FalsePROGRESSIVE CORP/OH/000008066100000806612024-11-152024-11-15

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) November 15, 2024
THE PROGRESSIVE CORPORATION
(Exact name of registrant as specified in its charter)
Ohio001-0951834-0963169
(State or other jurisdiction of
incorporation)		(Commission File Number)(IRS Employer
Identification No.)
300 North Commons Blvd.,Mayfield Village, Ohio 44143
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code (440) 461-5000
Not Applicable
(Former name or former address, if changed since last report.)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $1.00 Par ValuePGRNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 7.01 Regulation FD Disclosure.

On November 15, 2024, The Progressive Corporation (the “Company”) issued a news release containing financial results for the Company and its consolidated subsidiaries for the month and year-to-date periods ended October 31, 2024. A copy of the news release is attached hereto as Exhibit 99.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

See exhibit index on page 3.
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SIGNATURES


    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


Date:November 15, 2024
THE PROGRESSIVE CORPORATION
By:/s/ Mariann Wojtkun Marshall
Name:Mariann Wojtkun Marshall
Title:Vice President and Chief Accounting Officer
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EXHIBIT INDEX


Exhibit No. Under Reg. S-K Item 601Form 8-K Exhibit No.

Description
9999
104104Cover Page Interactive Data File (the cover page tags are
embedded within the Inline XBRL document).

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image0a04a01a67a.jpg
NEWS RELEASE
The Progressive CorporationCompany Contact:
300 North Commons Blvd.Douglas S. Constantine
Mayfield Village, Ohio 44143(440) 395-3707

PROGRESSIVE REPORTS OCTOBER RESULTS

MAYFIELD VILLAGE, OHIO -- November 15, 2024 -- The Progressive Corporation (NYSE:PGR) today reported the following results for the month ended October 31, 2024:
October
(millions, except per share amounts and ratios; unaudited)20242023Change
Net premiums written$6,577.8 $5,528.8 19 %
Net premiums earned$6,387.0 $5,383.2 19 %
Net income$408.2 $406.0 1 %
  Per share available to common shareholders$0.69 $0.68 1 %
Total pretax net realized gains (losses) on securities$(88.0)$(87.1)1 %
Combined ratio94.191.72.4 pts.
Average diluted equivalent common shares587.7587.60%


October 31,
(thousands; unaudited)20242023% Change
Policies in Force
Personal Lines
Agency – auto9,580.98,336.415
Direct – auto13,653.011,142.223
Total personal auto23,233.919,478.619
Total special lines6,504.45,964.49
Total Personal Lines29,738.325,443.017
Total Commercial Lines1,140.71,108.53
Total Property business3,485.33,046.214
Companywide Total34,364.329,597.716
Progressive offers personal and commercial insurance throughout the United States. Our Personal Lines business writes insurance for personal autos and special lines products. Our Commercial Lines business writes auto-related liability and physical damage insurance, business-related general liability and property insurance predominantly for small businesses, and workers’ compensation insurance primarily for the transportation industry. Our Property business writes residential property insurance for homeowners, other property owners, and renters.
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THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
COMPREHENSIVE INCOME STATEMENT
For the month ended October 31, 2024
(millions)
(unaudited)
October 2024
Comments on Monthly Results1
Net premiums written
$6,577.8 
Revenues:
Net premiums earned
$6,387.0 
Investment income
258.8 
Net realized gains (losses) on securities:
Net realized gains (losses) on security sales
(42.7)
Net holding period gains (losses) on securities
(45.3)
Total net realized gains (losses) on securities
(88.0)
Fees and other revenues
103.0 
Service revenues
36.3 
Total revenues
6,697.1 
Expenses:
Losses and loss adjustment expenses
4,717.7 
Policy acquisition costs
483.5 
Other underwriting expenses
909.0 
Investment expenses
2.6 
Service expenses
39.3 
Interest expense
23.3 
Total expenses
6,175.4 
Income before income taxes
521.7 
Provision for income taxes
113.5 
Net income
408.2 
Other comprehensive income (loss)
Changes in:
Total net unrealized gains (losses) on fixed-maturity securities
(1,011.6)
Net unrealized losses on forecasted transactions
0 
Foreign currency translation adjustment
(0.2)
Other comprehensive income (loss)
(1,011.8)
Total comprehensive income (loss)
$(603.6)
1 See the Monthly Commentary at the end of this release for additional discussion. For a description of our financial reporting and accounting policies as it applies to information contained throughout this release, see Note 1 to our 2023 audited consolidated financial statements included in our 2023 Shareholders’ Report, which can be found at www.progressive.com/annualreport.
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THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
COMPREHENSIVE INCOME STATEMENTS
For the year-to-date periods ended October 31,
(millions)
(unaudited)

