☒ | Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
☐ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Ohio | 34-0963169 | |||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
6300 Wilson Mills Road, | Mayfield Village, | Ohio | 44143 | |||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Shares, $1.00 Par Value | PGR | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||||||||
Emerging growth company | ☐ |
Chief Executive Officer | ||||||||
•Chief Financial Officer | •Personal Lines President | |||||||
•Chief Investment Officer | •Property General Manager | |||||||
•Chief Human Resources Officer | •Commercial Lines President | |||||||
•Chief Information Officer | •Claims President | |||||||
•Chief Legal Officer | •Customer Relationship | |||||||
•Chief Marketing Officer | Management President | |||||||
•Chief Strategy Officer |
ISSUER PURCHASES OF EQUITY SECURITIES | |||||||||||||||||||||||
2021 Calendar Month | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs | |||||||||||||||||||
October | 612,434 | $ | 90.96 | 1,485,517 | 23,514,483 | ||||||||||||||||||
November | 189 | 94.09 | 1,485,706 | 23,514,294 | |||||||||||||||||||
December | 1,170 | 94.24 | 1,486,876 | 23,513,124 | |||||||||||||||||||
Total | 613,793 | $ | 90.97 |
Name | Age | Offices Held and Last Five Years’ Business Experience | ||||||||||||
Susan Patricia Griffith | 57 | President and Chief Executive Officer | ||||||||||||
John P. Sauerland | 57 | Vice President and Chief Financial Officer | ||||||||||||
Karen B. Bailo | 54 | Commercial Lines President since October 2020; Commercial Lines Acquisition and Small Business General Manager from January 2020 to September 2020; Commercial Lines Controller from August 2018 to December 2019; Agency Distribution Business Leader prior to August 2018 | ||||||||||||
Jonathan S. Bauer | 44 | Chief Investment Officer since January 2020; Portfolio Manager prior to January 2020 | ||||||||||||
Steven A. Broz | 51 | Chief Information Officer | ||||||||||||
Patrick K. Callahan | 51 | Personal Lines President | ||||||||||||
William L. Clawson II | 52 | Chief Human Resources Officer since December 2021; Compensation and Benefits Business Leader from November 2019 to December 2021; Product Manager prior to November 2019 | ||||||||||||
Remi Kent | 46 | Chief Marketing Officer since November 2021; Senior Vice President and Global Chief Marketing Officer of the Consumer Business Group of 3M Company (global manufacturing and technology company) from January 2020 to October 2021; Global Business Director for Post-It® and Scotch® Brands of 3M Company from June 2017 to January 2020; Global Brand and Strategy Leader of 3M Company prior to June 2017 | ||||||||||||
Mariann Wojtkun Marshall | 59 | Vice President and Chief Accounting Officer since March 2019; Director of Financial Reporting - GAAP prior to March 2019; Assistant Secretary | ||||||||||||
Daniel P. Mascaro | 58 | Vice President, Secretary, and Chief Legal Officer since March 2017; Claims Legal Business Leader prior to March 2017 | ||||||||||||
John Murphy | 52 | Claims President since December 2021; Customer Relationship Management President prior to December 2021 | ||||||||||||
Lori Niederst | 48 | Customer Relationship Management President since December 2021; Chief Human Resources Officer prior to December 2021 | ||||||||||||
Andrew J. Quigg | 42 | Chief Strategy Officer since July 2018; Customer Experience General Manager prior to July 2018 | ||||||||||||
EQUITY COMPENSATION PLAN INFORMATION | |||||||||||||||||||||||
Plan Category | Number of Securities to be Issued upon Exercise of Outstanding Options, Warrants and Rights | Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans | ||||||||||||||||||||
Equity compensation plans approved by security holders: | |||||||||||||||||||||||
Employee Plans: | |||||||||||||||||||||||
2015 Equity Incentive Plan | 3,539,022 | 1 | NA | 7,010,609 | 2 | ||||||||||||||||||
Director Plans: | |||||||||||||||||||||||
2017 Directors Equity Incentive Plan | 29,206 | NA | 297,950 | ||||||||||||||||||||
Equity compensation plans not approved by security holders: | |||||||||||||||||||||||
None | |||||||||||||||||||||||
Total | 3,568,228 | NA | 7,308,559 |
December 31, 2021 | |||||||||||||||||
Type of Investment | Cost | Fair Value | Amount At Which Shown In The Balance Sheet | ||||||||||||||
Fixed maturities: | |||||||||||||||||
Bonds: | |||||||||||||||||
United States Government and government agencies and authorities | $ | 18,586.1 | $ | 18,488.2 | $ | 18,488.2 | |||||||||||
States, municipalities, and political subdivisions | 2,162.6 | 2,185.3 | 2,185.3 | ||||||||||||||
Foreign government obligations | 17.9 | 17.9 | 17.9 | ||||||||||||||
Public utilities | 764.6 | 777.7 | 777.7 | ||||||||||||||
Corporate and other debt securities | 9,761.6 | 9,914.4 | 9,914.4 | ||||||||||||||
Asset-backed securities | 12,330.5 | 12,307.9 | 12,307.9 | ||||||||||||||
Redeemable preferred stocks | 170.9 | 181.7 | 181.7 | ||||||||||||||
Total fixed maturities | 43,794.2 | 43,873.1 | 43,873.1 | ||||||||||||||
Equity securities: | |||||||||||||||||
Common stocks: | |||||||||||||||||
Public utilities | 69.2 | 178.8 | 178.8 | ||||||||||||||
Banks, trusts, and insurance companies | 251.1 | 902.2 | 902.2 | ||||||||||||||
Industrial, miscellaneous, and all other | 943.8 | 3,977.5 | 3,977.5 | ||||||||||||||
Nonredeemable preferred stocks | 1,571.8 | 1,639.9 | 1,639.9 | ||||||||||||||
Total equity securities | 2,835.9 | 6,698.4 | 6,698.4 | ||||||||||||||
Short-term investments | 942.6 | 942.6 | 942.6 | ||||||||||||||
Total investments | $ | 47,572.7 | $ | 51,514.1 | $ | 51,514.1 |
Years Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Revenues | |||||||||||||||||
Dividends from subsidiaries | $ | 2,847.0 | $ | 4,096.5 | $ | 2,277.9 | |||||||||||
Undistributed income from subsidiaries | 674.9 | 1,774.4 | 1,821.3 | ||||||||||||||
Equity in net income of subsidiaries | 3,521.9 | 5,870.9 | 4,099.2 | ||||||||||||||
Intercompany investment income | 4.5 | 16.5 | 31.1 | ||||||||||||||
Total revenues | 3,526.4 | 5,887.4 | 4,130.3 | ||||||||||||||
Expenses | |||||||||||||||||
Interest expense | 220.0 | 218.1 | 190.4 | ||||||||||||||
Deferred compensation1 | 8.8 | 33.9 | 16.6 | ||||||||||||||
Other operating costs and expenses | 6.8 | 7.2 | 5.5 | ||||||||||||||
Total expenses | 235.6 | 259.2 | 212.5 | ||||||||||||||
Income before income taxes | 3,290.8 | 5,628.2 | 3,917.8 | ||||||||||||||
Benefit for income taxes | 60.1 | 76.4 | 52.5 | ||||||||||||||
Net income attributable to Progressive | 3,350.9 | 5,704.6 | 3,970.3 | ||||||||||||||
Other comprehensive income (loss) | (891.0) | 587.3 | 462.6 | ||||||||||||||
Comprehensive income attributable to Progressive | $ | 2,459.9 | $ | 6,291.9 | $ | 4,432.9 |
December 31, | |||||||||||
2021 | 2020 | ||||||||||
Assets | |||||||||||
Investment in affiliate | $ | 5.0 | $ | 5.0 | |||||||
Investment in subsidiaries | 19,512.2 | 18,895.9 | |||||||||
Receivable from investment subsidiary | 3,382.1 | 5,901.7 | |||||||||
Intercompany receivable | 387.2 | 473.8 | |||||||||
Net federal deferred income taxes | 65.1 | 86.9 | |||||||||
Other assets | 207.3 | 270.9 | |||||||||
Total assets | $ | 23,558.9 | $ | 25,634.2 | |||||||
Liabilities and Shareholders’ Equity | |||||||||||
Accounts payable, accrued expenses, and other liabilities | $ | 370.0 | $ | 505.0 | |||||||
Dividends payable on common shares | 58.5 | 2,694.5 | |||||||||
Debt1 | 4,898.8 | 5,396.1 | |||||||||
Total liabilities | 5,327.3 | 8,595.6 | |||||||||
Serial Preferred Shares (authorized 20.0) | |||||||||||
Serial Preferred Shares, Series B, no par value (cumulative, liquidation preference of $1,000 per share) (authorized, issued, and outstanding 0.5) | 493.9 | 493.9 | |||||||||
Common shares, $1.00 par value (authorized 900.0; issued 797.6 and 797.5, including treasury shares of 213.2 and 212.3) | 584.4 | 585.2 | |||||||||
Paid-in capital | 1,772.9 | 1,672.9 | |||||||||
Retained earnings | 15,339.7 | 13,354.9 | |||||||||
Total accumulated other comprehensive income | 40.7 | 931.7 | |||||||||
Total shareholders’ equity | 18,231.6 | 17,038.6 | |||||||||
Total liabilities and shareholders’ equity | $ | 23,558.9 | $ | 25,634.2 |
Years Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Cash Flows From Operating Activities: | |||||||||||||||||
Net income | $ | 3,350.9 | $ | 5,704.6 | $ | 3,970.3 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Undistributed income from subsidiaries | (674.9) | (1,774.4) | (1,821.3) | ||||||||||||||
