Item 1. Financial Statements.

The Progressive Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income

(unaudited)

Three Months Ended March 31,															2026						2025
(millions — except per share amounts)
Revenues
Net premiums earned															$	20,968					$	19,409
Investment income															917						814
Net realized gains (losses) on securities:
Net realized gains (losses) on security sales															96						1
Net holding period gains (losses) on securities															(216)						(213)
Total net realized gains (losses) on securities															(120)						(212)
Fees and other revenues															297						287
Service revenues															126						111
Total revenues															22,188						20,409
Expenses
Losses and loss adjustment expenses															13,827						12,804
Policy acquisition costs															1,538						1,456
Other underwriting expenses															3,048						2,719
Investment expenses															8						7
Service expenses															131						117
Interest expense															70						70
Total expenses															18,622						17,173
Net Income
Income before income taxes															3,566						3,236
Provision for income taxes															748						669
Net income															2,818						2,567
Other Comprehensive Income (Loss)
Change in total net unrealized gains (losses) on fixed-maturity securities															(574)						899
Comprehensive income (loss)															$	2,244					$	3,466
Computation of Earnings Per Common Share
Average common shares outstanding - Basic															585.6						586.0
Net effect of dilutive stock-based compensation															1.3						1.7
Total average equivalent common shares - Diluted															586.9						587.7
Basic: Earnings per common share															$	4.81					$	4.38
Diluted: Earnings per common share															$	4.80					$	4.37

See notes to consolidated financial statements.

The Progressive Corporation and Subsidiaries

Consolidated Balance Sheets

(unaudited)

			March 31,												December 31,
(millions)			2026						2025						2025
Assets
Available-for-sale securities, at fair value:
Fixed maturities (amortized cost: $88,408, $77,754, and $82,704)			$	87,832					$	77,101					$	82,866
Short-term investments (amortized cost: $2,126, $2,595, and $10,005)			2,126						2,595						10,005
Total available-for-sale securities			89,958						79,696						92,871
Equity securities, at fair value:
Nonredeemable preferred stocks (cost: $259, $608, and $419)			240						584						404
Common equities (cost: $839, $774, and $819)			3,933						3,384						4,098
Total equity securities			4,173						3,968						4,502
Total investments			94,131						83,664						97,373
Cash and cash equivalents			162						195						125
Restricted cash and cash equivalents			17						12						13
Total cash, cash equivalents, restricted cash, and restricted cash equivalents			179						207						138
Accrued investment income			685						584						670
Premiums receivable, net of allowance for credit losses of $528, $473, and $552			17,614						16,811						15,362
Reinsurance recoverables			4,003						4,449						4,083
Prepaid reinsurance premiums			198						306						197
Deferred acquisition costs			2,131						2,068						2,044
Property and equipment, net of accumulated depreciation of $1,416, $1,490, and $1,460			792						854						783
Net federal deferred income taxes			742						860						748
Other assets			1,734						1,606						1,641
Total assets			$	122,209					$	111,409					$	123,039
Liabilities and Shareholders’ Equity
Unearned premiums			$	27,893					$	26,612					$	25,219
Loss and loss adjustment expense reserves			44,377						39,822						43,310
Dividends payable on common shares			58						59						7,972
Accounts payable, accrued expenses, and other liabilities			9,456						9,068						9,318
Debt1			8,386						6,894						6,897
Total liabilities			90,170						82,455						92,716
Common shares, $1.00 par value (authorized 900; issued 798, including treasury shares of 214, 212, and 212)			584						586						586
Paid-in capital			2,314						2,160						2,307
Retained earnings			29,612						26,732						27,327
Accumulated other comprehensive income (loss):
Net unrealized gains (losses) on fixed-maturity securities			(457)						(509)						117
Net unrealized losses on forecasted transactions			(13)						(14)						(13)
Foreign currency translation adjustment			(1)						(1)						(1)
Total accumulated other comprehensive income (loss)			(471)						(524)						103
Total shareholders’ equity			32,039						28,954						30,323
Total liabilities and shareholders’ equity			$	122,209					$	111,409					$	123,039

1 Consists of both short-term and 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 Ended March 31,															2026						2025
(millions — except per share amounts)
Common Shares, $1.00 Par Value
Balance, beginning of period															$	586					$	586
Treasury shares purchased															(2)						0
Balance, end of period															584						586
Paid-In Capital
Balance, beginning of period															2,307						2,145
Amortization of equity-based compensation															16						16
Treasury shares purchased															(9)						(1)
Balance, end of period															2,314						2,160
Retained Earnings
Balance, beginning of period															27,327						24,283
Net income															2,818						2,567
Treasury shares purchased															(467)						(53)
Cash dividends declared on common shares ($0.10 and $0.10 per share)															(58)						(59)
Other, net															(8)						(6)
Balance, end of period															29,612						26,732
Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period															103						(1,423)
Other comprehensive income (loss)															(574)						899
Balance, end of period															(471)						(524)
Total shareholders’ equity															$	32,039					$	28,954

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

See notes to consolidated financial statements.