Year-to-Date
20242023
Net premiums written$62,897.2 $51,949.2 
Revenues:
Net premiums earned$58,041.8 $48,275.0 
Investment income2,300.9 1,565.9 
Net realized gains (losses) on securities:
Net realized gains (losses) on security sales(347.6)37.5 
Net holding period gains (losses) on securities576.3 (67.4)
Net impairment losses recognized in earnings0 (7.5)
Total net realized gains (losses) on securities228.7 (37.4)
Fees and other revenues877.4 738.6 
Service revenues344.1 260.1 
Total revenues61,792.9 50,802.2 
Expenses:
Losses and loss adjustment expenses40,794.9 38,255.9 
Policy acquisition costs4,413.5 3,856.4 
Other underwriting expenses7,690.1 5,240.7 
Investment expenses22.8 21.5 
Service expenses372.4 293.0 
Interest expense232.4 222.0 
Total expenses53,526.1 47,889.5 
Income before income taxes8,266.8 2,912.7 
Provision for income taxes1,735.1 592.1 
Net income6,531.7 2,320.6 
Other comprehensive income (loss)
Changes in:
Total net unrealized gains (losses) on fixed-maturity securities449.5 (466.0)
Net unrealized losses on forecasted transactions0.3 0.4 
Foreign currency translation adjustment(0.3)0 
Other comprehensive income (loss)449.5 (465.6)
Total comprehensive income (loss)$6,981.2 $1,855.0 

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THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
COMPUTATION OF NET INCOME AND COMPREHENSIVE INCOME PER SHARE
&
INVESTMENT RESULTS
For the month and year-to-date periods ended October 31,
(millions – except per share amounts)
(unaudited)



The following table sets forth the computation of per share results:
OctoberYear-to-Date
202420242023
Net income
$408.2 $6,531.7 $2,320.6 
Less: Preferred share dividends and other1
0 17.0 30.7 
Net income available to common shareholders
$408.2 $6,514.7 $2,289.9 
Per common share:
Basic
$0.70 $11.13 $3.92 
Diluted
$0.69 $11.09 $3.90 
Comprehensive income (loss)
$(603.6)$6,981.2 $1,855.0 
Less: Preferred share dividends and other1
0 17.0 30.7 
Comprehensive income (loss) attributable to common shareholders
$(603.6)$6,964.2 $1,824.3 
Per common share:
Diluted
$(1.03)$11.85 $3.11 
Average common shares outstanding - Basic
585.7585.5584.9
Net effect of dilutive stock-based compensation
2.02.22.6
Total average equivalent common shares - Diluted
587.7587.7587.5
1 Includes the underwriting discounts and commissions on issuance, initial issuance costs, and excise tax related to the preferred share redemption in February 2024.

The following table sets forth the investment results for the period:
OctoberYear-to-Date
202420242023
Fully taxable equivalent (FTE) total return:
Fixed-income securities
(1.4)%3.6%1.4%
Common stocks
(1.0)%19.2%10.7%
     Total portfolio
(1.4)%4.3%1.8%
Pretax annualized investment income book yield
4.0%3.9%3.1%


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THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
For the month ended October 31, 2024
($ in millions)
(unaudited)


