Progressive PGR · USD

SEGMENT INFORMATIONWe write personal and commercial auto insurance, personal residential property insurance, business-related general liability and commercial property insurance predominantly for small businesses, workers’ compensation insurance primarily for the transportation industry, and other specialty property-casualty insurance and provide related services throughout the United States. Our operating segments are Personal Lines and Commercial Lines, which we report based on product. Our Chief Executive Officer assesses performance and makes key operating decisions for each of our reportable operating segments and, therefore, is considered our chief operating decision maker.Our Personal Lines segment writes insurance for personal autos, special lines products (e.g., recreational vehicles, such as motorcycles, RVs, and watercraft), personal residential property insurance for homeowners and renters, umbrella insurance, and flood insurance through the “Write Your Own” program for the National Flood Insurance Program. The Personal Lines segment is written through both the independent agency and direct channels. The agency channel includes business written by our network of more than 40,000 independent insurance agencies, as well as brokerages in New York and California, and strategic alliance business relationships (including other insurance companies, financial institutions, and national agencies). The direct channel includes business written directly by us online or by phone. We operate this segment throughout the United States. Our Commercial Lines segment writes auto-related liability and physical damage insurance, business-related general liability and commercial property insurance predominately for small businesses, and workers’ compensation insurance primarily for the transportation industry. This segment operates throughout the United States and is distributed through both the independent agency, including brokerages, and direct channels. We evaluate operating segment profitability based on pretax underwriting profit (loss). Pretax underwriting profit (loss) is calculated as net premiums earned plus fees and other revenues, less: (i) losses and loss adjustment expenses; (ii) policy acquisition costs; (iii) other underwriting expenses; and (iv) policyholder credit expense.

DEBTDebt at December 31, consisted of the following Senior Notes:($ in millions)20252024Principal AmountInterest RateIssuance DateMaturity DateCarryingValueFairValueCarryingValueFairValue$500 2.45 %August 20162027$499 $493 $499 $479 500 2.50 March 20222027499 492 499 479 300 6 5/8March 19992029299 323 298 320 550 4.00 October 20182029548 551 547 534 500 3.20 March 20202030498 484 498 462 500 3.00 March 20222032497 462 497 439 400 6.25 November 20022032397 442 397 430 500 4.95 May 20232033497 513 497 495 350 4.35 April 20142044347 304 347 298 400 3.70 January 20152045396 314 396 308 850 4.125 April 20172047843 702 842 684 600 4.20 March 20182048591 498 591 490 500 3.95 March 20202050492 392 491 386 500 3.70 March 20222052494 375 494 369 Total$6,897 $6,345 $6,893 $6,173 All of the outstanding debt was issued by The Progressive Corporation and includes amounts that were borrowed for general corporate purposes, which may include contributions to the capital of its insurance subsidiaries, payments of debt at maturity, or may be used, or made available for use, for other business purposes. Fair values for these debt instruments are obtained from external sources. There are no restrictive financial covenants or credit rating triggers on the outstanding debt.Interest on all debt is payable semiannually at the stated rates. All principal is due at the stated maturity. Each note is redeemable, in whole or in part, at any time; however, the redemption price will equal the greater of the principal amount of the note or a “make whole” amount calculated by reference to the present values of remaining scheduled principal and interest payments under the note. There was no short-term debt outstanding at December 31, 2025 or 2024.Aggregate required principal payments on debt outstanding at December 31, 2025, were as follows:(millions)Payments2026$0 20271,000 20280 2029850 2030500 Thereafter4,600 Total$6,950 Prior to certain issuances of our debt securities, we entered into forecasted transactions to hedge against possible changes in interest rates. When the contracts were closed upon the issuance of the applicable debt securities, we recognized the unrealized gains (losses) on these contracts as part of accumulated other comprehensive income. These unrealized gains (losses) are amortized as adjustments to interest expense over the life of the related notes.

INCOME TAXESThe components of our income tax provision for the years ended December 31, were as follows:(millions)202520242023Current tax provisionFederal$3,042 $2,247 $1,102 State75 58 19 Total current tax provision3,117 2,305 1,121 Deferred tax provision (benefit)Federal(199)(70)(120)State(3)(2)0 Total deferred tax provision (benefit)(202)(72)(120)Total income tax provisionFederal2,843 2,177 982 State72 56 19 Total income tax provision$2,915 $2,233 $1,001 The provision for income taxes in the consolidated statements of comprehensive income differed from the statutory rate for the years ended December 31, as follows: 202520242023($ in millions)Expense (Benefit)Rate ImpactExpense (Benefit)RateImpactExpense (Benefit)Rate ImpactIncome from continuing operations before income taxes1$14,223 $10,713 $4,904 Tax at statutory federal rate$2,987 21 %$2,250 21 %$1,030 21 %Tax effect of:State and local income taxes, net of federal income tax effect257 0 44 0 15 0 Tax credits(6)0 (7)0 (17)0 Nontaxable or nondeductible items(123)(1)(54)0 (27)(1)Total income tax provision$2,915 20 %$2,233 21 %$1,001 20 %1 All income from continuing operations for the periods presented was derived from domestic operations.2 State taxes in Illinois and Florida made up the majority (greater than 50%) of the tax effect in this category.Income taxes paid for the years ended December 31, were as follows:($ in millions)202520242023Income taxes paid: Federal$3,022 $2,540 $800 State85 45 21 Total income taxes paid$3,107 $2,585 $821 Deferred income taxes reflect the tax effects of temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities.