Amortization of equity-based compensation | 3.1 | 2.9 | 2.9 | ||||||||||||||
Changes in: | |||||||||||||||||
Intercompany receivable | 86.6 | (20.2) | (14.1) | ||||||||||||||
Accounts payable, accrued expenses, and other liabilities | (311.6) | 52.0 | 47.1 | ||||||||||||||
Income taxes | 198.4 | (52.2) | 175.5 | ||||||||||||||
Other, net | 59.0 | 40.4 | (179.8) | ||||||||||||||
Net cash provided by operating activities | 2,711.5 | 3,953.1 | 2,180.6 | ||||||||||||||
Cash Flows From Investing Activities: | |||||||||||||||||
Additional investments in equity securities of consolidated subsidiaries | (397.3) | (27.1) | (152.8) | ||||||||||||||
Acquisition of Protective Insurance Corporation | (337.5) | 0 | 0 | ||||||||||||||
Acquisition of additional shares of ARX Holding Corp. | 0 | (233.2) | (5.4) | ||||||||||||||
(Paid to) received from investment subsidiary | 2,519.6 | (2,989.7) | (253.1) | ||||||||||||||
Net cash provided by (used in) investing activities | 1,784.8 | (3,250.0) | (411.3) | ||||||||||||||
Cash Flows From Financing Activities: | |||||||||||||||||
Dividends paid to common shareholders | (3,746.5) | (1,551.0) | (1,643.2) | ||||||||||||||
Dividends paid to preferred shareholders | (26.8) | (26.8) | (26.8) | ||||||||||||||
Payments of debt | (500.0) | 0 | 0 | ||||||||||||||
Net proceeds from debt issuance | 0 | 986.3 | 0 | ||||||||||||||
Acquisition of treasury shares for restricted stock tax liabilities | (67.2) | (68.7) | (84.4) | ||||||||||||||
Acquisition of treasury shares acquired in open market | (155.8) | (42.9) | (6.9) | ||||||||||||||
Loan to ARX Holding Corp. | 0 | 0 | (8.0) | ||||||||||||||
Net cash used in financing activities | (4,496.3) | (703.1) | (1,769.3) | ||||||||||||||
Change in cash, cash equivalents, and restricted cash | 0 | 0 | 0 | ||||||||||||||
Cash, cash equivalents, restricted cash - beginning of year | 0 | 0 | 0 | ||||||||||||||
Cash, cash equivalents, restricted cash - end of year | $ | 0 | $ | 0 | $ | 0 |
(millions) | 2021 | 2020 | 2019 | ||||||||||||||
Common share dividends1 | $ | 58.5 | $ | 2,694.5 | $ | 1,375.4 | |||||||||||
Preferred share dividends1 | 13.4 | 13.4 | 0 | ||||||||||||||
Loan to ARX converted to capital contribution | 0 | 225.0 | 0 | ||||||||||||||
Change in redemption value of Redeemable NCI | 0 | 0 | 0.4 |
(millions) | 2021 | 2020 | 2019 | ||||||||||||||
Income taxes | $ | 815.0 | $ | 1,411.0 | $ | 925.0 | |||||||||||
Interest | 223.9 | 206.0 | 184.9 |
Segment | Deferred policy acquisition costs1 | Future policy benefits, losses, claims, and loss expenses1 | Unearned premiums1 | Other policy claims and benefits payable1 | Premium revenue | Net investment income1,2 | Benefits, claims, losses, and settlement expenses | Amortization of deferred policy acquisition costs | Other operating expenses1 | Net premiums written | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended December 31, 2021: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Personal Lines | $ | 35,373.3 | $ | 27,043.1 | $ | 2,614.7 | $ | 4,656.8 | $ | 36,168.8 | |||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Lines | 6,945.2 | 4,814.5 | 734.1 | 742.3 | 8,015.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property | 2,042.5 | 1,764.6 | 362.9 | 253.0 | 2,216.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other indemnity | 7.7 | 5.4 | 1.1 | 2.6 | 4.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,355.6 | $ | 26,164.1 | $ | 15,615.8 | $ | 0 | $ | 44,368.7 | $ | 835.4 | $ | 33,627.6 | $ | 3,712.8 | $ | 5,654.7 | $ | 46,405.2 | |||||||||||||||||||||||||||||||||||||||
Year ended December 31, 2020: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Personal Lines3 | $ | 32,620.1 | $ | 20,611.7 | $ | 2,437.3 | $ | 5,762.0 | $ | 33,342.6 | |||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Lines | 4,875.8 | 3,146.0 | 525.7 | 647.5 | 5,315.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property | 1,765.7 | 1,364.1 | 310.2 | 237.9 | 1,910.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other indemnity | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,237.2 | $ | 20,265.8 | $ | 13,437.5 | $ | 0 | $ | 39,261.6 | $ | 916.6 | $ | 25,121.8 | $ | 3,273.2 | $ | 6,647.4 | $ | 40,568.7 | |||||||||||||||||||||||||||||||||||||||
Year ended December 31, 2019: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Personal Lines | $ | 30,210.0 | $ | 21,329.7 | $ | 2,273.6 | $ | 4,227.6 | $ | 31,102.2 | |||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Lines | 4,427.6 | 3,034.8 | 481.2 | 523.5 | 4,791.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property | 1,554.8 | 1,106.0 | 268.4 | 224.0 | 1,683.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other indemnity | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,056.5 | $ | 18,105.4 | $ | 12,388.8 | $ | 0 | $ | 36,192.4 | $ | 1,017.4 | $ | 25,470.5 | $ | 3,023.2 | $ | 4,975.1 | $ | 37,577.9 |
Year Ended: | Gross Amount | Ceded to Other Companies | Assumed From Other Companies | Net Amount | Percentage of Amount Assumed to Net | ||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||
Premiums earned: | |||||||||||||||||||||||||||||
Property and liability insurance | $ | 46,018.6 | $ | 1,649.9 | $ | 0 | $ | 44,368.7 | 0 | % | |||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||
Premiums earned: | |||||||||||||||||||||||||||||
Property and liability insurance | $ | 40,687.7 | $ | 1,426.1 | $ | 0 | $ | 39,261.6 | 0 | % | |||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||
Premiums earned: | |||||||||||||||||||||||||||||
Property and liability insurance | $ | 37,519.7 | $ | 1,327.3 | $ | 0 | $ | 36,192.4 | 0 | % |
THE PROGRESSIVE CORPORATION | ||||||||
February 28, 2022 | By: | /s/ Susan Patricia Griffith | ||||||
Susan Patricia Griffith | ||||||||
President and Chief Executive Officer |
By: | /s/ Daniel P. Mascaro | February 28, 2022 | ||||||||||||
Daniel P. Mascaro | ||||||||||||||
Attorney-in-fact |
EXHIBIT INDEX | ||||||||||||||||||||
Exhibit No. Under Reg. S-K, Item 601 | Form 10-K Exhibit No. | Description of Exhibit | If Incorporated by Reference, Documents with Which Exhibit was Previously Filed with SEC | |||||||||||||||||
4 | 4.14 | Current Report on Form 8-K (filed on March 26, 2020; Exhibit 4.3 therein) | ||||||||||||||||||
4 | 4.15 | Registration Statement No. 333-48935 (filed on March 31, 1998; Exhibit 4.1 therein) | ||||||||||||||||||
4 | 4.16 | Registration Statement No. 333-01745 (filed on March 15, 1996; Exhibit 4.2 therein) | ||||||||||||||||||
4 | 4.17 | Registration Statement No. 333-100674 (filed on October 22, 2002; Exhibit 4.3 therein) | ||||||||||||||||||
4 | 4.18 | Registration Statement No. 333-143824 (filed on June 18, 2007; Exhibit 4.5 therein) | ||||||||||||||||||
4 | 4.19 | Registration Statement No. 333-143824 (filed on June 18, 2007; Exhibit 4.6 therein) | ||||||||||||||||||
4 | 4.20 | Current Report on Form 8-K (filed on April 25, 2014; Exhibit 4.1 therein) | ||||||||||||||||||
4 | 4.21 | Current Report on Form 8-K (filed on January 26, 2015; Exhibit 4.1 therein) | ||||||||||||||||||
4 | 4.22 | Current Report on Form 8-K (filed on August 25, 2016; Exhibit 4.1 therein) | ||||||||||||||||||
4 | 4.23 | Current Report on Form 8-K (filed on April 6, 2017; Exhibit 4.1 therein) | ||||||||||||||||||
4 | 4.24 | Annual Report on Form 10-K (filed on March 2, 2020; Exhibit 4.23 therein) |
EXHIBIT INDEX | ||||||||||||||||||||
Exhibit No. Under Reg. S-K, Item 601 | Form 10-K Exhibit No. | Description of Exhibit | If Incorporated by Reference, Documents with Which Exhibit was Previously Filed with SEC | |||||||||||||||||
4 | 4.25 | Current Report on Form 8-K (filed on March 14, 2018; Exhibit 4.1 therein) | ||||||||||||||||||
4 | 4.26 | Quarterly Report on Form 10-Q (filed on May 1, 2019; Exhibit 4.1 therein) | ||||||||||||||||||
4 | 4.27 | Quarterly Report on Form 10-Q (filed on August 4, 2020; Exhibit 5.1 therein) | ||||||||||||||||||
4 | 4.28 | Quarterly Report on Form 10-Q (filed on August 3, 2021; Exhibit 4.1 therein) | ||||||||||||||||||
4 | 4.29 | Quarterly Report on Form 10-Q (filed on May 11, 2015; Exhibit 4.2 therein) | ||||||||||||||||||
10(iii) | 10.1 | Filed herewith | ||||||||||||||||||
10(iii) | 10.2 | Current Report on Form 8-K (filed on February 4, 2015; Exhibit 10.1 therein) | ||||||||||||||||||