October 2024
Commercial
Personal Lines BusinessLinesPropertyCompanywide
AgencyDirectTotal
Business1
BusinessTotal
Net Premiums Written$2,344.5 $2,908.5 $5,253.0 $1,065.0 $259.8 $6,577.8 
% Growth in NPW17%25%21%13%0%19%
Net Premiums Earned$2,305.2 $2,867.4 $5,172.6 $939.8 $274.6 $6,387.0 
% Growth in NPE19%25%22%4%11%19%
GAAP Ratios
Loss/LAE ratio74.1 74.0 74.1 77.8 49.7 73.6 
Expense ratio18.6 21.7 20.3 19.1 27.6 20.5 
Combined ratio92.7 95.7 94.4 96.9 77.3 94.1 
Net catastrophe loss ratio2
3.7 0.9 19.8 3.9 
Actuarial Adjustments3
Reserve Decrease/(Increase)
Prior accident years$114.1 
Current accident year0.8 
Calendar year actuarial adjustment$17.7 $25.1 $42.8 $(20.0)$92.1 $114.9 
Prior Accident Years Development
Favorable/(Unfavorable)
Actuarial adjustment$114.1 
All other development42.3 
Total development$156.4 
Calendar year loss/LAE ratio73.6 
Accident year loss/LAE ratio76.0 
1 The increase in net premiums written was primarily attributable to our transportation network company (TNC) business, primarily due to the renewal of certain TNC policies for a 12-month term, compared to a 6-month policy term in the prior year, which have about double the amount of premiums per policy. Excluding the TNC business, total Commercial Lines net premiums written growth would have been about 4% for the month.
2 Represents catastrophe losses incurred during the period, including development on prior events and the impact of reinsurance, as a percent of net premiums earned. See the Monthly Commentary at the end of this release for additional discussion.
3 Represents adjustments solely based on our normally scheduled actuarial reviews. For our Property business, the actuarial reserving methodology includes changes to catastrophe losses, while the reviews in our vehicle businesses do not include catastrophes.
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THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
For the year-to-date period ended October 31, 2024
($ in millions)
(unaudited)


Year-to-Date
Commercial
Personal Lines BusinessLinesPropertyCompanywide
AgencyDirectTotalBusiness BusinessTotal
Net Premiums Written$22,581.8 $28,003.7 $50,585.5 $9,699.5 $2,611.7 $62,897.2 
% Growth in NPW21%27%24%9%10%21%
Net Premiums Earned$21,004.1 $25,663.6 $46,667.7 $8,888.4 $2,485.1 $58,041.8 
% Growth in NPE21%25%23%8%18%20%
GAAP Ratios
Loss/LAE ratio68.4 70.1 69.4 71.2 79.6 70.0 
Expense ratio18.4 19.7 19.1 19.2 29.0 19.6 
Combined ratio86.8 89.8 88.5 90.4 108.6 89.6 
Net catastrophe loss ratio1
3.7 0.9 32.4 4.5 
Actuarial Adjustments2
Reserve Decrease/(Increase)
Prior accident years$(117.3)
Current accident year416.3 
Calendar year actuarial adjustment$44.5 $37.4 $81.9 $(172.3)$389.4 $299.0 
Prior Accident Years Development
Favorable/(Unfavorable)
Actuarial adjustment$(117.3)
All other development473.1 
Total development$355.8 
Calendar year loss/LAE ratio70.0 
Accident year loss/LAE ratio70.6 
1 Represents catastrophe losses incurred during the period, including the impact of reinsurance, as a percent of net premiums earned.
2 Represents adjustments solely based on our normally scheduled actuarial reviews. For our Property business, the actuarial reserving methodology includes changes to catastrophe losses, while the reviews in our vehicle businesses do not include catastrophes.