The Progressive Corporation and Subsidiaries

Consolidated Statements of Cash Flows

(unaudited)

Three Months Ended March 31,			2026						2025
(millions)
Cash Flows From Operating Activities
Net income			$	2,818					$	2,567
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			75						70
Net amortization (accretion) of fixed-income securities			(47)						(21)
Amortization of equity-based compensation			16						16
Net realized (gains) losses on securities			120						212
Net (gains) losses on disposition of property and equipment			3						3
Changes in:
Premiums receivable			(2,252)						(2,442)
Reinsurance recoverables			80						316
Prepaid reinsurance premiums			(1)						43
Deferred acquisition costs			(87)						(107)
Income taxes			830						667
Unearned premiums			2,674						2,754
Loss and loss adjustment expense reserves			1,067						765
Accounts payable, accrued expenses, and other liabilities			(788)						334
Other, net			(141)						(34)
Net cash provided by operating activities			4,367						5,143
Cash Flows From Investing Activities
Purchases:
Fixed maturities			(19,291)						(17,324)
Equity securities			(57)						(86)
Sales:
Fixed maturities			11,115						14,721
Equity securities			56						149
Maturities, paydowns, calls, and other:
Fixed maturities			2,549						1,950
Equity securities			152						87
Net (purchases) sales of short-term investments			7,919						(1,964)
Net change in unsettled security transactions			243						172
Purchases of property and equipment			(63)						(59)
Sales of property and equipment			14						13
Net cash provided by (used in) investing activities			2,637						(2,341)
Cash Flows From Financing Activities
Dividends paid to common shareholders			(7,972)						(2,695)
Acquisition of treasury shares for equity award tax liabilities			(43)						(54)
Acquisition of treasury shares acquired in open market			(435)						0
Net proceeds from debt issuances			1,487						0
Net cash used in financing activities			(6,963)						(2,749)
Increase in cash, cash equivalents, restricted cash, and restricted cash equivalents			41						53
Cash, cash equivalents, restricted cash, and restricted cash equivalents – January 1			138						154
Cash, cash equivalents, restricted cash, and restricted cash equivalents – March 31			$	179					$	207

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 March 31, 2026, 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, 2025 (2025 Annual Report to Shareholders).

Premiums Receivable

We perform analyses to evaluate our premiums receivable for expected credit losses. See our 2025 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 March 31,
(millions)												2026			2025
Allowance for credit losses, beginning of period												$	552		$	460
Increase in allowance1												183			153
Write-offs2												(207)			(140)
Allowance for credit losses, end of period												$	528		$	473

1 Represents the incremental increase in other underwriting expenses.

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

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 March 31, 2026 and 2025, and December 31, 2025, were $29 million, $78 million, and $44 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:

			Three Months Ended March 31,
(millions)			2026						2025
Common share dividends1			$	58					$	59
Operating lease liabilities2			23						40

1 Declared but unpaid. See Note 10 – Dividends for further discussion.

2 From obtaining right-of-use assets.

In the respective periods, we paid the following:

			Three Months Ended March 31,
(millions)			2026						2025
Income taxes, net of refunds			$	(85)					$	0
Interest			88						88
Operating lease liabilities			26						22

New Accounting Standards

We did not adopt any new accounting standards during the three months ended March 31, 2026. In September 2025, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), which amends the existing accounting guidance for capitalization of internal-use software costs and provides more detailed guidelines around the criteria for capitalization. This ASU will be effective for fiscal years (including interim periods within those fiscal years) beginning after December 15, 2027 (fiscal 2028 for calendar-year companies). This standard may be applied using a prospective, modified, or retrospective transition approach. We do not believe this ASU will have a material impact on our financial condition or results of operations.

2. INVESTMENTS

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

($ in millions)			Cost						Gross Unrealized Gains						Gross Unrealized Losses						Net Holding Period Gains (Losses)						Fair Value						% of Total Fair Value
March 31, 2026
Available-for-sale securities:
Fixed maturities:
U.S. government			$	44,676					$	229					$	(488)					$	0					$	44,417					47.2		%
State and local government			3,135						13						(61)						0						3,087						3.3
Foreign government			16						0						0						0						16						0
Corporate and other debt			20,994						121						(132)						3						20,986						22.3
Residential mortgage-backed			4,127						23						(13)						(1)						4,136						4.4
Commercial mortgage-backed			7,228						6						(243)						0						6,991						7.4
Other asset-backed			8,232						13						(46)						0						8,199						8.7
Total fixed maturities			88,408						405						(983)						2						87,832						93.3
Short-term investments			2,126						0						0						0						2,126						2.3
Total available-for-sale securities			90,534						405						(983)						2						89,958						95.6
Equity securities:
Nonredeemable preferred stocks			259						0						0						(19)						240						0.2
Common equities			839						0						0						3,094						3,933						4.2
Total equity securities			1,098						0						0						3,075						4,173						4.4
Total portfolio1			$	91,632					$	405					$	(983)					$	3,077					$	94,131					100.0		%

