) |
| <u>Net realized gains (losses) on security sales</u> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Available-for-sale securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. government obligations | 23 | (191) | (1) | (326) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State and local government obligations | 0 | 0 | (2) | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate and other debt securities | 0 | (22) | 0 | (34) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage-backed securities | 1 | 1 | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial mortgage-backed securities | (6) | (10) | (10) | (15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total available-for-sale securities | 18 | (222) | (12) | (374) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonredeemable preferred stocks | (3) | (5) | (3) | (11) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common equities | 4 | 0 | 35 | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity securities | 1 | (5) | 32 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal net realized gains (losses) on security sales | 19 | (227) | 20 | (373) |
| <u>Net holding period gains (losses)</u> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hybrid securities | 11 | 3 | 14 | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity securities | 357 | 97 | 141 | 391 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal net holding period gains (losses) | 368 | 100 | 155 | 402 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net realized gains (losses) on securities | $387 | $(127) | $175 | $29 |

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

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

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

---

------

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months** | **Three Months** | **Six Months** | **Six Months** |
|<br>**(millions)** | **2025** | **2024** | **2025** | **2024** |
| Available-for-sale securities: |  |  |  |  |
| &nbsp;&nbsp;Fixed maturities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. government obligations | $422 | $361 | $844 | $668 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State and local government obligations | 21 | 13 | 40 | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate and other debt securities | 208 | 137 | 379 | 262 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage-backed securities | 32 | 8 | 57 | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial mortgage-backed securities | 59 | 47 | 112 | 93 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other asset-backed securities | 84 | 82 | 168 | 160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fixed maturities | 826 | 648 | 1600 | 1222 |
| &nbsp;&nbsp;Short-term investments | 28 | 17 | 46 | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total available-for-sale securities | 854 | 665 | 1646 | 1258 |
| Equity securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonredeemable preferred stocks | 5 | 10 | 13 | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common equities | 12 | 10 | 26 | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity securities | 17 | 20 | 39 | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment income | 871 | 685 | 1685 | 1303 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment expenses | (9) | (7) | (16) | (13) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income | $862 | $678 | $1669 | $1290 |

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

**3. FAIR VALUE** 

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

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

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

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

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

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

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

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Fair Value** | **Fair Value** | **Fair Value** | **Fair Value** | |
|<br>**(millions)** | **Level 1** | **Level 2** | **Level 3** | **Total** |<br>**Cost** |
| <u>June 30, 2025</u> |  |  |  |  |  |
| Fixed maturities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. government obligations | $46810 | $0 | $0 | $46810 | $46684 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State and local government obligations | 0 | 2964 | 0 | 2964 | 3030 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign government obligations | 0 | 17 | 0 | 17 | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate and other debt securities | 0 | 18117 | 5 | 18122 | 18004 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage-backed securities | 0 | 2660 | 0 | 2660 | 2644 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial mortgage-backed securities | 0 | 5049 | 0 | 5049 | 5325 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other asset-backed securities | 0 | 6650 | 0 | 6650 | 6668 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fixed maturities | 46810 | 35457 | 5 | 82272 | 82372 |
| Short-term investments | 1922 | 181 | 0 | 2103 | 2103 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total available-for-sale securities | 48732 | 35638 | 5 | 84375 | 84475 |
| Equity securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonredeemable preferred stocks | 0 | 440 | 60 | 500 | 517 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common equities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stocks | 3694 | 0 | 9 | 3703 | 743 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other risk investments | 0 | 0 | 32 | 32 | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal common equities | 3694 | 0 | 41 | 3735 | 775 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity securities | 3694 | 440 | 101 | 4235 | 1292 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total portfolio | $52426 | $36078 | $106 | $88610 | $85767 |
| Debt | $0 | $6294 | $0 | $6294 | $6895 |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Fair Value** | **Fair Value** | **Fair Value** | **Fair Value** | |
|<br>**(millions)** | **Level 1** | **Level 2** | **Level 3** | **Total** |<br>**Cost** |
| <u>June 30, 2024</u> |  |  |  |  |  |
| Fixed maturities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. government obligations | $40894 | $0 | $0 | $40894 | $42063 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State and local government obligations | 0 | 2202 | 0 | 2202 | 2345 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign government obligations | 0 | 16 | 0 | 16 | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate and other debt securities | 0 | 13143 | 3 | 13146 | 13439 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage-backed securities | 0 | 976 | 0 | 976 | 981 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial mortgage-backed securities | 0 | 3970 | 0 | 3970 | 4457 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other asset-backed securities | 0 | 6285 | 0 | 6285 | 6366 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fixed maturities | 40894 | 26592 | 3 | 67489 | 69668 |
| Short-term investments | 733 | 0 | 0 | 733 | 733 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total available-for-sale securities | 41627 | 26592 | 3 | 68222 | 70401 |
| Equity securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonredeemable preferred stocks | 0 | 786 | 52 | 838 | 887 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common equities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stocks | 3250 | 0 | 22 | 3272 | 684 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other risk investments | 0 | 0 | 24 | 24 | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal common equities | 3250 | 0 | 46 | 3296 | 708 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity securities | 3250 | 786 | 98 | 4134 | 1595 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total portfolio | $44877 | $27378 | $101 | $72356 | $71996 |
| Debt | $0 | $6166 | $0 | $6166 | $6891 |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Fair Value** | **Fair Value** | **Fair Value** | **Fair Value** | |
|<br>**(millions)** | **Level 1** | **Level 2** | **Level 3** | **Total** |<br>**Cost** |
| <u>December 31, 2024</u> |  |  |  |  |  |
| Fixed maturities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. government obligations | $45988 | $0 | $0 | $45988 | $47103 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State and local government obligations | 0 | 2778 | 0 | 2778 | 2893 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign government obligations | 0 | 16 | 0 | 16 | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate and other debt securities | 0 | 13949 | 5 | 13954 | 14111 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage-backed securities | 0 | 1601 | 0 | 1601 | 1600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial mortgage-backed securities | 0 | 4352 | 0 | 4352 | 4721 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other asset-backed securities | 0 | 6643 | 0 | 6643 | 6682 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fixed maturities | 45988 | 29339 | 5 | 75332 | 77126 |
| Short-term investments | 613 | 2 | 0 | 615 | 615 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total available-for-sale securities | 46601 | 29341 | 5 | 75947 | 77741 |
| Equity securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonredeemable preferred stocks | 0 | 676 | 52 | 728 | 756 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common equities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stocks | 3527 | 0 | 23 | 3550 | 720 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other risk investments | 0 | 0 | 25 | 25 | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal common equities | 3527 | 0 | 48 | 3575 | 745 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity securities | 3527 | 676 | 100 | 4303 | 1501 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total portfolio | $50128 | $30017 | $105 | $80250 | $79242 |
| Debt | $0 | $6173 | $0 | $6173 | $6893 |

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

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

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

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

dealer quotes, compared to 100% at June 30, 2024 and December 31, 2024. 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

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

For corporate and other debt, nonredeemable preferred stock, and the notes issued by The Progressive Corporation (see *Note 4 – Debt*), we review securities by duration, credit quality, and coupon, as well as changes in interest rate and credit spread movements within that stratification. The review also includes recent trades, including: volume traded at various levels that establish a market; issuer specific fundamentals; and industry-specific economic news as it comes to light.

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

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

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

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

During each valuation period, we create internal estimations of portfolio valuation (performance returns), based on current market-related activity (i.e., interest rate and credit spread movements and other credit-related factors) within each major sector of our portfolio. We compare our internally generated portfolio results with those generated based on quotes we receive externally and research material valuation differences. We compare our results to index returns for each major sector adjusting for duration and credit quality differences to better understand our portfolio's results. Additionally, we review on a monthly basis our external sales transactions and compare the actual final market sales prices to previous market valuation prices. This review provides us further validation that our pricing sources are providing market level prices, since we are able to explain significant price changes (i.e., greater than 2%) as known events occur in the marketplace and affect a particular security's price at sale.

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

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

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.

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

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **(millions)** | **Fair Value at March 31, 2025** | **Calls/<br>Maturities/<br>Paydowns/Other** | **Purchases** | **Sales** | **Net Realized<br>(Gain)/Loss<br>on Sales** | **Change in**<br>**Valuation**<sup>1</sup> | **Net<br>Transfers<br>In (Out)** | **Fair Value at June 30, 2025** |
| Fixed maturities: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate and other debt securities | $5 | $0 | $0 | $0 | $0 | $0 | $0 | $5 |
| Equity securities: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonredeemable preferred stocks | 60 | 0 | 0 | 0 | 0 | 0 | 0 | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common equities: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stocks | 9 | 0 | 0 | 0 | 0 | 0 | 0 | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other risk investments | 31 | 1 | 0 | 0 | 0 | 0 | 0 | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Level 3 securities | $105 | $1 | $0 | $0 | $0 | $0 | $0 | $106 |
| **(millions)** | **Fair Value at March 31, 2024** | **Calls/<br>Maturities/<br>Paydowns/Other** | **Purchases** | **Sales** | **Net Realized<br>(Gain)/Loss<br>on Sales** | **Change in**<br>**Valuation**<sup>1</sup> | **Net<br>Transfers<br>In (Out)** | **Fair Value at June 30, 2024** |
| Fixed maturities: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate and other debt securities | $3 | $0 | $0 | $0 | $0 | $0 | $0 | $3 |
| Equity securities: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonredeemable preferred stocks | 64 | 0 | 0 | 0 | 0 | (12) | 0 | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common equities: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stocks | 22 | 0 | 0 | 0 | 0 | 0 | 0 | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other risk investments | 25 | (1) | 0 | 0 | 0 | 0 | 0 | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Level 3 securities | $114 | $(1) | $0 | $0 | $0 | $(12) | $0 | $101 |
| **(millions)** | **Fair Value at December 31, 2024** | **Calls/<br>Maturities/<br>Paydowns/Other** | **Purchases** | **Sales** | **Net Realized<br>(Gain)/Loss<br>on Sales** | **Change in**<br>**Valuation**<sup>1</sup> | **Net<br>Transfers<br>In (Out)** | **Fair Value at June 30, 2025** |
| Fixed maturities: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate and other debt securities | $5 | $0 | $0 | $0 | $0 | $0 | $0 | $5 |
| Equity securities: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonredeemable preferred stocks | 52 | 0 | 8 | 0 | 0 | 0 | 0 | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common equities: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stocks | 23 | 0 | 0 | 0 | 0 | (14) | 0 | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other risk investments | 25 | 7 | 0 | 0 | 0 | 0 | 0 | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Level 3 securities | $105 | $7 | $8 | $0 | $0 | $(14) | $0 | $106 |
| **(millions)** | **Fair Value at December 31, 2023** | **Calls/<br>Maturities/<br>Paydowns/Other** | **Purchases** | **Sales** | **Net Realized<br>(Gain)/Loss<br>on Sales** | **Change in**<br>**Valuation**<sup>1</sup> | **Net<br>Transfers<br>In (Out)** | **Fair Value at June 30, 2024** |
| Fixed maturities: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate and other debt securities | $3 | $0 | $0 | $0 | $0 | $0 | $0 | $3 |
| Equity securities: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonredeemable preferred stocks | 64 | 0 | 0 | 0 | 0 | (12) | 0 | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common equities: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stocks | 22 | 0 | 0 | 0 | 0 | 0 | 0 | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other risk investments | 21 | 3 | 0 | 0 | 0 | 0 | 0 | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Level 3 securities | $110 | $3 | $0 | $0 | $0 | $(12) | $0 | $101 |

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

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

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Fair Value at June 30, 2025** | **Valuation Technique** | **Unobservable Input** | **Range of Input Values Increase (Decrease)** | **Weighted Average Increase (Decrease)** |
| Fixed maturities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Corporate and other debt securities | $5 | Market comparables | Weighted average market capitalization price change % | 0.6% to 0.8% | 0.7% |
| Equity securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Nonredeemable preferred stocks | 60 | Market comparables | Weighted average market capitalization price change % | (13.1)% to 22.7% | 3.7% |
| &nbsp;&nbsp;Common stocks | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9 | Market comparables | Weighted average market capitalization price change % | (26.3)% to 56.6% | 21.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal Level 3 securities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;74 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pricing exemption securities | 32 |  |  |  |  |
| Total Level 3 securities | $106 |  |  |  |  |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Fair Value at June 30, 2024** | **Valuation Technique** | **Unobservable Input** | **Range of Input Values Increase (Decrease)** | **Weighted Average Increase (Decrease)** |
| Fixed maturities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Corporate and other debt securities | $3 | Market comparables | Weighted average market capitalization price change % | (1.2)% to 1.2% | 0.2% |
| Equity securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Nonredeemable preferred stocks | 52 | Market comparables | Weighted average market capitalization price change % | (7.6)% to (1.5)% | (2.9)% |
| &nbsp;&nbsp;&nbsp;Common stocks | 22 | Market comparables | Weighted average market capitalization price change % | (26.5)% to 19.3% | (4.4)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal Level 3 securities | 77 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pricing exemption securities | 24 |  |  |  |  |
| Total Level 3 securities | $101 |  |  |  |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Fair Value at December 31, 2024** | **Valuation Technique** | **Unobservable Input** | **Range of Input Values Increase (Decrease)** | **Weighted Average Increase (Decrease)** |
| Fixed maturities: |  |  |  |  |  |
| &nbsp;&nbsp;Corporate and other debt securities | $5 | Market comparables | Weighted average market capitalization price change % | (1.4)% to (1.3)% | (1.4)% |
| Equity securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Nonredeemable preferred stocks | 52 | Market comparables | Weighted average market capitalization price change % | (14.1)% to 6.0% | (2.7)% |
| &nbsp;&nbsp;Common stocks | 23 | Market comparables | Weighted average market capitalization price change % | (41.3)% to 95.9% | 6.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal Level 3 securities | 80 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pricing exemption securities | 25 |  |  |  |  |
| Total Level 3 securities | $105 |  |  |  |  |

---

------

**4. DEBT**

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

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | **($ in millions)** | | | | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Principal Amount** | **Interest Rate** | **Interest Rate** |<br>**Issuance Date** |<br>**Maturity Date** | **Carrying<br>Value** | **Fair<br>Value** | **Carrying<br>Value** | **Fair<br>Value** | **Carrying<br>Value** | **Fair<br>Value** |
| $500 | 2.45 | % | August 2016 | 2027 | $499 | $488 | $499 | $469 | $499 | $479 |
| 500 | 2.50 |  | March 2022 | 2027 | 499 | 487 | 498 | 468 | 499 | 479 |
| 300 | 6 5/8 |  | March 1999 | 2029 | 298 | 324 | 298 | 321 | 298 | 320 |
| 550 | 4.00 |  | October 2018 | 2029 | 548 | 547 | 547 | 527 | 547 | 534 |
| 500 | 3.20 |  | March 2020 | 2030 | 498 | 477 | 497 | 455 | 498 | 462 |
| 500 | 3.00 |  | March 2022 | 2032 | 497 | 456 | 497 | 434 | 497 | 439 |
| 400 | 6.25 |  | November 2002 | 2032 | 397 | 438 | 397 | 428 | 397 | 430 |
| 500 | 4.95 |  | May 2023 | 2033 | 497 | 511 | 497 | 495 | 497 | 495 |
| 350 | 4.35 |  | April 2014 | 2044 | 347 | 299 | 347 | 301 | 347 | 298 |
| 400 | 3.70 |  | January 2015 | 2045 | 396 | 310 | 396 | 310 | 396 | 308 |
| 850 | 4.125 |  | April 2017 | 2047 | 843 | 699 | 842 | 699 | 842 | 684 |
| 600 | 4.20 |  | March 2018 | 2048 | 591 | 493 | 591 | 494 | 591 | 490 |
| 500 | 3.95 |  | March 2020 | 2050 | 491 | 392 | 491 | 392 | 491 | 386 |
| 500 | 3.70 |  | March 2022 | 2052 | 494 | 373 | 494 | 373 | 494 | 369 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total |  |  |  |  | $6895 | $6294 | $6891 | $6166 | $6893 | $6173 |

---

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

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

**5. INCOME TAXES**

The effective tax rate for the three and six months ended June 30, 2025, was 20.3% and 20.4%, respectively, compared to 21.6% and 21.0% for the same periods last year. The decrease in effective tax rate is primarily due to the tax benefits associated with distributions of deferred compensation during the second quarter 2025.