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THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
BALANCE SHEET AND OTHER INFORMATION
(millions - except per share amounts and common shares repurchased)
(unaudited)
October 31, 2024
CONDENSED GAAP BALANCE SHEET:
Investments, at fair value:
Available-for-sale securities:
Fixed maturities1 (amortized cost: $76,018.5)
$74,549.3 
Short-term investments (amortized cost: $438.1)
438.1 
Total available-for-sale securities74,987.4 
Equity securities:
Nonredeemable preferred stocks (cost: $756.4)
728.2 
Common equities (cost: $733.6)
3,460.0 
Total equity securities4,188.2 
Total investments2
79,175.6 
Net premiums receivable15,335.9 
Reinsurance recoverables (including $4,631.2 on unpaid loss and LAE reserves)
4,955.3 
Deferred acquisition costs2,043.3 
Other assets4,359.5 
Total assets$105,869.6 
Unearned premiums$25,152.0 
Loss and loss adjustment expense reserves38,723.1 
Other liabilities2
8,533.5 
Debt6,892.2 
Total liabilities79,300.8 
Shareholders’ equity
26,568.8 
Total liabilities and shareholders’ equity
$105,869.6 
Common shares outstanding585.8 
Common shares repurchased - actual195 
Average cost per common share$253.66 
Book value per common share$45.35 
Trailing 12-month return on average common shareholders’ equity
Net income 36.1  %
Comprehensive income45.5 %
Net unrealized pretax gains (losses) on fixed-maturity securities$(1,465.6)
Increase (decrease) from September 2024$(1,280.5)
Increase (decrease) from December 2023$569.0 
Debt-to-total capital ratio20.6 %
Fixed-income portfolio duration3.3 
Weighted average credit quality
AA- .
1 As of October 31, 2024, we held certain hybrid securities and recognized a change in fair value of $3.6 million as a realized loss during the period we held these securities.
2 At October 31, 2024, we had $294.1 million of net unsettled security transactions classified in “other liabilities.”


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Monthly Commentary
•During October 2024, we incurred vehicle losses, including boats and recreational vehicles, of $206.5 million, or 3.2 loss ratio points on a companywide basis, related to Hurricane Milton and unfavorable development from Hurricane Helene. Since these hurricanes happened within two weeks of each other and damaged many of the same vehicles (including our special lines products), we are reporting our estimate of losses for both storms in total. In our Property business, we incurred catastrophe losses and allocated loss adjustment expenses (ALAE) of $153.6 million, or 55.9 loss ratio points on our Property business, net of reinsurance, related to Hurricane Milton, and favorable development on Hurricane Helene losses and ALAE of $69.4 million, or 25.3 loss ratio points. For the month, we also reduced the estimate of our ultimate losses and ALAE related to Hurricane Ian by $250 million in our Property business, based on the total losses reported and the average severity of the losses paid to date. Our net loss and ALAE exposure for Hurricane Ian remains $200 million, which is the reinsurance retention threshold under the per occurrence excess of loss program that was in place at the time of the event.
•The net premiums written and earned growth rates for October 2024 were unfavorably impacted by about 3%, both on a companywide basis and for our vehicle businesses, reflecting one additional day of activity in October 2023 due to the conversion of our accounting closing calendar to align with the Gregorian calendar in October 2023. This anomaly did not affect the policies in force growth for the month.
Events
We plan to release November results on Friday, December 13, 2024, before the market opens.
About Progressive
Progressive Insurance® makes it easy to understand, buy and use car insurance, home insurance, and other protection needs. Progressive offers choices so consumers can reach us however it’s most convenient for them — online at progressive.com, by phone at 1-800-PROGRESSIVE, via the Progressive mobile app, or in-person with a local agent.
Progressive provides insurance for personal and commercial autos and trucks, motorcycles, boats, recreational vehicles, and homes; it is the second largest personal auto insurer in the country, a leading seller of commercial auto, motorcycle, and boat insurance, and one of the top 15 homeowners insurance carriers.
Founded in 1937, Progressive continues its long history of offering shopping tools and services that save customers time and money, like Name Your Price®, Snapshot®, and HomeQuote Explorer®.
The Common Shares of The Progressive Corporation, the Mayfield Village, Ohio-based holding company, trade publicly at NYSE: PGR.
Regulation FD Disclosure Outlets
The Company disseminates information to the public about the Company, its products, services and other matters through various outlets in order to achieve broad, non-exclusionary distribution of information to the public. These outlets include the Company’s website (progressive.com) and its investor relations website (investors.progressive.com). We encourage investors and others to review the information the Company makes public through these outlets, as such information distributed through these outlets may be considered to be material information.
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Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Investors are cautioned that certain statements in this report not based upon historical fact are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements often use words such as “estimate,” “expect,” “intend,” “plan,” “believe,” “goal,” “target,” “anticipate,” “will,” “could,” “likely,” “may,” “should,” and other words and terms of similar meaning, or are tied to future periods, in connection with a discussion of future operating or financial performance. Forward-looking statements are not guarantees of future performance, are based on current expectations and projections about future events, and are subject to certain risks, assumptions and uncertainties that could cause actual events and results to differ materially from those discussed herein. These risks and uncertainties include, without limitation, uncertainties related to:

