2025 First Quarter Report

THE PROGRESSIVE CORPOR ATION

The Progressive Corporation and Subsidiaries Financial Highlights

NA = Final comparable industry data will not be available until our third quarter 2025 report.

1Represents net premiums written as reported by A.M. Best Company, Inc.

2Represents Progressive’s private passenger auto business, including motorcycle insurance, as a percent of the private passenger auto insurance market.

3Represents average compounded rate of increase (decrease) and assumes dividend reinvestment.

Letter to Shareholders First Quarter 2025

I would characterize the first quarter of 2025 as very successful and, more importantly, stable. With all that is going on outside of our walls related to foreign trade and tariffs, we have really focused on trying to maintain stable rates for our customers and taking care of them in their time of need. As I had stated in the last investor relations call, we have a team that crunches the data on anticipated magnitude and severity and what increased tariffs might mean to our loss costs. We have a variety of scenarios that we are running and, as it plays out in real time, we plan to react swiftly should we need to.

For the quarter, companywide net premiums written (NPW) grew 17%, compared to the first quarter last year, and the combined ratio (CR) was 86.0. We also had very impressive policies in force (PIF) growth, with nearly 5.5 million more PIFs than the end of the first quarter last year, bringing our total PIF count to over 36 million at March 31, 2025. Even with this level of unit growth, because we hire in advance of need in claims and our call centers, this massive growth hasn’t strained our ability to provide high-quality customer service.

In Personal Lines (auto, special lines, and property), the first quarter 2025 delivered another period of exceptional growth and profitability. The quarter ended with over 35 million PIFs, representing 18% year-over-year (YOY) growth. NPW grew 20% YOY at a CR of 85.7. During the first quarter, our personal vehicle businesses continued to experience both strong policy and premium growth, while personal property remained focused on profitable growth in less volatile areas and reducing concentration in regions more prone to catastrophes.

We began 2025 open for business in almost all states for our personal auto product. Since the first quarter of the year is peak shopping season, we invested heavily in advertising and used agent reward incentives to drive consumer shopping. As a result of these efforts, new personal auto applications grew 32% YOY. While rate activity was minimal during the first quarter, we are closely monitoring the tariffs that might impact the auto sector, as well as other aspects of our business, and are regularly modeling how those could impact our loss costs, the supply chain, the availability of parts, and general inflation.

Our latest auto product offering, model 8.9, was in 21 states that represented 40% of companywide personal auto premium, on a trailing 12-month basis, at the end of the first quarter 2025. The 8.9 model contains new and expanded use of external data and introduces Progressive vehicle protection, a new mechanical breakdown coverage that runs concurrent with Progressive auto insurance to help consumers manage the cost of unforeseen vehicle repairs. Our preferred business is showing the most promising response to the model. Overall, we are seeing favorable conversion results in both the agency and direct auto channels. At quarter end, continuous monitoring in our Snapshot®product model 5.0, which includes a feature in the Progressive app that can detect major accidents and quickly connect customers to towing and emergency services, was deployed in 41 states that represented 78% of our trailing 12-month personal auto NPW (excluding California).

Personal property ended the first quarter with a CR of 87.2, which is 6.2 points better than first quarter 2024, and includes about 3.7 points of favorable prior accident year development, primarily related to prior-year weather events. We ended the quarter with over 3.5 million PIFs, which are up 11% over first quarter 2024, driven primarily by growth in our renters business. NPW were flat, compared to first quarter 2024, driven by a shift in mix towards renters, which have lower average written premiums, and our continued actions to deliberately slow growth and non-renew policies in certain geographic regions where we are de-risking.

We continue to focus on improving profitability and reducing exposure in markets more susceptible to catastrophic weather events. We also continue to prioritize insuring lower-risk properties (e.g., new construction, existing homes with newer roofs), accepting new business for homeowners/condo products only when bundled with a Progressive personal auto policy, where permitted, and exiting the non-owner-occupied home market. For our homeowners/ condo products, PIFs were up about 14% in states where we are looking to expand our footprint and down 12% in higher-risk states where we are looking to reduce our exposure.

Advancing our segmentation capabilities in personal property is a continued focus and, through the end of the first quarter 2025, we had elevated our next generation product models of 5.0 or higher in 22 states that represented 62% of our trailing 12-month homeowners product NPW. Key features include expanded peril rating and the introduction of new rating variables. We also continued to take rate where needed and increased our personal property rates about 2%, in the aggregate, in the first quarter 2025, bringing the trailing 12-month aggregate rate increase to about 15%.

Our Commercial Lines (CL) business finished the quarter with NPW growth of 5% at an 87.5 CR. Premium growth in the business auto and contractor business market targets (BMT) and the transportation network company business were each a notable contributor to overall CL growth during the quarter.

Core commercial auto NPW growth was flat for the quarter despite having positive PIF growth due to a shift in the mix of business. We continued to see strong growth in our business auto and contractor BMTs during the quarter, driven by quote and conversion improvements, but also continued to face challenges in our for-hire trucking and for-hire specialty BMTs, which have higher premiums per policy than our business auto and contractor BMTs.

The commercial auto industry (excluding Progressive) ended the year at an estimated 111.4 CR. Industry data indicates competitors are taking rate increases. Council of Insurance Agents & Brokers (CIAB) survey data from the fourth quarter 2024, shows commercial auto rate increases are the highest across all the commercial lines CIAB monitors and were consistently in the high single-digits during 2024. We expect our rates to become more competitive as industry rate levels increase.

