Florida

Texas

California

New York

Michigan

Georgia

Ohio

New Jersey

Pennsylvania

Louisiana

All other

Total Revenue

8c96eabe5b0e7b477e46da036ad2882f53d08b36a036d4c32096465ce9e4759c

248c05a942b895a8ab58f7c02ae1ea596b0d452ca70a6eb394ece7f827aa7a74

Adjustments for Non-Cash Items

Stock-Based Compensation

Changes in Working Capital

Capital Expenditures (CapEx)

Proceeds from / Repayments of Debt

Share Repurchases

Dividend Payments

Net Change in Cash

36aaa04ef4abe0f2230ab15a096c5d4096d69598ed1b20e74198145600c65b4d

| Metric (Unit) | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|---------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Trailing 12-Month Policy Life Expectancy Total Personal Auto (% Change) | -22% **[0000080661-23-000006_pgr-20221231_d2.htm:72]** | -16% **[0000080661-23-000023_pgr-20230331.htm:34]** | 1% **[0000080661-23-000037_pgr-20230630.htm:38]** | 19% **[0000080661-23-000049_pgr-20230930.htm:39]** | N/A | 20% **[0000080661-24-000018_pgr-20240331.htm:34]** | 9% **[0000080661-24-000031_pgr-20240630.htm:35]** | N/A |
| Trailing 3-Month Policy Life Expectancy Total Personal Auto (% Change) | -9% **[0000080661-23-000006_pgr-20221231_d2.htm:72]** | 10% **[0000080661-23-000023_pgr-20230331.htm:34]** | 40% **[0000080661-23-000037_pgr-20230630.htm:38]** | 35% **[0000080661-23-000049_pgr-20230930.htm:39]** | N/A | 0% **[0000080661-24-000018_pgr-20240331.htm:44]** | -5% **[0000080661-24-000031_pgr-20240630.htm:35]** | -6% **[0000080661-24-000045_pgr-20240930.htm:37]** |
| Average Original Loan-to-Value 2024 (%) | N/A | 57.3% **[0000080661-23-000023_pgr-20230331.htm:54]** | 60.6% **[0000080661-23-000037_pgr-20230630.htm:60]** | 60.6% **[0000080661-23-000049_pgr-20230930.htm:62]** | 58.2% **[0000080661-24-000007_pgr-20231231_d2.htm:92]** | 59.4% **[0000080661-24-000018_pgr-20240331.htm:52]** | 59.4% **[0000080661-24-000031_pgr-20240630.htm:56]** | 61.6% **[0000080661-24-000045_pgr-20240930.htm:58]** |
| Average Original Loan-to-Value 2025 (%) | N/A | 67.0% **[0000080661-23-000023_pgr-20230331.htm:54]** | 65.7% **[0000080661-23-000037_pgr-20230630.htm:60]** | 65.7% **[0000080661-23-000049_pgr-20230930.htm:62]** | 65.7% **[0000080661-24-000007_pgr-20231231_d2.htm:92]** | 65.7% **[0000080661-24-000018_pgr-20240331.htm:52]** | 65.7% **[0000080661-24-000031_pgr-20240630.htm:56]** | 65.7% **[0000080661-24-000045_pgr-20240930.htm:58]** |
| Average Original Loan-to-Value 2026 (%) | N/A | 62.0% **[0000080661-23-000023_pgr-20230331.htm:54]** | 62.6% **[0000080661-23-000037_pgr-20230630.htm:60]** | 62.9% **[0000080661-23-000049_pgr-20230930.htm:62]** | 60.9% **[0000080661-24-000007_pgr-20231231_d2.htm:92]** | 60.9% **[0000080661-24-000018_pgr-20240331.htm:52]** | 60.9% **[0000080661-24-000031_pgr-20240630.htm:56]** | 60.9% **[0000080661-24-000045_pgr-20240930.htm:58]** |
| Average Original Loan-to-Value 2027 (%) | N/A | 59.3% **[0000080661-23-000023_pgr-20230331.htm:54]** | 60.7% **[0000080661-23-000037_pgr-20230630.htm:60]** | 60.1% **[0000080661-23-000049_pgr-20230930.htm:62]** | 60.1% **[0000080661-24-000007_pgr-20231231_d2.htm:92]** | 60.6% **[0000080661-24-000018_pgr-20240331.htm:52]** | 60.6% **[0000080661-24-000031_pgr-20240630.htm:56]** | 60.6% **[0000080661-24-000045_pgr-20240930.htm:58]** |
| Average Original Loan-to-Value 2029 (%) | N/A | 57.6% **[0000080661-23-000023_pgr-20230331.htm:54]** | 57.6% **[0000080661-23-000037_pgr-20230630.htm:60]** | 57.6% **[0000080661-23-000049_pgr-20230930.htm:62]** | 58.8% **[0000080661-24-000007_pgr-20231231_d2.htm:92]** | 59.6% **[0000080661-24-000018_pgr-20240331.htm:52]** | 60.0% **[0000080661-24-000031_pgr-20240630.htm:56]** | 61.3% **[0000080661-24-000045_pgr-20240930.htm:58]** |
| Average Original Loan-to-Value 2030 (%) | N/A | 55.5% **[0000080661-23-000023_pgr-20230331.htm:54]** | 55.5% **[0000080661-23-000037_pgr-20230630.htm:60]** | 55.5% **[0000080661-23-000049_pgr-20230930.htm:62]** | 55.5% **[0000080661-24-000007_pgr-20231231_d2.htm:92]** | 55.5% **[0000080661-24-000018_pgr-20240331.htm:52]** | 55.5% **[0000080661-24-000031_pgr-20240630.htm:56]** | 55.5% **[0000080661-24-000045_pgr-20240930.htm:58]** |
| Average Original Loan-to-Value 2031 (%) | N/A | 66.5% **[0000080661-23-000023_pgr-20230331.htm:54]** | 66.5% **[0000080661-23-000037_pgr-20230630.htm:60]** | 66.5% **[0000080661-23-000049_pgr-20230930.htm:62]** | 66.5% **[0000080661-24-000007_pgr-20231231_d2.htm:92]** | 66.5% **[0000080661-24-000018_pgr-20240331.htm:52]** | 66.5% **[0000080661-24-000031_pgr-20240630.htm:56]** | 66.5% **[0000080661-24-000045_pgr-20240930.htm:58]** |
| Average Current DSCR 2024 | N/A | 2.2 **[0000080661-23-000023_pgr-20230331.htm:54]** | 2.1 **[0000080661-23-000037_pgr-20230630.htm:60]** | 2.0 **[0000080661-23-000049_pgr-20230930.htm:62]** | 2.0 **[0000080661-24-000007_pgr-20231231_d2.htm:92]** | 2.0 **[0000080661-24-000018_pgr-20240331.htm:52]** | 2.0 **[0000080661-24-000031_pgr-20240630.htm:56]** | 2.2 **[0000080661-24-000045_pgr-20240930.htm:58]** |
| Average Current DSCR 2025 | N/A | 2.2 **[0000080661-23-000023_pgr-20230331.htm:54]** | 1.9 **[0000080661-23-000037_pgr-20230630.htm:60]** | 2.1 **[0000080661-23-000049_pgr-20230930.htm:62]** | 2.1 **[0000080661-24-000007_pgr-20231231_d2.htm:92]** | N/A | N/A | N/A |
| Average Current DSCR 2026 | N/A | 2.2 **[0000080661-23-000023_pgr-20230331.htm:54]** | 1.9 **[0000080661-23-000037_pgr-20230630.htm:60]** | 1.8 **[0000080661-23-000049_pgr-20230930.htm:62]** | 1.9 **[0000080661-24-000007_pgr-20231231_d2.htm:92]** | N/A | N/A | N/A |
| Average Current DSCR 2027 | N/A | 2.2 **[0000080661-23-000023_pgr-20230331.htm:54]** | 1.8 **[0000080661-23-000037_pgr-20230630.htm:60]** | 1.9 **[0000080661-23-000049_pgr-20230930.htm:62]** | 1.9 **[0000080661-24-000007_pgr-20231231_d2.htm:92]** | N/A | N/A | N/A |
| Average Current DSCR 2028 | N/A | 2.2 **[0000080661-23-000023_pgr-20230331.htm:54]** | 3.3 **[0000080661-23-000037_pgr-20230630.htm:60]** | 3.3 **[0000080661-23-000049_pgr-20230930.htm:62]** | 3.3 **[0000080661-24-000007_pgr-20231231_d2.htm:92]** | N/A | N/A | N/A |
| Average Current DSCR 2029 | N/A | 2.2 **[0000080661-23-000023_pgr-20230331.htm:54]** | 3.1 **[0000080661-23-000037_pgr-20230630.htm:60]** | 3.1 **[0000080661-23-000049_pgr-20230930.htm:62]** | 3.1 **[0000080661-24-000007_pgr-20231231_d2.htm:92]** | N/A | N/A | N/A |
| Average Current DSCR 2030 | N/A | 2.2 **[0000080661-23-000023_pgr-20230331.htm:54]** | 3.0 **[0000080661-23-000037_pgr-20230630.htm:60]** | 3.1 **[0000080661-23-000049_pgr-20230930.htm:62]** | 3.1 **[0000080661-24-000007_pgr-20231231_d2.htm:92]** | N/A | N/A | N/A |
| Average Current DSCR 2031 | N/A | 2.2 **[0000080661-23-000023_pgr-20230331.htm:54]** | 1.9 **[0000080661-23-000037_pgr-20230630.htm:60]** | 1.9 **[0000080661-23-000049_pgr-20230930.htm:62]** | 2.1 **[0000080661-24-000007_pgr-20231231_d2.htm:92]** | N/A | N/A | N/A |
| Underwriting Profit (Loss) for Personal Lines (Million USD) | N/A | $140.5 **[0000080661-23-000023_pgr-20230331.htm:38]** | $55.3 **[0000080661-23-000037_pgr-20230630.htm:43]** | $1,041.9 **[0000080661-23-000049_pgr-20230930.htm:44]** | N/A | $1,994.3 **[0000080661-24-000018_pgr-20240331.htm:38]** | $1,571.2 **[0000080661-24-000031_pgr-20240630.htm:40]** | $1,534.6 **[0000080661-24-000045_pgr-20240930.htm:41]** |