LEASES We have certain operating leases for office space, computer equipment, and vehicles. Leased assets and leased liabilities are reported as a component of other assets and accounts payable, accrued expenses, and other liabilities, respectively, in our consolidated balance sheets. The leased assets represent our right to use an underlying asset for the lease term and the lease liabilities represent our obligation to make lease payments arising from the lease using an incremental borrowing rate to calculate the present value of the remaining lease payments. Contracts are reviewed at inception to determine if they contain a lease and, if so, whether the lease qualifies as an operating or financing lease. We do not have material financing leases.Operating leases are expensed on a straight-line basis over the term of the lease. In determining the lease term, we consider the probability of exercising renewal options. We elect to account for leases with both lease and non-lease components as a single lease component and to apply a portfolio approach to account for our vehicle leases.The following table summarizes the carrying amounts of our operating leased assets and liabilities at December 31, along with key inputs used to discount our lease liabilities:($ in millions)20252024Operating lease assets$199 $193 Operating lease liabilities$205 $196 Weighted-average remaining term3.3 years3.7 yearsWeighted-average discount rate5.0 %5.

Our Chief Security Officer (CSO) is ultimately responsible for cybersecurity at Progressive, with management oversight of the prevention, detection, mitigation, and remediation of cybersecurity incidents. The CSO reports directly to the Chief Financial Officer. The CSO, or a senior member of his team, provides regular cybersecurity updates to the CEO, other members of the executive team, and the Board of Directors’ Technology Committee. Assuming the role in 2012, our CSO has served in this capacity at Progressive for more than a decade and, prior to joining us in 2010, had over 10 years of cybersecurity experience in the banking industry in security and risk management leadership roles, primarily focused on cybersecurity and banking compliance, with additional experience in the areas of anti-money laundering and financial fraud. Our CSO is also a member of our Management Risk Committee, which leads our Enterprise Risk Management program, and as a member ensures that cybersecurity risks remain a focus of the overall risk management process. The Technology Committee of the Board of Directors oversees our use of technology in executing the company’s business strategy as well as the major risks arising from our technology, digital and data strategies (including with respect to artificial intelligence), legacy systems, technology investments, data privacy, operational performance, cybersecurity programs, and technology-related business continuity and disaster recovery programs. The Technology Committee, which includes directors with technology experience, also oversees management’s efforts to mitigate these risks. Technology Committee meetings typically occur five times a year. Generally, at these meetings, our CSO briefs the committee on cybersecurity-related matters.Our systems are being threatened by cybersecurity incidents on a regular basis and our efforts may be insufficient to prevent or defend against incidents or an attack. We, and certain of our third-party vendors, have experienced attacks and incidents in the past, and there can be no assurance that we, or any vendor, will be successful in preventing future attacks or incidents or detecting and stopping them once they have begun. Through the date hereof, risks from cybersecurity threats, including prior incidents and attacks, have not materially affected, and we do not believe are reasonably likely to materially affect, our business strategy, results of operations, or financial condition.

DIVIDENDSFollowing is a summary of our common and preferred share dividends that were declared and/or paid in the last three years:(millions, except per share amounts)AmountDeclaredPayablePer ShareAccrued/Paid1 Common – Annual-Variable Dividends:December 2025January 2026$13.50 $7,913 December 2024January 20254.50 2,637 December 2023January 20240.75 439 Common – Quarterly Dividends:December 2025January 20260.10 59 August 2025October 20250.10 59 May 2025July 20250.10 58 March 2025April 20250.10 59 December 2024January 20250.10 58 August 2024October 20240.10 59 May 2024July 20240.10 58 March 2024April 20240.10 59 December 2023January 20240.10 59 August 2023October 20230.10 58 May 2023July 20230.10 59 March 2023April 20230.10 59 December 2022January 20230.10 58 Preferred Dividends:January 2024February 202415.688377 8 October 2023December 202320.753157 10 August 2023September 202320.67700 10 May 2023June 202318.92463 10 December 2022March 202326.875 13 1 The accrual is based on an estimate of shares outstanding as of the record date and recorded as dividends payable on common shares on our consolidated balance sheets until paid; the prior year accrual was reclassified into this line item from accounts payable, accrued expenses, and other liabilities to conform to the current year presentation.Common Share Dividends The Board of Directors adopted a policy of declaring regular quarterly common share dividends, and on at least an annual basis, to consider declaring an additional, variable common share dividend.Preferred Share Dividends During 2024, we redeemed all of the previously issued 500,000 Series B Fixed-to-Floating Rate Cumulative Perpetual Serial Preferred Shares, without par value (the Series B Preferred Shares), at the stated liquidation preference of $1,000 per share, for an aggregate payout of $508 million, including accrued and unpaid dividends of $8 million through, but excluding February 22, 2024, which was the redemption date. Beginning March 15, 2023 and until redemption, holders of the Series B Preferred Shares were entitled to receive cumulative cash dividends quarterly at a floating dividend rate. Prior to March 15, 2023, dividends were payable semiannually at a fixed annual dividend rate. Cash dividends were payable if and when declared by the Board of Directors.