On the capital management side, we came into 2025 with a robust capital position and that has proved beneficial as we continued to grow during the first quarter. Even as we experienced turbulent markets and strong premium growth during the quarter, we were able to generate significant capital through positive cash flows and investment returns and ended the quarter with a debt-to-total capital ratio of 19.2%, which remains near the lower end of our historical range. We believe that the combination of operational momentum and our strong capital position will continue to allow us to pursue robust profitable growth.

In the first quarter of 2025, our investment portfolio saw a retuof 2.2%. Macroeconomic uncertainty rose significantly during the quarter, impacting market returns. Our fixed-income retuwas 2.5% for the quarter as yields dropped. Our equity portfolio returned -5.0% as market prices decreased significantly versus a 9.9% increase in first quarter 2024, contributing to a substantial decline in this component of net income. Our investment portfolio remains in a conservative posture and is highly liquid with 56% of our portfolio in short-term securities or treasury bonds.

As I often do, I like to share comments from our customers. This one felt really special because we spend a lot of time making sure each customer feels confident that they are getting great coverage, service, and rates. We seek to respect each customer as an individual, and not just another number, and to build that care into all aspects of our communications.

Courtney’s comments summarize how we want every interaction to be, which is easy, clear, and straightforward.

Dear Progressive Team,

I just wanted to take a moment to say how easy and stress-free it was to purchase my car and renters insurance through your website. I was expecting a long, complicated process, but instead, everything was super straightforward. The site was simple to navigate, loved the customizable options in the dropdowns, and I really appreciated how clear all the coverage options were-it made choosing the right policy an absolute breeze.

Sure, I can talk about how “Getting a quote was quick” and “Bundling my policies saved me both time and money”… which is always a huge plus, BUT what made your company stand out is – I never once felt lost or confused during the process, which isn’t always the case when dealing with insurance!

So, I just wanted to send a quick “thank you” for making everything so easy. I’ll definitely be recommending Progressive to friends and family!

Tired mom of two 16yr olds, a 15yr old, and 14yr old Courtney

We head into the second quarter 2025 excited about the opportunities that lie ahead of us as we aim to remain nimble as events of the world unfold.

Stay well and be kind to others,

Tricia Griffith

President and Chief Executive Officer

Financial Policies

Progressive balances operating risk with risk of investing and financing activities in order to have sufficient capital to support all the insurance we can profitably underwrite and service. Risks arise in all operational and functional areas, and, therefore, must be assessed holistically, accounting for the offsetting and compounding effects of the separate sources of risk within Progressive.

We use risk management tools to quantify the amount of capital needed, in addition to surplus, to absorb consequences of events such as unfavorable loss reserve development, litigation, weather-related catastrophes, and investment-market corrections. Our financial policies define our allocation of risk and we measure our performance against them. We will invest capital in expanding business operations when, in our view, future opportunities meet our financial objectives and policies. Under-leveraged capital will be returned to investors. We expect to eaa retuon equity greater than its cost. Presented is an overview of Progressive’s Operating, Investing, and Financing policies.

Operating Maintain pricing and reserving discipline

• Manage profitability targets and operational performance at our lowest level of product definition

• Sustain premiums-to-surplus ratios at efficient levels, and at or below applicable state regulations, for each insurance subsidiary

• Ensure loss reserves are adequate and develop with minimal variance

  Investing Maintain a liquid, diversified, high-quality investment portfolio

• Manage on a total retubasis

• Manage interest rate, credit, prepayment, extension, and concentration risk

• Allocate portfolio between two groups:

  • Group I – Target 0% to 25% (common equities; nonredeemable preferred stocks; redeemable preferred stocks, except for 50% of investment-grade redeemable preferred stocks with cumulative dividends; and all other non-investment-grade fixed-maturity securities)

  • Group II – Target 75% to 100% (short-term securities and all other fixed-maturity securities)

    Financing Maintain sufficient capital to support our business

• Maintain debt below 30% of total capital at book value

• Neutralize dilution from equity-based compensation in the year of issuance through share repurchases

• Use under-leveraged capital to repurchase shares and pay dividends

Objectives and Policy Scorecard

1. Grow as fast as possible, constrained only by our profitability objective and our ability to provide high-quality customer service.

2. Determined separately for each insurance subsidiary.

3. Progressive does not have a predetermined target for retuon average common shareholders’ equity. na = not applicable.

   nm = not meaningful; personal property business written by Progressive prior to April 2015 was negligible.

   1Represents results over the respective time period; growth represents average annual compounded rate of increase (decrease) as of December 31, 2024.

   2Expressed as a percentage of net premiums earned. Underwriting profit (loss) is calculated by subtracting losses and loss adjustment expenses, policy acquisition costs, and other underwriting expenses from the total of net premiums earned and fees and other revenues.

   3Industry results represent private passenger auto insurance market data as reported by A.M. Best Company, Inc. The industry underwriting margin excludes the effect of policyholder dividends. Final comparable industry data for 2024 will not be available until our third quarter 2025 report. The 5- and 10-year growth rates are presented on a one-year lag basis for the industry.