($ in millions)			Cost						Gross Unrealized Gains						Gross Unrealized Losses						Net Holding Period Gains (Losses)						Fair Value						% of Total Fair Value
March 31, 2025
Available-for-sale securities:
Fixed maturities:
U.S. government			$	44,523					$	391					$	(596)					$	0					$	44,318					53.0		%
State and local government			2,688						6						(90)						0						2,604						3.1
Foreign government			16						0						0						0						16						0
Corporate and other debt			16,047						127						(156)						(2)						16,016						19.2
Residential mortgage-backed			2,172						18						(8)						1						2,183						2.6
Commercial mortgage-backed			5,144						5						(324)						0						4,825						5.8
Other asset-backed			7,164						25						(50)						0						7,139						8.5
Total fixed maturities			77,754						572						(1,224)						(1)						77,101						92.2
Short-term investments			2,595						0						0						0						2,595						3.1
Total available-for-sale securities			80,349						572						(1,224)						(1)						79,696						95.3
Equity securities:
Nonredeemable preferred stocks			608						0						0						(24)						584						0.7
Common equities			774						0						0						2,610						3,384						4.0
Total equity securities			1,382						0						0						2,586						3,968						4.7
Total portfolio1			$	81,731					$	572					$	(1,224)					$	2,585					$	83,664					100.0		%

($ in millions)			Cost						Gross Unrealized Gains						Gross Unrealized Losses						Net Holding Period Gains (Losses)						Fair Value						% of Total Fair Value
December 31, 2025
Available-for-sale securities:
Fixed maturities:
U.S. government			$	43,114					$	541					$	(357)					$	0					$	43,298					44.5		%
State and local government			3,342						19						(58)						0						3,303						3.4
Foreign government			17						0						0						0						17						0
Corporate and other debt			19,773						273						(68)						13						19,991						20.5
Residential mortgage-backed			3,152						28						(6)						1						3,175						3.3
Commercial mortgage-backed			6,194						12						(233)						0						5,973						6.1
Other asset-backed			7,112						28						(31)						0						7,109						7.3
Total fixed maturities			82,704						901						(753)						14						82,866						85.1
Short-term investments			10,005						0						0						0						10,005						10.3
Total available-for-sale securities			92,709						901						(753)						14						92,871						95.4
Equity securities:
Nonredeemable preferred stocks			419						0						0						(15)						404						0.4
Common equities			819						0						0						3,279						4,098						4.2
Total equity securities			1,238						0						0						3,264						4,502						4.6
Total portfolio1			$	93,947					$	901					$	(753)					$	3,278					$	97,373					100.0		%

1 At March 31, 2026 and 2025, and December 31, 2025, we had $443 million, $297 million, and $200 million, respectively, of net unsettled security transactions included in accounts payable, accrued expenses, and other liabilities on our consolidated balance sheets.

The total fair value of the portfolio at March 31, 2026 and 2025, and December 31, 2025, included $6.2 billion, $3.5 billion, and $13.0 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, 2025, were sold and proceeds were used to pay our common share dividends in January 2026; see Note 10 – Dividends for additional information.

At March 31, 2026, bonds and certificates of deposit in the principal amount of $789 million were on deposit to meet state insurance regulatory requirements. We did not hold any securities of any one issuer, excluding U.S. government securities, with an aggregate cost or fair value exceeding 10% of total shareholders’ equity at March 31, 2026 or 2025, or December 31, 2025. At March 31, 2026, 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:

			March 31,
(millions)			2026						2025						December 31, 2025
Fixed Maturities:
Corporate and other debt			$	702					$	632					$	733
Residential mortgage-backed			998						579						792
Total hybrid securities			$	1,700					$	1,211					$	1,525

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 March 31, 2026, was:

(millions)			Cost						Fair Value
Less than one year			$	10,830					$	10,805
One to five years			45,137						44,725
Five to ten years			32,117						31,977
Ten years or greater			324						325
Total			$	88,408					$	87,832

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 Fair Value			Gross Unrealized Losses			Less than 12 Months															12 Months or Greater
($ in millions)			No. of Sec.			Fair Value			Gross Unrealized Losses									No. of Sec.			Fair Value			Gross Unrealized Losses
March 31, 2026
U.S. government			73			$	23,054		$	(488)		32			$	17,806		$	(171)								41			$	5,248		$	(317)
State and local government			293			1,872			(61)			116			689			(5)									177			1,183			(56)
Corporate and other debt			320			9,052			(132)			236			6,990			(64)									84			2,062			(68)
Residential mortgage-backed			53			1,450			(13)			35			1,397			(8)									18			53			(5)
Commercial mortgage-backed			191			5,591			(243)			79			3,187			(10)									112			2,404			(233)
Other asset-backed			144			4,911			(46)			112			4,080			(16)									32			831			(30)
Total fixed maturities			1,074			$	45,930		$	(983)		610			$	34,149		$	(274)								464			$	11,781		$	(709)

			Total No. of Sec.			Total Fair Value			Gross Unrealized Losses			Less than 12 Months												12 Months or Greater
($ in millions)			No. of Sec.			Fair Value			Gross Unrealized Losses						No. of Sec.			Fair Value			Gross Unrealized Losses
March 31, 2025
U.S. government			85			$	16,851		$	(596)		18			$	9,284		$	(69)					67			$	7,567		$	(527)
State and local government			307			1,871			(90)			70			445			(2)						237			1,426			(88)
Corporate and other debt			210			4,967			(156)			56			1,352			(12)						154			3,615			(144)
Residential mortgage-backed			47			674			(8)			25			628			(2)						22			46			(6)
Commercial mortgage-backed			165			3,653			(324)			22			597			(4)						143			3,056			(320)
Other asset-backed			89			2,046			(50)			46			1,128			(3)						43			918			(47)
Total fixed maturities			903			$	30,062		$	(1,224)		237			$	13,434		$	(92)					666			$	16,628		$	(1,132)