FAIR VALUEThe composition of the investment portfolio by major security type and our outstanding debt was: Fair Value (millions)Level 1Level 2Level 3TotalCostDecember 31, 2025Fixed maturities:U.S. government$43,298 $0 $0 $43,298 $43,114 State and local government0 3,303 0 3,303 3,342 Foreign government0 17 0 17 17 Corporate and other debt0 19,987 4 19,991 19,773 Residential mortgage-backed0 3,175 0 3,175 3,152 Commercial mortgage-backed0 5,973 0 5,973 6,194 Other asset-backed0 7,109 0 7,109 7,112 Total fixed maturities43,298 39,564 4 82,866 82,704 Short-term investments9,810 195 0 10,005 10,005 Total available-for-sale securities53,108 39,759 4 92,871 92,709 Equity securities:Nonredeemable preferred stocks0 344 60 404 419 Common equities:Common stocks4,057 0 5 4,062 783 Other risk investments0 0 36 36 36 Subtotal common equities4,057 0 41 4,098 819 Total equity securities4,057 344 101 4,502 1,238 Total portfolio$57,165 $40,103 $105 $97,373 $93,947 Debt$0 $6,345 $0 $6,345 $6,897 Fair Value(millions)Level 1Level 2Level 3TotalCostDecember 31, 2024Fixed maturities:U.S. government$45,988 $0 $0 $45,988 $47,103 State and local government0 2,778 0 2,778 2,893 Foreign government0 16 0 16 16 Corporate and other debt0 13,949 5 13,954 14,111 Residential mortgage-backed0 1,601 0 1,601 1,600 Commercial mortgage-backed0 4,352 0 4,352 4,721 Other asset-backed0 6,643 0 6,643 6,682 Total fixed maturities45,988 29,339 5 75,332 77,126 Short-term investments613 2 0 615 615 Total available-for-sale securities46,601 29,341 5 75,947 77,741 Equity securities:Nonredeemable preferred stocks0 676 52 728 756 Common equities:Common stocks3,527 0 23 3,550 720 Other risk investments0 0 25 25 25 Subtotal common equities3,527 0 48 3,575 745 Total equity securities3,527 676 100 4,303 1,501 Total portfolio$50,128 $30,017 $105 $80,250 $79,242 Debt$0 $6,173 $0 $6,173 $6,893 Our portfolio valuations, excluding short-term investments valued at adjusted original cost, classified as either Level 1 or Level 2 in the above tables are priced exclusively by external sources, including pricing vendors, dealers/market makers, and exchange-quoted prices. We concluded there was sufficient activity related to the sectors and securities for which we obtained valuations.Our short-term investments classified as Level 1 include commercial paper, treasury bills, and money market funds, which are highly liquid, actively marketed, and have short durations.

LITIGATIONThe Progressive Corporation and/or its insurance subsidiaries are named as defendants in various lawsuits arising out of claims made under insurance policies written by our insurance subsidiaries in the ordinary course of business. We consider all legal actions relating to such claims in establishing our loss and loss adjustment expense reserves.In addition, The Progressive Corporation and/or its insurance subsidiaries are named as defendants in a number of class action or individual lawsuits that challenge certain of the operations of the subsidiaries. We describe litigation contingencies for which a loss is probable. We also describe litigation contingencies for which a loss is reasonably possible (but not probable). When disclosing reasonably possible litigation contingencies, we will disclose the amount or range of possible loss, if we are able to make that determination and if material. We may also be exposed to litigation contingencies that are remote. Remote litigation contingencies are those for which the likelihood of a loss is slight at the balance sheet date. We do not disclose, or establish accruals for, remote litigation contingencies. See Note 1 – Reporting and Accounting Policies, Litigation Reserves for a discussion of our litigation reserving policy.Each year, certain of our pending litigation matters may be brought to conclusion. Settlements that are complete are fully reflected in our financial statements. The amounts accrued and/or paid for settlements during the periods presented were not material to our consolidated financial condition, cash flows, or results of operations.The pending lawsuits summarized below are in various stages of development, and the outcomes are uncertain until final disposition or, if probable and estimable, are accrued and immaterial as of December 31, 2025. At year-end 2025, except to the extent an immaterial accrual has been established, we do not consider the losses from these pending cases to be both probable and estimable, and we are unable to estimate a range of loss at this time.