   The Progressive Corporation and Subsidiaries Operating Results

   Personal Lines Business				Commercial Lines
   ($ in billions)	Vehicles	Property	Total	Business
   Net premiums written
   Three months ended March 31,
   2025	$ 17.6	$ 0.7	$ 18.3	$ 3.9
   2024	14.5	0.7	15.2	3.7
   Growth over prior period Net premiums earned	21 %	0 %	20 %	5 %
   Three months ended March 31,
   2025	$ 15.9	$ 0.8	$ 16.7	$ 2.7
   2024	12.9	0.7	13.6	2.6
   Growth over prior period	24 %	9 %	23 %	6 %

   March 31,
   2025	31,554	3,576	35,130	1,162
   2024	26,524	3,209	29,733	1,101
   Growth over prior period	19 %	11 %	18 %	6 %

   (# in thousands) Policies in Force

   Underwriting Ratios

   Three months ended March 31,
   Loss and loss adjustment expense ratio – 2025		65.4	67.8
   Underwriting expense ratio – 2025		20.3	19.7
   Combined ratio – 2025		85.7	87.5
   Combined ratio – 2024		85.0	91.8
   Change over prior period		0.7 pts.	(4.3)	pts.

   The Progressive Corporation and Subsidiaries
   Consolidated Statements of Comprehensive Income
   (unaudited)
   Three Months Ended March 31,	2025	2024
   (millions – except per share amounts)
   Revenues
   Net premiums earned	$ 19,409	$ 16,149
   Investment income	814	618
   Net realized gains (losses) on securities:
   Net realized gains (losses) on security sales	1	(146)
   Net holding period gains (losses) on securities	(213)	302
   Total net realized gains (losses) on securities	(212)	156
   Fees and other revenues	287	236
   Service revenues	111	84
   Total revenues	20,409	17,243
   Expenses
   Losses and loss adjustment expenses	12,804	10,972
   Policy acquisition costs	1,456	1,232
   Other underwriting expenses	2,719	1,931
   Investment expenses	7	6
   Service expenses	117	92
   Interest expense	70	70
   Total expenses	17,173	14,303
   Net Income
   Income before income taxes	3,236	2,940
   Provision for income taxes	669	609
   Net income	2,567	2,331
   Other Comprehensive Income (Loss)
   Decrease (increase) in total net unrealized losses on fixed-maturity securities	899	(208)
   Comprehensive income (loss)	$ 3,466	$ 2,123
   Computation of Earnings Per Common Share
   Net income	$ 2,567	$ 2,331
   Less: Preferred share dividends and other1	0	17
   Net income available to common shareholders	$ 2,567	$ 2,314
   Average common shares outstanding – Basic	586.0	585.4
   Net effect of dilutive stock-based compensation	1.7	1.9
   Total average equivalent common shares – Diluted	587.7	587.3
   Basic: Earnings per common share	$ 4.38	$ 3.95
   Diluted: Earnings per common share	$ 4.37	$ 3.94
   1All of our outstanding Serial Preferred Shares, Series B, were redeemed in February 2024. See notes to consolidated financial statements.

   The Progressive Corporation and Subsidiaries Consolidated Balance Sheets (unaudited)	March 31,		December 31,
   (millions)	2025	2024	2024
   Assets
   Available-for-sale securities, at fair value:
   Fixed maturities (amortized cost: $77,754, $65,949, and $77,126)	$ 77,101	$ 63,630	$ 75,332
   Short-term investments (amortized cost: $2,595, $1,327, and $615)	2,595	1,327	615
   Total available-for-sale securities	79,696	64,957	75,947
   Equity securities, at fair value:
   Nonredeemable preferred stocks (cost: $608, $931, and $756)	584	886	728
   Common equities (cost: $774, $708, and $745)	3,384	3,195	3,575
   Total equity securities	3,968	4,081	4,303
   Total investments	83,664	69,038	80,250
   Cash and cash equivalents	195	155	143
   Restricted cash and cash equivalents	12	13	11
   Total cash, cash equivalents, restricted cash, and restricted cash equivalents	207	168	154
   Accrued investment income	584	464	594
   Premiums receivable, net of allowance for credit losses of $473, $328, and $460	16,811	14,193	14,369
   Reinsurance recoverables	4,449	5,003	4,765
   Prepaid reinsurance premiums	306	210	349
   Deferred acquisition costs	2,068	1,818	1,961
   Property and equipment, net of accumulated depreciation of $1,490, $1,580, and $1,461	854	756	790
   Net federal deferred income taxes	860	1,032	954
   Other assets	1,606	1,446	1,559
   Total assets	$ 111,409	$ 94,128	$ 105,745
   Liabilities and Shareholders’ Equity
   Unearned premiums	$ 26,612	$ 22,907	$ 23,858
   Loss and loss adjustment expense reserves	39,822	34,831	39,057
   Accounts payable, accrued expenses, and other liabilities	9,127	7,689	10,346
   Debt1	6,894	6,890	6,893
   Total liabilities	82,455	72,317	80,154
   Common shares, $1.00 par value (authorized 900; issued 798, including treasury shares of 212)	586	586	586
   Paid-in capital	2,160	2,029	2,145
   Retained earnings	26,732	21,020	24,283
   Accumulated other comprehensive income (loss):
   Net unrealized gains (losses) on fixed-maturity securities	(509)	(1,809)	(1,408)
   Net unrealized losses on forecasted transactions	(14)	(14)	(14)
   Foreign currency translation adjustment	(1)	(1)	(1)
   Total accumulated other comprehensive income (loss)	(524)	(1,824)	(1,423)
   Total shareholders’ equity	28,954	21,811	25,591
   Total liabilities and shareholders’ equity	$ 111,409	$ 94,128	$ 105,745

   1Consists solely of long-term debt. See Note 4 – Debt for further discussion. See notes to consolidated financial statements.

