PGR · 10-Q · 2026Q2 · Full report
Liquidity and Capital Position
PROGRESSIVE CORP/OH/ · 2026-08-03 · Importance 62 · Surprise 40 · In source text
Operating cash flow was $8.0 billion for the first six months of 2026, down from $9.2 billion in the prior-year period because Progressive paid $1.2 billion of Florida policyholder credits in the first quarter. At June 30, 2026, the company held $45.8 billion of short-term investments and U.S. Treasury securities, representing about half of its $97.2 billion investment portfolio. Total capital increased to $42.7 billion from $37.2 billion at year-end 2025, while the debt-to-total-capital ratio rose to 19.6% but remained below the company’s 30% policy limit. The holding company had $6.7 billion available in a consolidated non-insurance subsidiary, and the company maintained a $300 million unsecured discretionary PNC credit line without drawing on it.
Key facts
- The total fair value of securities held in a consolidated, non-insurance subsidiary of the holding company was $6.7 billion at June 30, 2026. source
- Debt-to-total capital ratio was 19.6% at June 30, 2026, 17.5% at June 30, 2025, and 18.5% at December 31, 2025; policy is to maintain ratio less than 30%. source
- Had $6.7 billion in a consolidated, non-insurance subsidiary of the holding company available to fund corporate obligations and provide additional capital to insurance subsidiaries at June 30, 2026. source
- At June 30, 2026 our total fixed-income securities fair value was $92,689 million, representing 95.3% of the portfolio with duration 3.5 years and average rating AA-. source
- Estimated consolidated statutory surplus was $32.9 billion as of June 30, 2026. source
- The composition of the investment portfolio at June 30, 2026: total portfolio fair value $97,221 million and duration 3.5 years. source
- Total capital increased $5.5 billion from year-end 2025. source
- Operations generated positive cash flows of $8.0 billion for the six months ended June 30, 2026 and $9.2 billion for the six months ended June 30, 2025. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| assets | positive | realized | +4.4% | Total capital increased $5.5 billion from year-end 2025. |
| liability | negative | realized | — | Debt-to-total capital ratio was 19.6% at June 30, 2026, 17.5% at June 30, 2025, and 18.5% at December 31, 2025; policy is to maintain… |