# PROGRESSIVE CORP/OH/ (PGR)

Informational only - not investment advice.

CIK: 0000080661
SIC: 6331 Fire, Marine & Casualty Insurance
SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Insurance Carriers](/major-group/63/) > [SIC 6331 Fire, Marine & Casualty Insurance](/industry/6331/)
Latest 10-K filed: 2026-03-02
SEC page: https://www.sec.gov/edgar/browse/?CIK=80661
Filing source: https://www.sec.gov/Archives/edgar/data/80661/000008066126000086/pgr-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-03-02 · accession 0000080661-26-000086 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000080661.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 87,671,000,000 USD | 2025 | verified |
| Net income | 11,308,000,000 USD | 2025 | verified |
| Assets | 123,039,000,000 USD | 2025 | verified |
| Free cash flow | 17,200,000,000 USD | 2025 | computed |
| Net margin | 12.90% | 2025 | computed |
| Revenue YoY | +16.32% | 2025 | computed |
| ROE | 37.29% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

Peer groups: [Property and casualty insurers](/compare/insurers/) · SIC 6331 Fire, Marine & Casualty Insurance

No market price, no rating, no forecast on this site. Not investment advice.

## Peer comparisons including PGR

- Property and casualty insurers: [peer review](/compare/insurers/) · [market-risk page](/compare/insurers/risk/)

### Peer percentile fingerprint

| Ratio | PGR | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 12.9% | 12.9% | 52 | 53 |
| Revenue growth | 16.3% | 9.4% | 67 | 53 |
| FCF margin | 19.6% | 19.9% | 49 | 36 |
| ROE | 37.3% | 15.9% | 96 | 53 |
| ROA | 9.2% | 3.9% | 94 | 53 |
| Liabilities / equity | 3.06 | 3.04 | 54 | 53 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6331 Fire, Marine & Casualty Insurance, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 87671000000 | USD | 2025 | 2026-03-02 |
| Net income | 11308000000 | USD | 2025 | 2026-03-02 |
| Assets | 123039000000 | USD | 2025 | 2026-03-02 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-02. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000080661.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 23,441,400,000 | 26,839,000,000 | 31,979,000,000 | 39,022,300,000 | 42,658,100,000 | 47,702,000,000 | 49,611,000,000 | 62,109,000,000 | 75,372,000,000 | 87,671,000,000 |
| Net income | 1,031,000,000 | 1,592,200,000 | 2,615,300,000 | 3,970,300,000 | 5,704,600,000 | 3,350,900,000 | 722,000,000 | 3,903,000,000 | 8,480,000,000 | 11,308,000,000 |
| Diluted EPS | 1.76 | 2.72 | 4.42 | 6.72 | 9.66 | 5.66 | 1.18 | 6.58 | 14.40 | 19.23 |
| Operating cash flow | 2,732,700,000 | 3,756,800,000 | 6,284,800,000 | 6,261,600,000 | 6,905,600,000 | 7,761,700,000 | 6,849,000,000 | 10,643,000,000 | 15,119,000,000 | 17,548,000,000 |
| Capital expenditures | 215,000,000 | 155,700,000 | 266,000,000 | 363,500,000 | 223,500,000 | 243,500,000 | 292,000,000 | 252,000,000 | 285,000,000 | 348,000,000 |
| Dividends paid | 519,000,000 | 395,400,000 | 654,900,000 | 1,643,200,000 | 1,551,000,000 | 3,746,500,000 | 234,000,000 | 234,000,000 | 674,000,000 | 2,871,000,000 |
| Assets | 33,427,500,000 | 38,701,200,000 | 46,575,000,000 | 54,910,500,000 | 64,098,300,000 | 71,132,300,000 | 75,465,000,000 | 88,691,000,000 | 105,745,000,000 | 123,039,000,000 |
| Liabilities | 24,986,700,000 | 28,912,700,000 | 35,538,700,000 | 41,011,700,000 | 47,059,700,000 | 52,900,700,000 | 59,574,000,000 | 68,414,000,000 | 80,154,000,000 | 92,716,000,000 |
| Stockholders' equity | 7,957,100,000 | 9,284,800,000 | 10,821,800,000 | 13,673,200,000 | 17,038,600,000 | 18,231,600,000 | 15,891,000,000 | 20,277,000,000 | 25,591,000,000 | 30,323,000,000 |
| Free cash flow | 2,517,700,000 | 3,601,100,000 | 6,018,800,000 | 5,898,100,000 | 6,682,100,000 | 7,518,200,000 | 6,557,000,000 | 10,391,000,000 | 14,834,000,000 | 17,200,000,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 4.40% | 5.93% | 8.18% | 10.17% | 13.37% | 7.02% | 1.46% | 6.28% | 11.25% | 12.90% |
| Return on equity | 12.96% | 17.15% | 24.17% | 29.04% | 33.48% | 18.38% | 4.54% | 19.25% | 33.14% | 37.29% |
| Return on assets | 3.08% | 4.11% | 5.62% | 7.23% | 8.90% | 4.71% | 0.96% | 4.40% | 8.02% | 9.19% |
| Liabilities / equity | 3.14 | 3.11 | 3.28 | 3.00 | 2.76 | 2.90 | 3.75 | 3.37 | 3.13 | 3.06 |