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

We had net current income taxes recoverable of $115 million at June 30, 2025, which were reported in other assets on our consolidated balance sheets, compared to net current income taxes payable of $9 million and $26 million at June 30, 2024 and December 31, 2024, respectively, which were reported in accounts payable, accrued expenses, and other liabilities. The balance may fluctuate from period to period due to normal timing differences.

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

------

**6. LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES**

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

---

| | | |
|:---|:---|:---|
| | **June 30,** | **June 30,** |
|<br>**(millions)** | **2025** | **2024** |
| Balance at January 1 | $39057 | $34389 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less reinsurance recoverables on unpaid losses | 4487 | 4789 |
| Net balance at January 1 | 34570 | 29600 |
| Incurred related to: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current year | 27016 | 23630 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior years | (607) | (63) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total incurred | 26409 | 23567 |
| Paid related to: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current year | 12842 | 11470 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior years | 10883 | 9607 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total paid | 23725 | 21077 |
| Net balance at June 30 | 37254 | 32090 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plus reinsurance recoverables on unpaid losses | 3900 | 4515 |
| Balance at June 30 | $41154 | $36605 |

---

We experienced favorable reserve development of $607 million and $63 million during the first six months of 2025 and 2024, respectively, which is reflected as "incurred related to prior years" in the table above.

<u>Year-to-date June 30, 2025</u>

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our personal auto products incurred about $520 million of favorable loss and loss adjustment expense (LAE) reserve development, with the agency and direct auto businesses each contributing about half. The favorable development was primarily due to lower than anticipated loss severity and frequency in Florida and, to a lesser extent, lower than anticipated litigation defense costs across most states.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our Commercial Lines business experienced about $45 million of favorable development, primarily attributable to lower than anticipated severity in our transportation network company business.

<u>Year-to-date June 30, 2024</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The favorable prior year reserve development included approximately $60 million of favorable development attributable to accident year 2023 and $20 million to accident year 2022; partially offset by unfavorable development attributable to accident years 2021 and prior.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our Commercial Lines and personal property businesses experienced about $140 million and $30 million, respectively, of unfavorable development, with the Commercial Lines development primarily driven by higher than anticipated severity in our commercial auto business for California and New York.

------

**7. SUPPLEMENTAL CASH FLOW INFORMATION**

Cash and cash equivalents include bank demand deposits and daily overnight reverse repurchase commitments of funds held in bank demand deposit accounts by certain subsidiaries. The amount of overnight reverse repurchase commitments, which are not considered part of the investment portfolio, held by these subsidiaries at June 30, 2025 and 2024, and December 31, 2024, were $80 million, $81 million, and $127 million, respectively. Restricted cash and restricted cash equivalents include collateral held against unpaid deductibles and cash that is restricted to pay flood claims under the National Flood Insurance Program's "Write Your Own" program, for which certain subsidiaries are participants.

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

---

| | | |
|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>**(millions)** | **2025** | **2024** |
| Common share dividends<sup>1</sup> | $58 | $58 |
| Operating lease liabilities<sup>2</sup> | 63 | 47 |

---

<sup>1</sup> Declared but unpaid. See *Note 9 – Dividends* for further discussion.

<sup>2</sup> From obtaining right-of-use assets.

In the respective periods, we paid the following:

---

| | | |
|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>**(millions)** | **2025** | **2024** |
| Income taxes | $1644 | $1351 |
| Interest | 138 | 138 |
| Operating lease liabilities | 45 | 43 |

---

**8. SEGMENT INFORMATION**

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

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

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

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

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

------

Following are the operating results for the respective periods:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **(millions)** | **Personal Lines** | **Commercial Lines** | **Other**<sup>1</sup> | **Companywide** |
| <u>Three Months Ended June 30, 2025</u> |  |  |  |  |
| Net premiums earned | $17544 | $2765 | $1 | $20310 |
| Fees and other revenues | 263 | 40 | 0 | 303 |
| &nbsp;&nbsp;&nbsp;Total underwriting revenue | 17807 | 2805 | 1 | 20613 |
| Losses and loss adjustment expenses: |  |  |  |  |
| &nbsp;&nbsp;Losses (excluding catastrophe losses) | 9574 | 1561 | (1) | 11134 |
| &nbsp;&nbsp;Catastrophe losses | 688 | 19 | 0 | 707 |
| &nbsp;&nbsp;Loss adjustment expenses | 1471 | 292 | 1 | 1764 |
| &nbsp;&nbsp;&nbsp;Total losses and loss adjustment expenses | 11733 | 1872 | 0 | 13605 |
| Underwriting expenses: |  |  |  |  |
| &nbsp;&nbsp;Distribution expenses<sup>2</sup> | 2328 | 308 | 1 | 2637 |
| &nbsp;&nbsp;Other underwriting expenses<sup>3</sup> | 1298 | 261 | 4 | 1563 |
| &nbsp;&nbsp;&nbsp;Total underwriting expenses | 3626 | 569 | 5 | 4200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pretax underwriting profit (loss) | $2448 | $364 | $(4) | 2808 |
| Investment profit (loss)<sup>4</sup> |  |  |  | 1249 |
| Service businesses profit (loss) |  |  |  | (6) |
| Interest expense |  |  |  | (69) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total pretax profit (loss) |  |  |  | $3982 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **(millions)** | **Personal Lines** | **Commercial Lines** | **Other**<sup>1</sup> | **Companywide** |
| <u>Three Months Ended June 30, 2024</u> |  |  |  |  |
| Net premiums earned | $14545 | $2664 | $0 | $17209 |
| Fees and other revenues | 216 | 44 | 0 | 260 |
| &nbsp;&nbsp;&nbsp;Total underwriting revenue | 14761 | 2708 | 0 | 17469 |
| Losses and loss adjustment expenses: |  |  |  |  |
| &nbsp;&nbsp;Losses (excluding catastrophe losses) | 8148 | 1581 | (1) | 9728 |
| &nbsp;&nbsp;Catastrophe losses | 1243 | 26 | 0 | 1269 |
| &nbsp;&nbsp;Loss adjustment expenses | 1324 | 274 | 0 | 1598 |
| &nbsp;&nbsp;&nbsp;Total losses and loss adjustment expenses | 10715 | 1881 | (1) | 12595 |
| Underwriting expenses: |  |  |  |  |
| &nbsp;&nbsp;Distribution expenses<sup>2</sup> | 1828 | 284 | 0 | 2112 |
| &nbsp;&nbsp;Other underwriting expenses<sup>3</sup> | 1135 | 239 | 2 | 1376 |
| &nbsp;&nbsp;&nbsp;Total underwriting expenses | 2963 | 523 | 2 | 3488 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pretax underwriting profit (loss) | $1083 | $304 | $(1) | 1386 |
| Investment profit (loss)<sup>4</sup> |  |  |  | 551 |
| Service businesses profit (loss) |  |  |  | (8) |
| Interest expense |  |  |  | (69) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total pretax profit (loss) |  |  |  | $1860 |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| **(millions)** | **Personal Lines** | **Commercial Lines** | **Other**<sup>1</sup> | **Companywide** |
| <u>Six Months Ended June 30, 2025</u> |  |  |  |  |
| Net premiums earned | $34254 | $5464 | $1 | $39719 |
| Fees and other revenues | 512 | 78 | 0 | 590 |
| &nbsp;&nbsp;&nbsp;Total underwriting revenue | 34766 | 5542 | 1 | 40309 |
| Losses and loss adjustment expenses: |  |  |  |  |
| &nbsp;&nbsp;Losses (excluding catastrophe losses) | 18683 | 3120 | (1) | 21802 |
| &nbsp;&nbsp;Catastrophe losses | 1142 | 24 | 0 | 1166 |
| &nbsp;&nbsp;Loss adjustment expenses | 2861 | 579 | 1 | 3441 |
| &nbsp;&nbsp;&nbsp;Total losses and loss adjustment expenses | 22686 | 3723 | 0 | 26409 |
| Underwriting expenses: |  |  |  |  |
| &nbsp;&nbsp;Distribution expenses<sup>2</sup> | 4676 | 594 | 1 | 5271 |
| &nbsp;&nbsp;Other underwriting expenses<sup>3</sup> | 2573 | 523 | 8 | 3104 |
| &nbsp;&nbsp;&nbsp;Total underwriting expenses | 7249 | 1117 | 9 | 8375 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pretax underwriting profit (loss) | $4831 | $702 | $(8) | 5525 |
| Investment profit (loss)<sup>4</sup> |  |  |  | 1844 |
| Service businesses profit (loss) |  |  |  | (12) |
| Interest expense |  |  |  | (139) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total pretax profit (loss) |  |  |  | $7218 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **(millions)** | **Personal Lines** | **Commercial Lines** | **Other**<sup>1</sup> | **Companywide** |
| <u>Six Months Ended June 30, 2024</u> |  |  |  |  |
| Net premiums earned | $28136 | $5222 | $0 | $33358 |
| Fees and other revenues | 412 | 84 | 0 | 496 |
| &nbsp;&nbsp;&nbsp;Total underwriting revenue | 28548 | 5306 | 0 | 33854 |
| Losses and loss adjustment expenses: |  |  |  |  |
| &nbsp;&nbsp;Losses (excluding catastrophe losses) | 15711 | 3174 | (3) | 18882 |
| &nbsp;&nbsp;Catastrophe losses | 1581 | 35 | 0 | 1616 |
| &nbsp;&nbsp;Loss adjustment expenses | 2521 | 548 | 0 | 3069 |
| &nbsp;&nbsp;&nbsp;Total losses and loss adjustment expenses | 19813 | 3757 | (3) | 23567 |
| Underwriting expenses: |  |  |  |  |
| &nbsp;&nbsp;Distribution expenses<sup>2</sup> | 3388 | 558 | 0 | 3946 |
| &nbsp;&nbsp;Other underwriting expenses<sup>3</sup> | 2223 | 478 | 4 | 2705 |
| &nbsp;&nbsp;&nbsp;Total underwriting expenses | 5611 | 1036 | 4 | 6651 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pretax underwriting profit (loss) | $3124 | $513 | $(1) | 3636 |
| Investment profit (loss)<sup>4</sup> |  |  |  | 1319 |
| Service businesses profit (loss) |  |  |  | (16) |
| Interest expense |  |  |  | (139) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total pretax profit (loss) |  |  |  | $4800 |

---

<sup>1</sup> Includes other underwriting businesses and run-off operations.

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

<sup>3</sup> Primarily consists of employee compensation and benefit costs, and the increase in the allowance for credit loss exposure on our premiums receivable.

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

------

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

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2025** | **2024** | **2024** | **2025** | **2025** | **2024** | **2024** |
| | **Under-<br>writing<br>Margin** | **Combined<br>Ratio** | **Under-<br>writing<br>Margin** | **Combined<br>Ratio** | **Under-<br>writing<br>Margin** | **Combined<br>Ratio** | **Under-<br>writing<br>Margin** | **Combined<br>Ratio** |
| Personal Lines | 14.0% | 86.0 | 7.4% | 92.6 | 14.1% | 85.9 | 11.1% | 88.9 |
| Commercial Lines | 13.2 | 86.8 | 11.4 | 88.6 | 12.9 | 87.1 | 9.8 | 90.2 |
| &nbsp;&nbsp;&nbsp;Total underwriting operations | 13.8 | 86.2 | 8.1 | 91.9 | 13.9 | 86.1 | 10.9 | 89.1 |

---

**9. DIVIDENDS**

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

---

| | | | |
|:---|:---|:---|:---|
| **(millions — except per share amounts)** | **(millions — except per share amounts)** | **Amount** | **Amount** |
| **Declared** | **Payable** | **Per Share** | **Accrued/Paid**<sup>1</sup> |
| <u>Common – Annual-Variable Dividends:</u> |  |  |  |
| December 2024 | January 2025 | $4.50 | $2637 |
| December 2023 | January 2024 | 0.75 | 439 |
| <u>Common – Quarterly Dividends:</u> |  |  |  |
| May 2025 | July 2025 | 0.10 | 58 |
| March 2025 | April 2025 | 0.10 | 59 |
| December 2024 | January 2025 | 0.10 | 58 |
| May 2024 | July 2024 | 0.10 | 58 |
| March 2024 | April 2024 | 0.10 | 59 |
| December 2023 | January 2024 | 0.10 | 59 |
| <u>Preferred Dividends:</u> |  |  |  |
| January 2024<sup>2</sup> | February 2024 | 15.688377 | 8 |