   The Progressive Corporation and Subsidiaries
   Consolidated Statements of Changes in Shareholders’ Equity
   (unaudited) Three Months Ended March 31,	2025	2024
   (millions – except per share amounts)
   Serial Preferred Shares, No Par Value
   Balance, beginning of period	$ 0	$ 494
   Redemption of Serial Preferred Shares, Series B1	0	(494)
   Balance, end of period	0	0
   Common Shares, $1.00 Par Value
   Balance, beginning of period	586	585
   Treasury shares purchased	0	0
   Net restricted equity awards issued/vested	0	1
   Balance, end of period	586	586
   Paid-In Capital
   Balance, beginning of period	2,145	2,013
   Amortization of equity-based compensation	16	17
   Treasury shares purchased	(1)	(1)
   Net restricted equity awards issued/vested	0	(1)
   Reinvested dividends on restricted stock units	0	1
   Balance, end of period	2,160	2,029
   Retained Earnings
   Balance, beginning of period	24,283	18,801
   Net income	2,567	2,331
   Treasury shares purchased	(53)	(36)
   Cash dividends declared on common shares ($0.10 and $0.10 per share)1	(59)	(59)
   Cash dividends declared on Serial Preferred Shares, Series B ($0 and $15.688377 per share)1	0	(8)
   Reinvested dividends on restricted stock units	0	(1)
   Other, net	(6)	(8)
   Balance, end of period	26,732	21,020
   Accumulated Other Comprehensive Income (Loss)
   Balance, beginning of period	(1,423)	(1,616)
   Other comprehensive income (loss)	899	(208)
   Balance, end of period	(524)	(1,824)
   Total shareholders’ equity	$ 28,954	$ 21,811
   1See Note 9 – Dividends for further discussion.

   There are 20 million Serial Preferred Shares authorized. There are 5 million Voting Preference Shares authorized; no such shares have been issued. See notes to consolidated financial statements.

   The Progressive Corporation and Subsidiaries
   Consolidated Statements of Cash Flows
   (unaudited) Three Months Ended March 31,	2025	2024
   (millions)
   Cash Flows From Operating Activities
   Net income	$ 2,567	$ 2,331
   Adjustments to reconcile net income to net cash provided by operating activities:
   Depreciation	70	70
   Net amortization (accretion) of fixed-income securities	(21)	(7)
   Amortization of equity-based compensation	16	17
   Net realized (gains) losses on securities	212	(156)
   Net (gains) losses on disposition of property and equipment	3	(2)
   Changes in:
   Premiums receivable	(2,442)	(2,235)
   Reinsurance recoverables	316	91
   Prepaid reinsurance premiums	43	40
   Deferred acquisition costs	(107)	(131)
   Income taxes	667	609
   Unearned premiums	2,754	2,773
   Loss and loss adjustment expense reserves	765	442
   Accounts payable, accrued expenses, and other liabilities	334	458
   Other, net	(34)	(65)
   Net cash provided by operating activities	5,143	4,235
   Cash Flows From Investing Activities
   Purchases:
   Fixed maturities	(17,324)	(13,288)
   Equity securities	(86)	(32)
   Sales:
   Fixed maturities	14,721	7,765
   Equity securities	149	58
   Maturities, paydowns, calls, and other:
   Fixed maturities	1,950	1,855
   Equity securities	87	24
   Net (purchases) sales of short-term investments	(1,964)	479
   Net change in unsettled security transactions	172	62
   Purchases of property and equipment	(59)	(50)
   Sales of property and equipment	13	3
   Net cash used in investing activities	(2,341)	(3,124)
   Cash Flows From Financing Activities
   Dividends paid to common shareholders	(2,695)	(498)
   Acquisition of treasury shares for equity award tax liabilities	(54)	(37)
   Redemption of preferred shares	0	(500)
   Dividends paid to preferred shareholders	0	(8)
   Net cash used in financing activities	(2,749)	(1,043)
   Increase in cash, cash equivalents, restricted cash, and restricted cash equivalents	53	68
   Cash, cash equivalents, restricted cash, and restricted cash equivalents – January 1	154	100
   Cash, cash equivalents, restricted cash, and restricted cash equivalents – March 31	$ 207	$ 168
   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, 2025, are not necessarily indicative of the results expected for the full year. These consolidated financial statements and the notes thereto should be read in conjunction with Progressive’s audited financial statements and accompanying notes included in Exhibit 13 to our Annual Report on Form 10-K for the year ended December 31, 2024 (2024 Annual Report to Shareholders).

      Premiums Receivable

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

      Three Months Ended March 31,

      (millions)	2025	2024
      Allowance for credit losses, beginning of period	$ 460 $	369
      Increase in allowance1	153	107
      Write-offs2	(140)	(148)
      Allowance for credit losses, end of period	$ 473 $	328

      1Represents the incremental increase in other underwriting expenses.