			Total No. of Sec.			Total Fair Value			Gross Unrealized Losses			Less than 12 Months												12 Months or Greater
($ in millions)			No. of Sec.			Fair Value			Gross Unrealized Losses						No. of Sec.			Fair Value			Gross Unrealized Losses
December 31, 2025
U.S. government			62			$	17,402		$	(357)		8			$	11,327		$	(54)					54			$	6,075		$	(303)
State and local government			252			1,589			(58)			60			318			(1)						192			1,271			(57)
Corporate and other debt			141			3,821			(68)			36			1,177			(5)						105			2,644			(63)
Residential mortgage-backed			30			293			(6)			12			233			(1)						18			60			(5)
Commercial mortgage-backed			147			3,551			(233)			34			1,210			(3)						113			2,341			(230)
Other asset-backed			64			1,924			(31)			32			1,148			(3)						32			776			(28)
Total fixed maturities			696			$	28,580		$	(753)		182			$	15,413		$	(67)					514			$	13,167		$	(686)

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

Allowance For Credit and Uncollectible Losses We are required to measure the amount of potential credit losses for all fixed-maturity securities in an unrealized loss position. We did not record any allowances for credit losses or any write-offs for credit losses deemed to be uncollectible during the first three months of 2026 or 2025, and did not have a material credit loss allowance balance as of March 31, 2026 and 2025, or December 31, 2025. No unrealized loss write offs were recorded during the three months ended March 31, 2026 or 2025.

As of March 31, 2026 and 2025, and December 31, 2025, we believe that none of the unrealized losses on our fixed-maturity securities were related to material credit losses on any specific securities, or in the aggregate. We continue to expect all the securities in our fixed-maturity portfolio will pay their principal and interest obligations.

In addition, we reviewed our accrued investment income outstanding on those securities in an unrealized loss position at March 31, 2026 and 2025, and December 31, 2025, 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 March 31, 2026 and 2025, or December 31, 2025.

Realized Gains (Losses) The components of net realized gains (losses) for the three months ended March 31, were:

									Three Months
(millions)															2026						2025
Gross realized gains on security sales
Available-for-sale securities:
U.S. government															$	99					$	53
State and local government															1						0
Corporate and other debt															26						1
Residential mortgage-backed															1						0
Total available-for-sale securities															127						54
Equity securities:
Nonredeemable preferred stocks															8						2
Common equities															13						35
Total equity securities															21						37
Subtotal gross realized gains on security sales															148						91
Gross realized losses on security sales
Available-for-sale securities:
U.S. government															(36)						(77)
State and local government															0						(2)
Corporate and other debt															(5)						(1)
Commercial mortgage-backed															0						(4)
Total available-for-sale securities															(41)						(84)
Equity securities:
Nonredeemable preferred stocks															(5)						(2)
Common equities															(6)						(4)
Total equity securities															(11)						(6)
Subtotal gross realized losses on security sales															(52)						(90)
Net realized gains (losses) on security sales
Available-for-sale securities:
U.S. government															63						(24)
State and local government															1						(2)
Corporate and other debt															21						0
Residential mortgage-backed															1						0
Commercial mortgage-backed															0						(4)
Total available-for-sale securities															86						(30)
Equity securities:
Nonredeemable preferred stocks															3						0
Common equities															7						31
Total equity securities															10						31
Subtotal net realized gains (losses) on security sales															96						1
Net holding period gains (losses)
Hybrid securities															(27)						3
Equity securities															(189)						(216)
Subtotal net holding period gains (losses)															(216)						(213)
Total net realized gains (losses) on securities															$	(120)					$	(212)

During the first three months of 2026 and 2025, the majority of our security sales were U.S. government securities that were sold for duration management. We also selectively sold securities that we viewed as having less attractive risk/reward profiles during the first three months of 2026 and 2025.

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

									Three Months
(millions)												2026			2025
Total net gains (losses) recognized during the period on equity securities												$	(179)		$	(185)
Less: Net gains (losses) recognized on equity securities sold during the period												10			31
Net holding period gains (losses) recognized during the period on equity securities held at period end												$	(189)		$	(216)

Net Investment Income The components of net investment income for the three months ended March 31, were:

									Three Months
(millions)												2026			2025
Available-for-sale securities:
Fixed maturities:
U.S. government												$	400		$	422
State and local government												24			19
Corporate and other debt												235			171
Residential mortgage-backed												39			25
Commercial mortgage-backed												71			53
Other asset-backed												87			84
Total fixed maturities												856			774
Short-term investments												44			18
Total available-for-sale securities												900			792
Equity securities:
Nonredeemable preferred stocks												4			8
Common equities												13			14
Total equity securities												17			22
Investment income												917			814
Investment expenses												(8)			(7)
Net investment income												$	909		$	807

On a year-over-year basis, investment income (interest and dividends) increased 13% for the three months ended March 31, 2026, compared to the same period last year. The increase primarily reflects growth in invested assets and an increase in recurring investment book yield. The book yield increase primarily reflects investing new cash from insurance operations, and proceeds from maturing bonds, in higher coupon rate securities.

