PGR · 10-Q · 2026Q2 · Full report

Investment Portfolio Performance

PROGRESSIVE CORP/OH/ · 2026-08-03 · Importance 70 · Surprise 64 · In source text

The investment portfolio fair value increased to $97.221 billion at June 30, 2026 from $88.610 billion a year earlier, with fixed-income securities representing 95.3% and common equities representing 4.7%. Six-month FTE total return was 1.3% for the total portfolio, including 0.9% for fixed-income securities and 10.6% for common stocks, compared with 4.3%, 4.3%, and 5.3%, respectively, in the prior-year period. The after-tax net unrealized loss on fixed maturities increased to $832 million from an $81 million loss at June 30, 2025, driven by valuation declines as interest rates rose. During the second quarter, Progressive increased residential mortgage-backed securities by $146 million, commercial mortgage-backed securities by $462 million, other asset-backed securities by $1.3 billion, municipal securities by $765 million, and corporate debt by $605 million.

Key facts

• The modest decrease in portfolio fair value primarily reflected valuation declines across fixed-maturity sectors, the $7.9 billion payment of the annual variable common share dividend, and the $1.1 billion of repurchases of common shares, mostly offset by positive cash flows from insurance operations and proceeds from $1.5 billion senior note issuances in March 2026. source
• At June 30, 2026 U.S. government securities fair value was $43,781 million representing 45.0% of the portfolio with duration 4.5 years and average rating AA+. source
• At June 30, 2026 corporate and other debt fair value was $21,591 million representing 22.2% of the portfolio with duration 2.8 years and average rating BBB+. source
• Our fixed-maturity portfolio had a total after-tax net unrealized loss of $832 million as of June 30, 2026. source
• Fair value of the investment portfolio was $97.2 billion at June 30, 2026, compared to $97.4 billion at December 31, 2025. source
• The other asset-backed securities (OABS) portfolio fair value increased by $1.3 billion during the second quarter 2026. source
• Asset allocation strategy is to maintain 0%-25% in Group I and 75%-100% in Group II securities. source
• Fixed-income portfolio weighted average credit quality was AA- at June 30, 2026. source

Impact estimates