## As-reported value updates

1 tracked difference above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/PGR/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-03. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000080661.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 0.20 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.75 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 0.57 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 15,560,600,000 | 1,121,300,000 | 1.89 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 16,891,200,000 | 1,987,800,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 17,242,500,000 | 2,331,400,000 | 3.94 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 18,134,300,000 | 1,458,700,000 | 2.48 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 19,719,000,000 | 2,333,400,000 | 3.97 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 20,276,200,000 | 2,356,500,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 20,409,000,000 | 2,567,000,000 | 4.37 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 22,004,000,000 | 3,175,000,000 | 5.40 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 22,512,000,000 | 2,615,000,000 | 4.45 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 22,746,000,000 | 2,951,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 22,188,000,000 | 2,818,000,000 | 4.80 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 23,609,000,000 | 3,311,000,000 | 5.67 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from PGR's latest 10-K: [/company/PGR/business/](/company/PGR/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from PGR's latest 10-K: [/company/PGR/risk-factors/](/company/PGR/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/80661/000008066126000308/pgr-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-03
Report date: 2026-06-30

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

I. OVERVIEW

The Progressive Corporation’s insurance subsidiaries continued to generate underwriting profitability above our 4% companywide calendar-year underwriting profit goal during the second quarter 2026, producing a companywide underwriting profit margin of 12.7%. Both our Personal Lines and Commercial Lines operating segments generated strong underwriting profitability during the second quarter 2026.

We also reported steady year-over-year growth in both premiums and policies in force despite increased competition in the marketplace. Companywide net premiums written were $21.1 billion, an increase of $1.0 billion, or 5%, compared to the second quarter last year, while net premiums earned increased 6%. We also surpassed the 40 million policies in force milestone by adding 0.5 million more policies during the quarter and ending the second quarter with 2.8 million more policies in force than at June 30, 2025.

Personal Lines reported an underwriting profit margin of 12.4% for the second quarter, compared to 14.0% for the same period last year. Personal Lines also experienced year-over-year growth for the second quarter 2026, with net premiums written increasing 5% and policies in force increasing 8%, compared to the same period last year. This growth follows significant increases in the second quarter last year, which had net premiums written growth of 15% and policies in force growth of 16%. The current period net premiums written growth was primarily driven by policies in force growth in our personal auto products, which were up 9%, compared to June 30, 2025.

Commercial Lines reported an underwriting profit margin of 14.7% for the second quarter 2026, compared to 13.2% in the same period last year. Commercial Lines net premiums written increased 4% and policies in force increased 3% during the second quarter 2026, compared to the same period last year. In our core commercial auto business (which excludes our transportation network company (TNC) business, our Progressive Fleet & Specialty Programs (FSP) products, and our business owners’ policy (BOP) product) we continued to experience a shift to a greater mix of business market targets (BMT) with lower average written premiums and a shift to a greater mix of policies with 6-month terms in our contractor and business auto BMTs, which negatively affected average premiums since those policies have about half the amount of net premiums written as 12-month term policies.

For the second quarter 2026, we experienced a $136 million year-over-year increase in net income, compared to the second quarter 2025, primarily reflecting an increase in total net investment income. Total comprehensive income decreased $669 million for the second quarter 2026, compared to the same period last year, driven by net unrealized losses on our fixed-maturity securities in the current period, compared to net unrealized gains during the second quarter last year.