3. FAIR VALUE

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

			Fair Value
(millions)			Level 1						Level 2						Level 3						Total						Cost
March 31, 2026
Fixed maturities:
U.S. government			$	44,417					$	0					$	0					$	44,417					$	44,676
State and local government			0						3,087						0						3,087						3,135
Foreign government			0						16						0						16						16
Corporate and other debt			0						20,982						4						20,986						20,994
Residential mortgage-backed			0						4,136						0						4,136						4,127
Commercial mortgage-backed			0						6,991						0						6,991						7,228
Other asset-backed			0						8,199						0						8,199						8,232
Total fixed maturities			44,417						43,411						4						87,832						88,408
Short-term investments			2,072						54						0						2,126						2,126
Total available-for-sale securities			46,489						43,465						4						89,958						90,534
Equity securities:
Nonredeemable preferred stocks			0						191						49						240						259
Common equities:
Common stocks			3,891						0						5						3,896						802
Other risk investments			0						0						37						37						37
Subtotal common equities			3,891						0						42						3,933						839
Total equity securities			3,891						191						91						4,173						1,098
Total portfolio			$	50,380					$	43,656					$	95					$	94,131					$	91,632
Debt			$	0					$	7,728					$	0					$	7,728					$	8,386

			Fair Value
(millions)			Level 1						Level 2						Level 3						Total						Cost
March 31, 2025
Fixed maturities:
U.S. government			$	44,318					$	0					$	0					$	44,318					$	44,523
State and local government			0						2,604						0						2,604						2,688
Foreign government			0						16						0						16						16
Corporate and other debt			0						16,011						5						16,016						16,047
Residential mortgage-backed			0						2,183						0						2,183						2,172
Commercial mortgage-backed			0						4,825						0						4,825						5,144
Other asset-backed			0						7,139						0						7,139						7,164
Total fixed maturities			44,318						32,778						5						77,101						77,754
Short-term investments			2,595						0						0						2,595						2,595
Total available-for-sale securities			46,913						32,778						5						79,696						80,349
Equity securities:
Nonredeemable preferred stocks			0						524						60						584						608
Common equities:
Common stocks			3,344						0						9						3,353						743
Other risk investments			0						0						31						31						31
Subtotal common equities			3,344						0						40						3,384						774
Total equity securities			3,344						524						100						3,968						1,382
Total portfolio			$	50,257					$	33,302					$	105					$	83,664					$	81,731
Debt			$	0					$	6,247					$	0					$	6,247					$	6,894

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

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 market activity in the relevant sectors and securities, further supporting our Level 1 and Level 2 classifications.

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

At March 31, 2026 and 2025, and December 31, 2025, vendor-quoted prices represented 92%, 93%, and 91%, respectively, of our Level 1 classifications (excluding short-term investments valued at adjusted original cost). The securities quoted by vendors in Level 1 primarily represent our holdings in U.S. government securities, 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 March 31, 2026, vendor-quoted prices comprised 99% of our Level 2 classifications (excluding short-term investments valued at adjusted original cost), with the balance from dealer quotes, compared to 100% at March 31, 2025 and December 31, 2025. In our process for selecting a source (e.g., dealer or pricing service) to provide pricing for securities in our portfolio, we reviewed documentation from the sources that detailed the pricing techniques and methodologies used by these sources and determined if their policies adequately considered market activity, either based on specific transactions for the particular security type or based on modeling of securities with similar credit quality, duration, yield, and structure that were recently transacted. Once a source is chosen, we continue to monitor any changes or modifications to their processes by reviewing their documentation on internal controls for pricing and market reviews. We review quality control measures of our sources as they become available to determine if any significant changes have occurred from period to period that might indicate issues or concerns regarding their evaluation or market coverage.

As part of our pricing procedures, we obtain quotes from more than one source to help us fully evaluate the market price of securities. However, our internal pricing policy is to use a consistent source for individual securities in order to maintain the integrity of our valuation process. Quotes obtained from the sources are not considered binding offers to transact. Under our policy, when a review of the valuation received from our selected source appears to be outside of what is considered market level activity (which is defined as trading at spreads or yields significantly different than those of comparable securities or outside the

general sector level movement without a reasonable explanation), we may use an alternate source’s price. To the extent we determine that it may be prudent to substitute one source’s price for another, we will contact the initial source to obtain an understanding of the factors that may be contributing to the significant price variance.

To allow us to determine if our initial source is providing a price that is outside of a reasonable range, we review our portfolio pricing on a weekly basis. When necessary, we challenge prices from our sources when a price provided does not match our expectations based on our evaluation of market trends and activity. Initially, we perform a review of our portfolio by sector to identify securities whose prices appear outside of a reasonable range. We then perform a more detailed review of fair values for securities disclosed as Level 2. We review dealer bids and quotes for these and/or similar securities to determine the market level context for our valuations. We then evaluate inputs relevant for each class of securities disclosed in the preceding hierarchy tables.

For structured debt securities, including commercial, residential, and other asset-backed securities, we evaluate available market-related data for these and similar securities related to collateral, delinquencies, and defaults for historical trends and reasonably estimable projections, as well as historical prepayment rates and current prepayment assumptions and cash flow estimates. We further stratify each class of structured debt securities into more finite sectors (e.g., planned amortization class, first pay, second pay, senior, and subordinated) and use duration and credit quality to determine if the fair value is appropriate.

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

For state and local government (municipal) securities, we stratify the portfolio to evaluate securities by type, duration, credit quality, and coupon, to review price changes relative to credit spread and interest rate changes.