---

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

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

------

**10. OTHER COMPREHENSIVE INCOME (LOSS)**

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | | Components of Changes in<br>Accumulated Other<br>Comprehensive Income (after tax) | Components of Changes in<br>Accumulated Other<br>Comprehensive Income (after tax) | 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 unrealized gains (losses) on securities | Net unrealized losses on forecasted transactions | Foreign<br>currency<br>translation<br>adjustment |
| **Balance at March 31, 2025** | $(671) | $147 | $(524) | $(509) | $(14) | $(1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss) before reclassifications: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment securities | 558 | (117) | 441 | 441 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive income (loss) before reclassifications | 558 | (117) | 441 | 441 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Reclassification adjustment for amounts realized in net income by income statement line item: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net realized gains (losses) on securities | 16 | (3) | 13 | 13 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (1) | 0 | (1) | 0 | (1) | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total reclassification adjustment for amounts realized in net income | 15 | (3) | 12 | 13 | (1) | 0 |
| Total other comprehensive income (loss) | 543 | (114) | 429 | 428 | 1 | 0 |
| **Balance at June 30, 2025** | $(128) | $33 | $(95) | $(81) | $(13) | $(1) |
|  |  |  |  | Components of Changes in<br>Accumulated Other<br>Comprehensive Income (after tax) | Components of Changes in<br>Accumulated Other<br>Comprehensive Income (after tax) | 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 unrealized gains (losses) on securities | Net unrealized losses on forecasted transactions | Foreign<br>currency<br>translation<br>adjustment |
| **Balance at March 31, 2024** | $(2316) | $492 | $(1824) | $(1809) | $(14) | $(1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss) before reclassifications: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment securities | (85) | 18 | (67) | (67) | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive income (loss) before reclassifications | (85) | 18 | (67) | (67) | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Reclassification adjustment for amounts realized in net income by income statement line item: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net realized gains (losses) on securities | (221) | 46 | (175) | (175) | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total reclassification adjustment for amounts realized in net income | (221) | 46 | (175) | (175) | 0 | 0 |
| Total other comprehensive income (loss) | 136 | (28) | 108 | 108 | 0 | 0 |
| **Balance at June 30, 2024** | $(2180) | $464 | $(1716) | $(1701) | $(14) | $(1) |

---

------

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | | Components of Changes in<br>Accumulated Other<br>Comprehensive Income (after tax) | Components of Changes in<br>Accumulated Other<br>Comprehensive Income (after tax) | 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 unrealized gains (losses) on securities | Net unrealized losses on forecasted transactions | Foreign<br>currency<br>translation<br>adjustment |
| **Balance at December 31, 2024** | $(1809) | $386 | $(1423) | $(1408) | $(14) | $(1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss) before reclassifications: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment securities | 1666 | (350) | 1316 | 1316 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive income (loss) before reclassifications | 1666 | (350) | 1316 | 1316 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Reclassification adjustment for amounts realized in net income by income statement line item: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net realized gains (losses) on securities | (14) | 3 | (11) | (11) | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (1) | 0 | (1) | 0 | (1) | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total reclassification adjustment for amounts realized in net income | (15) | 3 | (12) | (11) | (1) | 0 |
| Total other comprehensive income (loss) | 1681 | (353) | 1328 | 1327 | 1 | 0 |
| **Balance at June 30, 2025** | $(128) | $33 | $(95) | $(81) | $(13) | $(1) |
|  |  |  |  | Components of Changes in<br>Accumulated Other<br>Comprehensive Income (after tax) | Components of Changes in<br>Accumulated Other<br>Comprehensive Income (after tax) | 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 unrealized gains (losses) on securities | Net unrealized losses on forecasted transactions | Foreign<br>currency<br>translation<br>adjustment |
| **Balance at December 31, 2023** | $(2053) | $437 | $(1616) | $(1601) | $(14) | $(1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss) before reclassifications: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment securities | (499) | 105 | (394) | (394) | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive income (loss) before reclassifications | (499) | 105 | (394) | (394) | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Reclassification adjustment for amounts realized in net income by income statement line item: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net realized gains (losses) on securities | (372) | 78 | (294) | (294) | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total reclassification adjustment for amounts realized in net income | (372) | 78 | (294) | (294) | 0 | 0 |
| Total other comprehensive income (loss) | (127) | 27 | (100) | (100) | 0 | 0 |
| **Balance at June 30, 2024** | $(2180) | $464 | $(1716) | $(1701) | $(14) | $(1) |

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

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**11. LITIGATION**

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

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

As of June 30, 2025, lawsuits have been certified or conditionally certified as class/collective actions in cases alleging that: we improperly value total loss claims by applying a negotiation adjustment in Alabama, Arkansas, Colorado, Georgia, Indiana, North Carolina, Ohio, Pennsylvania, and South Carolina; we improperly calculate basic economic loss as it relates to wage loss coverage in New York; and we improperly reduce or deny personal injury protection benefits when medical expenses are paid initially by health insurance in Arkansas. Other insurance companies face many of these same issues. We plan to contest the pending lawsuits vigorously, but may pursue settlement negotiations in some cases, as we deem appropriate.

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

contemporaneously in multiple states. As of June 30,

2025, we are named as defendants in class action lawsuits

pending in multiple states alleging that we improperly

value total loss vehicle physical damage claims through the

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

With respect to our pending lawsuits that are not related to claims under insurance policies, the accruals that we have established were not material at June 30, 2025 and 2024, or December 31, 2024, and there were no material settlements during 2024 or the first six months of 2025. For most of these lawsuits, we do not consider any losses to be both probable and estimable, and we are unable to estimate a meaningful range of loss, if any, at this time, due to the factors discussed in *Note 12 – Litigation* in our 2024 Annual Report to Shareholders. In the event that any one or more of these lawsuits results in a substantial judgment against us, or settlement by us, or if our accruals (if any) prove to be inadequate, the resulting liability could have a material adverse effect on our consolidated financial condition, cash flows, and/or results of operations. For a further discussion on our pending litigation and related reserving policies, see *Note 1 – Reporting and Accounting Policies* and *Note 12 – Litigation* in our 2024 Annual Report to Shareholders.

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

**I. OVERVIEW**

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

During the second quarter 2025, we wrote $20.1 billion of net premiums written, which was $2.2 billion more than we generated during the same period last year. Companywide net premiums written and earned increased 12% and 18%, respectively, during the second quarter 2025, compared to the same period last year. Policies in force increased 15%, or by 5.0 million policies, compared to June 30, 2024; with policies in force increasing by 1.0 million in the second quarter 2025. We experienced profitable growth during the second quarter 2025, with a strong underwriting profit margin of 13.8%.

Our Personal Lines segment experienced strong year-over-year growth for the second quarter 2025, with net premiums written increasing 15% and policies in force up 16%, over the significant growth we experienced in the second quarter 2024. This growth was primarily driven by our personal auto products and reflects new and renewal application growth, which we believe is mainly attributable to increased advertising spend, competitively priced products, and our agency incentive compensation programs.

In Commercial Lines, we experienced a decrease in net premiums written of 6% during the second quarter 2025, compared to the same period last year, despite experiencing policies in force growth of 6%. The decline in net premiums written during the quarter was primarily driven by changes in the length of policy terms and related renewal timing for certain transportation network company (TNC) business policies. These policies were renewed for a 6-month term in the second quarter 2024 and subsequently renewed for a 12-month term in the fourth quarter 2024. In addition, our contractor and business auto business market targets (BMT) experienced a shift to a greater mix of policies with 6-month terms, compared to the second quarter 2024. As 12-month policies have about twice the amount of net premiums written compared to 6-month policies, the shift negatively impacted average premiums.

During the second quarter 2025, on a countrywide basis, we decreased personal auto rates less than 1% and increased our personal property rates about 4%, in the aggregate. In our core commercial auto businesses (which excludes our TNC business, our Progressive Fleet & Specialty Programs (Fleet & Specialty) products, and our business owners' policy (BOP) product), we increased

rates in the aggregate about 3% during the second quarter 2025.

While we currently 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 currently prevents us from accurately predicting how tariffs will ultimately impact our business over time. While our focus has been on trying to maintain stable rates for customers, effective tariffs and other retaliatory actions will likely result in higher loss costs, which could result in a reduction in profitability and the possible need for higher than currently anticipated rate increases throughout 2025 and 2026. While we expect to continue increasing rates in our personal property and core commercial auto products through the remainder of 2025, we will continue to monitor the impact from tariffs and other potential changes in the regulatory environment as we evaluate the possible need for additional rate increases.

For the second quarter 2025, the $1.7 billion year-over-year increase in net income reflected an increase in both underwriting income and total net investment income, with the change in net unrealized losses on our fixed-maturity securities also contributing positively to our growth in comprehensive income.

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

**A. Insurance Operations**

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

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We closely manage our expenses, monitoring both acquisition expenses and non-acquisition expenses, which we view as an important measure of operational efficiency as we seek to deliver our most competitive rates to consumers. We will continue to advertise to maximize growth as long as the advertising spend is efficient and we remain on track to achieve our calendar-year profitability goal. During the second quarter 2025, our advertising spend was $1.2 billion, which was 35%, or 0.7 points, greater than the second quarter last year. The expense ratio impact from increased advertising spend was partially offset by a decrease in certain general expenses.

Our Personal Lines segment is comprised of our personal vehicle and property products. Personal Lines vehicles include both personal auto and special lines products, with the latter typically having higher losses during the warmer weather months, due to the seasonal nature of these products (e.g., recreational vehicles, such as motorcycles, RVs, and watercraft). Our Personal Lines underwriting margin for the second quarter 2025 was 14.0%, with personal vehicle and property products reporting 13.8% and 16.4%, respectively. The special lines profitability had minimal impact to our personal vehicle combined ratio during the second quarter 2025.

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

For the second quarter 2025, Personal Lines generated strong net premiums written growth of 15%, with the agency and direct personal vehicle businesses and property business growing 11%, 20%, and 2%, respectively, compared to the same period last year. Commercial Lines net premiums written decreased 6%.

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

During the second quarter 2025, we experienced an increase in both total Personal Lines new and renewal business applications, primarily driven by significant increases in our personal vehicle products, due to continued increased advertising spend, our continued efforts to get back into independent agents' quote flows, and our competitiveness in the marketplace. New and renewal personal auto applications increased 8% and 22%, respectively, during the second quarter 2025, on top of the significant growth we experienced in the same period last year.

In our personal property business, significant growth in new applications in our renters policies was offset by declines in our homeowners product, which we define as our total personal property business excluding renters and umbrella products. For the second quarter 2025, the new

business applications in our homeowners product decreased just over 50%, compared to the same period last year, with decreases in both less volatile weather-related states and in the more volatile weather-related markets (e.g., coastal and hail-prone states).

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

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

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

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

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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 14% taken over the last 12 months and higher premium coverages reflecting increased property values.

The decrease in average written premium per policy in our core commercial auto products was due to a shift in the mix of business, primarily driven by decreased demand in our for-hire transportation BMT and, to a lesser extent, the for-hire specialty BMT, as well as a shift in policy term towards more 6-month policies in our contractor and business auto BMTs. This decrease was partially offset by rate increases of about 7%, in the aggregate, over the trailing 12 months. Given that our personal property and commercial auto policies are predominately written for 12-month terms, rate actions take longer to earn into premium for these products.

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

We believe a key element in improving the accuracy of our personal auto rating is Snapshot<sup>®</sup>, our usage-based insurance offering. During the second quarter 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 78% of our countrywide personal auto net premiums written (excluding California) on a trailing 12-month basis at quarter end. We continue to invest in our mobile application, with the majority of new enrollments choosing mobile devices for Snapshot monitoring.

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

In personal auto, we evaluate personal auto retention using a trailing 12-month and a trailing 3-month policy life expectancy. Although the latter can reflect more volatility and is more sensitive to seasonality, we believe this measure is more responsive to current experience and may

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

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

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

**B. Investments**

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

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

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

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increase in the common stock portfolio FTE total return reflected general market conditions.

At June 30, 2025 and 2024, and December 31, 2024, the fixed-income portfolio had a weighted average credit quality of AA-. At June 30, 2025, the fixed-income portfolio duration was 3.4 years, compared to 3.2 years at June 30, 2024, and 3.3 years at December 31, 2024. During 2025, we increased our duration to take advantage of higher yields in the market.

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

**II. FINANCIAL CONDITION**

**A. Liquidity and Capital Resources**

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

Operations generated positive cash flows of $9.2 billion and $7.5 billion for the six months ended June 30, 2025 and 2024, respectively. The increase in operating cash flow for the first six months of 2025, compared to the same period last year, was in part driven by the growth in profit from our underwriting operations. We believe cash flows will remain positive in the foreseeable future and do not expect we will need to raise capital to support our operations in that timeframe, although changes in market or regulatory conditions affecting the insurance industry, or other unforeseen events, may necessitate otherwise.

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

Our total capital (debt plus shareholders' equity) was $39.5 billion, based on book value, at June 30, 2025, compared to $30.2 billion at June 30, 2024, and $32.5 billion at December 31, 2024. The increase from year-end 2024, primarily reflected the comprehensive income recognized during the first six months of 2025. Our debt-to-total capital ratio was 17.5% at June 30, 2025, 22.8% at June 30, 2024, and 21.2% at December 31, 2024. Our debt-to-total capital ratios were consistent with our financial policy of maintaining a ratio of less than 30%.

None of the covenants on our existing debt securities include rating or credit triggers that would require an adjustment of interest rate or an acceleration of principal payments in the event that our debt securities are downgraded by a rating agency. In April 2025, we renewed the unsecured discretionary line of credit with PNC Bank, National Association, in the maximum principal amount of $300 million. We did not engage in short-term borrowings, including any borrowings under the line of credit, to fund our operations or for liquidity purposes during the reported periods.

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

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

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

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At June 30, 2025, we had $5.0 billion in a consolidated, non-insurance subsidiary of the holding company that can be used to fund corporate obligations and provide additional capital to the insurance subsidiaries to fund potential future growth and other opportunities. As of June 30, 2025, our estimated consolidated statutory surplus was $31.1 billion.

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

On July 4, 2025, H.R. 1, "An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14" (the Act) was signed into law by the President of the United

States. The Act contains numerous tax provisions applicable to corporations. We are in the process of evaluating the provisions applicable to Progressive and, while this assessment is not yet complete, we do not currently expect the Act will have a material effect on our financial condition or results of operations.

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

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

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

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

**III. RESULTS OF OPERATIONS – UNDERWRITING**

**A. Segment Overview**

We report our underwriting operations in two segments: Personal Lines and Commercial Lines. Our Personal Lines segment writes insurance for personal vehicles, which include personal auto and special lines products (e.g., recreational vehicles, such as motorcycles, RVs, and watercraft), personal residential property insurance for homeowners and renters, umbrella insurance, and flood insurance through the "Write Your Own" program for the National Flood Insurance Program. Since our personal auto products represented about 90% of our Personal Lines segment net premiums written at quarter end, much of the following discussion will focus on our personal auto products, both in total and by distribution channel. We will also discuss our personal property products as we continue to focus on improving profitability and reducing our concentration and exposure in more volatile weather-related markets.Our Commercial Lines segment writes auto-related liability and physical damage insurance, business-related general liability and commercial property insurance predominantly for small businesses, and workers' compensation insurance primarily for the transportation industry and includes our core commercial auto products, TNC business, Fleet & Specialty products, and BOP product. Of our total Commercial Lines segment, our core commercial auto products represented about 80% of net premiums written and our TNC business represented about 15%, both on a trailing 12-month basis, as of the end of the second quarter 2025. Therefore, much of the following discussion focuses only on our core commercial auto products.

