PGR · 10-Q · 2026Q2 · Full report
Florida Profit Limit Credits
PROGRESSIVE CORP/OH/ · 2026-08-03 · Importance 65 · Surprise 60 · In source text
In the first quarter of 2026, Progressive paid $1.2 billion in Florida policyholder credits. The credits represented estimated profit earned during the three-accident-year period ended December 31, 2025, above the statutory profit limit applicable to insurance groups writing personal auto insurance in Florida. The payment reduced operating cash flow for the first six months of 2026 by $1.2 billion, although management expects cash flows to remain positive for the foreseeable future. Changes in market or regulatory conditions could nevertheless require additional capital.
Key facts
- Decrease in operating cash flows during first six months of 2026 was primarily due to $1.2 billion Florida policyholder credits paid in the first quarter 2026. source
- Florida policyholder credits represented estimated profit in excess of statutory profit limit for the three-accident-year period ended December 31, 2025. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | realized | -1.0% | Decrease in operating cash flows during first six months of 2026 was primarily due to $1.2 billion Florida policyholder credits paid in… |
| liability | negative | contingent | — | Florida policyholder credits represented estimated profit in excess of statutory profit limit for the three-accident-year period ended… |