Additionally, we look to economic data as it relates to geographic location as an indication of price-to-call or maturity predictors. For municipal housing securities, we look to changes in cash flow projections, both historical and reasonably estimable projections, to understand yield changes and their effect on valuation.

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

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

During each valuation period, we create internal estimations of portfolio valuation (performance returns), based on current market-related activity (i.e., interest rate and credit spread movements and other credit-related factors) within each major sector of our portfolio. We compare our results to index returns for each major sector adjusting for duration and credit quality differences to better understand our portfolio’s results. Additionally, we review our external sales transactions and compare the actual final market sales prices to previous market valuation prices on a monthly basis. This review provides us further validation that our pricing sources are providing market level prices, and gives us additional comfort regarding the source’s process, the quality of its review, and its willingness to improve its analysis based on feedback from clients. We believe this effort helps ensure that we are reporting the most representative fair values for our securities.

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

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

To the extent we receive prices from external sources (e.g., broker and valuation firm) for the Level 3 securities, we review those prices for reasonableness using internally developed assumptions and then compare our derived prices to the prices received from the external sources. Based on our review during the first three months of 2026 and for the full year of 2025, 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 three months of 2026 and for the full year of 2025, there were no material assets or liabilities measured at fair value on a nonrecurring basis.

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

The following tables provide a summary of changes in fair value associated with Level 3 assets for the three months ended March 31, 2026 and 2025:

(millions)			Fair Value at December 31, 2025			Calls/ Maturities/ Paydowns/Other			Purchases			Sales			Net Realized (Gain)/Loss on Sales			Change in Valuation****1			Net Transfers In (Out)			Fair Value at March 31, 2026
Fixed maturities:
Corporate and other debt			$	4		$	0		$	0		$	0		$	0		$	0		$	0		$	4
Equity securities:
Nonredeemable preferred stocks			60			0			0			(5)			(7)			1			0			49
Common equities:
Common stocks			5			0			0			0			0			0			0			5
Other risk investments			36			1			0			0			0			0			0			37
Total Level 3 securities			$	105		$	1		$	0		$	(5)		$	(7)		$	1		$	0		$	95
(millions)			Fair Value at December 31, 2024			Calls/ Maturities/ Paydowns/Other			Purchases			Sales			Net Realized (Gain)/Loss on Sales			Change in Valuation****1			Net Transfers In (Out)			Fair Value at March 31, 2025
Fixed maturities:
Corporate and other debt			$	5		$	0		$	0		$	0		$	0		$	0		$	0		$	5
Equity securities:
Nonredeemable preferred stocks			52			0			8			0			0			0			0			60
Common equities:
Common stocks			23			0			0			0			0			(14)			0			9
Other risk investments			25			6			0			0			0			0			0			31
Total Level 3 securities			$	105		$	6		$	8		$	0		$	0		$	(14)		$	0		$	105

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

The following tables provide a summary of the quantitative information about Level 3 fair value measurements for our applicable securities at March 31, 2026 and 2025, and December 31, 2025:

($ in millions)			Fair Value at March 31, 2026			Valuation Technique			Unobservable Input			Range of Input Values Increase (Decrease)			Weighted Average Increase (Decrease)
Fixed maturities:
Corporate and other debt			$	4		Market comparables			Weighted average market capitalization price change %			(1.0)%			(1.0)		%
Equity securities:
Nonredeemable preferred stocks			49			Market comparables			Weighted average market capitalization price change %			(23.6)% to 0%			(12.4)		%
Common stocks			5			Market comparables			Weighted average market capitalization price change %			(41.3)% to (12.9)%			(23.6)		%
Subtotal Level 3 securities			58
Pricing exemption securities			37
Total Level 3 securities			$	95

($ in millions)			Fair Value at March 31, 2025			Valuation Technique			Unobservable Input			Range of Input Values Increase (Decrease)			Weighted Average Increase (Decrease)
Fixed maturities:
Corporate and other debt			$	5		Market comparables			Weighted average market capitalization price change %			0.7% to 0.8%			0.8		%
Equity securities:
Nonredeemable preferred stocks			60			Market comparables			Weighted average market capitalization price change %			(11.8)% to 16.1%			6.4		%
Common stocks			9			Market comparables			Weighted average market capitalization price change %			(36.8)% to 41.5%			6.7		%
Subtotal Level 3 securities			74
Pricing exemption securities			31
Total Level 3 securities			$	105

($ in millions)			Fair Value at December 31, 2025			Valuation Technique			Unobservable Input			Range of Input Values Increase (Decrease)			Weighted Average Increase (Decrease)
Fixed maturities:
Corporate and other debt			$	4		Market comparables			Weighted average market capitalization price change %			(0.1)% to 0.1%			0		%
Equity securities:
Nonredeemable preferred stocks			60			Market comparables			Weighted average market capitalization price change %			(14.5)% to 7.6%			(4.5)		%
Common stocks			5			Market comparables			Weighted average market capitalization price change %			(40.9)% to 36.3%			7.6		%
Subtotal Level 3 securities			69
Pricing exemption securities			36
Total Level 3 securities			$	105