At June 30, 2026, total capital (debt plus shareholders’ equity) was $42.7 billion, an increase of $5.5 billion from year-end 2025. The increase was primarily driven by $5.2 billion of comprehensive income earned during the first six months of 2026 and the issuance of $1.5 billion of senior notes during the first quarter 2026. These increases were partially offset by the repurchase of 5.4 million of our common shares at a total cost of $1.1 billion.

A. Insurance Operations

Our companywide underwriting profit margin for the second quarter 2026 was 1.1 points lower than the same period last year. The decrease reflected a 0.6 point increase in our loss and loss adjustment expense (LAE) ratio, primarily due to increased severity, and a 0.5 point increase in our underwriting expense ratio, primarily driven by increased advertising expense, as discussed below.

We continue to closely monitor our expenses, including acquisition expenses and non-acquisition expenses, which we view as important measures of operational efficiency as we seek to deliver our most competitive rates to consumers. During the second quarter 2026, advertising expense was $1.4 billion, or 16% higher than the second quarter last year. The current period effect of the higher advertising spend on our expense ratio was partially offset by the increase in net premiums earned, resulting in an additional 0.5 points of contribution to the underwriting expense ratio in the second quarter 2026, compared to the same period last year. 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.

Personal Lines represented 88% of companywide net premiums written during the second quarter 2026 and is comprised of our personal vehicle and property products. Personal Lines vehicle products include both personal auto and special lines products, with special lines typically experiencing higher losses during warmer weather months, due to the seasonal nature of these products (e.g., recreational vehicles, such as motorcycles, RVs, and watercraft). In our personal property products, homeowners products are defined as our total personal property business excluding renters and umbrella products.

27

Personal Lines generated an underwriting profit margin of 12.4% for the second quarter 2026, with personal vehicle and personal property products reporting underwriting profit margins of 12.0% and 22.0%, respectively. Profitability in our special lines products had a minimal impact on the personal vehicle combined ratio during the second quarter 2026. The strong underwriting profit margin in our personal property products was primarily driven by a low level of incurred catastrophe losses, lower loss frequency during the period, and increased rates.

For the second quarter 2026, Personal Lines net premiums written increased 5%, with personal vehicle business increases of 2% in agency and 8% in direct, and a 1% increase in personal property, each compared to the same period last year. Changes in net premiums written are a function of new business applications (i.e., policies sold), retention, business mix, and premium per policy.

Personal vehicles experienced an increase in new business applications of 1% and an increase in renewal business applications of 11% during the second quarter 2026, compared to the same period in the prior year. Our personal vehicle business continued to generate sustained net premiums written and application growth despite continued increased competition in the marketplace and in comparison to the double-digit application growth experienced during the same period last year.

Personal property experienced flat new business applications and an increase in renewal business applications of 1% during the second quarter 2026, compared to the same period last year. New business applications in our homeowners product increased 11%, compared to the prior-year period, while declining 2% in our renters product.

On a countrywide basis, during the second quarter 2026, we decreased personal auto rates by less than 1% and increased personal property rates about 1%, in the aggregate.

We believe a key element in improving the accuracy of our personal auto rating is Snapshot®, our usage-based insurance offering. During the second quarter 2026, Snapshot adoption rates among eligible new business personal auto consumers decreased 3% in direct and 8% in agency, compared to the same period last year. Approximately half of direct new business consumers elected Snapshot in both the second quarter 2025 and 2026. The decrease in the agency adoption rate was primarily due to the expansion of Snapshot eligibility in the second half of 2025, which increased the number of agents able to write Snapshot policies and broadened access to agents with historically lower adoption rates. Snapshot is available in all states, other than California, and our latest segmentation model was available in states representing 81% of 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.

During the second quarter 2026, we continued to focus on selectively increasing the availability of our personal property products. Beginning late 2025, we took actions in certain markets to generate new business growth at the state level based on our concentration risks, product segmentation, rate adequacy, cost sharing, geographical diversification, and the regulatory and market conditions. Some of these actions include expanding independent agency relationships, reopening new business in certain agency and direct channel markets, and lifting targeted underwriting restrictions on older roofs, medium- to high-value homes, and non-bundled homeowners products in certain markets. Certain of these restrictions remain in place in markets where we continue to focus on improving profitability and reducing exposure in more volatile weather-related markets. We believe these actions taken in 2025 continued to adversely impact new business application growth in 2026.

