PROGRESSIVE CORP/OH/PGR
PROGRESSIVE CORP/OH/ Segments Disclosure
SEGMENT INFORMATION
We write personal and commercial auto insurance, personal residential property insurance, business-related general liability and commercial property insurance predominantly for small businesses, workers’ compensation insurance primarily for the transportation industry, and other specialty property-casualty insurance and provide related services throughout the United States.
Our operating segments are Personal Lines and Commercial Lines, which we report based on product. Our Chief Executive Officer assesses performance and makes key operating decisions for each of our reportable operating segments and, therefore, is considered our chief operating decision maker.
Our Personal Lines segment writes insurance for personal autos, special lines products (e.g., recreational vehicles, such as motorcycles, RVs, and watercraft), personal residential property insurance for homeowners and renters, umbrella insurance, and flood insurance through the “Write Your Own” program for the National Flood Insurance Program.
The Personal Lines segment is written through both the independent agency and direct channels. The agency channel includes business written by our network of more than 40,000 independent insurance agencies, as well as brokerages in New York and California, and strategic alliance business relationships (including other insurance companies, financial institutions, and national agencies). The direct channel includes business written directly by us online or by phone. We operate this segment throughout the United States.
Our Commercial Lines segment writes auto-related liability and physical damage insurance, business-related
general liability and commercial property insurance predominately for small businesses, and workers’ compensation insurance primarily for the transportation industry. This segment operates throughout the United States and is distributed through both the independent agency, including brokerages, and direct channels.
We evaluate operating segment profitability based on pretax underwriting profit (loss). Pretax underwriting profit (loss) is calculated as net premiums earned plus fees and other revenues, less: (i) losses and loss adjustment expenses; (ii) policy acquisition costs; (iii) other underwriting expenses; and (iv) policyholder credit expense.
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. Pretax profit (loss) is the difference between service business revenues and service business expenses.
Assets and income taxes are not allocated to operating segments, as such allocation would be impractical. Expense allocations are based on certain assumptions and estimates primarily related to revenue and volume; stated segment operating results would change if different methods were applied. We also do not separately identify depreciation expense by segment. Companywide depreciation expense for 2025, 2024, and 2023, was $313 million, $284 million, and $285 million, respectively. The accounting policies of the operating segments are consistent with those described in Note 1 – Reporting and Accounting Policies.
Operating segment results for the years ended December 31, were as follows:
| (millions) | Personal Lines | Commercial Lines | Other1 | Companywide | ||||||||||||||||||||||
| December 31, 2025 | ||||||||||||||||||||||||||
| Net premiums earned | $ | 70,778 | $ | 10,881 | $ | 2 | $ | 81,661 | ||||||||||||||||||
| Fees and other revenues | 1,060 | 136 | 0 | 1,196 | ||||||||||||||||||||||
| Total underwriting revenue | 71,838 | 11,017 | 2 | 82,857 | ||||||||||||||||||||||
| Losses and loss adjustment expenses: | ||||||||||||||||||||||||||
| Losses (excluding catastrophe losses) | 39,222 | 6,080 | 1 | 45,303 | ||||||||||||||||||||||
| Catastrophe losses | 1,437 | 41 | 0 | 1,478 | ||||||||||||||||||||||
| Loss adjustment expenses | 6,003 | 1,175 | 0 | 7,178 | ||||||||||||||||||||||
| Total losses and loss adjustment expenses | 46,662 | 7,296 | 1 | 53,959 | ||||||||||||||||||||||
Underwriting expenses: | ||||||||||||||||||||||||||
Distribution expenses2 | 9,720 | 1,225 | 4 | 10,949 | ||||||||||||||||||||||
Other underwriting expenses3 | 6,602 | 1,080 | 18 | 7,700 | ||||||||||||||||||||||
| Total underwriting expenses | 16,322 | 2,305 | 22 | 18,649 | ||||||||||||||||||||||
| Pretax underwriting profit (loss) | $ | 8,854 | $ | 1,416 | $ | (21) | 10,249 | |||||||||||||||||||
Investment profit (loss)4 | 4,276 | |||||||||||||||||||||||||
| Service businesses | (24) | |||||||||||||||||||||||||
| Interest expense | (278) | |||||||||||||||||||||||||
| Total pretax profit (loss) | $ | 14,223 | ||||||||||||||||||||||||
| (millions) | Personal Lines | Commercial Lines | Other1 | Companywide | ||||||||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||||||||
| Net premiums earned | $ | 60,091 | $ | 10,707 | $ | 1 | $ | 70,799 | ||||||||||||||||||
| Fees and other revenues | 893 | 171 | 0 | 1,064 | ||||||||||||||||||||||
| Total underwriting revenue | 60,984 | 10,878 | 1 | 71,863 | ||||||||||||||||||||||
| Losses and loss adjustment expenses: | ||||||||||||||||||||||||||
| Losses (excluding catastrophe losses) | 33,684 | 6,421 | 10 | 40,115 | ||||||||||||||||||||||