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

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Personal Lines |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Vehicles |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agency | 37% | 37% | 35% | 36% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Direct | 47 | 44 | 46 | 43 |
| &nbsp;&nbsp;&nbsp;Property | 4 | 5 | 4 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Personal Lines | 88 | 86 | 85 | 83 |
| Commercial Lines | 12 | 14 | 15 | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total underwriting operations | 100% | 100% | 100% | 100% |

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sam - inconsistently insured;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Diane - consistently insured and maybe a renter;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Robinsons - homeowners who bundle auto and home.

While our personal auto policies primarily have 6-month terms, to promote bundled personal auto and property growth, we write 12-month personal auto policies in our Platinum agencies. At June 30, 2025 and 2024, 11% and

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• for-hire specialty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• for-hire transportation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tow;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• contractor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• business auto.

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

**B. Profitability**

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

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| | **Underwriting<br>Profit (Loss)** | **Underwriting<br>Profit (Loss)** | **Underwriting<br>Profit (Loss)** | **Underwriting<br>Profit (Loss)** |
| <br>**($ in millions)** | $**Margin** | $**Margin** | $**Margin** | $**Margin** |
| Personal Lines |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Vehicles |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agency | 15.6% | 12.7% | 16.8% | 14.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Direct | 12.5 | 10.3 | 12.0 | 12.5 |
| &nbsp;&nbsp;&nbsp;Property | 16.4 | (66.3) | 14.6 | (30.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Personal Lines | 14.0 | 7.4 | 14.1 | 11.1 |
| Commercial Lines | 13.2 | 11.4 | 12.9 | 9.8 |
| Other indemnity<sup>1</sup> | NM | NM | NM | NM |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total underwriting operations | 13.8% | 8.1% | 13.9% | 10.9% |

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<sup>1</sup> 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.

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The increase in our underwriting profit margin on a year-over-year basis for the second quarter 2025 was due to a decrease in our companywide loss and LAE ratio of 6.1 points. On a year-to-date basis, the loss and LAE ratio decreased 4.1 points.

The decrease in the loss and LAE ratio during the second quarter 2025 was primarily driven by a decrease in catastrophe losses in Personal Lines and by favorable prior accident years reserve development in both Personal Lines and Commercial Lines.

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

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

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

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

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>**Underwriting Performance**<sup>1</sup> | **2025** | **2024** | **Change** | **2025** | **2024** | **Change** |
| Personal Lines |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Vehicles |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agency |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss & loss adjustment expense ratio | 66.2 | 69.2 | (3.0) | 65.1 | 67.6 | (2.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Underwriting expense ratio | 18.2 | 18.1 | 0.1 | 18.1 | 18.0 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Combined ratio | 84.4 | 87.3 | (2.9) | 83.2 | 85.6 | (2.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss & loss adjustment expense ratio | 68.3 | 71.0 | (2.7) | 67.7 | 69.5 | (1.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Underwriting expense ratio | 19.2 | 18.7 | 0.5 | 20.3 | 18.0 | 2.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Combined ratio | 87.5 | 89.7 | (2.2) | 88.0 | 87.5 | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss & loss adjustment expense ratio | 54.4 | 137.4 | (83.0) | 56.4 | 101.6 | (45.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Underwriting expense ratio | 29.2 | 28.9 | 0.3 | 29.0 | 28.8 | 0.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Combined ratio | 83.6 | 166.3 | (82.7) | 85.4 | 130.4 | (45.0) |
| Total Personal Lines |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss & loss adjustment expense ratio | 66.8 | 73.6 | (6.8) | 66.2 | 70.4 | (4.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Underwriting expense ratio | 19.2 | 19.0 | 0.2 | 19.7 | 18.5 | 1.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Combined ratio | 86.0 | 92.6 | (6.6) | 85.9 | 88.9 | (3.0) |
| Commercial Lines |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss & loss adjustment expense ratio | 66.8 | 69.6 | (2.8) | 67.2 | 71.0 | (3.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Underwriting expense ratio | 20.0 | 19.0 | 1.0 | 19.9 | 19.2 | 0.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Combined ratio | 86.8 | 88.6 | (1.8) | 87.1 | 90.2 | (3.1) |
| Total Underwriting Operations |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss & loss adjustment expense ratio | 66.8 | 72.9 | (6.1) | 66.3 | 70.4 | (4.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Underwriting expense ratio | 19.4 | 19.0 | 0.4 | 19.8 | 18.7 | 1.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Combined ratio | 86.2 | 91.9 | (5.7) | 86.1 | 89.1 | (3.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accident year – Loss & loss adjustment expense ratio<sup>2</sup> | 68.4 | 73.2 | (4.8) | 67.8 | 70.6 | (2.8) |

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<sup>1</sup> 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.

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

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***Losses and Loss Adjustment Expenses (LAE)***

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>**(millions)** | **2025** | **2024** | **2025** | **2024** |
| Change in net loss and LAE reserves | $1565 | $1911 | $2684 | $2490 |
| Paid losses and LAE | 12040 | 10684 | 23725 | 21077 |
| &nbsp;&nbsp;&nbsp;Total incurred losses and LAE | $13605 | $12595 | $26409 | $23567 |

---

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

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

Our total loss and LAE ratio decreased 6.1 points and 4.1 points, for the three and six month periods ended June 30, 2025, respectively, compared to the prior year periods, primarily due to a decrease in catastrophe losses and to favorable prior accident years reserve development. On an accident year basis, our loss and LAE ratio was 4.8 points and 2.8 points lower for the second quarter and first half of 2025, respectively, compared to the same periods last year.

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

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| <br>**($ in millions)** | $**Point**<sup>1</sup> | $**Point**<sup>1</sup> | $**Point**<sup>1</sup> | $**Point**<sup>1</sup> |
| Personal Lines |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Vehicles | 3.2 | 5.0 | 2.5 | 3.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property | 20.2 | 75.6 | 20.0 | 47.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Personal Lines | 3.9 | 8.5 | 3.3 | 5.6 |
| Commercial Lines | 0.7 | 1.0 | 0.4 | 0.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net catastrophe losses incurred | 3.5 | 7.4 | 2.9 | 4.8 |

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

In the second quarter 2025, our catastrophe losses reflected severe weather events throughout the United States, with Texas accounting for about one third of the losses. 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 the 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. During the second quarter 2025, we entered into new reinsurance contracts under our per occurrence excess of loss program for our personal property business. This reinsurance program has a retention threshold for losses and allocated loss adjustment expenses (ALAE) from a single catastrophic event of $200 million for a storm outside of Florida and $75 million for a storm in Florida. In general, our program includes coverage for $2.0 billion in losses and ALAE with additional substantial coverage for a second or third hurricane. When considering coverage specific to Florida, including the Florida Hurricane Catastrophe Fund, this coverage reaches an estimated $2.2 billion.

For 2025, we also entered into a new catastrophe aggregate excess of loss reinsurance contract for claims occurring in 2025 that has multiple layers of coverage. The first retention layer threshold ranges from $450 million to $475 million, excluding named tropical storms and hurricanes,

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

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

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

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

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| | | |
|:---|:---|:---|
|<br>**Coverage Type** | **Quarter**<br>**2025** | **Year-to-date**<br>**2025** |
| Bodily injury | 12% | 10% |
| Collision | 1 | 3 |
| Personal injury protection | (3) | (6) |
| Property damage | 4 | 3 |
| Total | 6 | 5 |

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

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

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

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

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| | | |
|:---|:---|:---|
|<br>**Coverage Type** | **Quarter**<br>**2025** | **Year-to-date**<br>**2025** |
| Bodily injury | (1)% | 0% |
| Collision | (6) | (6) |
| Personal injury protection | (3) | (2) |
| Property damage | (3) | (2) |
| Total | (4) | (3) |

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

On a trailing 12-month basis, our core commercial auto products' incurred frequency decreased 8% through the second quarter 2025, we believe, in part, due to a shift in the mix of business and lower vehicle miles traveled compared to the same period last year.

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

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

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>**($ in millions)** | **2025** | **2025** | **2024** | **2024** | **2025** | **2025** | **2024** | **2024** |
| Actuarial Adjustments |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reserve decrease (increase) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior accident years | $73 |  | $(55) |  | $98 |  | $(119) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current accident year | 40 |  | (17) |  | 54 |  | 16 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calendar-year actuarial adjustments | $113 |  | $(72) |  | $152 |  | $(103) |  |
| Prior Accident Years Development |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Favorable (unfavorable) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Actuarial adjustments | $73 |  | $(55) |  | $98 |  | $(119) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All other development | 256 |  | 107 |  | 509 |  | 182 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total development | $329 |  | $52 |  | $607 |  | $63 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease to calendar-year combined ratio | 1.6 | pts. | 0.3 | pts. | 1.5 | pts. | 0.2 | pts. |

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

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

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

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

As reflected in the table above, we experienced favorable prior accident years development during the first six months of 2025 and 2024. The favorable development during the first six months of 2025 was, in part, due to lower than anticipated severity and frequency in Florida and lower litigation defense costs across most states in the personal auto business.

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

***Underwriting Expenses***

Underwriting expenses include policy acquisition costs and other underwriting expenses. The underwriting expense ratio is our underwriting expenses, net of certain fees and other revenues, expressed as a percentage of net premiums earned. For the second quarter and first half of 2025, our underwriting expense ratio was up 0.4 points and 1.1 points, respectively, compared to the same periods last year. Both increases were primarily attributable to the increase in our advertising spend. In total, our companywide advertising spend increased 35%, or 0.7 points, in the second quarter, and 57% or 1.5 points, for the first six months of 2025, compared to the same periods last year.

Our total advertising spend for the first half of 2025, was $2.5 billion, compared to $1.6 billion in the first half of 2024. We invested heavily during the first half of the year 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.

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

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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. During the second quarter 2025, our NAER decreased 0.4 points in our personal vehicle business and increased 0.9 points and 0.5 points in our personal property and core

commercial auto businesses, respectively, compared to the same period last year. On a year-to-date basis, our NAER decreased 0.3 points in our personal vehicle business, and increased 1.1 points and 0.4 points in our personal property and core commercial auto businesses, respectively. We remain committed to efficiently managing operational non-acquisition expenses.

**C. Growth**

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

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>**($ in millions)** | **2025** | **2024** | **% Growth** | **2025** | **2024** | **% Growth** |
| Net Premiums Written |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Personal Lines |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vehicles |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agency | $7481 | $6734 | 11% | $14954 | $13133 | 14% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Direct | 9387 | 7828 | 20 | 19454 | 15910 | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property | 845 | 831 | 2 | 1578 | 1564 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Personal Lines | 17713 | 15393 | 15 | 35986 | 30607 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial Lines | 2363 | 2508 | (6) | 6296 | 6256 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other indemnity<sup>1</sup> | 0 | 1 | NM | 0 | 1 | NM |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total underwriting operations | $20076 | $17902 | 12% | $42282 | $36864 | 15% |
| Net Premiums Earned |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Personal Lines |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vehicles |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agency | $7302 | $6213 | 18% | $14328 | $12071 | 19% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Direct | 9466 | 7596 | 25 | 18374 | 14616 | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property | 776 | 736 | 5 | 1552 | 1449 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Personal Lines | 17544 | 14545 | 21 | 34254 | 28136 | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial Lines | 2765 | 2664 | 4 | 5464 | 5222 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other indemnity<sup>1</sup> | 1 | 0 | NM | 1 | 0 | NM |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total underwriting operations | $20310 | $17209 | 18% | $39719 | $33358 | 19% |
| NM = Not meaningful |  |  |  |  |  |  |
| <sup>1</sup> Includes other underwriting business and run-off operations. | <sup>1</sup> Includes other underwriting business and run-off operations. |  |  |  |  |  |
|  |  |  |  | **June 30,** | **June 30,** | **June 30,** |
| **(# in thousands)** |  |  |  | **2025** | **2024** | **% Growth** |
| Policies in Force |  |  |  |  |  |  |
| Personal Lines |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Agency - auto |  |  |  | 10423 | 8965 | 16% |
| &nbsp;&nbsp;&nbsp;&nbsp;Direct - auto |  |  |  | 15245 | 12576 | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;Special lines |  |  |  | 6850 | 6312 | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property |  |  |  | 3608 | 3339 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Personal Lines |  |  |  | 36126 | 31192 | 16 |
| Commercial Lines |  |  |  | 1189 | 1118 | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Companywide total |  |  |  | 37315 | 32310 | 15% |

---

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

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**D. Personal Lines**

Our Personal Lines business offers vehicle (personal auto and special lines) and residential property insurance products to personal consumers, with the operating goal of optimizing the number of insured products within our policyholders' households. In our discussion below, we report our personal auto and personal property business results separately as components of our Personal Lines segment to provide a further understanding of our products. Our personal auto business discussions are further separated between the agency and direct distribution channels. For the three months ended June 30, 2025, 44% of our personal auto business was written through the agency channel and 56% was written through the direct channel. While consumer segment results varied by channel, as discussed below, our total personal auto business experienced overall growth in policies in force, new business applications, quotes, and conversion during the second quarter and first half of 2025, compared to the same periods last year.

***Personal Auto - Agency***

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

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Change Over Prior Year** | **Change Over Prior Year** | **Change Over Prior Year** | **Change Over Prior Year** |
| | **Quarter** | **Quarter** | **Year-to-date** | **Year-to-date** |
| | **2025** | **2024** | **2025** | **2024** |
| Applications |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New | 6% | 13% | 17% | (1)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Renewal | 19 | 9 | 18 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 16 | 9 | 18 | 6 |
| Written premium per policy |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New | (6) | 6 | (5) | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Renewal | (3) | 14 | (2) | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | (3) | 12 | (2) | 13 |
| Policy life expectancy |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trailing 3 months | (6) | 3 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trailing 12 months | (4) | 18 |  |  |

---

The personal auto agency business includes business written by more than 40,000 independent insurance agencies that represent Progressive, as well as brokerages in New York and California. During the second quarter 2025, we generated new agency personal auto application growth in 32 states and the District of Columbia, including seven of our top 10 largest agency states.

Compared to the same periods in the prior year, new applications increased 6% during the second quarter 2025, primarily driven by significant growth for Sams and Dianes, which more than offset a decrease in new

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

During the second quarter and first six months of 2025, on a year-over-year basis, we experienced an increase in agency auto quote volume of 7% and 12%, respectively, with a rate of conversion (i.e., converting a quote to a sale) decrease of 2% for the quarter and an increase of 4% on a year-to-date basis, compared to the same periods last year. For both the second quarter and first six months of 2025, all consumer segments experienced an increase in quote volume, compared to the same periods in the prior year, except Robinsons, who decreased substantially. Both Sams and Dianes experienced an increase in conversion during the second quarter and first half of 2025, with Wrights and Robinsons experiencing a decrease, compared to the same periods last year.