10(iii) | 10.3 | Current Report on Form 8-K (filed on March 26, 2020; Exhibit 10.1 therein) | ||||||||||||||||||
10(iii) | 10.4 | Current Report on Form 8-K (filed on March 25, 2021; Exhibit 10.1 therein) | ||||||||||||||||||
10(iii) | 10.5 | Current Report on Form 8-K (filed on March 26, 2020; Exhibit 10.2 therein) | ||||||||||||||||||
10(iii) | 10.6 | Quarterly Report on Form 10-Q (filed on May 1, 2019; Exhibit 10.1 therein) | ||||||||||||||||||
10(iii) | 10.7 | Current Report on Form 8-K (filed on March 21, 2018; Exhibit 10.1 therein) | ||||||||||||||||||
10(iii) | 10.8 | Current Report on Form 8-K (filed on August 23, 2018; Exhibit 10 therein) | ||||||||||||||||||
10(iii) | 10.9 | Current Report on Form 8-K (filed on March 25, 2021; Exhibit 10.2 therein) |
EXHIBIT INDEX | ||||||||||||||||||||
Exhibit No. Under Reg. S-K, Item 601 | Form 10-K Exhibit No. | Description of Exhibit | If Incorporated by Reference, Documents with Which Exhibit was Previously Filed with SEC | |||||||||||||||||
10(iii) | 10.10 | Current Report on Form 8-K (filed on March 26, 2020; Exhibit 10.3 therein) | ||||||||||||||||||
10(iii) | 10.11 | Quarterly Report on Form 10-Q (filed on May 1, 2019; Exhibit 10.3 therein) | ||||||||||||||||||
10(iii) | 10.12 | Current Report on Form 8-K (filed on March 25, 2021; Exhibit 10.3 therein) | ||||||||||||||||||
10(iii) | 10.13 | Current Report on Form 8-K (filed on March 26, 2020; Exhibit 10.4 therein) | ||||||||||||||||||
10(iii) | 10.14 | Annual Report on Form 10-K (filed on March 1, 2021; Exhibit 10.14 therein) | ||||||||||||||||||
10(iii) | 10.15 | Current Report on Form 8-K (filed on February 21, 2017; Exhibit 10.1 therein) | ||||||||||||||||||
10(iii) | 10.16 | Quarterly Report on Form 10-Q (filed on August 3, 2021; Exhibit 10.1 therein) | ||||||||||||||||||
10(iii) | 10.17 | Registration Statement No. 333-185704 (filed on December 27, 2012; Exhibit 4.3 therein) | ||||||||||||||||||
10(iii) | 10.18 | Registration Statement No. 333-185704 (filed on December 27, 2012; Exhibit 4.4 therein) | ||||||||||||||||||
10(iii) | 10.19 | Registration Statement No. 333-185704 (filed on December 27, 2012; Exhibit 4.5 therein) | ||||||||||||||||||
10(iii) | 10.20 | Registration Statement No. 333-185704 (filed on December 27, 2012; Exhibit 4.6 therein) | ||||||||||||||||||
10(iii) | 10.21 | Registration Statement No. 333-185704 (filed on December 27, 2012; Exhibit 4.7 therein) | ||||||||||||||||||
10(iii) | 10.22 | Registration Statement No. 333-185704 (filed on December 27, 2012; Exhibit 4.8 therein) | ||||||||||||||||||
10(iii) | 10.23 | Registration Statement No. 333-185704 (filed on December 27, 2012; Exhibit 4.9 therein) |
EXHIBIT INDEX | ||||||||||||||||||||
Exhibit No. Under Reg. S-K, Item 601 | Form 10-K Exhibit No. | Description of Exhibit | If Incorporated by Reference, Documents with Which Exhibit was Previously Filed with SEC | |||||||||||||||||
10(iii) | 10.24 | Registration Statement No. 333-185704 (filed on December 27, 2012; Exhibit 4.10 therein) | ||||||||||||||||||
10(iii) | 10.25 | Registration Statement No. 333-185704 (filed on December 27, 2012; Exhibit 4.11 therein) | ||||||||||||||||||
10(iii) | 10.26 | Current Report on Form 8-K (filed on October 14, 2014; Exhibit 10 therein) | ||||||||||||||||||
10(iii) | 10.27 | Annual Report on Form 10-K (filed on February 29, 2016; Exhibit 10.53 therein) | ||||||||||||||||||
10(iii) | 10.28 | Quarterly Report on Form 10-Q (filed on November 2, 2017; Exhibit 10 therein) | ||||||||||||||||||
10(iii) | 10.29 | Quarterly Report on Form 10-Q (filed on July 31, 2018; Exhibit 10 therein) | ||||||||||||||||||
10(iii) | 10.30 | Registration Statement No. 333-185704 (filed on December 27, 2012; Exhibit 4.23 therein) | ||||||||||||||||||
10(iii) | 10.31 | Registration Statement No. 333-185704 (filed on December 27, 2012; Exhibit 4.24 therein) | ||||||||||||||||||
10(iii) | 10.32 | Registration Statement No. 333-185704 (filed on December 27, 2012; Exhibit 4.25 therein) | ||||||||||||||||||
10(iii) | 10.33 | Registration Statement No. 333-185704 (filed on December 27, 2012; Exhibit 4.26 therein) | ||||||||||||||||||
10(iii) | 10.34 | Registration Statement No. 333-185704 (filed on December 27, 2012; Exhibit 4.27 therein) | ||||||||||||||||||
10(iii) | 10.35 | Registration Statement No. 333-185704 (filed on December 27, 2012; Exhibit 4.28 therein) | ||||||||||||||||||
10(iii) | 10.36 | Registration Statement No. 333-185704 (filed on December 27, 2012; Exhibit 4.29 therein) | ||||||||||||||||||
10(iii) | 10.37 | Registration Statement No. 333-185704 (filed on December 27, 2012; Exhibit 4.30 therein) | ||||||||||||||||||
10(iii) | 10.38 | Annual Report on Form 10-K (filed on February 27, 2019; Exhibit 10.49 therein) | ||||||||||||||||||
10(iii) | 10.39 | Quarterly Report on Form 10-Q (filed on May 11, 2015; Exhibit 10.5 therein) | ||||||||||||||||||
10(iii) | 10.40 | Quarterly Report on Form 10-Q (filed on May 11, 2015; Exhibit 10.6 therein) |
EXHIBIT INDEX | ||||||||||||||||||||
Exhibit No. Under Reg. S-K, Item 601 | Form 10-K Exhibit No. | Description of Exhibit | If Incorporated by Reference, Documents with Which Exhibit was Previously Filed with SEC | |||||||||||||||||
10(iii) | 10.41 | Annual Report on Form 10-K (filed on February 27, 2018; Exhibit 10.91 therein) | ||||||||||||||||||
10(iii) | 10.42 | Annual Report on Form 10-K (filed on February 29, 2016; Exhibit 10.77 therein) | ||||||||||||||||||
10(iii) | 10.43 | Quarterly Report on Form 10-Q (filed on May 1, 2019; Exhibit 10.4 therein) | ||||||||||||||||||
10(iii) | 10.44 | Annual Report on Form 10-K (filed on February 27, 2019; Exhibit 10.56 therein) | ||||||||||||||||||
10(iii) | 10.45 | Filed herewith | ||||||||||||||||||
10(iii) | 10.46 | Quarterly Report on Form 10-Q (filed on May 4, 2021; Exhibit 10.4 therein) | ||||||||||||||||||
10(iii) | 10.47 | Quarterly Report on Form 10-Q (filed on August 3, 2021; Exhibit 10.3 therein) | ||||||||||||||||||
10(iii) | 10.48 | Filed herewith | ||||||||||||||||||
10(iii) | 10.49 | Filed herewith | ||||||||||||||||||
13 | 13 | Filed herewith | ||||||||||||||||||
21 | 21 | Filed herewith | ||||||||||||||||||
23 | 23 | Filed herewith | ||||||||||||||||||
24 | 24 | Filed herewith | ||||||||||||||||||
31 | 31.1 | Filed herewith | ||||||||||||||||||
31 | 31.2 | Filed herewith | ||||||||||||||||||
32 | 32.1 | Filed herewith | ||||||||||||||||||
32 | 32.2 | Filed herewith | ||||||||||||||||||
99 | 99 | Filed herewith | ||||||||||||||||||
101 | 101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | Filed herewith | |||||||||||||||||
101 | 101.SCH | Inline XBRL Taxonomy Extension Schema Document | Filed herewith | |||||||||||||||||
101 | 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | Filed herewith |
EXHIBIT INDEX | ||||||||||||||||||||
Exhibit No. Under Reg. S-K, Item 601 | Form 10-K Exhibit No. | Description of Exhibit | If Incorporated by Reference, Documents with Which Exhibit was Previously Filed with SEC | |||||||||||||||||
101 | 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | Filed herewith | |||||||||||||||||
101 | 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | Filed herewith | |||||||||||||||||
101 | 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | Filed herewith | |||||||||||||||||
104 | 104 | Cover Page Interactive Data File (the cover page tags are embedded within the Inline XBRL document). | Filed herewith |
POSITION | TARGET % | ||||
Chief Executive Officer and Other Executive Officers | Determined by the Compensation Committee | ||||
Other Senior Executives and Executive Level Managers | 60 - 150% | ||||
Business Leaders | 35 - 60% | ||||
Directors and Senior Directors | 20 - 35% | ||||
Protective Non-Graded Positions | 8 – 30% | ||||
Middle Managers and Senior Managers | 15 - 20% | ||||
Senior Professionals and Entry Level Managers | 8 - 20% | ||||
Administrative Support and Entry Level Professionals | 0 - 8% |
Board/Committee Fees | |||||
Independent Board Chair | $470,000 | ||||
Non-Employee Director | 285,000 | ||||
Committee Chair Premium | |||||
Audit Committee Chair | 35,000 | ||||
Compensation Committee Chair | 25,000 | ||||
Investment & Capital Committee Chair | 25,000 | ||||
Nominating & Governance Committee Chair | 20,000 | ||||
Technology Committee Chair | 25,000 | ||||
First Committee Assignment Premium | |||||
Audit Committee Member | 10,000 | ||||
Second Committee Assignment Premium1 | |||||
Committee Member | 15,000 |