| Catastrophe losses | 2,434 | 80 | 0 | 2,514 | ||||||||||||||||||||||
| Loss adjustment expenses | 5,325 | 1,109 | (3) | 6,431 | ||||||||||||||||||||||
| Total losses and loss adjustment expenses | 41,443 | 7,610 | 7 | 49,060 | ||||||||||||||||||||||
Underwriting expenses: | ||||||||||||||||||||||||||
Distribution expenses2 | 7,969 | 1,168 | 1 | 9,138 | ||||||||||||||||||||||
Other underwriting expenses3 | 4,732 | 964 | 11 | 5,707 | ||||||||||||||||||||||
| Total underwriting expenses | 12,701 | 2,132 | 12 | 14,845 | ||||||||||||||||||||||
| Pretax underwriting profit (loss) | $ | 6,840 | $ | 1,136 | $ | (18) | 7,958 | |||||||||||||||||||
Investment profit (loss)4 | 3,067 | |||||||||||||||||||||||||
| Service businesses | (33) | |||||||||||||||||||||||||
| Interest expense | (279) | |||||||||||||||||||||||||
| Total pretax profit (loss) | $ | 10,713 | ||||||||||||||||||||||||
| (millions) | Personal Lines | Commercial Lines | Other1 | Companywide | ||||||||||||||||||||||
| December 31, 2023 | ||||||||||||||||||||||||||
| Net premiums earned | $ | 48,765 | $ | 9,899 | $ | 1 | $ | 58,665 | ||||||||||||||||||
| Fees and other revenues | 740 | 149 | 0 | 889 | ||||||||||||||||||||||
| Total underwriting revenue | 49,505 | 10,048 | 1 | 59,554 | ||||||||||||||||||||||
| Losses and loss adjustment expenses: | ||||||||||||||||||||||||||
| Losses (excluding catastrophe losses) | 31,509 | 6,866 | 3 | 38,378 | ||||||||||||||||||||||
| Catastrophe losses | 1,753 | 41 | 0 | 1,794 | ||||||||||||||||||||||
| Loss adjustment expenses | 4,487 | 993 | 3 | 5,483 | ||||||||||||||||||||||
| Total losses and loss adjustment expenses | 37,749 | 7,900 | 6 | 45,655 | ||||||||||||||||||||||
Underwriting expenses: | ||||||||||||||||||||||||||
Distribution expenses2 | 4,904 | 1,073 | 1 | 5,978 | ||||||||||||||||||||||
Other underwriting expenses3 | 3,967 | 952 | 10 | 4,929 | ||||||||||||||||||||||
| Total underwriting expenses | 8,871 | 2,025 | 11 | 10,907 | ||||||||||||||||||||||
| Pretax underwriting profit (loss) | $ | 2,885 | $ | 123 | $ | (16) | 2,992 | |||||||||||||||||||
Investment profit (loss)4 | 2,219 | |||||||||||||||||||||||||
| Service businesses | (39) | |||||||||||||||||||||||||
| Interest expense | (268) | |||||||||||||||||||||||||
| Total pretax profit (loss) | $ | 4,904 | ||||||||||||||||||||||||
1 Includes other underwriting businesses and run-off operations.
2 Includes policy acquisition costs, agent contingent commissions, and advertising costs attributable to our operating segments. A portion of our companywide advertising costs are also related to our service businesses.
3 Primarily consists of employee compensation and benefit costs, policyholder credit expense, 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.
For the year ended December 31, 2025, in the table above, other underwriting expenses for the Personal Lines segment included $1,224 million of policyholder credit expense. During 2025, we determined that our personal auto profit in Florida, for the 2023 to 2025 accident-year period, exceeded the statutory profit limit that a Florida statute imposes on the profit that any insurance group can earn on personal auto insurance over any contiguous three-accident-year period. The accrual represents our estimate of the profit we will earn on a three-accident-year period ending December 31, 2025. As a result, our estimate of the profit earned in excess of the permitted limit will be credited to all Florida personal auto policyholders active at December 31, 2025, pro rata based on 2025 earned premium. The expense is reported in policyholder credit expense on our consolidated statements of comprehensive income and the accrual is included in accounts payable, accrued expenses, and other liabilities on our consolidated balance sheets.
The reconciliation of total underwriting revenues to consolidated revenues for the years ended December 31, were as follows:
| (millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Total underwriting revenue | $ | 82,857 | $ | 71,863 | $ | 59,554 | |||||||||||
| Investment income | 3,583 | 2,832 | 1,892 | ||||||||||||||
| Total net realized gains (losses) on securities | 727 | 264 | 353 | ||||||||||||||
| Service revenues | 504 | 413 | 310 | ||||||||||||||
| Total revenues | $ | 87,671 | $ | 75,372 | $ | 62,109 | |||||||||||
Our management uses underwriting margin and combined ratio as primary measures of underwriting profitability. The underwriting margin is the pretax underwriting profit (loss), as previously defined, expressed as a percentage of net premiums earned (i.e., revenues from underwriting operations). 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 years ended December 31:
| 2025 | 2024 | 2023 | ||||||||||||||||||||||||
| Underwriting Margin | Combined Ratio | Underwriting Margin | Combined Ratio | Underwriting Margin | Combined Ratio | |||||||||||||||||||||
| Personal Lines | 12.5 | % | 87.5 | 11.4 | % | 88.6 | 5.9 | % | 94.1 | |||||||||||||||||
| Commercial Lines | 13.0 | 87.0 | 10.6 | 89.4 | 1.2 | 98.8 | ||||||||||||||||||||
| Total underwriting operations | 12.6 | 87.4 | 11.2 | 88.8 | 5.1 | 94.9 | ||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Feb 26, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 29, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.