      2Represents 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.

      Property – Held for Sale

      At March 31, 2025 and 2024, and December 31, 2024, we had held for sale properties of $117 million, $170 million, and $129 million, respectively, which are included in other assets on our consolidated balance sheets.

      New Accounting Standards

      We did not adopt any new accounting standards during the three months ended March 31, 2025, and there were no recently issued accounting standards that are expected to materially impact our financial condition or results of operations.

   2. INVESTMENTS

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

      								Net Holding			% of
      				Gross Unrealized		Gross Unrealized		Period Gains		Fair	Total Fair
      ($ in millions)		Cost		Gains		Losses		(Losses)		Value	Value
      March 31, 2025 Available-for-sale securities:
      Fixed maturities:
      U.S. government obligations $		44,523	$	391	$	(596)	$	0	$	44,318	53.0 %
      State and local government obligations	2,688		6		(90)		0		2,604		3.1
      Foreign government obligations	16		0		0		0		16		0
      Corporate and other debt securities	16,047		127		(156)		(2)		16,016		19.2
      Residential mortgage-backed securities	2,172		18		(8)		1		2,183		2.6
      Commercial mortgage-backed securities	5,144		5		(324)		0		4,825		5.8
      Other asset-backed securities	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 %
      								Net Holding			% of
      				Gross Unrealized		Gross Unrealized		Period Gains		Fair	Total Fair
      ($ in millions)		Cost		Gains		Losses		(Losses)		Value	Value
      March 31, 2024 Available-for-sale securities:
      Fixed maturities:
      U.S. government obligations	$ 39,824		$ 66		$ (1,327)		$ 0		$ 38,563		55.8 %
      State and local government obligations	2,201		2		(143)		0		2,060		3.0
      Foreign government obligations	17		0		(1)		0		16		0.1
      Corporate and other debt securities	13,003		45		(330)		(23)		12,695		18.3
      Residential mortgage-backed securities	390		0		(9)		2		383		0.6
      Commercial mortgage-backed securities	4,368		3		(519)		0		3,852		5.6
      Other asset-backed securities	6,146		9		(94)		0		6,061		8.8
      Total fixed maturities	65,949		125		(2,423)		(21)		63,630		92.2
      Short-term investments	1,327		0		0		0		1,327		1.9
      Total available-for-sale securities	67,276		125		(2,423)		(21)		64,957		94.1
      Equity securities:
      Nonredeemable preferred stocks	931		0		0		(45)		886		1.3
      Common equities	708		0		0		2,487		3,195		4.6
      Total equity securities	1,639		0		0		2,442		4,081		5.9
      Total portfolio1	$ 68,915		$ 125		$ (2,423)		$ 2,421		$ 69,038		100.0 %

      							Net
      							Holding			% of
      			Gross		Gross		Period			Total
      			Unrealized		Unrealized		Gains		Fair	Fair
      ($ in millions)	Cost		Gains		Losses		(Losses)		Value	Value
      December 31, 2024 Available-for-sale securities:
      Fixed maturities:
      U.S. government obligations $	47,103	$	36	$	(1,151)	$	0	$	45,988	57.3 %
      State and local government obligations	2,893	2		(117)		0		2,778		3.5
      Foreign government obligations	16	0		0		0		16		0
      Corporate and other debt securities	14,111	65		(215)		(7)		13,954		17.4
      Residential mortgage-backed securities	1,600	9		(11)		3		1,601		2.0
      Commercial mortgage-backed securities	4,721	7		(376)		0		4,352		5.4
      Other asset-backed securities	6,682	26		(65)		0		6,643		8.3
      Total fixed maturities	77,126	145		(1,935)		(4)		75,332		93.9
      Short-term investments	615	0		0		0		615		0.7
      Total available-for-sale securities	77,741	145		(1,935)		(4)		75,947		94.6
      Equity securities:
      Nonredeemable preferred stocks	756	0		0		(28)		728		0.9
      Common equities	745	0		0		2,830		3,575		4.5
      Total equity securities	1,501	0		0		2,802		4,303		5.4
      Total portfolio1	$ 79,242	$ 145		$ (1,935)		$ 2,798		$ 80,250		100.0 %

      1At March 31, 2025 and 2024 and December 31, 2024, we had $297 million, $16 million, and $125 million, respectively, of net unsettled security transactions included in other liabilities.

      The total fair value of the portfolio at March 31, 2025 and 2024 and December 31, 2024, included $3.5 billion, $3.2 billion, and $6.2 billion, respectively, of securities held in a consolidated, non-insurance subsidiary of the holding company, net of unsettled security transactions. A portion of the investments held at December 31, 2024 were sold and proceeds used to pay our common share dividends in January 2025; see Note 9 – Dividends for additional information.

      The March 31, 2024, corporate and other debt securities in our Note 2 – Investments and Note 3 – Fair Value tables include amounts that were previously reported as redeemable preferred stocks. The reclassification was to reflect the accurate categorization based on the underlying features of these securities; see Note 2 – Investments in our 2024 Annual Report to Shareholders for further discussion.

      At March 31, 2025, bonds and certificates of deposit in the principal amount of $785 million were on deposit to meet state insurance regulatory requirements. We did not hold any securities of any one issuer, excluding U.S. government obligations, with an aggregate cost or fair value exceeding 10% of total shareholders’ equity at March 31, 2025 or 2024, or December 31, 2024. At March 31, 2025, we did not hold any debt securities that were non-income producing during the preceding 12 months.