The Commercial Lines segment includes our core commercial auto products, TNC business, FSP products, and BOP product. Total Commercial Lines generated an underwriting profit margin of 14.7% with a net premiums written increase of 4% and a policies in force increase of 3% for the second quarter 2026, compared to the same period last year. Increases in both net premiums written and policies in force were primarily driven by volume growth due to rate decreases in targeted state and BMT combinations, and increased advertising and agent incentive spend. Core commercial auto products experienced an increase in new business applications of 1% and an increase in renewal business applications of 8% during the second quarter 2026, compared to the same period last year. New and renewal business applications increased in all BMTs except for-hire transportation.

In aggregate, core commercial auto rates were relatively flat on a countrywide basis during the second quarter 2026.

We believe we are currently adequately priced in our personal auto, personal property, and core commercial auto products in most states through the remainder of the year. However, we regularly monitor the factors that could impact our loss costs, which may include tariffs, inflation, new and used car prices, miles driven, driving patterns, loss severity and frequency, weather events, building materials, construction costs, and other factors, on a state-by-state basis.

For the second quarter 2026, on a year-over-year basis, average written premium per policy decreased 2% in both personal auto and personal property products, and decreased 3% in core commercial auto products. In aggregate, we took minimal personal auto rate decreases on a countrywide basis over the previous 12 months. The decrease in personal property average written premium per policy was primarily due to a shift in the mix of business to

28

more renters policies, which have lower average written premiums, partially offset by aggregate rate increases of 9% taken over the last 12 months and higher premium coverages reflecting increased property values. The decrease in core commercial auto average written premium per policy was primarily due to 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 12-month term policies. Given that our personal property and commercial auto policies are predominately written for 12-month terms, rate and non-rate actions take longer to earn into premium for these products.

We realize that to grow policies in force, it is critical that we retain our customers for longer per

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/80661/000008066126000086/pgr-20251231.htm
Complete FY 2025 MD&A: /company/PGR/mda/fy2025/

Extracted from a later financial-section MD&A body after the formal Item 7 span was a short reference. Source document followed from filing index: pgr-20251231_d2.htm.
Confidence: high
Filing date: 2026-03-02
Report date: 2025-12-31

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to help the reader understand our financial condition and results of operations. MD&A should be read in conjunction with the consolidated financial statements and the related notes, and supplemental information.

I. OVERVIEW

The Progressive insurance organization has been offering insurance to consumers since 1937. The Progressive Corporation is a holding company that does not have any revenue producing operations, physical property, or employees of its own. The Progressive Corporation, together with its insurance and non-insurance subsidiaries and affiliates, comprise what we refer to as Progressive.

We report two operating segments. Our Personal Lines segment, which represents 87% of companywide net premiums written, writes insurance for personal vehicles, which include personal auto and special lines products (e.g., recreational vehicles, such as motorcycles, RVs, and watercraft), personal residential property insurance for homeowners and renters, umbrella insurance, and flood insurance through the “Write Your Own” program for the National Flood Insurance Program. Our personal auto product represents about 90% of our Personal Lines net premiums written and just under 80% of our companywide premiums, and contributes the largest impact to our underwriting results. Our special lines and personal property insurance products each represent about 5% of our total Personal Lines premiums.

Our Commercial Lines segment writes auto-related liability and physical damage insurance, business-related general liability and commercial property insurance predominantly for small businesses, and workers’ compensation insurance primarily for the transportation industry. Commercial Lines includes our core commercial auto products, transportation network company (TNC) business, Progressive Fleet & Specialty Programs (Fleet & Specialty) products, and business owners’ policy (BOP) product and represents 13% of our companywide net premiums written. Our core commercial auto products represented about 80% of our total Commercial Lines net premiums written and about 10% of companywide premiums.

We operate both segments throughout the United States, through both the independent agency and direct distribution channels. Based on 2024 premiums written, in the United States, we are the second largest private passenger auto insurer, the largest writer of motorcycle insurance, the twelfth largest homeowners insurance carrier, and the largest writer of commercial auto insurance.

