Progressive Corporation

Jonathan Bauer said the portfolio returned 7.33% in 2025 with strong fixed income and equity contributions, duration extended to 3.5 years (near a 25-year high, up from 2.75 years mid-2022), average credit rating AA-, and after-tax investment contribution just short of $5 billion.

Tricia said Progressive recently formed an AI Strategy Council looking 3 to 5 years out. The Drive Like an Animal commercial was AI-generated except for Flo's voice, delivered much faster and cheaper than a traditional commercial, and measurably improved new prospects. Claims is working with Gaussian Splatting and predictive AI models.

The Florida policyholder credit grew to $1.2 billion by year-end as loss trend on the Florida personal auto book came in below expectations. Progressive has reduced Florida rates three times in the last year and will continue to watch combined ratio on the rolling three-year statute window for any additional 2026 charge.

Tricia said 4 million customers who called the customer preservation team in 2025 received an average decrease of 21%. Loyalty rewards and tenure discounts delivered about $1.5 billion in savings in 2025. Snapshot, new-business rate cuts and flexibility for federally-affected customers all supported affordability.