Comparison Period | Score = 0 Rank at or below | Score = 1.0 Rank equal to | Score = 2.0 Rank at or above | ||||||||
One year | 15th Percentile | 50th Percentile | 85th Percentile | ||||||||
Three year | 25th Percentile | 50th Percentile | 75th Percentile |
Firm | Performance score | Total return | ||||||
Firm above PCM | .90 | 13.61 | ||||||
PCM | 13.39 | |||||||
Firm below PCM | .89 | 13.34 |
(millions - except per share amounts) | 2021 | 2020 | 2019 | ||||||||
Revenues | |||||||||||
Net premiums earned | $ | 44,368.7 | $ | 39,261.6 | $ | 36,192.4 | |||||
Investment income | 860.9 | 936.6 | 1,042.0 | ||||||||
Net realized gains (losses) on securities: | |||||||||||
Net realized gains (losses) on security sales | 614.3 | 914.7 | 334.6 | ||||||||
Net holding period gains (losses) on securities | 899.9 | 715.3 | 757.9 | ||||||||
Net impairment losses recognized in earnings | (5.0) | 0 | (63.3) | ||||||||
Total net realized gains (losses) on securities | 1,509.2 | 1,630.0 | 1,029.2 | ||||||||
Fees and other revenues | 691.8 | 603.5 | 563.7 | ||||||||
Service revenues | 271.4 | 226.4 | 195.0 | ||||||||
Total revenues | 47,702.0 | 42,658.1 | 39,022.3 | ||||||||
Expenses | |||||||||||
Losses and loss adjustment expenses | 33,627.6 | 25,121.8 | 25,470.5 | ||||||||
Policy acquisition costs | 3,712.8 | 3,273.2 | 3,023.2 | ||||||||
Other underwriting expenses | 5,654.7 | 5,570.0 | 4,975.1 | ||||||||
Policyholder credit expense | 0 | 1,077.4 | 0 | ||||||||
Investment expenses | 25.5 | 20.0 | 24.6 | ||||||||
Service expenses | 252.8 | 205.5 | 178.9 | ||||||||
Interest expense | 218.6 | 217.0 | 189.7 | ||||||||
Total expenses | 43,492.0 | 35,484.9 | 33,862.0 | ||||||||
Net Income | |||||||||||
Income before income taxes | 4,210.0 | 7,173.2 | 5,160.3 | ||||||||
Provision for income taxes | 859.1 | 1,468.6 | 1,180.3 | ||||||||
Net income | 3,350.9 | 5,704.6 | 3,980.0 | ||||||||
Net income attributable to noncontrolling interest (NCI) | 0 | 0 | (9.7) | ||||||||
Net income attributable to Progressive | 3,350.9 | 5,704.6 | 3,970.3 | ||||||||
Other Comprehensive Income (Loss) | |||||||||||
Changes in: | |||||||||||
Total net unrealized gains (losses) on fixed-maturity securities | (891.1) | 586.5 | 466.4 | ||||||||
Net unrealized losses on forecasted transactions | 0.7 | 0.8 | 0.8 | ||||||||
Foreign currency translation adjustment | (0.6) | 0 | 0 | ||||||||
Other comprehensive income (loss) | (891.0) | 587.3 | 467.2 | ||||||||
Other comprehensive (income) loss attributable to NCI | 0 | 0 | (4.6) | ||||||||
Comprehensive income attributable to Progressive | $ | 2,459.9 | $ | 6,291.9 | $ | 4,432.9 | |||||
Computation of Earnings Per Common Share | |||||||||||
Net income attributable to Progressive | $ | 3,350.9 | $ | 5,704.6 | $ | 3,970.3 | |||||
Less: Preferred share dividends | 26.9 | 26.9 | 26.9 | ||||||||
Net income available to common shareholders | $ | 3,324.0 | $ | 5,677.7 | $ | 3,943.4 | |||||
Average common shares outstanding - Basic | 584.5 | 584.9 | 583.8 | ||||||||
Net effect of dilutive stock-based compensation | 2.6 | 2.7 | 3.4 | ||||||||
Total average equivalent common shares - Diluted | 587.1 | 587.6 | 587.2 | ||||||||
Basic: Earnings per common share | $ | 5.69 | $ | 9.71 | $ | 6.75 | |||||
Diluted: Earnings per common share | $ | 5.66 | $ | 9.66 | $ | 6.72 |
(millions - except per share amount) | 2021 | 2020 | |||||||||
Assets | |||||||||||
Available-for-sale securities, at fair value: | |||||||||||
Fixed maturities (amortized cost: $43,794.2 and $35,589.1) | $ | 43,873.1 | $ | 36,810.9 | |||||||
Short-term investments (amortized cost: $942.6 and $5,218.5) | 942.6 | 5,218.5 | |||||||||
Total available-for-sale securities | 44,815.7 | 42,029.4 | |||||||||
Equity securities, at fair value: | |||||||||||
Nonredeemable preferred stocks (cost: $1,571.8 and $1,333.7) | 1,639.9 | 1,422.9 | |||||||||
Common equities (cost: $1,264.1 and $1,212.3) | 5,058.5 | 4,078.0 | |||||||||
Total equity securities | 6,698.4 | 5,500.9 | |||||||||
Total investments | 51,514.1 | 47,530.3 | |||||||||
Cash and cash equivalents | 187.1 | 76.5 | |||||||||
Restricted cash and cash equivalents | 15.0 | 0 | |||||||||
Total cash, cash equivalents, restricted cash, and restricted cash equivalents | 202.1 | 76.5 | |||||||||
Accrued investment income | 181.7 | 176.4 | |||||||||
Premiums receivable, net of allowance for credit losses of $280.4 and $356.2 | 9,399.5 | 8,160.1 | |||||||||
Reinsurance recoverables | 4,980.5 | 4,019.4 | |||||||||
Prepaid reinsurance premiums | 457.6 | 368.1 | |||||||||
Deferred acquisition costs | 1,355.6 | 1,237.2 | |||||||||
Property and equipment, net of accumulated depreciation of $1,407.4 and $1,291.4 | 1,137.3 | 1,106.0 | |||||||||
Goodwill | 452.7 | 452.7 | |||||||||
Intangible assets, net of accumulated amortization of $383.8 and $326.1 | 117.3 | 171.4 | |||||||||
Other assets | 1,333.9 | 800.2 | |||||||||
Total assets | $ | 71,132.3 | $ | 64,098.3 | |||||||
Liabilities and Shareholders’ Equity | |||||||||||
Unearned premiums | $ | 15,615.8 | $ | 13,437.5 | |||||||
Loss and loss adjustment expense reserves | 26,164.1 | 20,265.8 | |||||||||
Net federal deferred income taxes | 152.9 | 310.0 | |||||||||
Dividends payable on common shares | 58.5 | 2,694.5 | |||||||||
Accounts payable, accrued expenses, and other liabilities1 | 6,010.6 | 4,955.8 | |||||||||
Debt2 | 4,898.8 | 5,396.1 | |||||||||
Total liabilities | 52,900.7 | 47,059.7 | |||||||||
Serial Preferred Shares (authorized 20.0) | |||||||||||
Serial Preferred Shares, Series B, no par value (cumulative, liquidation preference of $1,000 per share) (authorized, issued, and outstanding 0.5) | 493.9 | 493.9 | |||||||||
Common shares, $1.00 par value (authorized 900.0; issued 797.6 and 797.5, including treasury shares of 213.2 and 212.3) | 584.4 | 585.2 | |||||||||
Paid-in capital | 1,772.9 | 1,672.9 | |||||||||
Retained earnings | 15,339.7 | 13,354.9 | |||||||||
Accumulated other comprehensive income (loss): | |||||||||||
Net unrealized gains (losses) on fixed-maturity securities | 56.2 | 947.3 | |||||||||
Net unrealized losses on forecasted transactions | (14.9) | (15.6) | |||||||||
Foreign currency translation adjustment | (0.6) | 0 | |||||||||
Total accumulated other comprehensive income (loss) | 40.7 | 931.7 | |||||||||
Total shareholders’ equity | 18,231.6 | 17,038.6 | |||||||||
Total liabilities and shareholders’ equity | $ | 71,132.3 | $ | 64,098.3 |
(millions - except per share amounts) | 2021 | 2020 | 2019 | ||||||||
Serial Preferred Shares, No Par Value | |||||||||||
Balance, beginning of year | $ | 493.9 | $ | 493.9 | $ | 493.9 | |||||
Balance, end of year | 493.9 | 493.9 | 493.9 | ||||||||
Common Shares, $1.00 Par Value | |||||||||||
Balance, beginning of year | 585.2 | 584.6 | 583.2 | ||||||||
Treasury shares purchased | (2.4) | (1.3) | (1.3) | ||||||||
Net restricted equity awards issued/vested | 1.6 | 1.9 | 2.7 | ||||||||
Balance, end of year | 584.4 | 585.2 | 584.6 | ||||||||
Paid-In Capital | |||||||||||
Balance, beginning of year | 1,672.9 | 1,573.4 | 1,479.0 | ||||||||
Amortization of equity-based compensation | 100.7 | 89.4 | 90.1 | ||||||||
Treasury shares purchased | (7.1) | (3.6) | (3.2) | ||||||||
Net restricted equity awards issued/vested | (1.6) | (1.9) | (2.7) | ||||||||
Reinvested dividends on restricted stock units | 8.0 | 18.2 | 10.6 | ||||||||
Adjustment to carrying amount of redeemable noncontrolling interest | 0 | (2.6) | (0.4) | ||||||||
Balance, end of year | 1,772.9 | 1,672.9 | 1,573.4 | ||||||||
Retained Earnings | |||||||||||
Balance, beginning of year | 13,354.9 | 10,679.6 | 8,386.6 | ||||||||
Net income attributable to Progressive | 3,350.9 | 5,704.6 | 3,970.3 | ||||||||
Treasury shares purchased | (213.5) | (106.7) | (86.8) | ||||||||
Cash dividends declared on common shares ($1.90, $4.90, and $2.65 per share)1 | (1,109.0) | (2,865.9) | (1,548.4) | ||||||||
Cash dividends declared on Serial Preferred Shares, Series B ($53.75, $80.625, and $53.75 per share)1 | (26.8) | (40.2) | (26.8) | ||||||||
Reinvested dividends on restricted stock units | (8.0) | (18.2) | (10.6) | ||||||||
Other, net | (8.8) | 1.7 | (4.7) | ||||||||
Balance, end of year | 15,339.7 | 13,354.9 | 10,679.6 | ||||||||
Accumulated Other Comprehensive Income (Loss) Attributable to Progressive | |||||||||||
Balance, beginning of year | 931.7 | 341.7 | (120.9) | ||||||||
Attributable to noncontrolling interest | 0 | 2.7 | (4.6) | ||||||||
Other comprehensive income (loss) | (891.0) | 587.3 | 467.2 | ||||||||