4. DEBT

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

($ in millions)															March 31, 2026									March 31, 2025									December 31, 2025
Principal Amount			Interest Rate						Issuance Date			Maturity Date			Carrying Value						Fair Value						Carrying Value						Fair Value						Carrying Value						Fair Value
$	500		2.45			%			August 2016			January 2027			$	500					$	493					$	499					$	484					$	499					$	493
500			2.50						March 2022			March 2027			500						492						499						483						499						492
300			6 5/8						March 1999			March 2029			299						320						298						322						299						323
550			4.00						October 2018			March 2029			548						547						548						542						548						551
500			3.20						March 2020			March 2030			498						478						498						470						498						484
500			4.60						March 2026			March 2031			497						501						0						0						0						0
500			3.00						March 2022			March 2032			497						457						497						447						497						462
400			6.25						November 2002			December 2032			397						435						397						434						397						442
500			4.95						May 2023			June 2033			497						507						497						503						497						513
1,000			5.15						March 2026			March 2036			990						1,001						0						0						0						0
350			4.35						April 2014			April 2044			347						295						347						300						347						304
400			3.70						January 2015			January 2045			396						305						396						310						396						314
850			4.125						April 2017			April 2047			843						678						842						695						843						702
600			4.20						March 2018			March 2048			591						478						591						493						591						498
500			3.95						March 2020			March 2050			492						380						491						393						492						392
500			3.70						March 2022			March 2052			494						361						494						371						494						375
Total															$	8,386					$	7,728					$	6,894					$	6,247					$	6,897					$	6,345

At March 31, 2026, short-term debt consisted of the $500 million 2.45% senior notes that mature in January 2027 and the $500 million 2.50% senior notes that mature in March 2027. There was no short-term debt outstanding at March 31, 2025, or December 31, 2025.

In March 2026, the Progressive Corporation issued $500 million of 4.60% Senior Notes due 2031 and $1 billion of 5.15% Senior Notes due 2036, in an underwritten public offering. The net proceeds from the issuances, after deducting underwriters’ discounts, commissions, and other issuance costs, were approximately

$1,487 million in aggregate. Consistent with the other senior notes issued by Progressive, interest on these notes is payable semiannually, principal is due at maturity, and the notes are redeemable, in whole or in part, at any time, subject to a treasury “make whole” provision.

The Progressive Corporation has a line of credit with PNC Bank, National Association (PNC), in the maximum principal amount of $300 million. See the 2025 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 months ended March 31, 2026 and 2025, was 21.0% and 20.7%, respectively.

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 March 31, 2026 and 2025, and December 31, 2025.

We had net current income taxes payable of $700 million, $838 million, and $28 million at March 31, 2026 and 2025, and December 31, 2025, respectively, which were reported in accounts payable, accrued expenses, and other liabilities on our consolidated balance sheets. The balance may fluctuate from period to period due to normal timing differences.

At March 31, 2026 and 2025, and December 31, 2025, 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:

			March 31,
(millions)			2026						2025
Balance at January 1			$	43,310					$	39,057
Less reinsurance recoverables on unpaid losses			3,807						4,487
Net balance at January 1			39,503						34,570
Incurred related to:
Current year			14,278						13,082
Prior years			(451)						(278)
Total incurred			13,827						12,804
Paid related to:
Current year			5,356						4,881
Prior years			7,345						6,804
Total paid			12,701						11,685
Net balance at March 31			40,629						35,689
Plus reinsurance recoverables on unpaid losses			3,748						4,133
Balance at March 31			$	44,377					$	39,822

We experienced favorable reserve development of $451 million and $278 million during the first three months of 2026 and 2025, respectively, which is reflected as “incurred related to prior years” in the table above.

First Quarter 2026

• The favorable prior year reserve development included approximately $320 million attributable to accident year 2025, $115 million to accident year 2024, and the remainder to accident years 2023 and prior.

• Our personal auto products incurred about $445 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 bodily injury severity, more subrogation and salvage recoveries than anticipated, and lower than anticipated payments on previously closed but reopened property damage claims.

First Quarter 2025

• The favorable prior year reserve development included approximately $180 million attributable to accident year 2024, $90 million to accident year 2023, and the remainder to accident years 2022 and prior.

• Our personal auto products incurred about $260 million of favorable loss and LAE reserve development, with the agency and direct auto businesses each contributing about half. The favorable development was primarily due to lower than anticipated loss severity and frequency in Florida.

• Our personal property products experienced about $30 million of favorable development, primarily attributable to favorable development on 2024 catastrophe events.

7. 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.

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

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

Following are the operating results for the respective periods:

(millions)						Personal Lines						Commercial Lines						Other****1						Companywide
Three Months Ended March 31, 2026
Net premiums earned						$	18,384					$	2,583					$	1					$	20,968
Fees and other revenues						276						20						1						297
Total underwriting revenue						18,660						2,603						2						21,265
Losses and loss adjustment expenses:
Losses (excluding catastrophe losses)						10,219						1,457						1						11,677
Catastrophe losses						263						5						0						268
Loss adjustment expenses						1,593						289						0						1,882
Total losses and loss adjustment expenses						12,075						1,751						1						13,827
Underwriting expenses:
Distribution expenses2						2,664						300						2						2,966
Other underwriting expenses3						1,346						268						6						1,620
Total underwriting expenses						4,010						568						8						4,586
Pretax underwriting profit (loss)						$	2,575					$	284					$	(7)					2,852
Investment profit (loss)4																								789
Service businesses profit (loss)																								(5)
Interest expense																								(70)
Total pretax profit (loss)																								$	3,566