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

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

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

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***Personal Auto - Direct***

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Change Over Prior Year** | **Change Over Prior Year** | **Change Over Prior Year** | **Change Over Prior Year** |
| | **Quarter** | **Quarter** | **Year-to-date** | **Year-to-date** |
| | **2025** | **2024** | **2025** | **2024** |
| Applications |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New | 9% | 50% | 21% | 17% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Renewal | 25 | 8 | 23 | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 21 | 17 | 22 | 12 |
| Written premium per policy |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New | 3 | 10 | 3 | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Renewal | 1 | 12 | 1 | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 1 | 10 | 1 | 12 |
| Policy life expectancy |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trailing 3 months | (8) | (10) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trailing 12 months | (6) | 2 |  |  |

---

The personal auto direct business includes business written directly by Progressive online or by phone. During the second quarter 2025, we generated new direct personal auto application growth in 39 states and the District of Columbia, including seven of our top 10 largest direct states. Compared to the same periods in the prior year, all four consumer segments experienced moderate growth in new applications, except Sams, who experienced significant growth for the second quarter 2025, with all four consumer segments experiencing significant growth for the first half of 2025. Policies in force grew between 17% and 24% in each consumer segment, compared to the same period last year.

During the second quarter and first six months of 2025, direct personal auto quote volume increased 2% and 12%, respectively, with a rate of conversion increase of 6% and 7%, compared to the same periods last year, primarily driven by increased advertising spend and our competitiveness in the marketplace. For the second quarter 2025, Sams and Robinsons experienced quote volume growth higher than the total, Dianes experienced flat growth, and the Wrights experienced a decline, compared to the same period last year. All consumer segments experienced quote volume growth for the first half of 2025. For the second quarter and first half of 2025, all consumer segments experienced an increase in conversion, except for Robinsons, who experienced 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 bundles with personal auto in the direct channel is written through unaffiliated third-party carriers, which remain available even when we restrict writing our personal property products.

Our personal auto rates were relatively stable during the quarter, resulting in relatively steady written premium per

policy during the second quarter and first six months of 2025, compared to the same periods last year.

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

***Personal Property***

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

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Change Over Prior Year** | **Change Over Prior Year** | **Change Over Prior Year** | **Change Over Prior Year** |
| | **Quarter** | **Quarter** | **Year-to-date** | **Year-to-date** |
| | **2025** | **2024** | **2025** | **2024** |
| Applications |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New | (11)% | 35% | (6)% | 33% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Renewal | 14 | 6 | 13 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 4 | 16 | 6 | 15 |
| Written premium per policy |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New | (33) | (10) | (37) | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Renewal | (3) | 2 | (3) | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | (6) | (4) | (7) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Policy life expectancy<br>Trailing 12 months | (17) | 5 |  |  |

---

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

In addition to reducing our geographic footprint in more volatile weather-related markets (e.g., coastal and hail-prone states), we continued to focus on achieving profitability goals in markets that are less susceptible to catastrophes for our homeowners product, which we define as our total personal property business excluding renters and umbrella products. In the growth-oriented states, homeowners product policies in force increased 7% on a year-over-year basis as of June 30, 2025. Policies in force decreased 15% in the volatile weather states as of the end of the second quarter 2025, compared to the same period in the prior year.

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

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mandatory wind and hail deductibles and roof depreciation schedules in markets where permitted.

In addition, beginning in the second quarter 2024, following the required filings and notices, we began our efforts to non-renew about 115,000 property policies in Florida. This effort slowed while the moratoriums were in place in response to Hurricanes Helene and Milton, which temporarily limited an insurer's ability to non-renew policies, but resumed once the moratoriums expired in December 2024. This effort was substantially completed by the end of the second quarter 2025.

Our written premium per policy decreased on a year-over-year basis for the second quarter and first six months of 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 the second quarter 2025, we increased rates, in aggregate, about 4% in our personal property business, bringing the year-to-date aggregate rate increase to 6%. We intend to continue to make targeted rate increases in states where we are not achieving our profitability goals.

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

**E. Commercial Lines**

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

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Change Over Prior Year** | **Change Over Prior Year** | **Change Over Prior Year** | **Change Over Prior Year** |
| | **Quarter** | **Quarter** | **Year-to-date** | **Year-to-date** |
| | **2025** | **2024** | **2025** | **2024** |
| Applications |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New | 3% | 7% | 6% | 4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Renewal | 5 | 1 | 5 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 5 | 4 | 5 | 2 |
| Written premium per policy |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New | (7) | 1 | (7) | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Renewal | (6) | 13 | (5) | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | (6) | 8 | (6) | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Policy life expectancy<br>Trailing 12 months | 5 | (19) |  |  |

---

During the second quarter and first six months of 2025 on a year-over-year basis, core commercial auto new application growth was positive in our tow, contractor, and business auto BMTs. The for-hire transportation BMT continued to be adversely impacted by challenging freight market conditions that have continued to cause a decline in the active number of 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. During the second quarter and first six months of 2025, quote volume increased about 4% and 3%, respectively, while conversion decreased 1% and increased 2%, in our core commercial auto products, compared to the same periods last year.

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 a decreased demand for products in our for-hire transportation BMT and, to a lesser extent, our for-hire specialty 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 the second quarter 2025, we increased rates, in aggregate, about 3% in our core commercial auto products, bringing the year-to-date aggregate rate increase to 4%. 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 and for-hire transportation for the second quarter 2025, compared to the same period last year. As of the end of the second quarter 2025, policy life expectancy has experienced sequential month-over-month improvement since the end of the third quarter 2024. We believe this improvement is due to the moderation of our rate increases, compared to competitor 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 table summarizes investment results for the periods ended June 30:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months** | **Three Months** | **Six Months** | **Six Months** |
| | **2025** | **2024** | **2025** | **2024** |
| Pretax recurring investment book yield (annualized) | 4.2% | 3.9% | 4.2% | 3.8% |
| FTE total return: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed-income securities | 1.7 | 0.8 | 4.3 | 1.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stocks | 10.9 | 3.6 | 5.3 | 13.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total portfolio | 2.1 | 0.9 | 4.3 | 1.7 |

---

The increase in the book yield, compared to last year, primarily reflected investing new cash from insurance operations, and proceeds from maturing bonds, in higher coupon rate securities. The increase in the fixed-income portfolio FTE total return, compared to last 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 periods ended June 30, follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months** | **Three Months** | **Six Months** | **Six Months** |
| | **2025** | **2024** | **2025** | **2024** |
| Fixed-income securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. government obligations | 1.7% | 0.6% | 4.7% | 0.2% |
| &nbsp;&nbsp;&nbsp;State and local government obligations | 1.4 | 0.5 | 3.5 | 0.9 |
| &nbsp;&nbsp;&nbsp;Foreign government obligations | 5.1 | (0.1) | 6.8 | (2.5) |
| &nbsp;&nbsp;&nbsp;Corporate and other debt securities | 2.0 | 1.0 | 4.0 | 1.7 |
| &nbsp;&nbsp;&nbsp;Residential mortgage-backed securities | 1.6 | 2.1 | 3.6 | 4.2 |
| &nbsp;&nbsp;&nbsp;Commercial mortgage-backed securities | 2.0 | 1.7 | 4.2 | 4.9 |
| &nbsp;&nbsp;&nbsp;Other asset-backed securities | 1.3 | 1.4 | 2.8 | 2.8 |
| &nbsp;&nbsp;&nbsp;Nonredeemable preferred stocks | 2.0 | 0.3 | 3.8 | 4.4 |
| &nbsp;&nbsp;&nbsp;Short-term investments | 1.1 | 1.4 | 2.2 | 2.8 |

---

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**B. Portfolio Allocation**

The composition of the investment portfolio was:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in millions)** | **Fair<br>Value** | **% of Total<br>Portfolio** | **Duration<br>(years)** | **Average Rating**<sup>1</sup> |
| <u>June 30, 2025</u> |  |  |  |  |
| U.S. government obligations | $46810 | 52.8% | 4.4 | AA+ |
| State and local government obligations | 2964 | 3.3 | 2.6 | AA+ |
| Foreign government obligations | 17 | 0 | 1.1 | AAA |
| Corporate and other debt securities | 18122 | 20.5 | 2.8 | BBB+ |
| Residential mortgage-backed securities | 2660 | 3.0 | 2.5 | AA+ |
| Commercial mortgage-backed securities | 5049 | 5.7 | 1.6 | AA- |
| Other asset-backed securities | 6650 | 7.5 | 1.1 | AA |
| Nonredeemable preferred stocks | 500 | 0.6 | 1.2 | BBB- |
| Short-term investments | 2103 | 2.4 | <0.1 | A+ |
| &nbsp;&nbsp;&nbsp;&nbsp;Total fixed-income securities | 84875 | 95.8 | 3.4 | AA- |
| Common equities | 3735 | 4.2 | na | na |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total portfolio<sup>2</sup> | $88610 | 100.0% | 3.4 | AA- |
| <u>June 30, 2024</u> |  |  |  |  |
| U.S. government obligations | $40894 | 56.5% | 4.0 | AA+ |
| State and local government obligations | 2202 | 3.0 | 2.9 | AA+ |
| Foreign government obligations | 16 | 0.1 | 2.1 | AAA |
| Corporate and other debt securities | 13146 | 18.1 | 2.6 | BBB+ |
| Residential mortgage-backed securities | 976 | 1.3 | 3.2 | AA+ |
| Commercial mortgage-backed securities | 3970 | 5.5 | 2.0 | A+ |
| Other asset-backed securities | 6285 | 8.7 | 1.1 | AA+ |
| Nonredeemable preferred stocks | 838 | 1.2 | 1.8 | BBB- |
| Short-term investments | 733 | 1.0 | <0.1 | AA- |
| &nbsp;&nbsp;&nbsp;&nbsp;Total fixed-income securities | 69060 | 95.4 | 3.2 | AA- |
| Common equities | 3296 | 4.6 | na | na |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total portfolio<sup>2</sup> | $72356 | 100.0% | 3.2 | AA- |
| <u>December 31, 2024</u> |  |  |  |  |
| U.S. government obligations | $45988 | 57.3% | 4.1 | AA+ |
| State and local government obligations | 2778 | 3.5 | 2.5 | AA+ |
| Foreign government obligations | 16 | 0 | 1.6 | AAA |
| Corporate and other debt securities | 13954 | 17.4 | 2.6 | BBB+ |
| Residential mortgage-backed securities | 1601 | 2.0 | 2.6 | AA |
| Commercial mortgage-backed securities | 4352 | 5.4 | 1.9 | A+ |
| Other asset-backed securities | 6643 | 8.3 | 1.2 | AA+ |
| Nonredeemable preferred stocks | 728 | 0.9 | 1.4 | BBB- |
| Short-term investments | 615 | 0.7 | <0.1 | AA- |
| &nbsp;&nbsp;&nbsp;&nbsp;Total fixed-income securities | 76675 | 95.5 | 3.3 | AA- |
| Common equities | 3575 | 4.5 | na | na |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total portfolio<sup>2</sup> | $80250 | 100.0% | 3.3 | AA- |
| na = not applicable |  |  |  |  |

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<sup>1</sup> 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-.

<sup>2</sup> At June 30, 2025 and 2024 and December 31, 2024, we had $303 million, $74 million, and $125 million, respectively, of net unsettled security transactions included in accounts payable, accrued expenses, and other liabilities on our consolidated balance sheets.

&nbsp;&nbsp;&nbsp;&nbsp;The total fair value of the portfolio at June 30, 2025 and 2024 and December 31, 2024, included $5.0 billion, $4.1 billion, and $6.2 billion, respectively, of securities held in a consolidated, non-insurance subsidiary of the holding company, net of unsettled security transactions. A portion of the investments held at December 31, 2024 were sold and proceeds were used to pay our common share dividends in January 2025; see *Note 9 – Dividends* for additional information.

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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.

We define Group I securities to 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 include:

• short-term securities, and

**•** all other fixed-maturity securities, including 50% of investment-grade redeemable preferred stocks with cumulative dividends.

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.

The following table shows the composition of our Group I and Group II securities:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** | **December 31, 2024** | **December 31, 2024** |
|<br>**($ in millions)** | **Fair<br>Value** | **% of Total<br>Portfolio** | **Fair<br>Value** | **% of Total<br>Portfolio** | **Fair<br>Value** | **% of Total<br>Portfolio** |
| Group I securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-investment-grade fixed maturities | $552 | 0.6% | $504 | 0.6% | $385 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonredeemable preferred stocks | 500 | 0.6 | 838 | 1.2 | 728 | 0.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common equities | 3735 | 4.2 | 3296 | 4.6 | 3575 | 4.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Group I securities | 4787 | 5.4 | 4638 | 6.4 | 4688 | 5.9 |
| Group II securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other fixed maturities | 81720 | 92.2 | 66985 | 92.6 | 74947 | 93.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term investments | 2103 | 2.4 | 733 | 1.0 | 615 | 0.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Group II securities | 83823 | 94.6 | 67718 | 93.6 | 75562 | 94.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total portfolio | $88610 | 100.0% | $72356 | 100.0% | $80250 | 100.0% |

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To determine the allocation between Group I and Group II, we use the credit ratings from models provided by the National Association of Insurance Commissioners (NAIC) to classify our residential and commercial mortgage-backed securities, excluding interest-only (IO) securities, and the credit ratings from nationally recognized statistical rating organizations (NRSROs) to classify all other debt securities. NAIC ratings are based on a model that considers the book price of our securities when assessing the probability of future losses in assigning a credit rating. As a result, NAIC ratings can vary from credit ratings issued by NRSROs. Management believes NAIC ratings more accurately reflect our risk profile when determining the asset allocation between Group I and Group II securities.

***Unrealized Gains (Losses)***

As of June 30, 2025, our fixed-maturity portfolio had total after-tax net unrealized losses, which are recorded as part of accumulated other comprehensive income (loss) on our consolidated balance sheets, of $0.1 billion, compared to $1.7 billion and $1.4 billion at June 30, 2024 and December 31, 2024, respectively. The decrease in total unrealized losses from June 30, 2024 and December 31, 2024, was due to valuation increases across all fixed-maturity sectors, most prominently in our U.S. Treasury, corporate and other debt, and commercial mortgage-backed portfolios as 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).

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***Holding Period Gains (Losses)***

The following table provides the balance and activity for both the gross and net holding period gains (losses) for the six months ended June 30, 2025:

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| | | | |
|:---|:---|:---|:---|
| **(millions)** | **Gross Holding<br>Period Gains** | **Gross Holding<br>Period Losses** | **Net Holding Period Gains (Losses)** |
| Balance at December 31, 2024 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Hybrid fixed-maturity securities | $8 | $(12) | $(4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity securities<sup>1</sup> | 2838 | (36) | 2802 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total holding period securities | 2846 | (48) | 2798 |
| Current year change in holding period securities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Hybrid fixed-maturity securities | 8 | 6 | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity securities<sup>1</sup> | 144 | (3) | 141 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total changes in holding period securities | 152 | 3 | 155 |
| Balance at June 30, 2025 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Hybrid fixed-maturity securities | 16 | (6) | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity securities<sup>1</sup> | 2982 | (39) | 2943 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total holding period securities | $2998 | $(45) | $2953 |

---

<sup>1</sup>Equity securities include common equities and nonredeemable preferred stocks.