Balance, end of year | 40.7 | 931.7 | 341.7 | ||||||||
Total shareholders’ equity | $ | 18,231.6 | $ | 17,038.6 | $ | 13,673.2 |
(millions) | 2021 | 2020 | 2019 | ||||||||
Cash Flows From Operating Activities | |||||||||||
Net income | $ | 3,350.9 | $ | 5,704.6 | $ | 3,980.0 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation | 279.7 | 274.9 | 239.8 | ||||||||
Amortization of intangible assets | 57.7 | 56.9 | 66.3 | ||||||||
Net amortization of fixed-income securities | 130.3 | 100.9 | 33.3 | ||||||||
Amortization of equity-based compensation | 100.7 | 89.4 | 90.2 | ||||||||
Net realized (gains) losses on securities | (1,509.2) | (1,630.0) | (1,029.2) | ||||||||
Net (gains) losses on disposition of property and equipment | (3.6) | 12.5 | 11.0 | ||||||||
Changes in: | |||||||||||
Premiums receivable | (1,146.8) | (652.8) | (1,010.2) | ||||||||
Reinsurance recoverables | (508.7) | (640.5) | (682.8) | ||||||||
Prepaid reinsurance premiums | (74.9) | 258.4 | (316.8) | ||||||||
Deferred acquisition costs | (118.4) | (180.7) | (104.9) | ||||||||
Income taxes | (86.0) | (23.1) | 227.2 | ||||||||
Unearned premiums | 2,111.4 | 1,048.7 | 1,702.3 | ||||||||
Loss and loss adjustment expense reserves | 4,752.8 | 2,160.4 | 2,704.6 | ||||||||
Accounts payable, accrued expenses, and other liabilities | 399.7 | 328.9 | 611.6 | ||||||||
Other, net | 26.1 | (2.9) | (260.8) | ||||||||
Net cash provided by operating activities | 7,761.7 | 6,905.6 | 6,261.6 | ||||||||
Cash Flows From Investing Activities | |||||||||||
Purchases: | |||||||||||
Fixed maturities | (33,177.5) | (32,037.5) | (28,765.2) | ||||||||
Equity securities | (838.1) | (951.2) | (379.9) | ||||||||
Sales: | |||||||||||
Fixed maturities | 18,965.2 | 22,727.2 | 18,412.7 | ||||||||
Equity securities | 780.6 | 431.8 | 471.4 | ||||||||
Maturities, paydowns, calls, and other: | |||||||||||
Fixed maturities | 7,013.8 | 7,109.4 | 6,145.5 | ||||||||
Equity securities | 223.1 | 113.8 | 49.9 | ||||||||
Net (purchases) sales of short-term investments | 4,355.7 | (3,393.2) | 31.5 | ||||||||
Net unsettled security transactions | 47.9 | 83.6 | 6.0 | ||||||||
Acquisition of Protective Insurance Corporation, net of cash, cash equivalents, and restricted cash acquired1 | (313.2) | 0 | 0 | ||||||||
Purchases of property and equipment | (243.5) | (223.5) | (363.5) | ||||||||
Sales of property and equipment | 66.2 | 21.9 | 53.3 | ||||||||
Net cash used in investing activities | (3,119.8) | (6,117.7) | (4,338.3) | ||||||||
Cash Flows From Financing Activities | |||||||||||
Dividends paid to common shareholders | (3,746.5) | (1,551.0) | (1,643.2) | ||||||||
Dividends paid to preferred shareholders | (26.8) | (26.8) | (26.8) | ||||||||
Acquisition of treasury shares for restricted stock tax liabilities | (67.2) | (68.7) | (84.4) | ||||||||
Acquisition of treasury shares acquired in open market | (155.8) | (42.9) | (6.9) | ||||||||
Payment of acquired company debt1 | (20.0) | 0 | 0 | ||||||||
Payments of debt | (500.0) | 0 | 0 | ||||||||
Acquisition of additional shares of ARX Holding Corp. | 0 | (243.0) | (11.2) | ||||||||
Net proceeds from debt issuance | 0 | 986.3 | 0 | ||||||||
Proceeds from exercise of equity options | 0 | 7.3 | 1.6 | ||||||||
Net cash used in financing activities | (4,516.3) | (938.8) | (1,770.9) | ||||||||
Increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents | 125.6 | (150.9) | 152.4 | ||||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents - beginning of year | 76.5 | 227.4 | 75.0 | ||||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents - end of year | $ | 202.1 | $ | 76.5 | $ | 227.4 |
(millions) | 2021 | 2020 | ||||||
Balance at January 1 | $ | 356.2 | $ | 283.2 | ||||
Allowance for credit losses acquired1 | 3.5 | 0 | ||||||
Increase in allowance2 | 357.2 | 472.0 | ||||||
Write-offs3 | (436.5) | (399.0) | ||||||
Balance at December 31 | $ | 280.4 | $ | 356.2 |
(millions) | Advertising Costs | ||||
2021 | $ | 2,139.5 | |||
2020 | 2,175.7 | ||||
2019 | 1,837.3 |
($ in millions) | 2021 | 2020 | Useful Lives | ||||||||
Land | $ | 154.1 | $ | 151.6 | NA | ||||||
Buildings, improvements, and integrated components | 904.5 | 872.7 | 7-40 years | ||||||||
Capitalized software | 441.2 | 392.6 | 3-10 years | ||||||||
Software licenses (internal use) | 393.6 | 335.5 | 1-5 years | ||||||||
Computer equipment | 261.3 | 253.8 | 3 years | ||||||||
All other property and equipment | 390.0 | 391.2 | 3-10 years | ||||||||
Total cost | 2,544.7 | 2,397.4 | |||||||||
Accumulated depreciation | (1,407.4) | (1,291.4) | |||||||||
Balance at end of year | $ | 1,137.3 | $ | 1,106.0 | |||||||
NA = Not applicable; land is not a depreciable asset. |
(millions) | 2021 | 2020 | 2019 | ||||||||
Pretax expense | $ | 100.7 | $ | 89.4 | $ | 90.2 | |||||
Tax benefit1 | 14.1 | 12.1 | 12.4 |
(millions) | 2021 | 2020 | 2019 | ||||||||
Common share dividends1 | $ | 58.5 | $ | 2,694.5 | $ | 1,375.4 | |||||
Preferred share dividends1 | 13.4 | 13.4 | 0 | ||||||||
Operating lease liabilities2 | 86.7 | 60.3 | 63.1 |
(millions) | 2021 | 2020 | 2019 | ||||||||
Income taxes | $ | 842.4 | $ | 1,446.3 | $ | 954.3 | |||||
Interest | 224.0 | 206.0 | 184.9 | ||||||||
Operating lease liabilities | 88.6 | 86.5 | 84.0 |
(millions) | Payments | ||||
2022 | $ | 826.0 | |||
2023 | 163.3 | ||||
2024 | 24.0 | ||||
2025 | 3.9 | ||||
2026 | 0.5 | ||||
Thereafter | 0.1 | ||||
Total | $ | 1,017.8 |
($ in millions) | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Net Holding Period Gains (Losses) | Fair Value | % of Total Fair Value | ||||||||||||||
December 31, 2021 | ||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||
U.S. government obligations | $ | 18,586.1 | $ | 92.9 | $ | (190.8) | $ | 0 | $ | 18,488.2 | 35.9 | % | ||||||||
State and local government obligations | 2,162.6 | 36.7 | (14.0) | 0 | 2,185.3 | 4.2 | ||||||||||||||
Foreign government obligations | 17.9 | 0 | 0 | 0 | 17.9 | 0.1 | ||||||||||||||
Corporate debt securities | 10,526.2 | 202.6 | (33.4) | (3.3) | 10,692.1 | 20.7 | ||||||||||||||
Residential mortgage-backed securities | 787.7 | 2.3 | (0.6) | 0.6 | 790.0 | 1.5 | ||||||||||||||
Commercial mortgage-backed securities | 6,561.0 | 38.9 | (64.3) | 0 | 6,535.6 | 12.7 | ||||||||||||||
Other asset-backed securities | 4,981.8 | 13.3 | (12.4) | (0.4) | 4,982.3 | 9.7 | ||||||||||||||
Redeemable preferred stocks | 170.9 | 0.7 | (0.5) | 10.6 | 181.7 | 0.4 | ||||||||||||||
Total fixed maturities | 43,794.2 | 387.4 | (316.0) | 7.5 | 43,873.1 | 85.2 | ||||||||||||||
Short-term investments | 942.6 | 0 | 0 | 0 | 942.6 | 1.8 | ||||||||||||||
Total available-for-sale securities | 44,736.8 | 387.4 | (316.0) | 7.5 | 44,815.7 | 87.0 | ||||||||||||||
Equity securities: | ||||||||||||||||||||
Nonredeemable preferred stocks | 1,571.8 | 0 | 0 | 68.1 | 1,639.9 | 3.2 | ||||||||||||||
Common equities | 1,264.1 | 0 | 0 | 3,794.4 | 5,058.5 | 9.8 | ||||||||||||||
Total equity securities | 2,835.9 | 0 | 0 | 3,862.5 | 6,698.4 | 13.0 | ||||||||||||||
Total portfolio1 | $ | 47,572.7 | $ | 387.4 | $ | (316.0) | $ | 3,870.0 | $ | 51,514.1 | 100.0 | % |
($ in millions) | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Net Holding Period Gains (Losses) | Fair Value | % of Total Fair Value | ||||||||||||||
December 31, 2020 | ||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||
U.S. government obligations | $ | 12,437.9 | $ | 305.8 | $ | (3.7) | $ | 0 | $ | 12,740.0 | 26.8 | % | ||||||||
State and local government obligations | 3,099.4 | 123.1 | (0.7) | 0 | 3,221.8 | 6.8 | ||||||||||||||
Corporate debt securities | 9,579.7 | 601.7 | (0.1) | 3.9 | 10,185.2 | 21.4 | ||||||||||||||
Residential mortgage-backed securities | 503.3 | 7.1 | (0.9) | 0 | 509.5 | 1.1 | ||||||||||||||
Commercial mortgage-backed securities | 6,042.6 | 142.5 | (10.0) | 0 | 6,175.1 | 13.0 | ||||||||||||||
Other asset-backed securities | 3,745.0 | 40.1 | (0.5) | 0 | 3,784.6 | 7.9 | ||||||||||||||
Redeemable preferred stocks | 181.2 | 3.6 | (1.4) | 11.3 | 194.7 | 0.4 | ||||||||||||||
Total fixed maturities | 35,589.1 | 1,223.9 | (17.3) | 15.2 | 36,810.9 | 77.4 | ||||||||||||||
Short-term investments2 | 5,218.5 | 0 | 0 | 0 | 5,218.5 | 11.0 | ||||||||||||||
Total available-for-sale securities | 40,807.6 | 1,223.9 | (17.3) | 15.2 | 42,029.4 | 88.4 | ||||||||||||||
Equity securities3: | ||||||||||||||||||||
Nonredeemable preferred stocks | 1,333.7 | 0 | 0 | 89.2 | 1,422.9 | 3.0 | ||||||||||||||