(millions)						Personal Lines						Commercial Lines						Other****1						Companywide
Three Months Ended March 31, 2025
Net premiums earned						$	16,710					$	2,699					$	0					$	19,409
Fees and other revenues						249						38						0						287
Total underwriting revenue						16,959						2,737						0						19,696
Losses and loss adjustment expenses:
Losses (excluding catastrophe losses)						9,109						1,559						0						10,668
Catastrophe losses						454						5						0						459
Loss adjustment expenses						1,390						287						0						1,677
Total losses and loss adjustment expenses						10,953						1,851						0						12,804
Underwriting expenses:
Distribution expenses2						2,348						286						0						2,634
Other underwriting expenses3						1,275						262						4						1,541
Total underwriting expenses						3,623						548						4						4,175
Pretax underwriting profit (loss)						$	2,383					$	338					$	(4)					2,717
Investment profit (loss)4																								595
Service businesses profit (loss)																								(6)
Interest expense																								(70)
Total pretax profit (loss)																								$	3,236

1 Includes other underwriting business and run-off operations.

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

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

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

Our 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. Fees and other revenues are netted against either loss adjustment expenses or underwriting expenses in the ratio calculations, based on the underlying activity that generated the revenue. Combined ratio is the complement of the underwriting margin. Following are the underwriting margins and combined ratios for our underwriting operations for the respective periods:

									Three Months Ended March 31,
															2026									2025
																					Underwriting Margin			Combined Ratio						Underwriting Margin			Combined Ratio
Personal Lines																					14.0		%	86.0						14.3		%	85.7
Commercial Lines																					11.0			89.0						12.5			87.5
Total underwriting operations																					13.6			86.4						14.0			86.0

8. 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 Accumulated Other Comprehensive Income (after tax)
(millions)			Pretax total accumulated other comprehensive income (loss)						Total tax (provision) benefit						After tax total accumulated other comprehensive income (loss)						Total net unrealized gains (losses) on securities						Net unrealized losses on forecasted transactions						Foreign currency translation adjustment
Balance at December 31, 2025			$	130					$	(27)					$	103					$	117					$	(13)					$	(1)
Other comprehensive income (loss) before reclassifications for investment securities			(628)						132						(496)						(496)						0						0
Less: Reclassification adjustment for amounts realized in net income by income statement line item:
Net realized gains (losses) on securities			98						(20)						78						78						0						0
Total reclassification adjustment for amounts realized in net income			98						(20)						78						78						0						0
Total other comprehensive income (loss)			(726)						152						(574)						(574)						0						0
Balance at March 31, 2026			$	(596)					$	125					$	(471)					$	(457)					$	(13)					$	(1)
																					Components of Changes in Accumulated Other Comprehensive Income (after tax)
(millions)			Pretax total accumulated other comprehensive income (loss)						Total tax (provision) benefit						After tax total accumulated other comprehensive income (loss)						Total net unrealized gains (losses) on securities						Net unrealized losses on forecasted transactions						Foreign currency translation adjustment
Balance at December 31, 2024			$	(1,809)					$	386					$	(1,423)					$	(1,408)					$	(14)					$	(1)
Other comprehensive income (loss) before reclassifications for investment securities			1,108						(233)						875						875						0						0
Less: Reclassification adjustment for amounts realized in net income by income statement line item:
Net realized gains (losses) on securities			(30)						6						(24)						(24)						0						0
Total reclassification adjustment for amounts realized in net income			(30)						6						(24)						(24)						0						0
Total other comprehensive income (loss)			1,138						(239)						899						899						0						0
Balance at March 31, 2025			$	(671)					$	147					$	(524)					$	(509)					$	(14)					$	(1)

In an effort to manage interest rate risk, we entered into forecasted transactions on certain of Progressive’s debt issuances. During the next 12 months, we expect to reclassify approximately $1 million (pretax) into interest expense, related to net unrealized losses on forecasted transactions (see Note 4 – Debt in our 2025 Annual Report to Shareholders for further discussion).

9. 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 2025 Annual Report to Shareholders.

As of March 31, 2026, 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 Colorado, North Carolina, and Ohio; we improperly calculate basic economic loss as it relates to wage loss coverage in New York; we improperly reduce or deny personal injury protection benefits when medical expenses are paid initially by health insurance in Arkansas; and we sell illusory underinsured motorist coverage in New Mexico. 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 March 31, 2026, 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 three 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 March 31, 2026.

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 March 31, 2026 and 2025, or December 31, 2025, and there were no material settlements during 2025 or the first three months of 2026. 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 2025 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 2025 Annual Report to Shareholders.

10. DIVIDENDS

Following is a summary of our common share dividends that were declared and/or paid during the three months ended March 31, 2026 and 2025:

(millions — except per share amounts)						Amount
Declared			Payable			Per Share						Accrued/Paid****1
Annual-Variable Dividends:
December 2025			January 2026			$	13.50					$	7,913
December 2024			January 2025			4.50						2,637
Quarterly Dividends:
March 2026			April 2026			0.10						58
December 2025			January 2026			0.10						59
March 2025			April 2025			0.10						59
December 2024			January 2025			0.10						58

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 period accrual was reclassified into this line item from accounts payable, accrued expenses, and other liabilities to conform to the current period’s presentation.