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

      March 31,

      (millions)	2025	2024		December 31, 2024
      Fixed Maturities:
      Corporate and other debt securities	$ 632	$ 648	$	608
      Residential mortgage-backed securities	579	300		479
      Other asset-backed securities	0	10		1
      Total hybrid securities	$ 1,211	$ 958	$	1,088

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

      Fixed Maturities The composition of fixed maturities by maturity at March 31, 2025, was:
      (millions)	Cost	Fair Value
      Less than one year	$ 8,532	$ 8,486
      One to five years	48,451	47,974
      Five to ten years	20,460	20,326
      Ten years or greater	311	315
      Total	$ 77,754	$ 77,101

      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:

      Less than 12 Months 12 Months or Greater

      ($ in millions)	Total No. of Sec.	Total Fair Value	Gross Unrealized Losses	No. of Sec.	Fair Value	Gross Unrealized Losses	No. of Sec.	Fair Value	Gross Unrealized Losses
      March 31, 2025
      U.S. government obligations	85	$ 16,851	$ (596)	18	$ 9,284	$ (69)	67	$ 7,567	$ (527)
      State and local government obligations	307	1,871	(90)	70	445	(2)	237	1,426	(88)
      Corporate and other debt securities	210	4,967	(156)	56	1,352	(12)	154	3,615	(144)
      Residential mortgage-backed securities	47	674	(8)	25	628	(2)	22	46	(6)
      Commercial mortgage-backed securities	165	3,653	(324)	22	597	(4)	143	3,056	(320)
      Other asset-backed securities	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)
      Less than 12 Months 12 Months or Greater
      	Total No. of	Total Fair	Gross Unrealized	No. of	Fair	Gross Unrealized	No. of	Fair	Gross Unrealized
      ($ in millions)	Sec.	Value	Losses	Sec.	Value	Losses	Sec.	Value	Losses
      March 31, 2024
      U.S. government obligations	139	$ 32,968	$ (1,327)	37	$ 21,635	$ (295)	102	$ 11,333	$ (1,032)
      State and local government obligations	330	1,923	(143)	41	251	(2)	289	1,672	(141)
      Foreign government obligations	1	16	(1)	0	0	0	1	16	(1)
      Corporate and other debt securities	366	8,127	(330)	106	2,369	(20)	260	5,758	(310)
      Residential mortgage-backed securities	35	78	(9)	1	0	0	34	78	(9)
      Commercial mortgage-backed securities	181	3,742	(519)	4	191	(2)	177	3,551	(517)
      Other asset-backed securities	193	3,259	(94)	59	1,303	(2)	134	1,956	(92)
      Total fixed maturities	1,245	$ 50,113	$ (2,423)	248	$ 25,749	$ (321)	997	$ 24,364	$ (2,102)
      Less than 12 Months 12 Months or Greater
      	Total No. of	Total Fair	Gross Unrealized	No. of	Fair	Gross Unrealized	No. of	Fair	Gross Unrealized
      ($ in millions)	Sec.	Value	Losses	Sec.	Value	Losses	Sec.	Value	Losses
      December 31, 2024
      U.S. government obligations	113	$ 38,782	$ (1,151)	39	$ 30,257	$ (418)	74	$ 8,525	$ (733)
      State and local government obligations	379	2,339	(117)	127	783	(6)	252	1,556	(111)
      Corporate and other debt securities	304	7,034	(215)	122	2,935	(33)	182	4,099	(182)
      Residential mortgage-backed securities	40	428	(11)	12	377	(4)	28	51	(7)
      Commercial mortgage-backed securities	153	3,294	(376)	8	264	(16)	145	3,030	(360)
      Other asset-backed securities	84	1,907	(65)	34	912	(8)	50	995	(57)
      Total fixed maturities	1,073	$ 53,784	$ (1,935)	342	$ 35,528	$ (485)	731	$ 18,256	$ (1,450)

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

      We had three securities that had their credit ratings downgraded, with a combined fair value of $90 million and an unrealized loss of $5 million as of March 31, 2025. Based on our analysis of these securities, no credit loss allowance was required.

      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 2025 or 2024, and did not have a material credit loss allowance balance as of March 31, 2025 and 2024, or December 31, 2024. We considered several factors and inputs related to the individual securities as part of our analysis. The methodology and significant inputs used to measure the amount of credit losses in our portfolio included:

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

      • credit support (via current levels of subordination);

      • historical credit ratings; and

      • updated cash flow expectations based upon these performance indicators.

      In order to determine the amount of credit loss, if any, we initially reviewed securities in a loss position to determine whether it was likely that we would be required, or intended, to sell any of the securities prior to the recovery of their respective cost bases (which could be maturity). If we were likely to, or intended to, sell prior to a potential recovery, we would write off the unrealized loss. We did not have an intention to sell any securities in a gross unrealized loss position at March 31, 2025 or March 31, 2024.