Common equities | 1,212.3 | 0 | 0 | 2,865.7 | 4,078.0 | 8.6 | ||||||||||||||
Total equity securities | 2,546.0 | 0 | 0 | 2,954.9 | 5,500.9 | 11.6 | ||||||||||||||
Total portfolio1 | $ | 43,353.6 | $ | 1,223.9 | $ | (17.3) | $ | 2,970.1 | $ | 47,530.3 | 100.0 | % |
(millions) | 2021 | 2020 | |||||||||
Fixed Maturities: | |||||||||||
Corporate debt securities | $ | 479.1 | $ | 188.4 | |||||||
Residential mortgage-backed securities | 536.2 | 0 | |||||||||
Other asset-backed securities | 89.2 | 34.8 | |||||||||
Redeemable preferred stocks | 130.8 | 131.4 | |||||||||
Total hybrid securities | $ | 1,235.3 | $ | 354.6 |
(millions) | Cost | Fair Value | |||||||||
Less than one year | $ | 5,496.5 | $ | 5,514.8 | |||||||
One to five years | 27,049.9 | 27,137.6 | |||||||||
Five to ten years | 11,182.0 | 11,155.1 | |||||||||
Ten years or greater | 65.8 | 65.6 | |||||||||
Total | $ | 43,794.2 | $ | 43,873.1 |
Total No. of Sec. | Total Fair Value | Gross Unrealized Losses | Less than 12 Months | 12 Months or Greater | ||||||||||||||||||||||||||||
($ in millions) | No. of Sec. | Fair Value | Unrealized Losses | No. of Sec. | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||
U.S. government obligations | 92 | $ | 14,745.8 | $ | (190.8) | 85 | $ | 13,790.8 | $ | (158.5) | 7 | $ | 955.0 | $ | (32.3) | |||||||||||||||||
State and local government obligations | 127 | 954.2 | (14.0) | 122 | 927.3 | (13.1) | 5 | 26.9 | (0.9) | |||||||||||||||||||||||
Corporate debt securities | 220 | 3,496.6 | (33.4) | 219 | 3,491.7 | (33.3) | 1 | 4.9 | (0.1) | |||||||||||||||||||||||
Residential mortgage-backed securities | 20 | 138.6 | (0.6) | 14 | 135.4 | (0.5) | 6 | 3.2 | (0.1) | |||||||||||||||||||||||
Commercial mortgage-backed securities | 168 | 4,315.4 | (64.3) | 165 | 4,295.0 | (63.9) | 3 | 20.4 | (0.4) | |||||||||||||||||||||||
Other asset-backed securities | 178 | 3,204.7 | (12.4) | 176 | 3,200.6 | (12.3) | 2 | 4.1 | (0.1) | |||||||||||||||||||||||
Redeemable preferred stocks | 1 | 12.0 | (0.5) | 0 | 0 | 0 | 1 | 12.0 | (0.5) | |||||||||||||||||||||||
Total fixed maturities | 806 | $ | 26,867.3 | $ | (316.0) | 781 | $ | 25,840.8 | $ | (281.6) | 25 | $ | 1,026.5 | $ | (34.4) |
Total No. of Sec. | Total Fair Value | Gross Unrealized Losses | Less than 12 Months | 12 Months or Greater | ||||||||||||||||||||||||||||
($ in millions) | No. of Sec. | Fair Value | Unrealized Losses | No. of Sec. | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||
U.S. government obligations | 9 | $ | 1,511.0 | $ | (3.7) | 9 | $ | 1,511.0 | $ | (3.7) | 0 | $ | 0 | $ | 0 | |||||||||||||||||
State and local government obligations | 30 | 208.7 | (0.7) | 30 | 208.7 | (0.7) | 0 | 0 | 0 | |||||||||||||||||||||||
Corporate debt securities | 7 | 129.4 | (0.1) | 7 | 129.4 | (0.1) | 0 | 0 | 0 | |||||||||||||||||||||||
Residential mortgage-backed securities | 21 | 44.4 | (0.9) | 0 | 0 | 0 | 21 | 44.4 | (0.9) | |||||||||||||||||||||||
Commercial mortgage-backed securities | 43 | 893.3 | (10.0) | 9 | 93.6 | (0.3) | 34 | 799.7 | (9.7) | |||||||||||||||||||||||
Other asset-backed securities | 22 | 183.7 | (0.5) | 9 | 74.4 | (0.1) | 13 | 109.3 | (0.4) | |||||||||||||||||||||||
Redeemable preferred stocks | 1 | 11.0 | (1.4) | 0 | 0 | 0 | 1 | 11.0 | (1.4) | |||||||||||||||||||||||
Total fixed maturities | 133 | $ | 2,981.5 | $ | (17.3) | 64 | $ | 2,017.1 | $ | (4.9) | 69 | $ | 964.4 | $ | (12.4) |
(millions) | 2021 | 2020 | 2019 | ||||||||
Gross realized gains on security sales | |||||||||||
Available-for-sale securities: | |||||||||||
U.S. government obligations | $ | 105.8 | $ | 612.5 | $ | 164.4 | |||||
State and local government obligations | 51.2 | 102.4 | 6.1 | ||||||||
Corporate and other debt securities | 104.0 | 161.9 | 100.1 | ||||||||
Residential mortgage-backed securities | 0.3 | 0 | 0.2 | ||||||||
Commercial mortgage-backed securities | 41.9 | 23.7 | 8.1 | ||||||||
Other asset-backed securities | 1.2 | 0.2 | 0.8 | ||||||||
Redeemable preferred stocks | 1.5 | 0 | 2.2 | ||||||||
Total available-for-sale securities | 305.9 | 900.7 | 281.9 | ||||||||
Equity securities: | |||||||||||
Nonredeemable preferred stocks | 28.0 | 24.4 | 36.2 | ||||||||
Common equities | 369.6 | 88.6 | 61.7 | ||||||||
Total equity securities | 397.6 | 113.0 | 97.9 | ||||||||
Subtotal gross realized gains on security sales | 703.5 | 1,013.7 | 379.8 | ||||||||
Gross realized losses on security sales | |||||||||||
Available-for-sale securities: | |||||||||||
U.S. government obligations | (52.0) | (9.6) | (20.4) | ||||||||
State and local government obligations | (3.4) | (0.7) | (0.7) | ||||||||
Foreign government obligations | (0.1) | 0 | 0 | ||||||||
Corporate and other debt securities | (8.3) | (6.5) | (7.9) | ||||||||
Residential mortgage-backed securities | (1.1) | 0 | (2.3) | ||||||||
Commercial mortgage-backed securities | (1.9) | (12.8) | (2.2) | ||||||||
Other asset-backed securities | (0.6) | 0 | (0.1) | ||||||||
Redeemable preferred stocks | 0 | 0 | (0.4) | ||||||||
Total available-for-sale securities | (67.4) | (29.6) | (34.0) | ||||||||
Equity securities: | |||||||||||
Nonredeemable preferred stocks | (1.7) | (8.7) | (3.2) | ||||||||
Common equities | (20.1) | (60.7) | (8.0) | ||||||||
Total equity securities | (21.8) | (69.4) | (11.2) | ||||||||
Subtotal gross realized losses on security sales | (89.2) | (99.0) | (45.2) | ||||||||
Net realized gains (losses) on security sales | |||||||||||
Available-for-sale securities: | |||||||||||
U.S. government obligations | 53.8 | 602.9 | 144.0 | ||||||||
State and local government obligations | 47.8 | 101.7 | 5.4 | ||||||||
Foreign government obligations | (0.1) | 0 | 0 | ||||||||
Corporate and other debt securities | 95.7 | 155.4 | 92.2 | ||||||||
Residential mortgage-backed securities | (0.8) | 0 | (2.1) | ||||||||
Commercial mortgage-backed securities | 40.0 | 10.9 | 5.9 | ||||||||
Other asset-backed securities | 0.6 | 0.2 | 0.7 | ||||||||
Redeemable preferred stocks | 1.5 | 0 | 1.8 | ||||||||
Total available-for-sale securities | 238.5 | 871.1 | 247.9 | ||||||||
Equity securities: | |||||||||||
Nonredeemable preferred stocks | 26.3 | 15.7 | 33.0 | ||||||||
Common equities | 349.5 | 27.9 | 53.7 | ||||||||
Total equity securities | 375.8 | 43.6 | 86.7 | ||||||||
Subtotal net realized gains (losses) on security sales | 614.3 | 914.7 | 334.6 | ||||||||
Net holding period gains (losses) | |||||||||||
Hybrid securities | (7.7) | 7.4 | 18.0 | ||||||||
Equity securities | 907.6 | 706.5 | 739.9 | ||||||||
Derivatives | 0 | 1.4 | 0 | ||||||||
Subtotal net holding period gains (losses) | 899.9 | 715.3 | 757.9 | ||||||||
Other-than-temporary impairment losses | |||||||||||
Other asset impairment | (5.0) | 0 | (63.3) | ||||||||
Subtotal other-than-temporary impairment losses | (5.0) | 0 | (63.3) | ||||||||
Total net realized gains (losses) on securities | $ | 1,509.2 | $ | 1,630.0 | $ | 1,029.2 |
(millions) | 2021 | 2020 | 2019 | ||||||||
Total net gains (losses) recognized during the period on equity securities | $ | 1,283.4 | $ | 750.1 | $ | 826.6 | |||||
Less: Net gains (losses) recognized on equity securities sold during the period | 375.8 | 43.6 | 86.7 | ||||||||
Net holding period gains (losses) recognized during the period on equity securities held at period end | $ | 907.6 | $ | 706.5 | $ | 739.9 |
(millions) | 2021 | 2020 | 2019 | ||||||||
Available-for-sale securities: | |||||||||||
Fixed maturities: | |||||||||||
U.S. government obligations | $ | 149.5 | $ | 166.3 | $ | 268.6 | |||||
State and local government obligations | 44.1 | 62.7 | 36.5 | ||||||||
Foreign government obligations | 0.1 | 0 | 0 | ||||||||
Corporate debt securities | 301.1 | 284.0 | 268.9 | ||||||||
Residential mortgage-backed securities | 11.9 | 11.8 | 21.6 | ||||||||
Commercial mortgage-backed securities | 143.0 | 152.9 | 150.1 | ||||||||
Other asset-backed securities | 64.1 | 96.7 | 117.3 | ||||||||
Redeemable preferred stocks | 9.5 | 14.9 | 19.0 | ||||||||
Total fixed maturities | 723.3 | 789.3 | 882.0 | ||||||||
Short-term investments | 3.1 | 29.0 | 41.7 | ||||||||
Total available-for-sale securities | 726.4 | 818.3 | 923.7 | ||||||||
Equity securities: | |||||||||||
Nonredeemable preferred stocks | 70.3 | 60.6 | 61.8 | ||||||||
Common equities | 64.2 | 57.7 | 56.5 | ||||||||
Total equity securities | 134.5 | 118.3 | 118.3 | ||||||||
Investment income | 860.9 | 936.6 | 1,042.0 | ||||||||
Investment expenses | (25.5) | (20.0) | (24.6) | ||||||||