304d90561d17185a6291c9016fa9ba377c35f36dd32fbcf3cdc366cd904e2c6c

| Segment / Quarter | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|-------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Personal Lines (Million $)** | **12,113.2**  **[0000080661-23-000023_pgr-20230331.htm:44]**  | **11,387.9**  **[0000080661-23-000037_pgr-20230630.htm:27]**  | **11,775.8**  **[0000080661-23-000049_pgr-20230930.htm:28]**  | N/A | **12,878.2**  **[0000080661-24-000018_pgr-20240331.htm:26]**  | **13,808.9**  **[0000080661-24-000031_pgr-20240630.htm:26]**  | **14,808.0**  **[0000080661-24-000045_pgr-20240930.htm:27]**  | N/A |
| **Commercial Lines (Million $)** | **3,366.9**  **[0000080661-23-000023_pgr-20230331.htm:44]**  | **2,454.1**  **[0000080661-23-000037_pgr-20230630.htm:27]**  | **2,486.6**  **[0000080661-23-000049_pgr-20230930.htm:28]**  | N/A | **2,557.4**  **[0000080661-24-000018_pgr-20240331.htm:26]**  | **2,664.5**  **[0000080661-24-000031_pgr-20240630.htm:26]**  | **2,726.7**  **[0000080661-24-000045_pgr-20240930.htm:27]**  | N/A |
| **Property (Million $)** | **629.4**  **[0000080661-23-000023_pgr-20230331.htm:44]**  | **622.3**  **[0000080661-23-000037_pgr-20230630.htm:27]**  | **631.8**  **[0000080661-23-000049_pgr-20230930.htm:28]**  | N/A | **712.8**  **[0000080661-24-000018_pgr-20240331.htm:26]**  | **735.9**  **[0000080661-24-000031_pgr-20240630.htm:26]**  | **761.8**  **[0000080661-24-000045_pgr-20240930.htm:27]**  | N/A |
| **Other Indemnity (Million $)** | **0.2**  **[0000080661-23-000023_pgr-20230331.htm:44]**  | **0.1**  **[0000080661-23-000037_pgr-20230630.htm:27]**  | **0.1**  **[0000080661-23-000049_pgr-20230930.htm:28]**  | N/A | **0.2**  **[0000080661-24-000018_pgr-20240331.htm:26]**  | **0.2**  **[0000080661-24-000031_pgr-20240630.htm:26]**  | **0.2**  **[0000080661-24-000045_pgr-20240930.htm:27]**  | N/A |
| **Total Underwriting Operations (Million $)** | **16,109.7**  **[0000080661-23-000023_pgr-20230331.htm:44]**  | **14,464.4**  **[0000080661-23-000037_pgr-20230630.htm:27]**  | **14,894.3**  **[0000080661-23-000049_pgr-20230930.htm:28]**  | N/A | **16,148.6**  **[0000080661-24-000018_pgr-20240331.htm:26]**  | **17,209.5**  **[0000080661-24-000031_pgr-20240630.htm:26]**  | **18,296.7**  **[0000080661-24-000045_pgr-20240930.htm:27]**  | N/A |

5b6a7a2294813fe136242ed978635328ae0850638ad4296ad0a0240c5e4a985c

Average Original Loan-to-Value 2024 (%)

Average Original Loan-to-Value 2025 (%)

Average Original Loan-to-Value 2026 (%)

Average Original Loan-to-Value 2027 (%)

Average Original Loan-to-Value 2029 (%)

Average Original Loan-to-Value 2030 (%)

Average Original Loan-to-Value 2031 (%)

Average Current DSCR 2024

Average Current DSCR 2025

Average Current DSCR 2026

Average Current DSCR 2027

Average Current DSCR 2028

Average Current DSCR 2029

Average Current DSCR 2030

Average Current DSCR 2031

Underwriting Profit (Loss) for Personal Lines (Million USD)

f87282b6cb6c062777785804f4f47d3f62d1f65ece82e01bedb27a5f426799d3

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Per Share]

EPS - Diluted [USD, Per Share]

41987674751341e7ec76e2fbdc2c1de19a9426b9725c8a8cea4e56db494724d0

The Progressive Corporation operates primarily in the insurance industry, offering a diverse range of products through its three main segments: Personal Lines, Commercial Lines, and Property. The company provides insurance for personal autos, recreational vehicles, small businesses, and residential properties, making it a significant player in the insurance market. Progressive's offerings are structured to cater to both individual and business needs, with a focus on auto-related and property insurance **[0000080661-24-000007_pgr-20231231_d2.htm:75]** **[0000080661-24-000007_pgr-20231231.htm:3]** **[0000080661-24-000007_pgr-20231231_d2.htm:53]** **[0000080661-24-000007_pgr-20231231.htm:19]**.

1. **Personal Lines** - Offers insurance for personal autos and recreational vehicles, divided into Agency and Direct businesses, with the Direct channel contributing a slightly higher percentage of net premiums written **[0000080661-24-000007_pgr-20231231_d2.htm:75]** **[0000080661-24-000007_pgr-20231231.htm:3]**.
   - **Agency** - Provides insurance products through a network of independent agents.
   - **Direct** - Sells insurance products directly to consumers, primarily through online and phone channels.

2. **Commercial Lines** - Provides auto-related liability and physical damage insurance, business-related general liability, and property insurance predominantly for small businesses, as well as workers' compensation insurance **[0000080661-24-000007_pgr-20231231_d2.htm:75]** **[0000080661-24-000007_pgr-20231231_d2.htm:53]**.