      For those securities that we determined we were not likely to, or did not intend to, sell prior to a potential recovery,

      we performed additional analysis to determine if the loss was credit related. For securities subject to credit-related loss, we calculated the net present value (NPV) of the cash flows expected (i.e., expected recovery value) using the current book yield for each security. The NPV was then compared to the security’s current amortized value to determine if a credit loss existed. In the event that the NPV was below the amortized value, and the amount was determined to be material on any specific security, or in the aggregate, a credit loss would be deemed to exist, and either an allowance for credit losses would be created, or if an allowance currently existed, either a recovery of the previous allowance, or an incremental loss, would be recorded to net realized gains (losses) on securities.

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

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

      December 31, 2024.

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

      Three Months

      (millions)	2025	2024
      Gross realized gains on security sales
      Available-for-sale securities:
      U.S. government obligations	$ 53	$ 0
      Corporate and other debt securities	1	3
      Total available-for-sale securities	54	3
      Equity securities:
      Nonredeemable preferred stocks	2	0
      Common equities	35	12
      Total equity securities	37	12
      Subtotal gross realized gains on security sales	91	15
      Gross realized losses on security sales
      Available-for-sale securities:
      U.S. government obligations	(77)	(135)
      State and local government obligations	(2)	0
      Corporate and other debt securities	(1)	(15)
      Commercial mortgage-backed securities	(4)	(5)
      Total available-for-sale securities	(84)	(155)
      Equity securities:
      Nonredeemable preferred stocks	(2)	(6)
      Common equities	(4)	0
      Total equity securities	(6)	(6)
      Subtotal gross realized losses on security sales	(90)	(161)
      Net realized gains (losses) on security sales
      Available-for-sale securities:
      U.S. government obligations	(24)	(135)
      State and local government obligations	(2)	0
      Corporate and other debt securities	0	(12)
      Commercial mortgage-backed securities	(4)	(5)
      Total available-for-sale securities	(30)	(152)
      Equity securities:
      Nonredeemable preferred stocks	0	(6)
      Common equities	31	12
      Total equity securities	31	6
      Subtotal net realized gains (losses) on security sales	1	(146)
      Net holding period gains (losses)
      Hybrid securities	3	8
      Equity securities	(216)	294
      Subtotal net holding period gains (losses)	(213)	302
      Total net realized gains (losses) on securities	$ (212)	$ 156

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

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

      Three Months

      (millions)	2025	2024
      Total net gains (losses) recognized during the period on equity securities	$ (185) $	300
      Less: Net gains (losses) recognized on equity securities sold during the period	31	6
      Net holding period gains (losses) recognized during the period on equity securities held at period end	$ (216) $	294

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

      Three Months

      (millions)	2025	2024
      Available-for-sale securities:
      Fixed maturities:
      U.S. government obligations	$ 422 $	307
      State and local government obligations	19	13
      Corporate and other debt securities	171	125
      Residential mortgage-backed securities	25	5
      Commercial mortgage-backed securities	53	46
      Other asset-backed securities	84	78
      Total fixed maturities	774	574
      Short-term investments	18	19
      Total available-for-sale securities	792	593
      Equity securities:
      Nonredeemable preferred stocks	8	11
      Common equities	14	14
      Total equity securities	22	25
      Investment income	814	618
      Investment expenses	(7)	(6)
      Net investment income	$ 807 $	612

      On a year-over-year basis, investment income (interest and dividends) increased 32% for the three months ended March 31, 2025, 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 reflected investing new cash from insurance operations, and proceeds from maturing bonds, in higher coupon rate securities.

   3. FAIR VALUE

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

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

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

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

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

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

        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, 2025 Fixed maturities:
        U.S. government obligations		$ 44,318	$ 0	$ 0	$ 44,318	$ 44,523
        State and local government obligations		0	2,604	0	2,604	2,688
        Foreign government obligations		0	16	0	16	16
        Corporate and other debt securities		0	16,011	5	16,016	16,047
        Residential mortgage-backed securities		0	2,183	0	2,183	2,172
        Commercial mortgage-backed securities		0	4,825	0	4,825	5,144
        Other asset-backed securities		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
        March 31, 2024 Fixed maturities:
        U.S. government obligations		$ 38,563	$ 0	$ 0	$ 38,563	$ 39,824
        State and local government obligations		0	2,060	0	2,060	2,201
        Foreign government obligations		0	16	0	16	17
        Corporate and other debt securities		0	12,692	3	12,695	13,003
        Residential mortgage-backed securities		0	383	0	383	390
        Commercial mortgage-backed securities		0	3,852	0	3,852	4,368
        Other asset-backed securities		0	6,061	0	6,061	6,146
        Total fixed maturities		38,563	25,064	3	63,630	65,949
        Short-term investments		1,327	0	0	1,327	1,327
        Total available-for-sale securities		39,890	25,064	3	64,957	67,276
        Equity securities:
        	Nonredeemable preferred stocks	0	822	64	886	931
        	Common equities:
        	Common stocks	3,148	0	22	3,170	683
        	Other risk investments	0	0	25	25	25
        	Subtotal common equities	3,148	0	47	3,195	708
        	Total equity securities	3,148	822	111	4,081	1,639
        	Total portfolio	$ 43,038	$ 25,886	$ 114	$ 69,038	$ 68,915
        Debt		$ 0	$ 6,298	$ 0	$ 6,298	$ 6,890