Changes in holding period gains (losses), similar to unrealized gains (losses) in our fixed-maturity portfolio, are the result of changes in market conditions as well as sales of securities based on various portfolio management decisions.

***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 our fixed-income portfolio.

<u>Interest Rate Risk</u> Our duration of 3.4 years at June 30, 2025, 3.2 years at June 30, 2024, and 3.3 years at December 31, 2024, fell within our acceptable range of 1.5 to 5.0 years. 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, was:

---

| | | | |
|:---|:---|:---|:---|
| **Duration Distribution** | **June 30, 2025** | **June 30, 2024** | **December 31, 2024** |
| 1 year | 11.2% | 9.5% | 9.6% |
| 2 years | 8.0 | 10.6 | 8.2 |
| 3 years | 28.0 | 31.3 | 29.5 |
| 5 years | 32.6 | 36.3 | 43.6 |
| 7 years | 19.5 | 11.0 | 8.2 |
| 10 years | 0.7 | 1.3 | 0.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total fixed-income portfolio | 100.0% | 100.0% | 100.0% |

---

<u>Credit Risk</u> This exposure is managed by maintaining an A minimum weighted average portfolio credit quality rating, as defined by NRSROs. At June 30, 2025 and 2024, and December 31, 2024, our weighted average credit quality rating was AA-. The credit quality distribution of the fixed-income portfolio was:

---

| | | | |
|:---|:---|:---|:---|
| **Average Rating**<sup>1</sup> | **June 30, 2025** | **June 30, 2024** | **December 31, 2024** |
| AAA | 12.8% | 12.1% | 12.6% |
| AA | 61.0 | 63.6 | 64.2 |
| A | 8.2 | 6.8 | 6.4 |
| BBB | 16.8 | 16.1 | 15.7 |
| Non-investment grade/non-rated |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;BB | 1.0 | 1.1 | 0.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;B | 0.1 | 0.2 | 0.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-rated | 0.1 | 0.1 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total fixed-income portfolio | 100.0% | 100.0% | 100.0% |

---

<sup>1</sup> The credit quality ratings are assigned by NRSROs.

------

<u>Concentration Risk</u> We did not have any investments in a single issuer, either overall or in the context of individual asset classes and sectors, that exceeded our thresholds during the second quarter 2025.

<u>Prepayment and Extension Risk</u> We did not experience significant adverse prepayment or extension of principal relative to our cash flow expectations in the portfolio during the second quarter 2025.

<u>Liquidity Risk</u> 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 the remainder of 2025, we expect approximately $3.8 billion, or 10%, of principal repayment from our fixed-income portfolio, excluding U.S. Treasury Notes and short-term investments. Cash from interest and dividend

payments provides an additional source of recurring liquidity.

The duration of our U.S. government obligations, which are included in the fixed-income portfolio, was comprised of the following at June 30, 2025:

---

| | | |
|:---|:---|:---|
| **($ in millions)** | **Fair<br>Value** | **Duration<br>(years)** |
| <u>U.S. Treasury Notes</u> |  |  |
| Less than one year | $272 | 0.7 |
| One to two years | 876 | 1.6 |
| Two to three years | 1700 | 2.6 |
| Three to five years | 26895 | 3.9 |
| Five to seven years | 17067 | 5.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total U.S. Treasury Notes | $46810 | 4.4 |

---

&nbsp;&nbsp;&nbsp;&nbsp;

*ASSET-BACKED SECURITIES*

Included in our fixed-income portfolio are asset-backed securities, which were comprised of the following at the balance sheet dates listed:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | **Fair<br>Value** | **Net Unrealized<br>Gains (Losses)** | **% of Asset-<br>Backed<br>Securities** | **Duration<br>(years)** | **Average Rating<br>(at period end)**<sup>1</sup> |
| <u>June 30, 2025</u> |  |  |  |  |  |
| Residential mortgage-backed securities | $2660 | $14 | 18.5% | 2.5 | AA+ |
| Commercial mortgage-backed securities | 5049 | (276) | 35.2 | 1.6 | AA- |
| Other asset-backed securities | 6650 | (18) | 46.3 | 1.1 | AA |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total asset-backed securities | $14359 | $(280) | 100.0% | 1.6 | AA |
| <u>June 30, 2024</u> |  |  |  |  |  |
| Residential mortgage-backed securities | $976 | $(7) | 8.7% | 3.2 | AA+ |
| Commercial mortgage-backed securities | 3970 | (487) | 35.3 | 2.0 | A+ |
| Other asset-backed securities | 6285 | (81) | 56.0 | 1.1 | AA+ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total asset-backed securities | $11231 | $(575) | 100.0% | 1.6 | AA |
| <u>December 31, 2024</u> |  |  |  |  |  |
| Residential mortgage-backed securities | $1601 | $(2) | 12.7% | 2.6 | AA |
| Commercial mortgage-backed securities | 4352 | (369) | 34.6 | 1.9 | A+ |
| Other asset-backed securities | 6643 | (39) | 52.7 | 1.2 | AA+ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total asset-backed securities | $12596 | $(410) | 100.0% | 1.6 | AA |

---

<sup>1</sup> The credit quality ratings are assigned by NRSROs.

------

*<u>Residential Mortgage-Backed Securities (RMBS)</u>* The following table details the credit quality rating and fair value of our RMBS, along with the loan classification and a comparison of the fair value at June 30, 2025, to our original investment value (adjusted for returns of principal, amortization, and write-downs):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in millions)<br>Average Rating**<sup>1</sup> | **Non-Agency** | **Government/GSE**<sup>2</sup> | **Total** | **% of Total** |
| AAA | $2022 | $0 | $2022 | 76.0% |
| AA | 139 | 1 | 140 | 5.3 |
| A | 404 | 0 | 404 | 15.2 |
| BBB | 92 | 0 | 92 | 3.5 |
| Non-investment grade/non-rated: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BB | 0 | 0 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CCC and lower | 1 | 0 | 1 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-rated | 1 | 0 | 1 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fair value | $2659 | $1 | $2660 | 100.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in value | 0.6% | (3.9)% | 0.6% |  |

---

<sup>1</sup> The credit quality ratings are assigned by NRSROs; when we assigned the NAIC ratings for our RMBS, 91.6% of our non-investment-grade securities were rated investment grade and reported as Group II securities.

<sup>2</sup> The securities in this category are insured by a Government Sponsored Entity (GSE) and/or collateralized by mortgage loans insured by the Federal Housing Administration (FHA) or the U.S. Department of Veteran Affairs (VA). <sup>.</sup>

Our RMBS portfolio consists of deals that are backed by high-credit quality borrowers and/or those that have strong structural protections through underlying loan collateralization. During the second quarter of 2025, we continued to increase our exposure in this portfolio through purchases in both the primary and secondary markets. Our additions were concentrated in high-quality investment-grade securities.

*<u>Commercial Mortgage-Backed Securities (CMBS)</u>* The following table details the credit quality rating and fair value of our CMBS, along with a comparison of the fair value at June 30, 2025, to our original investment value (adjusted for returns of principal, amortization, and write-downs):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in millions)**<br>**Average Rating**<sup>1</sup> | **Multi-Borrower** | **Single-Borrower** | **Total** | **% of Total** |
| AAA | $127 | $2245 | $2372 | 47.0% |
| AA | 0 | 870 | 870 | 17.2 |
| A | 0 | 526 | 526 | 10.4 |
| BBB | 0 | 882 | 882 | 17.5 |
| Non-investment grade/non-rated: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BB | 0 | 387 | 387 | 7.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B | 0 | 12 | 12 | 0.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fair value | $127 | $4922 | $5049 | 100.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in value | (4.7)% | (5.2)% | (5.2)% |  |

---

<sup>1</sup> The credit quality ratings are assigned by NRSROs; when we assigned the NAIC ratings for our CMBS, 85% of our non-investment-grade securities were rated investment grade and reported as Group II securities, with the remainder classified as Group I.

During the second quarter 2025, our allocation to CMBS remained relatively stable. While CMBS credit spreads widened in the beginning of the quarter, they tightened back in and ended the quarter close to unchanged. We purchased securities in both the primary and secondary markets during the quarter. We focused on buying high-quality securities in sectors including apartments, grocery-anchored shopping centers, logistics, and self-storage. As of June 30, 2025, we had no delinquencies in our CMBS portfolio.

------

The following table shows the composition of our CMBS portfolio by maturity year and sector at June 30, 2025:

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **($ in millions)**<br>**Maturity**<sup>1</sup> | **Office** | **Lab Office** | **Multi-family** | **Multi-family IO** | **Industrial** | **Self- Storage** | **Casino** | **Data Center** | **Retail** | **Total** | **Average Original LTV** | **Average Current DSCR** |
| 2025 | $0 | $0 | $0 | $18 | $0 | $0 | $0 | $0 | $0 | $18 |  |  |
| 2026 | 326 | 47 | 165 | 37 | 89 | 94 | 114 | 0 | 0 | 872 | 62.8% | 1.5 |
| 2027 | 384 | 0 | 62 | 32 | 0 | 220 | 0 | 0 | 0 | 698 | 62.1 | 1.9 |
| 2028 | 284 | 0 | 0 | 24 | 0 | 118 | 0 | 0 | 0 | 426 | 66.0 | 1.7 |
| 2029 | 498 | 164 | 548 | 12 | 450 | 230 | 71 | 0 | 0 | 1973 | 63.2 | 2.2 |
| 2030 | 107 | 61 | 0 | 4 | 144 | 0 | 100 | 65 | 220 | 701 | 61.1 | 2.5 |
| 2031 | 246 | 95 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 341 | 66.5 | 2.0 |
| 2032 | 20 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 20 | 68.0 | 1.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total fair value | $1865 | $367 | $775 | $127 | $683 | $662 | $285 | $65 | $220 | $5049 |  |  |
| LTV= loan to value | LTV= loan to value | LTV= loan to value | LTV= loan to value |  |  |  |  |  |  |  |  |  |
| DSCR= debt service coverage ratio | DSCR= debt service coverage ratio | DSCR= debt service coverage ratio | DSCR= debt service coverage ratio |  |  |  |  |  |  |  |  |  |

---

<sup>1</sup> The floating-rate securities were extended to their full maturity and fixed-rate securities are shown to their anticipated repayment date (if applicable) or their maturity date.

We show the average loan to value (LTV) of each maturity year when the loans were originated. The LTV ratio that management uses, which is commonly expressed as a percentage, compares the size of the entire mortgage loan to the appraised value of the underlying property collateralizing the loan at issuance. A LTV ratio less than 100% indicates excess collateral value over the loan amount. LTV ratios greater than 100% indicate that the loan amount exceeds the collateral value. We believe this ratio provides a conservative view of our actual risk of loss, as this number displays the entire mortgage LTV, while our ownership is only a portion of the structure of the mortgage loan-backed security. For many of the mortgage loans in our portfolio, our exposure is in a more senior part of the structure, which means that the LTV on our actual exposure is even lower than the ratios presented. In addition to the LTV ratio, we also examine the credit of our CMBS portfolio by reviewing the debt service coverage ratio (DSCR) of the securities. The DSCR compares the underlying property's annual net operating income to its annual debt service payments. A DSCR less than 1.0 times indicates that property operations do not generate enough income over the debt service payments, while a DSCR greater than 1.0 times indicates that there is an excess of operating income over the debt service payments. A number above 1.0 generally indicates that there would not be an incentive for the borrower to default in light of the borrower's excess income. The DSCR reported in the table is calculated based on the most currently available net operating income and mortgage payments for the borrower.

*<u>Other Asset-Backed Securities (OABS)</u>* The following table details the credit quality rating and fair value of our OABS, along with a comparison of the fair value at June 30, 2025, to our original investment value (adjusted for returns of principal, amortization, and write-downs):

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **($ in millions)<br>Average Rating** | **Automobile** | **Collateralized Loan Obligations** | **Student Loan** | **Whole Business Securitizations** | **Equipment** | **Other** | **Total** | **% of<br>Total** |
| AAA | $3047 | $399 | $46 | $0 | $974 | $252 | $4718 | 71.0% |
| AA | 0 | 58 | 1 | 0 | 30 | 0 | 89 | 1.3 |
| A | 3 | 0 | 0 | 0 | 131 | 447 | 581 | 8.7 |
| BBB | 0 | 0 | 0 | 1187 | 0 | 40 | 1227 | 18.5 |
| Non-investment grade/non-rated: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BB | 0 | 0 | 0 | 0 | 0 | 35 | 35 | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fair value | $3050 | $457 | $47 | $1187 | $1135 | $774 | $6650 | 100.0% |
| Increase (decrease) in value | 0.3% | 0% | (5.1)% | (2.1)% | 0.3% | (0.5)% | (0.3)% |  |

---

During the second quarter 2025, we selectively added securities to the OABS portfolio that we viewed as having attractive spreads and potential returns. The securities we acquired were predominantly in the automobile and equipment categories in highly rated, senior, and short-tenor debt tranches. Additions were primarily made in new issue markets with some selective secondary purchases.

------

*STATE AND LOCAL GOVERNMENT OBLIGATIONS*

The following table details the credit quality rating of our state and local government obligations (municipal securities) at June 30, 2025, without the benefit of credit or bond insurance:

---

| | | | |
|:---|:---|:---|:---|
| **(millions)<br>Average Rating** | **General<br>Obligations** | **Revenue<br>Bonds** | **Total** |
| AAA | $728 | $514 | $1242 |
| AA | 538 | 1028 | 1566 |
| A | 0 | 156 | 156 |
| &nbsp;&nbsp;&nbsp;Total fair value | $1266 | $1698 | $2964 |

---

Included in revenue bonds were $734 million of single-family housing revenue bonds issued by state housing finance agencies, of which $358 million were supported by

individual mortgages held by the state housing finance

agencies and $376 million were supported by mortgage-backed securities.

Of the revenue bonds supported by individual mortgages held by the state housing finance agencies, the overall credit quality rating was AA+. Most of these mortgages were supported by the Federal Housing Administration, the U.S. Department of Veterans Affairs, or private mortgage insurance providers. Of the revenue bonds supported by mortgage-backed securities, 83% were collateralized by Ginnie Mae mortgages, which are fully guaranteed by the U.S. government; the remaining 17% were collateralized by Fannie Mae and Freddie Mac mortgages.

While credit spreads of municipal bonds widened in the beginning of the second quarter 2025, they tightened back in and ended the quarter close to unchanged. We selectively added short-duration bonds to the portfolio during the second quarter, and as a result, municipal securities as a percentage of the total fixed-income portfolio increased modestly.