Net investment income | $ | 835.4 | $ | 916.6 | $ | 1,017.4 |
Fair Value | |||||||||||||||||
(millions) | Level 1 | Level 2 | Level 3 | Total | Cost | ||||||||||||
December 31, 2021 | |||||||||||||||||
Fixed maturities: | |||||||||||||||||
U.S. government obligations | $ | 18,488.2 | $ | 0 | $ | 0 | $ | 18,488.2 | $ | 18,586.1 | |||||||
State and local government obligations | 0 | 2,185.3 | 0 | 2,185.3 | 2,162.6 | ||||||||||||
Foreign government obligations | 0 | 17.9 | 0 | 17.9 | 17.9 | ||||||||||||
Corporate debt securities | 0 | 10,692.1 | 0 | 10,692.1 | 10,526.2 | ||||||||||||
Subtotal | 18,488.2 | 12,895.3 | 0 | 31,383.5 | 31,292.8 | ||||||||||||
Asset-backed securities: | |||||||||||||||||
Residential mortgage-backed | 0 | 790.0 | 0 | 790.0 | 787.7 | ||||||||||||
Commercial mortgage-backed | 0 | 6,535.6 | 0 | 6,535.6 | 6,561.0 | ||||||||||||
Other asset-backed | 0 | 4,982.3 | 0 | 4,982.3 | 4,981.8 | ||||||||||||
Subtotal asset-backed securities | 0 | 12,307.9 | 0 | 12,307.9 | 12,330.5 | ||||||||||||
Redeemable preferred stocks: | |||||||||||||||||
Financials | 0 | 50.9 | 0 | 50.9 | 50.7 | ||||||||||||
Utilities | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Industrials | 10.7 | 120.1 | 0 | 130.8 | 120.2 | ||||||||||||
Subtotal redeemable preferred stocks | 10.7 | 171.0 | 0 | 181.7 | 170.9 | ||||||||||||
Total fixed maturities | 18,498.9 | 25,374.2 | 0 | 43,873.1 | 43,794.2 | ||||||||||||
Short-term investments | 942.4 | 0.2 | 0 | 942.6 | 942.6 | ||||||||||||
Total available-for-sale securities | 19,441.3 | 25,374.4 | 0 | 44,815.7 | 44,736.8 | ||||||||||||
Equity securities: | |||||||||||||||||
Nonredeemable preferred stocks: | |||||||||||||||||
Financials | 115.3 | 1,305.7 | 76.4 | 1,497.4 | 1,451.7 | ||||||||||||
Utilities | 0 | 82.9 | 0 | 82.9 | 80.0 | ||||||||||||
Industrials | 0 | 25.2 | 34.4 | 59.6 | 40.1 | ||||||||||||
Subtotal nonredeemable preferred stocks | 115.3 | 1,413.8 | 110.8 | 1,639.9 | 1,571.8 | ||||||||||||
Common equities: | |||||||||||||||||
Common stocks | 4,991.6 | 50.0 | 0 | 5,041.6 | 1,247.2 | ||||||||||||
Other risk investments | 0 | 0 | 16.9 | 16.9 | 16.9 | ||||||||||||
Subtotal common equities | 4,991.6 | 50.0 | 16.9 | 5,058.5 | 1,264.1 | ||||||||||||
Total equity securities | 5,106.9 | 1,463.8 | 127.7 | 6,698.4 | 2,835.9 | ||||||||||||
Total portfolio | $ | 24,548.2 | $ | 26,838.2 | $ | 127.7 | $ | 51,514.1 | $ | 47,572.7 | |||||||
Debt | $ | 0 | $ | 5,857.4 | $ | 0 | $ | 5,857.4 | $ | 4,898.8 |
Fair Value | |||||||||||||||||
(millions) | Level 1 | Level 2 | Level 3 | Total | Cost | ||||||||||||
December 31, 2020 | |||||||||||||||||
Fixed maturities: | |||||||||||||||||
U.S. government obligations | $ | 12,740.0 | $ | 0 | $ | 0 | $ | 12,740.0 | $ | 12,437.9 | |||||||
State and local government obligations | 0 | 3,221.8 | 0 | 3,221.8 | 3,099.4 | ||||||||||||
Corporate debt securities | 0 | 10,185.2 | 0 | 10,185.2 | 9,579.7 | ||||||||||||
Subtotal | 12,740.0 | 13,407.0 | 0 | 26,147.0 | 25,117.0 | ||||||||||||
Asset-backed securities: | |||||||||||||||||
Residential mortgage-backed | 0 | 509.5 | 0 | 509.5 | 503.3 | ||||||||||||
Commercial mortgage-backed | 0 | 6,175.1 | 0 | 6,175.1 | 6,042.6 | ||||||||||||
Other asset-backed | 0 | 3,784.6 | 0 | 3,784.6 | 3,745.0 | ||||||||||||
Subtotal asset-backed securities | 0 | 10,469.2 | 0 | 10,469.2 | 10,290.9 | ||||||||||||
Redeemable preferred stocks: | |||||||||||||||||
Financials | 0 | 51.6 | 0 | 51.6 | 51.1 | ||||||||||||
Utilities | 0 | 11.7 | 0 | 11.7 | 10.0 | ||||||||||||
Industrials | 10.8 | 120.6 | 0 | 131.4 | 120.1 | ||||||||||||
Subtotal redeemable preferred stocks | 10.8 | 183.9 | 0 | 194.7 | 181.2 | ||||||||||||
Total fixed maturities | 12,750.8 | 24,060.1 | 0 | 36,810.9 | 35,589.1 | ||||||||||||
Short-term investments | 4,704.9 | 513.6 | 0 | 5,218.5 | 5,218.5 | ||||||||||||
Total available-for-sale securities | 17,455.7 | 24,573.7 | 0 | 42,029.4 | 40,807.6 | ||||||||||||
Equity securities: | |||||||||||||||||
Nonredeemable preferred stocks: | |||||||||||||||||
Financials | 117.7 | 1,212.3 | 10.0 | 1,340.0 | 1,253.6 | ||||||||||||
Utilities | 0 | 41.9 | 0 | 41.9 | 40.0 | ||||||||||||
Industrials | 0 | 24.3 | 16.7 | 41.0 | 40.1 | ||||||||||||
Subtotal nonredeemable preferred stocks | 117.7 | 1,278.5 | 26.7 | 1,422.9 | 1,333.7 | ||||||||||||
Common equities: | |||||||||||||||||
Common stocks | 4,049.9 | 0 | 25.0 | 4,074.9 | 1,209.2 | ||||||||||||
Other risk investments | 0 | 0 | 3.1 | 3.1 | 3.1 | ||||||||||||
Subtotal common equities | 4,049.9 | 0 | 28.1 | 4,078.0 | 1,212.3 | ||||||||||||
Total equity securities | 4,167.6 | 1,278.5 | 54.8 | 5,500.9 | 2,546.0 | ||||||||||||
Total portfolio | $ | 21,623.3 | $ | 25,852.2 | $ | 54.8 | $ | 47,530.3 | $ | 43,353.6 | |||||||
Debt | $ | 0 | $ | 6,793.5 | $ | 0 | $ | 6,793.5 | $ | 5,396.1 |
Level 3 Fair Value | ||||||||||||||||||||||||||
(millions) | Fair Value at Dec. 31, 2020 | Calls/ Maturities/ Paydowns/Other | Purchases | Sales | Net Realized (Gain)/Loss on Sales | Change in Valuation | Net Transfers In (Out)1 | Fair Value at Dec. 31, 2021 | ||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||
Nonredeemable preferred stocks: | ||||||||||||||||||||||||||
Financials | $ | 10.0 | $ | 0 | $ | 60.2 | $ | 0 | $ | 0 | $ | 6.2 | $ | 0 | $ | 76.4 | ||||||||||
Industrials | 16.7 | 0 | 5.0 | (5.0) | (4.5) | 22.2 | 0 | 34.4 | ||||||||||||||||||
Common equities: | ||||||||||||||||||||||||||
Common stocks | 25.0 | 0 | 2.0 | (6.0) | (8.7) | 37.7 | (50.0) | 0 | ||||||||||||||||||
Other risk investments | 3.1 | 13.8 | 0 | 0 | 0 | 0 | 0 | 16.9 | ||||||||||||||||||
Total Level 3 securities | $ | 54.8 | $ | 13.8 | $ | 67.2 | $ | (11.0) | $ | (13.2) | $ | 66.1 | $ | (50.0) | $ | 127.7 |
Level 3 Fair Value | ||||||||||||||||||||||||||
(millions) | Fair Value at Dec. 31, 2019 | Calls/ Maturities/ Paydowns/Other | Purchases | Sales | Net Realized (Gain)/Loss on Sales | Change in Valuation | Net Transfers In (Out) | Fair Value at Dec. 31, 2020 | ||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||
Nonredeemable preferred stocks: | ||||||||||||||||||||||||||
Financials | $ | 27.1 | $ | (52.1) | $ | 35.0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 10.0 | ||||||||||
Industrials | 16.0 | 0 | 0 | 0 | 0 | 0.7 | 0 | 16.7 | ||||||||||||||||||
Common equities: | ||||||||||||||||||||||||||
Common stocks | 0 | 25.0 | 0 | 0 | 0 | 0 | 0 | 25.0 | ||||||||||||||||||
Other risk investments | 0.3 | 2.8 | 0 | 0 | 0 | 0 | 0 | 3.1 | ||||||||||||||||||
Total Level 3 securities | $ | 43.4 | $ | (24.3) | $ | 35.0 | $ | 0 | $ | 0 | $ | 0.7 | $ | 0 | $ | 54.8 |
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||
($ in millions) | Fair Value at Dec. 31, 2021 | Valuation Technique | Unobservable Input | Range of Input Values Increase (Decrease) | Weighted Average Increase (Decrease) | ||||||||||||
Equity securities: | |||||||||||||||||
Nonredeemable preferred stocks | $ | 110.8 | Market comparables | Weighted average market capitalization price change % | (20.2)% to (2.3)% | (7.7)% | |||||||||||
Subtotal Level 3 securities | 110.8 | ||||||||||||||||
Pricing exemption securities | 16.9 | ||||||||||||||||
Total Level 3 securities | $ | 127.7 |
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||
($ in millions) | Fair Value at Dec. 31, 2020 | Valuation Technique | Unobservable Input | Range of Input Values Increase (Decrease) | Weighted Average Increase (Decrease) | ||||||||||||
Equity securities: | |||||||||||||||||
Nonredeemable preferred stocks | $ | 26.7 | Pricing firm | Discount for lack of marketability % | 5.0% to 15.0% | 7.6% | |||||||||||
Common stocks | 25.0 | Market comparables | Weighted average market capitalization price change % | 29.3% to 124.2% | 37.7% | ||||||||||||
Subtotal Level 3 securities | 51.7 | ||||||||||||||||
Pricing exemption securities | 3.1 | ||||||||||||||||
Total Level 3 securities | $ | 54.8 |
2021 | 2020 | ||||||||||||||||||||||||||||
(millions) | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||||
3.75% Senior Notes due 2021 (issued: $500.0, August 2011) | $ | 0 | $ | 0 | $ | 499.8 | $ | 510.9 | |||||||||||||||||||||
2.45% Senior Notes due 2027 (issued: $500.0, August 2016) | 497.7 | 517.9 | 497.3 | 541.1 | |||||||||||||||||||||||||
6 5/8% Senior Notes due 2029 (issued: $300.0, March 1999) | 297.2 | 388.2 | 296.9 | 409.4 | |||||||||||||||||||||||||
4.00% Senior Notes due 2029 (issued: $550.0, October 2018) | 545.9 | 621.0 | 545.5 | 660.4 | |||||||||||||||||||||||||