        Fair Value

        (millions)	Level 1	Level 2	Level 3	Total	Cost
        December 31, 2024 Fixed maturities:
        U.S. government obligations	$ 45,988	$ 0	$ 0	$ 45,988	$ 47,103
        State and local government obligations	0	2,778	0	2,778	2,893
        Foreign government obligations	0	16	0	16	16
        Corporate and other debt securities	0	13,949	5	13,954	14,111
        Residential mortgage-backed securities	0	1,601	0	1,601	1,600
        Commercial mortgage-backed securities	0	4,352	0	4,352	4,721
        Other asset-backed securities	0	6,643	0	6,643	6,682
        Total fixed maturities	45,988	29,339	5	75,332	77,126
        Short-term investments	613	2	0	615	615
        Total available-for-sale securities	46,601	29,341	5	75,947	77,741
        Equity securities:
        Nonredeemable preferred stocks	0	676	52	728	756
        Common equities:
        Common stocks	3,527	0	23	3,550	720
        Other risk investments	0	0	25	25	25
        Subtotal common equities	3,527	0	48	3,575	745
        Total equity securities	3,527	676	100	4,303	1,501
        Total portfolio	$ 50,128	$ 30,017	$ 105	$ 80,250	$ 79,242
        Debt	$ 0	$ 6,173	$ 0	$ 6,173	$ 6,893

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

        Our short-term investments classified as Level 1 are highly liquid, actively marketed, and have a very short duration, primarily 90 days or less to redemption. These securities are held at their original cost, adjusted for any accretion of discount, since that value very closely approximates what an active market participant would be willing to pay for such securities. The remainder of our short-term investments are classified as Level 2 and are not priced externally since these securities continually trade at par value. These securities are classified as Level 2 since they are primarily longer-dated securities issued by municipalities that contain either liquidity facilities or mandatory put features within one year.

        At both March 31, 2025 and December 31, 2024, vendor-quoted prices represented 93% of our Level 1 classifications (excluding short-term investments), compared to 92% at March 31, 2024. The securities quoted by vendors in Level 1 primarily represent our holdings in

        U.S. Treasury Notes, which are frequently traded, and the quotes are considered similar to exchange-traded quotes. The balance of our Level 1 pricing comes from quotes obtained directly from trades made on active exchanges.

        At March 31, 2025 and 2024 and December 31, 2024, vendor-quoted prices comprised 100% of our Level 2

        classifications (excluding short-term investments). 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, credit quality, and coupon to determine if the fair value is appropriate.

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

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

        For short-term securities, we look at acquisition price relative to the coupon or yield. Since our short-term securities are typically 90 days or less to maturity, with the majority listed in Level 2 being 30 days or less to redemption, we believe that acquisition price is the best estimate of fair value.

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

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

        This analysis provides us with additional comfort regarding the source’s process, the quality of its review, and its willingness to improve its analysis based on feedback from clients. We believe this effort helps ensure that we are reporting the most representative fair values for our securities.

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

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

        To the extent we receive prices from external sources (e.g., broker and valuation firm) for the Level 3 securities, we review those prices for reasonableness using internally developed assumptions and then compare our derived prices to the prices received from the external sources.

        Based on our review, all prices received from external sources remained unadjusted.

        If we do not receive prices from an external source, we perform an internal fair value comparison, which includes a review and analysis of market-comparable securities, to determine if fair value changes are needed. Based on this analysis, certain private equity investments included in the

        Level 3 category remain valued at cost or were priced using a recent transaction as the basis for fair value. At least annually, these private equity investments are priced by an external source.

        Our Level 3 other risk investments include securities accounted for under the equity method of accounting and, therefore, are not subject to fair value reporting. Since these securities represent less than 0.1% of our total portfolio, we include them in our Level 3 disclosures and report the activity from these investments as “other” changes in the summary of changes in fair value table and

        categorize these securities as “pricing exemption securities” in the quantitative information table.

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

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

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

        Fair Value at December 31,

        Calls/ Maturities/ Paydowns/

        Level 3 Fair Value

        Net Realized (Gain)/Loss

        Change in

        Net Transfers

        Fair Value at

        (millions)

        Fixed maturities:

        2024

        Other Purchases Sales

        on Sales

        Valuation1

        In (Out)

        March 31, 2025

        Corporate and other debt securities	$ 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

        Fair Value at December 31,

        Calls/ Maturities/ Paydowns/

        Level 3 Fair Value

        Net Realized (Gain)/Loss

        Change in

        Net Transfers

        Fair Value at

        (millions)

        Fixed maturities:

        2023

        Other Purchases Sales

        on Sales

        Valuation1

        In (Out)

        March 31, 2024

        Corporate and other debt securities $ 3 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 3

Equity securities:

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

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

Quantitative Information about Level 3 Fair Value Measurements

Quantitative Information about Level 3 Fair Value Measurements

Quantitative Information about Level 3 Fair Value Measurements

Common share dividends1$ 59 $ 59

1Declared but unpaid. See Note 9 – Dividends for further discussion.

2From obtaining right-of-use assets.

In the respective periods, we paid the following:

(millions)

2025

2024

Interest $ 88 $ 88

Three Months Ended March 31,

Operating lease liabilities 22 22

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)

Total net

(millions)

Pretax total accumulated

other comprehensive income (loss)

Total tax (provision)

benefit

After tax total accumulated

other comprehensive income (loss)

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)

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, 2023 $ (2,053) $ 437 $ (1,616) $ (1,601) $ (14) $ (1)

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