3. **Property** - Includes residential property insurance for homeowners, other property owners, and renters **[0000080661-24-000007_pgr-20231231_d2.htm:75]** **[0000080661-24-000007_pgr-20231231_d2.htm:53]**.

4. **Service Businesses** - Offers insurance-related services, representing less than 1% of total revenues **[0000080661-24-000007_pgr-20231231.htm:19]**.

8a68a08bd00648104c74576c88f98156cd4cb96a972668bf3e58755a4d046f2b

1. Given the record profits and high margins you're experiencing, could you elaborate on how you balance maintaining profitability with potential price cuts, especially in states where you're already highly competitive?  **[PGR_3405974_3]** **[PGR_3405974_4]** 
2. With attorney representation rates and litigation costs rising in personal auto, how are you adjusting your claims handling and pricing strategies to mitigate the impact of social inflation on your loss ratios?  **[PGR_3405974_14]** 
3. Your Commercial Lines growth has been challenging due to softness in the trucking market; what specific actions are you taking to drive growth in this segment, and how confident are you about competitors catching up in rates impacting your future growth?  **[PGR_3405974_2]** 
4. Considering that two hurricanes struck Florida only a week apart, can you provide more details on how you are risk-adjusting your property business and what progress you've made in reducing exposure to volatile weather-related states?  **[PGR_3405974_2]** 
5. With a substantial increase of 4.2 million policies in force amid a tight labor market, how are you ensuring staffing levels keep pace without compromising service quality, and what role does technology and AI play in this effort?  **[PGR_3405974_12]** 

63fac8801e2d4b431ed9f9381a33724f0a26e1a45f0d4b0c1d1928c6502299f6

c6dd3ca10d6113db5e9f9007bd6a78c8a241263aedaa46451a21343811829cf2

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | May 2024  **[0000080661-24-000045_pgr-20240930.htm:67]**     |
| End Date/Duration        | No expiration  **[0000080661-24-000045_pgr-20240930.htm:67]**  |
| Total additional amount  | 25 million shares  **[0000080661-24-000045_pgr-20240930.htm:67]**  |
| Remaining authorization amount | 24,576,264 shares  **[0000080661-24-000045_pgr-20240930.htm:67]**  |
| Details                  | Neutralizing dilution from equity-based compensation and effectively using under-leveraged capital  **[0000080661-24-000031_pgr-20240630.htm:65]** **[0000080661-24-000045_pgr-20240930.htm:67]**  |

292f69cddca05bc1e094dab64a3e8bee3c1e112718f06e2080bfb52db9b5f2f3

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

### Q3 2024 Earnings Call
   - **Issued Period**: Q3 2024
   - **Guided Period**: Q4 2024 and FY 2025
   - **Guidance**:
     - **Growth and Profitability**: Aim to grow while maintaining a combined ratio of **0.96** or better.
     - **Media Spend and Customer Acquisition**: Continue aggressive media spending to capture market share.
     - **Property Business**: Focus on risk adjustment, rate increases, and segmentation improvements.
     - **Rate Adjustments**: Implement small rate adjustments to maintain stable rates.
     - **Investment Strategy**: Focus on total rate of return with a short-duration portfolio  **[PGR_3405974_1]** **[PGR_3405974_2]** **[PGR_3405974_9]** .

### Q2 2024 Earnings Call
   - **Issued Period**: Q2 2024
   - **Guided Period**: FY 2024
   - **Guidance**:
     - **Combined Ratio Target**: Maintain a combined ratio at or below **96**.
     - **Media Spend and Growth**: Increase media spend to grow policy count.
     - **Rate Adjustments**: Smaller rate increase expected for the remainder of 2024.
     - **Efficiency in Acquisition Costs**: Maintain efficient acquisition costs.
     - **Property Insurance Strategy**: De-risk property insurance portfolio  **[PGR_3396903_7]** **[PGR_3396903_15]** **[PGR_3396903_9]** .

### Q1 2024 Earnings Call
   - **Issued Period**: Q1 2024
   - **Guided Period**: FY 2024
   - **Guidance**:
     - **Combined Ratio Goal**: Achieve a **96 combined ratio** for the year.
     - **Growth and Profitability**: Balance growth and profitability with net premiums written growing by **18%**.
     - **Marketing Spend**: Efficient marketing spending with media spend down **7%** in Q1.
     - **Commercial Lines**: Expect better results with **10 points of rates** to earn in.
     - **Non-Rate Actions**: Unwind non-rate actions in certain states.
     - **Capital Position**: Strong capital position to support growth.
     - **Expense Management**: Efficient expense management  **[PGR_3387165_1]** **[PGR_3387165_2]** **[PGR_3387165_11]** **[PGR_3387165_17]** .

### Q4 2023 Earnings Call
   - **Issued Period**: Q4 2023
   - **Guided Period**: Q1 2024
   - **Guidance**: Specific financial metrics or numerical guidance were not detailed. The focus was on business strategies, market conditions, and operational updates  **[PGR_3375864_10]** .

27f084f4b0b5fe7742d96f9f3f33ef85aa94fc49b5ff0a543dbc3ddf2ea8af7d

| Name                     | Position                                      | Start Date          | Short Bio                                                                                                                                                                                                 |
|--------------------------|-----------------------------------------------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Susan Patricia Griffith  | President and Chief Executive Officer         | 2016                | Susan Patricia Griffith has been with The Progressive Corporation since **1988** and became the President and CEO in **2016**. She has held various executive roles, including Chief Human Resource Officer and Claims Group President  **[0000080661-24-000007_pgr-20231231.htm:67]** **[0000080661-24-000014_pgr-20240325.htm:20]** . |
| John P. Sauerland        | Vice President and Chief Financial Officer     | May 17, 2024        | John P. Sauerland is the Vice President and CFO of The Progressive Corporation, serving in this role since at least **May 17, 2024**  **[0001193125-24-141514_d795738ds3asr.htm:34]** **[0001193125-24-141502_d840483ds8.htm:5]** .                                                                                                   |
| Karen B. Bailo           | Commercial Lines President                     | October 2020        | Karen B. Bailo has been the Commercial Lines President since **October 2020**. She previously served as the Commercial Lines Acquisition and Small Business General Manager and as the Commercial Lines Controller  **[0000080661-24-000007_pgr-20231231.htm:67]** **[0000080661-23-000006_pgr-20221231.htm:65]** .                     |
| Jonathan S. Bauer        | Chief Investment Officer                       | January 2020        | Jonathan S. Bauer has been the Chief Investment Officer since **January 2020**. Before this, he was a Portfolio Manager at Progressive  **[0000080661-24-000007_pgr-20231231.htm:67]** **[0000080661-23-000006_pgr-20221231.htm:65]** .                                                                                                  |
| Steven A. Broz           | Chief Information Officer                      | 2020                | Steven A. Broz is the Chief Information Officer at Progressive Corporation, holding this position since at least **2020**  **[0000080661-24-000007_pgr-20231231.htm:67]** **[0000080661-23-000006_pgr-20221231.htm:65]** .                                                                                                              |
| Patrick K. Callahan      | Personal Lines President                       | 2021                | Patrick K. Callahan has been the Personal Lines President since at least **2021**. He has held various roles at Progressive, including as a named executive officer in 2020 and 2021  **[0000080661-23-000006_pgr-20221231.htm:65]** **[0000080661-24-000014_pgr-20240325.htm:88]** .                                                   |
| William L. Clawson II    | Chief Human Resources Officer                  | December 2021       | William L. Clawson II has been the Chief Human Resources Officer since **December 2021**. He was previously the Compensation and Benefits Business Leader and a Product Manager  **[0000080661-24-000007_pgr-20231231.htm:67]** **[0000080661-23-000006_pgr-20221231.htm:65]** .                                                        |
| Remi Kent                | Chief Marketing Officer                        | November 2021       | Remi Kent has been the Chief Marketing Officer since **November 2021**. She was previously the Senior Vice President and Global Chief Marketing Officer of the Consumer Business Group at 3M Company  **[0000080661-24-000007_pgr-20231231.htm:67]** **[0000080661-23-000006_pgr-20221231.htm:65]** .                                   |
| Mariann Wojtkun Marshall | Vice President and Chief Accounting Officer    | March 2019          | Mariann Wojtkun Marshall has been the Vice President and Chief Accounting Officer since **March 2019**. She was formerly the Director of Financial Reporting – GAAP and holds the position of Assistant Secretary  **[0000080661-24-000007_pgr-20231231.htm:67]** **[0000080661-23-000006_pgr-20221231.htm:65]** .                      |
| John Murphy              | Claims President                               | December 2021       | John Murphy has been the Claims President since **December 2021**. He was previously the Customer Relationship Management President  **[0000080661-24-000007_pgr-20231231.htm:67]** .                                                                                                       |
| Lori Niederst            | Customer Relationship Management President     | December 2021       | Lori Niederst has been the Customer Relationship Management President since **December 2021**. She previously served as the Chief Human Resources Officer at Progressive  **[0000080661-24-000007_pgr-20231231.htm:67]** **[0000080661-24-000007_pgr-20231231_d2.htm:107]** .                                                              |
| David M. Stringer        | Vice President, Secretary, and Chief Legal Officer | January 2024    | David M. Stringer has been the Vice President, Secretary, and Chief Legal Officer since **January 2024**. He was previously the Deputy General Counsel, Litigation and Employment at Progressive  **[0000080661-24-000007_pgr-20231231.htm:67]** .                                          |
| Andrew J. Quigg          | Chief Strategy Officer                         | July 2018           | Andrew J. Quigg has been the Chief Strategy Officer since **July 2018**. He previously served as the Customer Experience General Manager  **[0000080661-23-000006_pgr-20221231.htm:65]** .                                                                                                   |