•our ability to underwrite and price risks accurately and to charge adequate rates to policyholders;
•our ability to establish accurate loss reserves;
•the impact of severe weather, other catastrophe events, and climate change;
•the effectiveness of our reinsurance programs and the continued availability of reinsurance and performance by reinsurers;
•the secure and uninterrupted operation of the systems, facilities, and business functions and the operation of various third-party systems that are critical to our business;
•the impacts of a security breach or other attack involving our technology systems or the systems of one or more of our vendors;
•our ability to maintain a recognized and trusted brand and reputation;
•whether we innovate effectively and respond to our competitors’ initiatives;
•whether we effectively manage complexity as we develop and deliver products and customer experiences;
•our ability to attract, develop, and retain talent and maintain appropriate staffing levels;
•the impact of misconduct or fraudulent acts by employees, agents, and third parties to our business and/or exposure to regulatory assessments;
•the highly competitive nature of property-casualty insurance markets;
•whether we adjust claims accurately;
•compliance with complex and changing laws and regulations;
•litigation challenging our business practices, and those of our competitors and other companies;
•the success of our business strategy and efforts to acquire or develop new products or enter into new areas of business and our ability to navigate the related risks;
•how intellectual property rights affect our competitiveness and our business operations;
•the success of our development and use of new technology and our ability to navigate the related risks;
•the performance of our fixed-income and equity investment portfolios;
•the impact on our investment returns and strategies from regulations and societal pressures relating to environmental, social, governance and other public policy matters;
•our continued ability to access our cash accounts and/or convert investments into cash on favorable terms;
•the impact if one or more parties with which we enter into significant contracts or transact business fail to perform;
•legal restrictions on our insurance subsidiaries’ ability to pay dividends to The Progressive Corporation;
•our ability to obtain capital when necessary to support our business and potential growth;
•evaluations and ratings by credit rating and other rating agencies;
•the variable nature of our common share dividend policy;
•whether our investments in certain tax-advantaged projects generate the anticipated returns;
•the impact from not managing to short-term earnings expectations in light of our goal to maximize the long-term value of the enterprise;
•the impacts of epidemics, pandemics, or other widespread health risks; and
•other matters described from time to time in our releases and publications, and in our periodic reports and other documents filed with the United States Securities and Exchange Commission, including, without limitation, the Risk Factors section of our Annual Report on Form 10-K for the year ending December 31, 2023.

Any forward-looking statements are made only as of the date presented. Except as required by applicable law, we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or developments or otherwise.

In addition, investors should be aware that accounting principles generally accepted in the United States prescribe when a company may reserve for particular risks, including litigation exposures. Accordingly, results for a given reporting period could be significantly affected if and when we establish reserves for one or more contingencies. Also, our regular reserve reviews may result in adjustments of varying magnitude as additional information regarding claims activity becomes known. Reported results, therefore, may be volatile in certain accounting periods.
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v3.24.3
Cover Page
Nov. 15, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Nov. 15, 2024
Entity Registrant Name PROGRESSIVE CORP/OH/
Entity Incorporation, State or Country Code OH
Entity File Number 001-09518
Entity Tax Identification Number 34-0963169
Entity Address, Address Line One 300 North Commons Blvd.,
Entity Address, City or Town Mayfield Village,
Entity Address, State or Province OH
Entity Address, Postal Zip Code 44143
City Area Code 440
Local Phone Number 461-5000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $1.00 Par Value
Trading Symbol PGR
Security Exchange Name NYSE
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0000080661
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