*CORPORATE AND OTHER DEBT SECURITIES*

The following table details the credit quality rating of our corporate and other debt securities at June 30, 2025:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **(millions)<br>Average Rating** | **Consumer** | **Industrial** | **Communication** | **Financial Services** | **Technology** | **Basic Materials** | **Energy** | **Total** |
| AAA | $38 | $0 | $0 | $0 | $0 | $0 | $32 | $70 |
| AA | 93 | 0 | 0 | 1041 | 0 | 0 | 44 | 1178 |
| A | 810 | 512 | 165 | 2945 | 60 | 148 | 566 | 5206 |
| BBB | 3824 | 1695 | 393 | 2176 | 1590 | 85 | 1447 | 11210 |
| Non-investment grade/non-rated: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BB | 193 | 74 | 60 | 0 | 8 | 0 | 6 | 341 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B | 105 | 0 | 0 | 0 | 0 | 7 | 0 | 112 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-rated | 0 | 0 | 0 | 2 | 3 | 0 | 0 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fair value | $5063 | $2281 | $618 | $6164 | $1661 | $240 | $2095 | $18122 |

---

The size of our corporate and other debt portfolio increased to $18.1 billion at June 30, 2025, from $16.0 billion at

March 31, 2025. We selectively added securities as volatility provided periods with attractive credit spreads during the quarter. At June 30, 2025 and March 31, 2025, corporate and other debt securities made up approximately 21% and 20%, respectively, of our fixed-income portfolio. The duration of the corporate and other debt portfolio increased slightly to 2.8 years at June 30, 2025, from 2.7 years at March 31, 2025.

*NONREDEEMABLE PREFERRED STOCKS*

The table below shows the exposure break-down of our nonredeemable preferred stocks by sector and rating at June 30, 2025:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Financial Services** | **Financial Services** | **Financial Services** | **Financial Services** | | | |
|<br>**(millions)<br>Average Rating** | **U.S.<br>Banks** | **Foreign<br>Banks** | **Insurance** | **Other Financial** |<br>**Industrials** |<br>**Utilities** |<br>**Total** |
| BBB | $226 | $14 | $64 | $32 | $0 | $39 | $375 |
| Non-investment grade/non-rated: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BB | 65 | 0 | 0 | 0 | 0 | 0 | 65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-rated | 0 | 0 | 20 | 23 | 17 | 0 | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fair value | $291 | $14 | $84 | $55 | $17 | $39 | $500 |

---

------

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 June 30, 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 June 30, 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.

At June 30, 2025, the nonredeemable preferred stock portfolio fair value was $0.5 billion, which is a slight decrease from $0.6 billion at March 31, 2025. This decline was primarily due to nonredeemable preferred stocks that were called during the quarter.

***Common Equities***

Common equities, as reported on our consolidated balance sheets, were comprised of the following:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** | **December 31, 2024** | **December 31, 2024** |
| Common stocks | $3703 | 99.1% | $3272 | 99.3% | $3550 | 99.3% |
| Other risk investments<sup>1</sup> | 32 | 0.9 | 24 | 0.7 | 25 | 0.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total common equities | $3735 | 100.0% | $3296 | 100.0% | $3575 | 100.0% |

---

<sup>1</sup> The other risk investments consist of limited partnership interests.

The majority of our common stock portfolio consists of individual holdings selected based on their contribution to the correlation with the Russell 1000 Index. We held 685 out of 1,015, or 67%, of the common stocks comprising the index at June 30, 2025, which made up 93% of the total market capitalization of the index. At both June 30, 2025 and 2024, the year-to-date GAAP income total return was within our targeted tracking error of +/- 50 basis points. At December 31, 2024, the full year GAAP income total return did not meet our targeted tracking error.

------

***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:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• our ability to underwrite and price risks accurately and to charge adequate rates to policyholders;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• our ability to establish accurate loss reserves;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• the impact of severe weather, other catastrophe events, and climate change;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• the effectiveness of our reinsurance programs and the continued availability of reinsurance and performance by reinsurers;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• 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;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• the impacts of a security breach or other attack involving our technology systems or the systems of one or more of our vendors;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• our ability to maintain a recognized and trusted brand and reputation;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• whether we innovate effectively and respond to our competitors' initiatives;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• whether we effectively manage complexity as we develop and deliver products and customer experiences;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• the highly competitive nature of property-casualty insurance markets;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• whether we adjust claims accurately;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• compliance with complex and changing laws and regulations;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• the impact of misconduct or fraudulent acts by employees, agents, and third parties to our business and/or exposure to regulatory assessments;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• our ability to attract, develop, and retain talent and maintain appropriate staffing levels;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• litigation challenging our business practices, and those of our competitors and other companies;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• 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;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• how intellectual property rights affect our competitiveness and our business operations;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• the success of our development and use of new technology and our ability to navigate the related risks;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• the performance of our fixed-income and equity investment portfolios;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• the impact on our investment returns and strategies from regulations and societal pressures relating to environmental, social, governance and other public policy matters;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• our continued ability to access our cash accounts and/or convert investments into cash on favorable terms;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• the impact if one or more parties with which we enter into significant contracts or transact business fail to perform;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• legal restrictions on our insurance subsidiaries' ability to pay dividends to The Progressive Corporation;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• our ability to obtain capital when necessary to support our business, our financial condition, and potential growth;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• evaluations and ratings by credit rating and other rating agencies;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• the variable nature of our common share dividend policy;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• whether our investments in certain tax-advantaged projects generate the anticipated returns;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• the impact from not managing to short-term earnings expectations in light of our goal to maximize the long-term value of the enterprise;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• the impacts of epidemics, pandemics, or other widespread health risks; and*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• 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, 2024.*

*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.*

------

**Item 3. Quantitative and Qualitative Disclosures About Market Risk.**

The duration of the financial instruments held in our portfolio that are subject to interest rate risk was 3.4 years at June 30, 2025, 3.2 years at June 30, 2024, and 3.3 years at December 31, 2024. The weighted average beta of the equity portfolio was 1.1 at June 30, 2025, June 30, 2024, and December 31, 2024. We have not experienced a material impact when compared to the tabular presentations of our interest rate and market risk sensitive instruments in our Annual Report on Form 10-K for the year ended December 31, 2024.

**Item 4. 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 our 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.

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.

------

**<u>PART II—OTHER INFORMATION</u>**

**Item 1. Legal Proceedings.**

For discussion of legal proceedings, see *Note 11 – Litigation* to the consolidated financial statements, which is incorporated herein by reference.

**Item 1A. Risk Factors.**

There have been no material changes in the risk factors from those discussed in *Item 1A, Risk Factors* included in our Annual Report on Form 10-K for the year ended December 31, 2024.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.**

(c) Share Repurchases

---

| | | | | |
|:---|:---|:---|:---|:---|
| **ISSUER PURCHASES OF EQUITY SECURITIES** | **ISSUER PURCHASES OF EQUITY SECURITIES** | **ISSUER PURCHASES OF EQUITY SECURITIES** | **ISSUER PURCHASES OF EQUITY SECURITIES** | **ISSUER PURCHASES OF EQUITY SECURITIES** |
| **2025 Calendar Month** | **Total<br>Number of<br>Shares<br>Purchased** | **Average<br>Price<br>Paid<br>Per Share** | **Total Number of Shares<br>Purchased as Part of<br>Publicly Announced<br>Plans or Programs** | **Maximum Number of<br>Shares That May Yet be<br>Purchased Under the<br>Plans or Programs** |
| April | 9183 | $267.93 | 655131 | 24344869 |
| May *–* prior authorization | 6000 | 282.61 | 661131 |  |
| May *–* current authorization | 15795 | 280.87 | 15795 | 24984205 |
| June | 14367 | 272.33 | 30162 | 24969838 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 45345 | $275.78 |  |  |

---

Progressive's financial policies state that we will repurchase shares to neutralize dilution from equity-based compensation in the year of issuance and as an option to effectively use under-leveraged capital.

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, which does not have an expiration date, terminated the 24,338,869 shares that remained under the Board's May 2024 authorization to repurchase 25 million shares.

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 second 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 5. Other Information.**

(c) Insider Trading Arrangements

During the second quarter 2025, no director or executive officer adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.

Additional Information

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

**Item 6. Exhibits.**

See exhibit index contained herein beginning on page 54, which is incorporated by reference from information with respect to this item.

------

**<u>SIGNATURES</u>**

Pursuant to the requirements 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
| | | <u>THE PROGRESSIVE CORPORATION</u> |
| | | (Registrant) |
| Date:  | August 4, 2025 | By: /s/ John P. Sauerland |
|  |  | John P. Sauerland |
|  |  | Vice President and Chief Financial Officer |

---

------

---

| | | | |
|:---|:---|:---|:---|
| EXHIBIT INDEX | EXHIBIT INDEX | EXHIBIT INDEX | EXHIBIT INDEX |
| Exhibit No.<br>Under<br>Reg. S-K,<br>Item 601 | Form 10-Q<br>Exhibit<br>Number | Description of Exhibit | If Incorporated by Reference,<br>Documents with Which Exhibit was<br>Previously Filed with SEC |
| 10(iii) | 10.1 | <u>[Form of Restricted Stock Award Agreement under The Progressive Corporation Amended and Restated 2017 Directors Equity Incentive Plan (for 2025)](pgr-2025630exhibit101.htm)</u> | Filed herewith |
| 31 | 31.1 | <u>[Rule 13a-14(a)/15d-14(a) Certification of the Principal Executive Officer, Susan Patricia Griffith](pgr-2025630ex311ceocertifi.htm)</u> | Filed herewith |
| 31 | 31.2 | <u>[Rule 13a-14(a)/15d-14(a) Certification of the Principal Financial Officer, John P. Sauerland](pgr-2025630ex312cfocertifi.htm)</u> | Filed herewith |
| 32 | 32.1 | <u>[Section 1350 Certification of the Principal Executive Officer, Susan Patricia Griffith](pgr-2025630ex321section135.htm)</u> | Furnished herewith |
| 32 | 32.2 | <u>[Section 1350 Certification of the Principal Financial Officer, John P. Sauerland](pgr-2025630ex322section135.htm)</u> | Furnished herewith |
| 99 | 99 | <u>[Letter to Shareholders from Susan Patricia Griffith, President and Chief Executive Officer (Regulation FD Disclosure)](pgr-2025630ex99shareholder.htm)</u> | Furnished 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 |

---

## Exhibit 10.1

**Exhibit 10.1**

**THE PROGRESSIVE CORPORATION**

**AMENDED AND RESTATED 2017 DIRECTORS EQUITY INCENTIVE PLAN**

**<u>RESTRICTED STOCK AWARD AGREEMENT</u>**

This Agreement ("Agreement") is made this May __, 2025, by and between ("Participant") and The Progressive Corporation (the "Company").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Award of Restricted Stock</u>. The Company hereby grants to Participant an award (the "Award") of restricted stock (the "Restricted Stock") consisting of of the Company's Common Shares, $1.00 par value per share ("Common Shares"), pursuant to, and subject to the terms of, The Progressive Corporation Amended and Restated 2017 Directors Equity Incentive Plan (the "Plan").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Condition to Participant's Rights under this Agreement</u>. This Agreement shall not become effective, and Participant shall have no rights with respect to the Award or the Restricted Stock, unless and until Participant has fully executed this Agreement and delivered it to the Company (in the Company's discretion, such execution and delivery may be accomplished through electronic means).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Restrictions; Vesting</u>. The Restricted Stock shall be subject to the restrictions and other terms and conditions set forth in the Plan, which are hereby incorporated herein by reference, and in this Agreement. Subject to the terms and conditions of the Plan and this Agreement, Participant's rights in and to the shares of Restricted Stock shall vest on April 10, 2026.

The shares of Restricted Stock awarded under this Agreement shall vest as set forth above unless, prior to such Vesting Date, the Award and the applicable shares of Restricted Stock are forfeited or have become subject to accelerated vesting under the terms and conditions of the Plan or this Agreement. Until the shares of Restricted Stock vest, Participant shall not sell, transfer, pledge, assign or otherwise encumber such shares of Restricted Stock or any interest therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Manner In Which Shares Will Be Held</u>. All shares of Restricted Stock awarded to Participant hereunder shall be issued in book-entry form and held by the Company, or its designee, in such form, and as such, no stock certificates evidencing such shares will be issued or held with respect to such Restricted Stock. Certain terms, conditions and restrictions applicable to such Restricted Stock will be noted in the records of the Company's transfer agent and in the book-entry system. At the Company's discretion, and subject to the provisions of this Paragraph 4, stock certificates evidencing the shares of Restricted Stock awarded under this Agreement may be issued and registered in the name of Participant. In such event, such certificates shall be delivered to and held in custody by the Company, or its designee, until the restrictions thereon shall have lapsed or any conditions to the vesting of such Award, or a portion thereof, have been satisfied, and such certificates shall bear an appropriate legend referring to the terms, conditions and restrictions applicable to such Award.

Participant hereby irrevocably authorizes the Company and the Compensation and Talent Committee of the Board of Directors (the "Committee") to take any and all appropriate action with respect to the evidence of Participant's Restricted Stock, including, without limitation, issuing certificates for such Restricted Stock, issuing such Restricted Stock in book-entry form, transferring any previously issued certificates into book-entry form, transferring any Restricted Stock (whether held in certificate or book-entry form) into unrestricted form at vesting, or canceling any Restricted Stock (whether held in certificate or book-entry form) as and when required by this Agreement or the Plan, or undertaking any

------

other action which may be done lawfully by the Company or the Committee in the administration of the Plan and this Agreement. Participant specifically acknowledges and agrees that such certificates and/or book-entry evidence of Participant's Restricted Stock may be transferred or cancelled pursuant to this Agreement and the Plan without requiring that a stock power be executed and delivered by Participant or requiring any other action on the part of Participant, and Participant authorizes the Company to undertake each such action without such stock powers.