415a51db62b209ce88be167433308337205ef4b30ca7312a96f195c3e3559809

**Quarterly guidance for Q4 2024:**
- **Growth expectations**: Optimism about continued growth heading into Q4 2024  **[PGR_3405974_2]** **[PGR_3405974_1]**  (no prior guidance)  
- **Combined ratio**: Maintain a combined ratio of 96 or better  **[PGR_3405974_2]** **[PGR_3405974_3]**  (no prior guidance)  
- **Media spending**: Highest media spend in Q3 2024, with elevated levels continuing  **[PGR_3405974_1]** **[PGR_3405974_16]**  (no prior guidance)  
- **Property business adjustments**: Risk-adjusting property business (geographic mix changes, segmentation, rate increases, cost-sharing)  **[PGR_3405974_2]** **[PGR_3405974_21]**  (no prior guidance)  
- **Retention and policy life expectancy**: Monitoring and stabilizing rates to improve policy life expectancy  **[PGR_3405974_7]**  (no prior guidance)  
- **Cost Per Sale (CPS)**: CPS remains below target acquisition cost  **[PGR_3405974_17]** **[PGR_3405974_16]**  (no prior guidance)  

**Annual guidance for FY 2025:**
- **Combined ratio**: 96 or better  **[PGR_3405974_2]** **[PGR_3405974_3]**  (no change from prior guidance of 96  **[PGR_3396903_7]** **[PGR_3396903_15]** **[PGR_3396903_9]** )  
- **Media spending**: Continuing to leverage increased media spending  **[PGR_3405974_1]** **[PGR_3405974_16]**  (no change from prior guidance to increase media spend  **[PGR_3396903_7]** **[PGR_3396903_15]** **[PGR_3396903_9]** )  
- **Rate adjustments**: Continuing rate increases in the property business  **[PGR_3405974_2]** **[PGR_3405974_21]**  (no change from prior guidance of smaller rate increases  **[PGR_3396903_7]** **[PGR_3396903_15]** **[PGR_3396903_9]** )  
- **Efficiency in acquisition costs / CPS**: CPS remains below target, reflecting maintained efficient acquisition costs  **[PGR_3405974_17]** **[PGR_3405974_16]**  (no change from prior guidance  **[PGR_3396903_7]** **[PGR_3396903_15]** **[PGR_3396903_9]** )  
- **Property insurance strategy**: Further de-risking / risk-adjusting the property portfolio  **[PGR_3405974_2]** **[PGR_3405974_21]**  (no change from prior guidance  **[PGR_3396903_7]** **[PGR_3396903_15]** **[PGR_3396903_9]** )  
- **Profitability targets**: Achieving profitability across all segments  **[PGR_3405974_2]** **[PGR_3405974_3]**  (no prior guidance)  
- **Growth expectations**: Optimism about capturing additional market share  **[PGR_3405974_2]** **[PGR_3405974_1]**  (no prior guidance)  
- **Retention and policy life expectancy**: Emphasizing retention improvements  **[PGR_3405974_7]**  (no prior guidance)  

b56ff41cb339982c2b6eb26c2109fbb777216431344750abf59d4ffbff1a2546

| Name                        | Start Date | End Date | Reason for Change |
|-----------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP | 1984  **[0000080661-24-000007_pgr-20231231_d2.htm:64]**    | Present  | Current auditor   |

e83a007e154afa1452d5712257b0e58cf51a40be37757ddaab902a1dba9a68ff

cd129be2ae31f2e23d2e03551796806a64a3d045b6b4d7ff15181e99cbdc9c95

- Total Revenue: $20,276.2 million (+20% YoY)  **[0000080661-24-000007_pgr-20231231_d2.htm:54]** **[0000080661-25-000002_pgr20241231ex99earningsrel.htm:1]**   
- Personal Lines: $18,595.9 million (**+49%** YoY)  **[0000080661-24-000007_pgr-20231231_d2.htm:54]** **[0000080661-25-000002_pgr20241231ex99earningsrel.htm:4]**   
  • Agency: $6,941.1 million (+21% YoY)  **[0000080661-24-000007_pgr-20231231_d2.htm:54]** **[0000080661-25-000002_pgr20241231ex99earningsrel.htm:4]**   
  • Direct: $8,661.8 million (+28% YoY)  **[0000080661-24-000007_pgr-20231231_d2.htm:54]** **[0000080661-25-000002_pgr20241231ex99earningsrel.htm:4]**   
- Commercial Lines: $2,758.4 million (+6% YoY)  **[0000080661-24-000007_pgr-20231231_d2.htm:54]** **[0000080661-25-000002_pgr20241231ex99earningsrel.htm:4]**   
- Property: $782.5 million (+12% YoY)  **[0000080661-24-000007_pgr-20231231_d2.htm:54]** **[0000080661-25-000002_pgr20241231ex99earningsrel.htm:4]**   