Our underwriting operations, combined with our service and investment operations, make up the consolidated group.

A. Operating Results

During 2025, Progressive maintained an underwriting profit better than our 4% companywide calendar-year underwriting profit goal and reported excellent results year over year in both premiums and policies in force. Our underwriting profit margin was 12.6%, which was 1.4 points better than the 11.2% margin earned in 2024. We wrote $83.2 billion of net premiums written during 2025, which was $8.8 billion, or 12%, more than we generated during 2024, with a 15% increase in net premiums earned. We ended 2025 with 3.7 million, or 10%, more policies in force than at December 31, 2024.

Both our Personal Lines and Commercial Lines operating segments generated strong profitability during the year, reporting underwriting profit margins of 12.5% and 13.0%, respectively, compared to 11.4% and 10.6% for 2024. Several factors contributed to the increase in our underwriting profit, including lower personal and commercial auto accident frequency, lower weather-related catastrophe losses, and favorable prior accident years development. Partially offsetting the positive impact on profitability in Personal Lines was 1.7 points of policyholder credit expense related to personal auto excess profits earned in Florida.

Since Florida insurance reform was enacted in early 2023, we have seen lower loss costs on certain types of personal auto accident claims and favorable reserve development, and we have experienced strong profitability in our Florida personal auto business. Despite actions to lower rates, beginning in the fourth quarter 2024 and through 2025, our personal auto profit in Florida for the 2023 to 2025 period exceeded the statutory profit limit that a Florida statute imposes on the profit that any insurance group can earn on personal auto insurance over any three-accident-year period. As a result, in 2025, we recorded a $1.2 billion policyholder credit expense (Florida policyholder credits), which represents our current estimate of the profit we earned on the three-accident-year period ending December 31, 2025, in excess of the permitted profit limit. See II. Financial Condition for further information.

App.-A-48

Our Personal Lines segment experienced year-over-year growth for 2025, with net premiums written increasing 14% and policies in force up 11%, over the significant growth of 23% in net premiums written and 18% in policies in force we experienced during 2024. This growth was primarily driven by our personal auto products’ strong renewal application growth, driven by new applications gained over 2024 renewing during 2025.

In Commercial Lines, we experienced a decrease in net premiums written of 3% for 2025, compared to 2024, despite experiencing policies in force growth of 4%. The decline in net premiums written was primarily due to certain TNC policies that were not renewed in 2025. To a lesser extent, the net premiums written decline was due to a shift to a greater mix of policies with 6-month terms in our contractor and business auto business market targets (BMT), which have about half the amount of net premiums written as 12-month policies, and to a mix shift to lower average written premium BMTs in our core commercial auto business. Excluding TNC, Commercial Lines net premiums written would have decreased 1% for 2025, compared to 2024.

During 2025, in the aggregate, we decreased personal auto rates less than 1% and increased our personal property rates about 10%. In our core commercial auto business, we increased rates about 9% in the aggregate during 2025.

While we currently continue to believe we are adequately priced in our personal auto products in most states, starting in the first quarter 2025, the U.S. government announced additional tariffs on goods imported into the U.S. from numerous countries, which have, in response, resulted in additional tariffs against the U.S. We regularly model the potential impact tariffs could have on vehicle loss costs, the supply chain, the availability of parts, and general inflation, among other factors, although the dynamic international trade environment adds uncertainty in predicting how tariffs will ultimately impact our business over time. While our focus has been on trying to maintain stable rates for customers, effective tariffs and other retaliatory actions may result in higher loss costs, which could result in a reduction in profitability and the possible need for rate increases throughout 2026.

While we expect to continue increasing rates modestly in our personal property and core commercial auto products during 2026, we will continue to monitor the impact from tariffs and other potential changes in the regulatory environment as we evaluate the possible need for additional rate increases.

For 2025, the year-over-year increase in companywide underwriting profitability was the primary contributor to the $2.8 billion increase in net income. The remainder of the net income increase reflected an increase in recurring investment income during 2025, primarily reflecting investing new cash from insurance operations and proceeds from maturing bonds in higher coupon rate securities. Total

comprehensive income increased $4.2 billion, primarily reflecting the increase in net income and the increase in net unrealized gains on our fixed-maturity securities in 2025.