Participant hereby further irrevocably appoints the Secretary of the Company and any employee of the Company who may be designated by the Secretary, and each of them, Participant's true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution, for Participant and in his or her name, place and stead, in any and all capacities, to execute and deliver each and every document (including, without limitation, any such stock powers) which may be necessary or appropriate in connection with the issuance, transfer, cancellation or other action taken in connection with the Restricted Stock awarded hereunder pursuant to this Agreement or the Plan. The rights granted by Participant under this paragraph shall automatically expire as to shares of Restricted Stock awarded hereunder upon the transfer of such shares into unrestricted form at vesting or upon the cancellation of such shares at any time, as applicable, pursuant to this Agreement and the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Rights of Shareholder</u>. Except as otherwise provided in this Agreement or the Plan, Participant shall have, with respect to the shares of Restricted Stock awarded hereunder, all of the rights of a shareholder of the Company, including the right to vote the shares and the right to receive any dividends as declared by the Company's Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Shares Non-Transferable</u>. No shares of Restricted Stock shall be transferable by Participant other than by will or by the laws of descent and distribution. In the event any Award is transferred or assigned pursuant to a court order, such transfer or assignment shall be without liability to the Company, and the Company shall have the right to offset against such Award any expenses (including attorneys' fees) incurred by the Company in connection with such transfer or assignment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Restricted Stock Deferral Plan</u>. If Participant is eligible, and if Participant has made the appropriate election, to defer all or a portion of the Restricted Stock awarded hereunder into The Progressive Corporation Directors Restricted Stock Deferral Plan (the "Deferral Plan"), then the Common Shares that would otherwise vest in accordance with the terms of this Agreement and are subject to such election, instead of being delivered to Participant, shall be credited to Participant's account and distributed in accordance with the terms of the Deferral Plan and Participant's deferral election thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.**&nbsp;&nbsp;&nbsp;&nbsp;<u>Dividends</u>. Participant acknowledges and agrees that the Company will pay, or cause to be paid, any cash dividends payable in respect of Restricted Stock through such method(s) of payment as the Company deems advisable, on or promptly after the date established by the Board of Directors for the payment of such cash dividend to holders of the Company's Common Shares (the "Dividend Payment Date"), including, but not limited to: (i) payment by the Company's transfer agent through the procedures established generally for shareholders of record; or (ii) payment by the Company to Participant directly by appropriate check, draft or automatic deposit, provided, however, that in the event a Vesting Date falls between a record date and a Dividend Payment Date for any such dividend and Participant has deferred the Award pursuant to and in accordance with the terms of the Deferral Plan, then such dividend shall not be paid to Participant but instead shall be reinvested in accordance with the Deferral Plan.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Termination of Service</u>. Except as otherwise provided in the Plan or as determined by the Committee, if Participant's service as a member of the Board of Directors terminates for any reason other than death or Disability, all Restricted Stock held by Participant which is unvested or subject to restriction at the time of such termination shall be automatically forfeited immediately after such termination. In the event Participant dies while serving on the Board of Directors, all Restricted Stock held by Participant shall vest in full immediately after Participant's death, and the Company shall process such vesting within thirty (30) days of receipt of notice thereof. In the event Participant resigns or is removed from the Board of Directors as a result of Participant's Disability, all Restricted Stock held by Participant shall vest in full immediately after such resignation or removal, and the Company shall process such vesting within thirty (30) days of the date on which the Committee determines that such resignation or removal was the result of Participant's Disability (but not later than December 31 of the year of such resignation or removal, or if later, the 15th day of the third calendar month following such resignation or removal).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Entire Agreement</u>. This Agreement constitutes the entire agreement between the parties and supersedes and cancels any other agreement, representation or communication, whether oral or in writing, between the parties hereto relating to the subject matter hereof; provided, however, that the Agreement shall be at all times subject to the Plan as provided above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Amendment</u>. The Committee, in its sole discretion, may hereafter amend the terms of this Award to the fullest extent permitted by Section 13 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Definitions</u>: Unless otherwise defined in this Agreement, each capitalized term in this Agreement shall have the meaning given to it in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.**&nbsp;&nbsp;&nbsp;&nbsp;<u>Acknowledgment</u>. Participant hereby: (i) acknowledges receiving a copy of the plan description relating to the Plan, and represents that he or she is familiar with all of the material provisions of the Plan, as set forth in such plan description; (ii) accepts this Agreement and the Restricted Stock awarded pursuant hereto subject to all provisions of the Plan and this Agreement; and (iii) agrees to accept as binding, conclusive and final all decisions and interpretations of the Committee relating to the Plan, this Agreement or the Restricted Stock awarded hereunder.

Agreed to as of the day and year first written above.

_________________________________

THE PROGRESSIVE CORPORATION

By: _____________________________

Vice President & Secretary

## Exhibit 31.1

**Exhibit 31.1**

**<u>CERTIFICATION</u>**

I, Susan Patricia Griffith, certify that:

1.&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed this quarterly report on Form 10-Q of The Progressive Corporation;

2.&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.&nbsp;&nbsp;&nbsp;&nbsp;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):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;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: August 4, 2025&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>/s/ Susan Patricia Griffith</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Susan Patricia Griffith

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President and Chief Executive Officer

## Exhibit 31.2

**Exhibit 31.2**

**<u>CERTIFICATION</u>**

I, John P. Sauerland, certify that:

1.&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed this quarterly report on Form 10-Q of The Progressive Corporation;

2.&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.&nbsp;&nbsp;&nbsp;&nbsp;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):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;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: August 4, 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>/s/ John P. Sauerland</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;John P. Sauerland

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vice President and Chief Financial Officer

## Exhibit 32.1

**Exhibit 32.1**

<u>SECTION 1350 CERTIFICATION</u>

&nbsp;&nbsp;&nbsp;&nbsp;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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Quarterly Report on Form 10-Q of the Company for the period ended June 30, 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 <u>/s/ Susan Patricia Griffith</u> 

Susan Patricia Griffith

President and Chief Executive Officer

August 4, 2025

## Exhibit 32.2

**Exhibit 32.2**

<u>SECTION 1350 CERTIFICATION</u>

&nbsp;&nbsp;&nbsp;&nbsp;I, John P. Sauerland, 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Quarterly Report on Form 10-Q of the Company for the period ended June 30, 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

<u>/s/ John P. Sauerland</u> 

John P. Sauerland

Vice President and Chief Financial Officer

August 4, 2025

## Ex-99

**Exhibit 99**

Letter to Shareholders

Second Quarter 2025

For the second quarter 2025, we continued to post solid companywide results in growth in both net premiums written (NPW) and policies in force (PIF) year over year (YOY), with very healthy margins, what we would call the trifecta. More specifically, YOY for the quarter, NPW growth was 12%, PIF growth was 15%, and our combined ratio (CR) was 86.2. We have grown PIFs over 5 million YOY, on an already large book of business, while providing excellent customer service. We now have over 37 million PIFs and will continue to use the levers we have as we seek to profitably grow in every area of the business. Our claims and customer relationship management groups are well staffed and ready for whatever comes our way, including weather. There are still some unknowns surrounding the effect of the trade tariffs, but we are watching the data closely and will react accordingly.

In Personal Lines (auto, special lines, and property) we continued to deliver the rare combination of remarkable growth and strong profitability. We added nearly 1 million policies during the second quarter 2025, bringing our total to more than 36 million PIFs, reflecting growth of 16% YOY. This marked the fifth consecutive quarter of double-digit YOY PIF growth. Personal Lines grew NPW 15% during the second quarter YOY at a combined ratio of 86.0. During the second quarter, our personal vehicle business grew NPW 16% YOY and reported a CR of 86.2, well below our target. Last year's record growth creates challenging growth rate comparisons. That said, we generated new business application growth of 7% in our personal vehicle business during the second quarter 2025. In the personal property business, continued initiatives to reduce risk in markets susceptible to volatile weather contributed to achieving a CR of 83.6 for the second quarter 2025. We continue to focus on driving growth across channels and lines of business through significant advertising, a variety of agent incentives, adjusting rates, and other non-rate actions where margins permit us to do so. Recognizing that price remains the largest driver of insurance shopping and switching, we continue to closely manage non-acquisition expenses and year to date, through June, our vehicle non-acquisition expense ratio decreased 0.3 points.

Our personal auto business continued to experience robust growth and profit, with a 19% YOY increase in PIFs and a favorable CR of 85.9 for the second quarter. Driven by strong new applications and retention of existing policyholders, NPW increased 16% YOY compared to the second quarter last year. During the second quarter 2025, we continued to see an increase in severity, which was predominantly offset by a decline in loss frequency and an increase in average earned premiums, and our quarterly results were not materially affected by significant weather events or prior period development. Both shopping and conversion rates for auto increased during the second quarter YOY, resulting in an 8% increase in new application growth. Throughout the quarter, rates remained relatively stable as we continued to closely monitor business trends and assess the potential impact of tariffs on pricing.

Our latest personal auto product model, 8.9, is now available in 24 states that accounted for 46% of auto NPW on a trailing 12-month basis at the end of the second quarter 2025. This model continues to demonstrate favorable conversion results and elasticity. Additionally, our Snapshot<sup>®</sup> 5.0 product model, which includes an app-based tool capable of detecting major accidents and offering to promptly connect customers to towing and emergency services, is now deployed in states representing 78% of companywide personal auto NPW on a trailing 12-month basis (excluding California).

Our personal property business delivered another profitable quarter, running an 83.6 CR. Net catastrophe losses were partially offset by favorable prior accident year development, primarily related to prior-year weather events. We ended the second quarter 2025 with over 3.6 million PIFs, an increase of 8% over the second quarter last year, driven primarily by growth in our renters business. Year-over-year NPW growth (2%) was lower than PIF growth for the quarter, driven by a continued mix shift towards lower exposure (and lower average premium) products and geographies, such as renters and markets less prone to catastrophe events. We continue to focus on profitability by prioritizing insuring lower-risk properties (e.g., new construction, existing homes with newer roofs), only accepting new business when bundled with a Progressive auto policy (where allowed), and reducing exposure in catastrophe-prone markets. During the second quarter, homeowners PIFs increased 7% in markets where we are looking to expand and decreased 15% in markets where we are looking to reduce risk.

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We continued to make good progress on advancing our personal property product and segmentation capabilities and, through the end of the second quarter 2025, we elevated our next generation 5.0 or higher product models in 29 states that represent over 75% of our trailing 12-month homeowners product NPW. Key features of 5.0+ include expanded peril rating and the introduction of new rating variables. We also continue to adjust rates where needed, and during the second quarter we increased our personal property rates about 4% overall, bringing our trailing 12-month aggregate rate increase to about 14%.

Our Commercial Lines (CL) business finished the second quarter with 6% PIF growth at an 86.8 CR. Despite positive PIF growth, NPW decreased 6% in the quarter, compared to the prior year, driven primarily by a shift in renewal timing for certain transportation network company (TNC) business policies and, to a lesser extent, a mix shift to lower average written premium business market targets (BMT) in our core commercial auto business.

One of our TNC customers was previously on a 6-month policy term with renewal events in April and October each year. In October 2024, the customer moved to a 12-month policy term, resulting in there not being a renewal event or related NPW in April of this year. Excluding all TNC business, our total CL NPW for the quarter would have decreased 2%, compared to the second quarter 2024. In core commercial auto, we continued to see strong growth in our business auto and contractor BMTs during the quarter, driven by quote and conversion improvements, but also continued to face challenges in our for-hire trucking and for-hire specialty BMTs, which have higher average written premiums per policy than our business auto and contractor BMTs. This mix shift resulted in lower NPW for core commercial auto in the quarter compared to the prior year.

Our newest core commercial auto product offering, model 8.3, elevated in the first state in the first quarter 2025, and we expect the future rollout to include 13 additional states by the end of 2025, pending regulatory approval. Those 14 states represented 46% of our countrywide trailing 12-month written premium. The 8.3 model brings new external data to improve segmentation and better match rate to risk. We expanded availability of our new cargo plus endorsement in the quarter, which was available in 47 states as of the end of the second quarter 2025. The cargo plus endorsement expands coverage to better meet the needs of our for-hire transportation customers.

In the second quarter of 2025, our total net investment income contributed to about half of our total comprehensive income. Our investment portfolio saw a return of 2.1% and remained in a relatively conservative posture. Our fixed-income return was 1.7% for the quarter and our common equity portfolio returned 10.9%.

The combined strength in performance from the operating and investing sides of our business this year has driven significant growth in our capital base. We finished the second quarter with our debt-to-total capital ratio below 18% and have no bond maturities until 2027. While it is a comfort in these volatile times to be in such a strong financial position, we are mindful of the fact that holding excess capital over longer periods of time could depress our returns on capital. We will continue to attempt to strike a balance between maintaining the competitive advantage of such a strong financial position while seeking to continue to drive robust returns on our capital.

It's something of a tradition for me to use this letter to share stories that bring our one-of-a-kind employee culture to life. I know the word "culture" has gotten a little cliché these days, but for Progressive people, we truly take our company's purpose of helping others move forward and live fully very seriously. We do this in both big and small ways every day. I hear so many wonderful stories and there's only so much room to share them, so here are just a couple of stories that filled me with pride recently.

Six months after starting at Progressive, Heather, a Commercial Lines claims employee, volunteered with the Community Involvement group at her office in Alabama for the first time. That was back in early 2021, and now Heather oversees the office's volunteer activities.

*"I absolutely love our Community Involvement group because we put our hands into so many different things,"* says Heather. *"We're all passionate and want to be involved in a variety of events to give back."*

When an employee at her office recommended that the group volunteer with a local charity to pack bags of food for students, the team dove right in to help kids at risk of food insecurity.

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*"You see some misty eyes from the volunteers when they start thinking about the fact that they're packing food for kids who have no idea how they're going to eat that weekend,"* shares Heather. *"It breaks my heart, but the work is so rewarding."* 

The group normally volunteers the first Saturday of every month during off-work hours but when Progressive started offering volunteer time off—eight hours per year during the workweek to volunteer with pay—it enabled them to help even more. With their managers' support, the team is exploring more ways to help their community. *"Wherever you can go to help, even if it's just for one person, you can make such a giant impact,"* says Heather. *"You can change the world just by getting out there and doing something."* 

Ashley, a catastrophe claims rep based in Texas, often meets our customers in times of great distress. In the aftermath of a recent storm, she noticed that, for many of the people she helped, their number one concern wasn't their car or truck, but rather their elderly parents or young children:

*"After being out in the field for a couple of days, I realized that it was very difficult for people to get food, water, and basic hygiene items. So, I stopped at a grocery store and bought a couple cases of water, baby wipes, hand sanitizer, and snacky items like granola bars or, my personal favorite, Oreos. I handed these items out while inspecting customers' homes and took the time to listen to their concerns and give them hugs while they cried and wondered if they could rebuild their homes. Sharing Oreos may not be a lot in the grand scheme of things, but it felt like it made a difference, and it made me aware of how much impact we can have not only for our customers, but their communities, as well."* 

I wanted to end this letter paying homage to Glenn Renwick, our prior CEO who was also my coach, mentor, and friend. He passed away in May. If you have ever heard me talk about my career, you know that I give him credit for taking a chance on me in 2002 when he gave me the opportunity to take the role as Chief Human Resources Officer for the company. His trust and support remained unwavering for the next 16 years as we worked side by side. I learned something from him every day.

His contributions to Progressive were enormous, but one of the first things that comes to mind as I reflect on his work was his commitment to our Core Values. He was the standard bearer for them, living them fully and intentionally every day. He was an incredible leader and all he ever wanted to do was leave Progressive better than he found it. Without doubt, he accomplished that, and so much more.

Glenn often ended his shareholders letters with a play on our name: *To all the people who make Progressive, progressive – Thank you*.

Thank you, Glenn, for all of your guidance and extraordinary leadership. You will be dearly missed. Rest in Peace.

Stay well and be kind to others,

/s/ Tricia Griffith

Tricia Griffith

President and Chief Executive Officer

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