f6f4b7dc6fa77fa4445d91bdd84d291ec4aa2764084b4ba6ea2b1484ac2ce6dc

8f6478a513a576fece81ade50147c17d289ff170b53ebe934f37009041296d55

78ed8e55884402899bcbdcb89f14cbb7b7dcffee200cc22707cd37c0af9ddbe3

| Year | Amount Due (in millions) | Debt Type                | Interest Rate (%) | % of Total Debt                                                                 |
|----------|------------------------------|------------------------------|-----------------------|------------------------------------------------------------------------------------|
| 2027     | 1,000.0 **[0000080661-24-000045_pgr-20240930.htm:24]**              | 2.45% Senior Notes **[0000080661-24-000045_pgr-20240930.htm:24]**   | 2.45 **[0000080661-24-000045_pgr-20240930.htm:24]**          | 14.5% = (1,000.0 / 6,891.8) * 100 **[0000080661-24-000045_pgr-20240930.htm:24]** **[0000080661-24-000045_pgr-20240930.htm:24]**                                  |
| 2027     | 1,000.0 **[0000080661-24-000045_pgr-20240930.htm:24]**              | 2.50% Senior Notes **[0000080661-24-000045_pgr-20240930.htm:24]**   | 2.50 **[0000080661-24-000045_pgr-20240930.htm:24]**          | 14.5% = (1,000.0 / 6,891.8) * 100 **[0000080661-24-000045_pgr-20240930.htm:24]** **[0000080661-24-000045_pgr-20240930.htm:24]**                                  |
| 2029     | 850.0 **[0000080661-24-000045_pgr-20240930.htm:24]**                | 6 5/8% Senior Notes **[0000080661-24-000045_pgr-20240930.htm:24]**  | 6.625 **[0000080661-24-000045_pgr-20240930.htm:24]**         | 12.3% = (850.0 / 6,891.8) * 100 **[0000080661-24-000045_pgr-20240930.htm:24]** **[0000080661-24-000045_pgr-20240930.htm:24]**                                    |
| 2029     | 850.0 **[0000080661-24-000045_pgr-20240930.htm:24]**                | 4.00% Senior Notes **[0000080661-24-000045_pgr-20240930.htm:24]**   | 4.00 **[0000080661-24-000045_pgr-20240930.htm:24]**          | 12.3% = (850.0 / 6,891.8) * 100 **[0000080661-24-000045_pgr-20240930.htm:24]** **[0000080661-24-000045_pgr-20240930.htm:24]**                                    |
| 2030     | 500.0 **[0000080661-24-000045_pgr-20240930.htm:24]**                | 3.20% Senior Notes **[0000080661-24-000045_pgr-20240930.htm:24]**   | 3.20 **[0000080661-24-000045_pgr-20240930.htm:24]**          | 7.3% = (500.0 / 6,891.8) * 100 **[0000080661-24-000045_pgr-20240930.htm:24]** **[0000080661-24-000045_pgr-20240930.htm:24]**                                     |
| 2032     | 900.0 **[0000080661-24-000045_pgr-20240930.htm:24]**                | 3.00% Senior Notes **[0000080661-24-000045_pgr-20240930.htm:24]**   | 3.00 **[0000080661-24-000045_pgr-20240930.htm:24]**          | 13.1% = (900.0 / 6,891.8) * 100 **[0000080661-24-000045_pgr-20240930.htm:24]** **[0000080661-24-000045_pgr-20240930.htm:24]**                                    |
| 2032     | 900.0 **[0000080661-24-000045_pgr-20240930.htm:24]**                | 6.25% Senior Notes **[0000080661-24-000045_pgr-20240930.htm:24]**   | 6.25 **[0000080661-24-000045_pgr-20240930.htm:24]**          | 13.1% = (900.0 / 6,891.8) * 100 **[0000080661-24-000045_pgr-20240930.htm:24]** **[0000080661-24-000045_pgr-20240930.htm:24]**                                    |
| 2033     | 500.0 **[0000080661-24-000045_pgr-20240930.htm:24]**                | 4.95% Senior Notes **[0000080661-24-000045_pgr-20240930.htm:24]**   | 4.95 **[0000080661-24-000045_pgr-20240930.htm:24]**          | 7.3% = (500.0 / 6,891.8) * 100 **[0000080661-24-000045_pgr-20240930.htm:24]** **[0000080661-24-000045_pgr-20240930.htm:24]**                                     |
| 2044     | 350.0 **[0000080661-24-000045_pgr-20240930.htm:24]**                | 4.35% Senior Notes **[0000080661-24-000045_pgr-20240930.htm:24]**   | 4.35 **[0000080661-24-000045_pgr-20240930.htm:24]**          | 5.1% = (350.0 / 6,891.8) * 100 **[0000080661-24-000045_pgr-20240930.htm:24]** **[0000080661-24-000045_pgr-20240930.htm:24]**                                     |
| 2045     | 400.0 **[0000080661-24-000045_pgr-20240930.htm:24]**                | 3.70% Senior Notes **[0000080661-24-000045_pgr-20240930.htm:24]**   | 3.70 **[0000080661-24-000045_pgr-20240930.htm:24]**          | 5.8% = (400.0 / 6,891.8) * 100 **[0000080661-24-000045_pgr-20240930.htm:24]** **[0000080661-24-000045_pgr-20240930.htm:24]**                                     |
| 2047     | 850.0 **[0000080661-24-000045_pgr-20240930.htm:24]**                | 4.125% Senior Notes **[0000080661-24-000045_pgr-20240930.htm:24]**  | 4.125 **[0000080661-24-000045_pgr-20240930.htm:24]**         | 12.3% = (850.0 / 6,891.8) * 100 **[0000080661-24-000045_pgr-20240930.htm:24]** **[0000080661-24-000045_pgr-20240930.htm:24]**                                    |
| 2048     | 600.0 **[0000080661-24-000045_pgr-20240930.htm:24]**                | 4.20% Senior Notes **[0000080661-24-000045_pgr-20240930.htm:24]**   | 4.20 **[0000080661-24-000045_pgr-20240930.htm:24]**          | 8.7% = (600.0 / 6,891.8) * 100 **[0000080661-24-000045_pgr-20240930.htm:24]** **[0000080661-24-000045_pgr-20240930.htm:24]**                                     |
| 2050     | 500.0 **[0000080661-24-000045_pgr-20240930.htm:24]**                | 3.95% Senior Notes **[0000080661-24-000045_pgr-20240930.htm:24]**   | 3.95 **[0000080661-24-000045_pgr-20240930.htm:24]**          | 7.3% = (500.0 / 6,891.8) * 100 **[0000080661-24-000045_pgr-20240930.htm:24]** **[0000080661-24-000045_pgr-20240930.htm:24]**                                     |
| 2052     | 500.0 **[0000080661-24-000045_pgr-20240930.htm:24]**                | 3.70% Senior Notes **[0000080661-24-000045_pgr-20240930.htm:24]**   | 3.70 **[0000080661-24-000045_pgr-20240930.htm:24]**          | 7.3% = (500.0 / 6,891.8) * 100 **[0000080661-24-000045_pgr-20240930.htm:24]** **[0000080661-24-000045_pgr-20240930.htm:24]**                                     |

84b3f943cf5d2e7dce5ad3c19bff94d4d18215bf7c104b0efffed95502c8b6f2

4545b7035e862a85136d265f8805e90216f59fec00ccdb052f370a7c6d5cdbc6

1. **Combined Ratio Outlook**  
   **Q:** Will policy growth lower combined ratio, offering more flexibility?  
   **A:** Susan Griffith agreed that with **2 million additional auto policies and 2.6 million additional policies overall**  **[PGR_3396903_14]** , the combined ratio could be affected, but there are many inputs involved. While she couldn't signal what the future combined ratio will be, Progressive plans to spend more on media if they can grow policies efficiently, aiming for a **calendar year and lifetime combined ratio of 96**.  **[PGR_3396903_14]** 

2. **Investment Income and Competition**  
   **Q:** Does lower investment income from competitors benefit Progressive?  
   **A:** Susan Griffith stated that Progressive separates operations from capital management. Their **net investment income has improved** due to bonds maturing and reinvesting at higher yields.  **[PGR_3396903_15]**  However, their focus remains on growing as fast as possible at a **96 combined ratio**  **[PGR_3396903_15]** , regardless of competitors' reliance on investment income.

3. **Ad Spend and PIF Growth**  
   **Q:** Will increased ad spend accelerate PIF gains in H2?  
   **A:** Susan Griffith expressed hope that the ramped-up ad spend would continue to drive policy gains, stating, "if there's ever a signal of our confidence in our rates, it's based on what we're spending on our media".  **[PGR_3396903_16]**  They intend to leverage their competitive position to grow units throughout **2024 and beyond**.  **[PGR_3396903_16]** 

4. **Competitors Returning to Advertising**  
   **Q:** How do you view current advertising opportunities?  
   **A:** Susan Griffith noted they still see a lot of ambient shopping and that some competitors are gaining rate, leading to continued shopping.  **[PGR_3396903_17]**  Progressive feels confident about their efficiency and their ability to spend effectively on media to capture growth.  **[PGR_3396903_17]** 

5. **Direct-to-Consumer Channel Growth**  
   **Q:** How will DTC channel evolve amid changing consumer behaviors?  
   **A:** Susan Griffith believes that buying online makes sense for the younger generation and that it's hard to enter the DTC market.  **[PGR_3396903_18]**  She feels proud that Progressive can compete effectively in both **direct and agency channels**  **[PGR_3396903_18]** , emphasizing the importance of providing the right choices for consumers.