We ended 2025 with total capital (debt plus shareholders’ equity) of $37.2 billion, which was an increase of $4.7 billion from year-end 2024, primarily driven by the $12.8 billion of comprehensive income earned in 2025, partially offset by $8.1 billion of quarterly and annual-variable common share dividends declared during 2025.

B. Insurance Operations

Our companywide underwriting profit margin was 12.6% during 2025, compared to 11.2% during 2024. For 2025, our loss and loss adjustment expense (LAE) ratio decreased 3.2 points, and our underwriting expense ratio increased 1.8 points, compared to 2024. The decrease in the loss and LAE ratio was primarily driven by lower personal and commercial auto accident frequency, lower weather-related catastrophe losses, and favorable prior accident years development, compared to the prior year. The increase in the underwriting expense ratio was primarily driven by the Florida policyholder credits, previously discussed, which contributed 1.5 points to the companywide ratio. Our Personal Lines and Commercial Lines operating segments both generated strong profitability for 2025, with margins of 12.5% and 13.0%, respectively. Excluding the Florida policyholder credits, the Personal Lines underwriting margin would have been 14.2%.

We closely manage our expenses, monitoring both acquisition expenses and non-acquisition expenses, which we view as important measures of operational efficiency as we seek to deliver our most competitive rates to consumers. During 2025, our advertising spend was $5.1 billion, an increase of $1.1 billion, or 0.6 points, greater than 2024. We plan to continue to advertise to maximize growth as long as the advertising spend is efficient and we remain on track to achieve our target profitability.

Our Personal Lines segment is comprised of our personal vehicle and property products. Personal Lines vehicles include both personal auto and special lines products. For 2025, our personal vehicle and personal property underwriting margins were 11.9% and 24.9%, respectively, with Florida policyholder credits reducing the personal vehicles margin by 1.8 points. Profitability in our special lines products had a favorable 0.4 point impact on our personal vehicle combined ratio during 2025. The substantially higher underwriting profit margin in our personal property products during 2025 was primarily driven by the low level of catastrophe losses incurred, lower loss frequency, favorable development on prior year losses, and increased rates.

Our Personal Lines segment experienced year-over-year growth for 2025, with our agency and direct personal vehicle businesses and personal property business net premiums written growing 11%, 19%, and 1%,

App.-A-49

respectively, compared to 2024, and policies in force growing 9%, 13%, and 4%.

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

Relative to the significant growth we experienced in our Personal Lines new business applications during 2024, we experienced a moderate increase in total new business applications during 2025. Total Personal Lines renewal business applications increased substantially, primarily driven by the significant new business application growth experienced in our personal vehicle products in prior periods. New and renewal personal auto applications increased 9% and 20%, respectively, in 2025, compared to the prior year.

In our personal property business, strong growth in new applications in our renters policies was more than offset by a decrease in our homeowners product, which we define as our total personal property business excluding renters and umbrella products. For 2025, the new business applications in our homeowners product decreased about 45%, compared to 2024, with a signifi

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/PGR/mda/fy2025/
All MD&A years: /company/PGR/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/PGR/mda/fy2024/): filed 2025-03-03; accession 0000080661-25-000007 (https://www.sec.gov/Archives/edgar/data/80661/000008066125000007/pgr-20241231.htm)
- [FY 2023 MD&A](/company/PGR/mda/fy2023/): filed 2024-02-26; accession 0000080661-24-000007 (https://www.sec.gov/Archives/edgar/data/80661/000008066124000007/pgr-20231231.htm)
- [FY 2022 MD&A](/company/PGR/mda/fy2022/): filed 2023-02-27; accession 0000080661-23-000006 (https://www.sec.gov/Archives/edgar/data/80661/000008066123000006/pgr-20221231.htm)
- [FY 2021 MD&A](/company/PGR/mda/fy2021/): filed 2022-02-28; accession 0000080661-22-000046 (https://www.sec.gov/Archives/edgar/data/80661/000008066122000046/pgr-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 6331 Fire, Marine & Casualty Insurance) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [PCEPI](/indicator/PCEPI/): Personal Consumption Expenditures: Chain-type Price Index

Macro-to-micro threads including this sector: [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/PGR.md · JSON record: /company/PGR.json · verified financials: /company/PGR/financials.json / /company/PGR/financials.csv · machine TOC for the whole site: /llms.txt