6. **Renters Insurance Growth**  
   **Q:** What's driving growth in renters insurance, and auto cross-selling?  
   **A:** Susan Griffith mentioned that renters insurance is often required and that Progressive has an easy quote flow.  **[PGR_3396903_19]**  They like to bundle **auto and renters insurance**  **[PGR_3396903_19]** , and renters can often turn into homeowners, offering long-term opportunities.

7. **Staffing and Advertising Impact**  
   **Q:** How do staffing challenges affect advertising and growth?  
   **A:** Susan Griffith said that while it rarely happens, they monitor staffing closely to ensure they can grow without compromising customer service.  **[PGR_3396903_20]**  They have strategies like shifting work to different states and hiring ahead of need.  **[PGR_3396903_20]** 

8. **Multilingual Advertising Strategies**  
   **Q:** How are you targeting multilingual populations in advertising?  
   **A:** Susan Griffith acknowledged the importance of the **Hispanic community** and mentioned that they've been working on multilingual strategies.  **[PGR_3396903_21]**  They had a setback due to litigation in Colorado but are continuing to develop their approach.  **[PGR_3396903_21]** 

9. **Online Homeowners Insurance Potential**  
   **Q:** When will homeowners insurance be widely bought online?  
   **A:** Susan Griffith stated that they are investing in direct homeowners insurance sales, with about **25% of their business coming from the direct side**.  **[PGR_3396903_22]**  They will continue to expand, believing that people want to buy online.  **[PGR_3396903_22]** 

10. **Homeowners Pricing and Market Share**  
    **Q:** Is the industry overpricing homeowners insurance, creating an opportunity?  
    **A:** Susan Griffith explained that they've taken significant rate increases—**about 17% on a trailing 12 months**  **[PGR_3396903_23]** —and are focusing on derisking their book. They plan to improve segmentation and be more aggressive in pricing to take more market share when appropriate.  **[PGR_3396903_23]** 

11. **Cost per Sale and Competition**  
    **Q:** Expecting increased competition on cost per sale?  
    **A:** Susan Griffith acknowledged they might feel some pressure on cost per sale but noted it's so much below their targeted acquisition cost (TAC) that they feel good about efficiency.  **[PGR_3396903_24]** 

00dc6714edfd01bc7b0cac7dea7f09943739bfb0920a3ec5dd59f1bdecf57a3f

- **Increased competition expected in 2024**: Progressive anticipates a highly competitive year as competitors re-enter the market, which could pressure its growth and profitability.  **[PGR_3375864_18]**
- **Rate inadequacy in key states**: Progressive is not yet rate adequate in important states like New York, New Jersey, and California, and is dependent on regulatory approval for rate increases to achieve profitability goals in these markets.  **[PGR_3375864_20]**
- **Combined ratio above target due to inadequate rates**: In 2023, Progressive's combined ratio was above its 96% target because it did not have the right rates and is still working on segmentation, which may continue to impact profitability.  **[PGR_3375864_29]**

9f0178667327489a57dd394d7c30286e4c9b4d3f0bfc316e0a9af79ff55e4bf7

- Progressive aims for unlimited growth without a ceiling, as long as they achieve at least **$0.04 of underwriting profit**.  **[PGR_3375864_19]**  They leverage diversification across all lines of business and have a strategic plan based on the McKinsey **3 horizons** model to capture more market share.  **[PGR_3375864_19]**
- The company is excited about expanding in Commercial Lines, including entering their **45th state** with Florida  **[PGR_3375864_19]** , and integrating acquisitions like Protective, now rebranded as **Progressive Fleet and Specialty**.  **[PGR_3375864_19]**
- Progressive is **investing in internal capabilities**, increasing claims specialist headcount to handle property claims internally as they grow their property book, enhancing their talent and understanding to better serve customers.  **[PGR_3375864_38]**

ec604c531f59847353abdafb3a7b637889fcc351125e77b16cb4e4af42e328f8

- **Progressive added 2 million new auto policies year-to-date**, setting a record for policy growth and demonstrating strong customer acquisition.  **[PGR_3396903_14]**
- The company is achieving a **cost per sale significantly below targeted acquisition cost**, indicating high efficiency in customer acquisition and potential for enhanced profitability.  **[PGR_3396903_24]** **[PGR_3396903_14]**
- **Increased media spending reflects confidence in competitive rates** and is expected to drive further policy-in-force growth and market share gains throughout 2024 and beyond.  **[PGR_3396903_16]** **[PGR_3396903_34]**

72ff88115b916b9d0c97febdb42234ddc5f86310d37a5d88b8a6aac7107f5894

1. **Growth Outlook**  
   **Q:** Do you expect growth to continue, and what factors will influence it?  
   **A:** We feel very bullish about our continued growth on both a premium basis and unit basis.  **[PGR_3387165_5]**  We have several levers, including rolling back non-rate actions and increasing media spend as long as it's efficient.  **[PGR_3387165_5]**  We're about **10 points better than our target 96 combined ratio**, giving us room to maximize growth.  **[PGR_3387165_5]** 

2. **Expense Ratios and Margins**  
   **Q:** Are expense ratio improvements structural or cyclical?  
   **A:** The figures have fluctuated depending on circumstances.  **[PGR_3387165_6]**  We're investing to reduce expenses, including loss adjustment and non-acquisition expenses, to offer competitive prices.  **[PGR_3387165_6]**  In March, we spent the **highest amount ever on media**, and we'll continue to spend as long as it's efficient.  **[PGR_3387165_6]** 

3. **Retention and Competition**  
   **Q:** How will you maintain retention amid competitive pressures?  
   **A:** Retention is our **holy grail**.  **[PGR_3387165_3]**  We feel good about our trailing 12 months, though our 3-month retention is flat.  **[PGR_3387165_3]**  We'll focus on having more stable and competitive rates to prevent customers from shopping elsewhere.  **[PGR_3387165_3]**  We'll continue to focus on new business, renewals, and providing great service.  **[PGR_3387165_3]** 

4. **Capital Adequacy and Property Exposure**  
   **Q:** Can you support growth given capital requirements, especially with increased property exposure?  
   **A:** We are in an **incredibly comfortable capital position**.  **[PGR_3387165_11]**  We're growing in non-volatile states and shrinking in volatile ones to manage exposure.  **[PGR_3387165_11]**  Our capital levels allow us to grow as fast as we can while maintaining our margins.  **[PGR_3387165_11]** 

5. **Investment in AI and Technology**  
   **Q:** How are you investing in technology and AI to improve efficiency?  
   **A:** We've been investing in machine learning and AI for over a decade.  **[PGR_3387165_10]**  We have over **100 different models**, including many in generative AI.  **[PGR_3387165_10]**  We're excited about the efficiencies these technologies will bring across every aspect of our company.  **[PGR_3387165_10]** 

6. **Loss Frequency Trends**  
   **Q:** What is driving recent favorable frequency trends?  
   **A:** Factors include our **self-imposed underwriting restrictions**, **mix differences**, **mild weather**, and benefits from Florida legislation.  **[PGR_3387165_21]**  However, it's hard to pinpoint exact causes, and we prefer to look at the trailing 12-month frequency over prior.  **[PGR_3387165_21]** 

7. **Robinsons Segment Growth**  
   **Q:** How does growing the Robinsons segment affect your business?  
   **A:** We're attracting more Robinsons through bundled offerings and enhanced digital tools.  **[PGR_3387165_16]**  Retention is **much higher** for Robinsons due to additional products like auto, home, and umbrella.  **[PGR_3387165_16]** 

8. **Commercial Lines Growth**  
   **Q:** What is the outlook for commercial lines growth?  
   **A:** We are excited about our commercial lines growth, with new product models and expansion.  **[PGR_3387165_19]**  Business market tiers like small fleets have **tripled over the last five years**.  **[PGR_3387165_19]**  Adoption of usage-based insurance by our commercial auto contractor customers has **doubled**.  **[PGR_3387165_19]** 

b87885a95908646671cb09c0aa1d3b2f87d6abdacda2167a486ac9602a16db22

- **Potential pressure on cost per sale due to increased competition**, as peers improve their margins, which may impact Progressive's efficiency.  **[PGR_3396903_24]**
- **Nonrenewal of 115,000 unprofitable policies in Florida**, indicating challenges in the property insurance market and the need to de-risk the portfolio.  **[PGR_3396903_23]**
- **Uncertainty in achieving future combined ratio targets**, with difficulty predicting future profitability due to multiple inputs, despite aggressive growth in policy counts.  **[PGR_3396903_14]**

bf0163869673d820d414eec206cfe26c00dec341ce1fba6c70285bf6049c7d04

- **20% decline in Telematics adoption in the agency channel** due to issues with large national account agencies, which could impact the company's risk assessment capabilities.  **[PGR_3387165_20]**
- **Potential increase in severity trends in commercial auto** stemming from growth in higher-risk areas like transportation network companies (TNC) and exposure changes from the Protective acquisition, posing challenges in managing these trends.  **[PGR_3387165_26]**
- **Intensifying competition** as other companies adjust pricing and recover, which may affect Progressive's market share and growth prospects.  **[PGR_3387165_18]**

7628cf5f0cd9c2404c308661aab7b71c01a4028335b62b64cbee8d09e5ba1b19

- **Record New Application Growth Positions Progressive for Strong Future Expansion**: Progressive reported **117% new application growth on the direct side and 98% on the agency side** in 2024, which are massive increases. This exceptional growth enhances the company's outlook for 2025, as it plans to capitalize on this momentum and grow "literally as fast as we can."  **[PGR_3405974_9]**
- **Leveraging Strong Margins to Propel Organic Growth Efficiently**: The company is using its **current strong margins** to fuel organic growth by increasing media spending and capturing more market share. Progressive's flexibility in adjusting media spend has allowed it to take advantage of market conditions where competitors are raising rates and restricting new business. This strategy enables Progressive to grow as fast as possible while maintaining a combined ratio at or below **96%**.  **[PGR_3405974_4]** **[PGR_3405974_20]**
- **Strategic Focus on Segmentation and High-Quality Business Enhances Profitability**: Progressive continues to deepen its **segmentation** in both product pricing and media spend, allowing it to attract higher-quality, preferred customers with lower claims frequency. Additionally, the company is incentivizing agents through aligned compensation structures to produce high-quality, profitable business and promote bundling, which is expected to improve underwriting profitability and retention.  **[PGR_3405974_18]** **[PGR_3405974_11]**

caced7959608fab1583e6fc1077acf3a002f5f417046727633077f97b6302d7e

- **Progressive's significant growth in 2024 may not be sustainable in 2025 due to more difficult year-over-year comparisons and increasing competition.** Susan Griffith noted that the company had massive new application growth (**117%** direct, **98%** agency), but acknowledges that "**the comps will be more difficult**" in 2025.  **[PGR_3405974_9]**
- **Increasing competition may pressure Progressive's margins and growth prospects.** Competitors are returning to the market with competitive rates and increased media spending, which could reduce Progressive's growth and media efficiency. Susan Griffith stated, "**Yes, I think competition will continue to have the right rates and show up in media.**"  **[PGR_3405974_5]**
- **Progressive's lower exposure to home insurance and bundling compared to competitors may limit its ability to attract customers seeking bundled products.** Susan Griffith admitted, "**We don't have the same, probably percentage market share [in home insurance]. Clearly, we don't.**"  **[PGR_3405974_23]**

8ae55871b5c54c2ece8699db520945a99c4d929ae9a3f0037da75135190e3b80

1. **Growth Strategy**  
   **Q:** What's the outlook for growth, and how are you thinking about media spend?  
   **A:** Progressive plans to ramp up growth in 2024 by significantly increasing media spend to capitalize on market conditions.  **[PGR_3375864_12]**  They feel confident in their rates and see an opportunity to gain market share as ambient shopping remains high due to competitors still raising rates.  **[PGR_3375864_10]** **[PGR_3375864_12]**  The company is also unraveling non-rate underwriting actions taken last year, which should further boost growth.  **[PGR_3375864_10]** **[PGR_3375864_12]** **[PGR_3375864_21]** 

2. **Expense Ratio**  
   **Q:** How will increased media spending impact the expense ratio?  
   **A:** While increasing media spend will put pressure on the expense ratio, Progressive emphasizes that they will spend efficiently and focus on reducing non-acquisition expenses over time.  **[PGR_3375864_12]** **[PGR_3375864_14]** **[PGR_3375864_31]**  They are not targeting a specific expense ratio but are focused on acquiring customers efficiently without compromising incremental returns.  **[PGR_3375864_31]** **[PGR_3375864_32]** 

3. **Competitive Environment**  
   **Q:** How does the current competitive landscape affect your ability to gain market share?  
   **A:** Progressive believes the current environment presents an opportunity to gain market share, especially in the preferred and bundled "Robinsons" market.  **[PGR_3375864_13]**  Competitors are still raising rates, leading to increased shopping, and Progressive feels well-positioned with their rates to attract and retain customers.  **[PGR_3375864_10]** **[PGR_3375864_13]** **[PGR_3375864_18]**  They are seeing competitors re-enter the market but are confident in their ability to compete effectively.  **[PGR_3375864_18]** 

4. **Loss Trends**  
   **Q:** What's your outlook on severity and frequency trends in 2024?  
   **A:** The company expects severity trends to moderate, with auto parts inflation nearing **0%** and auto services in the mid-single digits.  **[PGR_3375864_24]**  They anticipate frequency to revert to normal declining trends of around **2%**, excluding recent anomalies.  **[PGR_3375864_28]**  Progressive will monitor trends closely but feels optimistic about a more benign claims environment.  **[PGR_3375864_24]** **[PGR_3375864_28]** 

5. **Rate Increases**  
   **Q:** What's the status of rate adequacy in key states?  
   **A:** Progressive feels confident in their overall rate adequacy but acknowledges that they are still working to obtain necessary rate increases in certain states like California, New York, and New Jersey.  **[PGR_3375864_19]** **[PGR_3375864_20]** **[PGR_3375864_25]**  They are in ongoing discussions with regulators and aim to achieve rates that allow them to make at least a **4%** underwriting profit.  **[PGR_3375864_20]** **[PGR_3375864_25]** 

6. **Retention and PIF Growth**  
   **Q:** How are retention levels and policies in force trending?  
   **A:** Retention levels are improving and approaching historical highs, which, along with new business, is driving policy in force growth.  **[PGR_3375864_23]** **[PGR_3375864_24]**  The company expects retention improvements to continue as rates stabilize and anticipates strong PIF growth over the year.  **[PGR_3375864_10]** **[PGR_3375864_16]** **[PGR_3375864_24]** 

7. **Florida Legislative Reforms**  
   **Q:** Will recent Florida tort reforms affect your strategy in the state?  
   **A:** Progressive views the recent Florida legislative reforms positively and expects them to reduce litigation pressures.  **[PGR_3375864_37]**  However, they do not plan to change their de-risking strategy in the state's property market, as they continue to focus on reducing exposure to volatile risks like coastal properties and rentals.  **[PGR_3375864_37]** 

8. **Reinsurance Program**  
   **Q:** Are you considering changes to your reinsurance program upon renewal?  
   **A:** While final decisions haven't been made, Progressive anticipates maintaining a similar structure in their catastrophe reinsurance program during the June renewal.  **[PGR_3375864_36]**  They have reduced their probable maximum losses due to de-risking the property portfolio, which may decrease the amount of coverage needed.  **[PGR_3375864_36]** 

9. **Commercial Lines and TNC Business**  
   **Q:** What's the outlook for the TNC business after recent volatility?  
   **A:** Progressive has taken significant rate increases in their Transportation Network Company (TNC) business and feels much better about its profitability.  **[PGR_3375864_32]**  They have strengthened reserves, particularly in states like New Jersey and California, and continue to gain experience that helps them manage the business effectively.  **[PGR_3375864_32]** 

10. **Claims Environment in Florida**  
    **Q:** What drove the favorable development in January, particularly in Florida?  
    **A:** The favorable development was primarily due to settlements and legislative changes in Florida, including impacts from House Bill reforms affecting glass and other claims.  **[PGR_3375864_22]** **[PGR_3375864_28]**  The company is cautiously optimistic about the benefits of the tort reforms but wants to see more data over time.  **[PGR_3375864_22]** **[PGR_3375864_28]** 

ada08d50ffc902b5b8b384ff77160440e2342e7fae2c7e43d95f24b4f65686d3

1. **Potential Price Cuts**  
   **Q:** Will you consider price cuts due to strong margins?  
   **A:** Susan Griffith explained that they will monitor trends carefully. While they implemented price cuts in about **9 states**  **[PGR_3405974_4]** , they also increased rates in others. They prefer to use current margins to propel growth through increased media spend and aim for stable rates to drive organic growth.  **[PGR_3405974_4]** 

2. **2025 Growth Outlook**  
   **Q:** How do you view growth prospects for 2025?  
   **A:** Susan Griffith is **bullish about 2025**. With **117% new app growth** on the direct side and **98%** on the agency side  **[PGR_3405974_9]** , they expect to continue growing as fast as they can. Despite tougher comparisons, they feel well-positioned due to competitive rates and strategic positioning.  **[PGR_3405974_9]** 

3. **Competitive Environment**  
   **Q:** Is increased competition affecting your growth strategy?  
   **A:** Competitors are starting to raise rates and increase media spending, but Progressive believes competition is good.  **[PGR_3405974_12]**  They focus on their strategic pillars—people, competitive rates, brand evolution, and broad coverage—and are confident in their ability to grow due to their strong positioning.  **[PGR_3405974_12]** 

4. **Frequency and Severity Trends**  
   **Q:** What explains recent BI frequency and severity trends?  
   **A:** Bodily injury severity has increased due to higher large losses and more soft tissue injuries with attorney representation.  **[PGR_3405974_10]**  Social inflation and elevated jury verdicts are influencing these trends, but Progressive is not overly concerned about one quarter's results.  **[PGR_3405974_10]** 

5. **Retention Rates Impact**  
   **Q:** Does stabilizing policy life expectancy affect combined ratio?  
   **A:** Retention is crucial for Progressive. While policy life expectancy has stabilized, they continue to focus on stable rates and great service to improve retention. They monitor it closely but do not see it as a headwind to the combined ratio.  **[PGR_3405974_7]** 

6. **Use of Technology and AI**  
   **Q:** How are you managing growth with staffing and technology?  
   **A:** Progressive has hired well in advance of need to handle growth.  **[PGR_3405974_12]**  They utilize AI and technology to become more efficient, such as chatbots that handle about **15% of calls**.  **[PGR_3405974_12]**  This allows them to focus human resources on more complex tasks.

7. **Homeowners Insurance Derisking**  
   **Q:** Can you update on derisking in cat-exposed states?  
   **A:** Progressive continues a robust derisking program. PIF growth is up **19%** in growth states and down **9%** in volatile states.  **[PGR_3405974_10]**  They've taken significant rate increases and are exiting certain lines like DP3 in many states.  **[PGR_3405974_10]** 

8. **Ad Spend Effectiveness**  
   **Q:** Will ad spend remain effective if competition intensifies?  
   **A:** Progressive believes that efficient spending is key, not just spending more.  **[PGR_3405974_5]**  They focus on media efficiency and segmentation to reach the right customers effectively. They are prepared for increased competition and confident in their approach.  **[PGR_3405974_5]** 

9. **Attorney Representation Trends**  
   **Q:** What are the long-term trends in attorney rep rates?  
   **A:** Attorney representation rates have risen over the years, and medical trends continue to increase.  **[PGR_3405974_13]**  Social inflation and some egregious jury verdicts are concerns, but Progressive prices for these trends and focuses on customer trust and fair dealings.  **[PGR_3405974_13]** 

10. **Auto PIF Growth and Hurricanes**  
    **Q:** Did recent hurricanes affect auto PIF growth?  
    **A:** Susan Griffith stated that they wouldn't say PIF growth comes from the hurricanes.  **[PGR_3405974_15]**  While total loss vehicles might be replaced, the storms did not significantly impact PIF growth.  **[PGR_3405974_15]** 

11. **Favorable Frequency Trend**  
    **Q:** Is the favorable frequency trend sustainable?  
    **A:** The increased mix of preferred customers, who have lower frequency, is the main factor.  **[PGR_3405974_18]**  They will continue to monitor trends but focus on maintaining target profit margins.  **[PGR_3405974_18]** 

12. **Agent Compensation Changes**  
    **Q:** Have you changed how you're rewarding agents?  
    **A:** Progressive has an aligned national commission structure designed to reward higher-quality business and greater volume.  **[PGR_3405974_11]**  They continually evolve compensation to encourage agents to place high-quality, bundled business with Progressive.  **[PGR_3405974_11]** 

13. **Cost per Sale**  
    **Q:** How does your cost per sale compare to target?  
    **A:** The cost per sale remains below their targeted acquisition cost.  **[PGR_3405974_16]**  They continue to see elevated shopping and a hard market, making their media spend efficient.  **[PGR_3405974_16]** 

14. **Q4 Growth Expectations**  
    **Q:** Should we expect slower growth in Q4 due to holidays?  
    **A:** Progressive plans to continue their push through the end of 2024.  **[PGR_3405974_8]**  They aim to capture more than their fair share of shoppers, even if shopping typically slows during the holidays.  **[PGR_3405974_8]** 

15. **Staffing in Full Employment**  
    **Q:** How are you keeping fully staffed amid growth and full employment?  
    **A:** By hiring well in advance of need and focusing on employee training and retention.  **[PGR_3405974_12]**  They use technology to handle simpler tasks, allowing staff to focus on complex customer interactions.  **[PGR_3405974_12]** 

f8214223f027b3eda989315a69b63244e74e2f86b4e2631a18c64f7007215993

- Progressive is well-positioned for **maximizing growth** as they unwind non-rate actions and increase efficient media spend, with management expressing strong confidence and **bullishness** about growth opportunities. They have unwound about **60%-70%** of non-rate actions and still have room to pull further levers to promote growth.  **[PGR_3387165_13]** **[PGR_3387165_8]**
- Progressive's significant investment in **technology** and **AI** provides a competitive advantage by driving efficiencies and better segmentation, leading to improved underwriting and competitive pricing. They are utilizing over **100 different models**, including in generative AI, and see AI as a **game-changer** in every aspect of the company, contributing to future growth and profitability.  **[PGR_3387165_10]**
- Progressive's strong focus on **segmentation** and continuous improvement in their product models enables them to effectively **match rate to risk**, which is a key competitive advantage especially in the current hard market. Management emphasizes that segmentation is a crucial part of their success and that they never rest in continuing to improve it.  **[PGR_3387165_18]** **[PGR_3387165_20]**

7197873b4ca95d8fbba07a29c638801387007f875b2d486af78a4ec452163081

Progressive Corp (PGR)

Financials