3.20% Senior Notes due 2030 (issued: $500.0, March 2020) | 496.5 | 536.3 | 496.1 | 575.5 | |||||||||||||||||||||||||
6.25% Senior Notes due 2032 (issued: $400.0, November 2002) | 396.2 | 547.9 | 396.0 | 582.0 | |||||||||||||||||||||||||
4.35% Senior Notes due 2044 (issued: $350.0, April 2014) | 346.8 | 428.4 | 346.7 | 459.7 | |||||||||||||||||||||||||
3.70% Senior Notes due 2045 (issued: $400.0, January 2015) | 395.6 | 447.1 | 395.5 | 481.0 | |||||||||||||||||||||||||
4.125% Senior Notes due 2047 (issued: $850.0, April 2017) | 841.9 | 1,029.3 | 841.7 | 1,113.1 | |||||||||||||||||||||||||
4.20% Senior Notes due 2048 (issued: $600.0, March 2018) | 590.2 | 741.3 | 590.0 | 806.7 | |||||||||||||||||||||||||
3.95% Senior Notes due 2050 (issued: $500.0, March 2020) | 490.8 | 600.0 | 490.6 | 653.7 | |||||||||||||||||||||||||
Total | $ | 4,898.8 | $ | 5,857.4 | $ | 5,396.1 | $ | 6,793.5 |
(millions) | Payments | ||||
2022 | $ | 0 | |||
2023 | 0 | ||||
2024 | 0 | ||||
2025 | 0 | ||||
2026 | 0 | ||||
Thereafter | 4,950 | ||||
Total | $ | 4,950 |
(millions) | Unrealized Gain (Loss) at Debt Issuance | Unamortized Balance at December 31, 2021 | ||||||
6 5/8% Senior Notes | $ | (4.2) | $ | (2.0) | ||||
6.25% Senior Notes | 5.1 | 3.0 | ||||||
4.35% Senior Notes | (1.6) | (1.4) | ||||||
3.70% Senior Notes | (12.9) | (11.1) | ||||||
4.125% Senior Notes | (8.0) | (7.3) |
(millions) | 2021 | 2020 | 2019 | ||||||||
Current tax provision | |||||||||||
Federal | $ | 739.5 | $ | 1,395.7 | $ | 1,133.2 | |||||
State | 20.7 | 35.6 | 27.3 | ||||||||
Deferred tax expense | |||||||||||
Federal | 98.6 | 35.8 | 16.8 | ||||||||
State | 0.3 | 1.5 | 3.0 | ||||||||
Total income tax provision | $ | 859.1 | $ | 1,468.6 | $ | 1,180.3 |
(millions) | 2021 | 2020 | 2019 | |||||||||||||||||||||||
Income before income taxes | $ | 4,210.0 | $ | 7,173.2 | $ | 5,160.3 | ||||||||||||||||||||
Tax at statutory federal rate | $ | 884.1 | 21 | % | $ | 1,506.4 | 21 | % | $ | 1,083.7 | 21 | % | ||||||||||||||
Tax effect of: | ||||||||||||||||||||||||||
Reversal of prior year tax credits | 0 | 0 | 0 | 0 | 163.2 | 3 | ||||||||||||||||||||
Tax credits1 | (9.9) | 0 | (5.4) | 0 | (43.9) | (1) | ||||||||||||||||||||
Stock-based compensation | (19.4) | (1) | (22.7) | (1) | (25.9) | (1) | ||||||||||||||||||||
Tax-deductible dividends | (9.4) | 0 | (25.1) | (1) | (14.6) | 0 | ||||||||||||||||||||
Tax-preferenced investment income | (13.2) | 0 | (15.2) | 0 | (14.0) | 0 | ||||||||||||||||||||
Nondeductible compensation expense | 8.4 | 0 | 6.4 | 0 | 8.1 | 0 | ||||||||||||||||||||
State income taxes, net of federal taxes | 16.6 | 0 | 29.3 | 1 | 24.0 | 1 | ||||||||||||||||||||
Other items, net | 1.9 | 0 | (5.1) | 0 | (0.3) | 0 | ||||||||||||||||||||
Total income tax provision | $ | 859.1 | 20 | % | $ | 1,468.6 | 20 | % | $ | 1,180.3 | 23 | % |
(millions) | 2021 | 2020 | ||||||
Federal deferred income tax assets: | ||||||||
Unearned premiums reserve | $ | 642.7 | $ | 552.5 | ||||
Loss and loss adjustment expense reserves | 224.3 | 170.0 | ||||||
Non-deductible accruals | 220.8 | 238.2 | ||||||
Operating lease liabilities | 37.9 | 37.4 | ||||||
Investment basis differences | 19.1 | 18.6 | ||||||
Hedges on forecasted transactions | 4.0 | 4.1 | ||||||
Other | 7.2 | 25.8 | ||||||
Federal deferred income tax liabilities: | ||||||||
Net holding period gains on equity securities | (811.1) | (620.5) | ||||||
Deferred acquisition costs | (284.7) | (259.8) | ||||||
Property and equipment | (94.6) | (105.6) | ||||||
Operating lease assets | (37.9) | (37.4) | ||||||
Loss and loss adjustment expense reserve transition adjustment | (32.3) | (39.3) | ||||||
Intangible assets | (16.9) | (27.6) | ||||||
Net unrealized gains on fixed-maturity securities | (15.0) | (253.4) | ||||||
Prepaid expenses | (6.8) | (5.5) | ||||||
Other | (9.6) | (7.5) | ||||||
Net federal deferred income taxes | (152.9) | (310.0) | ||||||
State deferred income tax assets1 | 16.3 | 11.9 | ||||||
State deferred income tax liabilities1 | (1.5) | (4.0) | ||||||
Total | $ | (138.1) | $ | (302.1) |
(millions) | 2021 | 2020 | 2019 | ||||||||
Balance at January 1 | $ | 20,265.8 | $ | 18,105.4 | $ | 15,400.8 | |||||
Less reinsurance recoverables on unpaid losses | 3,798.2 | 3,212.2 | 2,572.7 | ||||||||
Net balance at January 1 | 16,467.6 | 14,893.2 | 12,828.1 | ||||||||
Net loss and loss adjustment expense reserves acquired1 | 729.2 | 0 | 0 | ||||||||
Total beginning reserves | 17,196.8 | 14,893.2 | 12,828.1 | ||||||||
Incurred related to: | |||||||||||
Current year | 33,632.3 | 24,926.5 | 25,238.2 | ||||||||
Prior years | (4.7) | 195.3 | 232.3 | ||||||||
Total incurred | 33,627.6 | 25,121.8 | 25,470.5 | ||||||||
Paid related to: | |||||||||||
Current year | 20,561.1 | 15,584.4 | 16,105.0 | ||||||||
Prior years | 8,832.8 | 7,963.0 | 7,300.4 | ||||||||
Total paid | 29,393.9 | 23,547.4 | 23,405.4 | ||||||||
Net balance at December 31 | 21,430.5 | 16,467.6 | 14,893.2 | ||||||||
Plus reinsurance recoverables on unpaid losses | 4,733.6 | 3,798.2 | 3,212.2 | ||||||||
Balance at December 31 | $ | 26,164.1 | $ | 20,265.8 | $ | 18,105.4 |
Personal Lines - Agency - Liability | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | As of | |||||||||||||||||||||||||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, | Total of IBNR Liabilities Plus Expected Development on Reported Claims | Cumulative Number of Incurred Claim Counts | ||||||||||||||||||||||||||||||||||||||||||
Accident Year | 20171 | 20181 | 20191 | 20201 | 2021 | |||||||||||||||||||||||||||||||||||||||
2017 | $ | 4,474.8 | $ | 4,485.8 | $ | 4,511.1 | $ | 4,546.4 | $ | 4,509.2 | $ | 0 | 779,396 | |||||||||||||||||||||||||||||||
2018 | 5,141.8 | 5,182.1 | 5,192.7 | 5,238.7 | 89.3 | 856,502 | ||||||||||||||||||||||||||||||||||||||
2019 | 5,885.0 | 5,886.9 | 5,918.2 | 112.5 | 915,954 | |||||||||||||||||||||||||||||||||||||||
2020 | 5,433.8 | 5,405.4 | 280.3 | 754,470 | ||||||||||||||||||||||||||||||||||||||||
2021 | 6,716.4 | 991.0 | 875,200 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 27,787.9 | ||||||||||||||||||||||||||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||
Accident Year | 20171 | 20181 | 20191 | 20201 | 2021 | |||||||||||||||||||||||||||||||||||||||
2017 | $ | 2,074.0 | $ | 3,478.5 | $ | 4,048.5 | $ | 4,285.5 | $ | 4,418.3 | ||||||||||||||||||||||||||||||||||
2018 | 2,378.0 | 4,028.7 | 4,635.0 | 4,940.6 | ||||||||||||||||||||||||||||||||||||||||
2019 | 2,715.2 | 4,533.2 | 5,272.8 | |||||||||||||||||||||||||||||||||||||||||
2020 | 2,383.0 | 4,112.2 | ||||||||||||||||||||||||||||||||||||||||||
2021 | 2,855.4 | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 21,599.3 | ||||||||||||||||||||||||||||||||||||||||||
All outstanding liabilities before 2017, net of reinsurance1 | 85.7 | |||||||||||||||||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 6,274.3 |
Personal Lines - Agency - Physical Damage | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | As of | |||||||||||||||||||||||||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, | Total of IBNR Liabilities Plus Expected Development on Reported Claims | Cumulative Number of Incurred Claim Counts | ||||||||||||||||||||||||||||||||||||||||||
Accident Year | 20171 | 20181 | 20191 | 20201 | 2021 | |||||||||||||||||||||||||||||||||||||||
2017 | $ | 2,635.5 | $ | 2,638.5 | $ | 2,643.5 | $ | 2,640.6 | $ | 2,645.1 | $ | 0.8 | 1,514,952 | |||||||||||||||||||||||||||||||
2018 | 2,819.0 | 2,822.6 | 2,821.7 | 2,818.9 | (4.6) | 1,695,396 | ||||||||||||||||||||||||||||||||||||||
2019 | 3,277.9 | 3,254.7 | 3,261.1 | (3.1) | 1,878,499 | |||||||||||||||||||||||||||||||||||||||
2020 | 3,328.5 | 3,319.8 | (14.6) | 1,782,861 | ||||||||||||||||||||||||||||||||||||||||
2021 | 4,708.3 | (222.0) | 2,094,032 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 16,753.2 | ||||||||||||||||||||||||||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||
Accident Year | 20171 | 20181 | 20191 | 20201 | 2021 | |||||||||||||||||||||||||||||||||||||||
2017 | $ | 2,599.8 | $ | 2,643.2 | $ | 2,640.9 | $ | 2,640.8 | $ | 2,641.7 | ||||||||||||||||||||||||||||||||||
2018 | 2,769.1 | 2,827.4 | 2,819.9 | 2,819.5 | ||||||||||||||||||||||||||||||||||||||||
2019 | 3,242.5 | 3,259.2 | 3,255.9 | |||||||||||||||||||||||||||||||||||||||||
2020 | 3,250.1 | 3,322.5 | ||||||||||||||||||||||||||||||||||||||||||
2021 | 4,438.1 | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 16,477.7 | ||||||||||||||||||||||||||||||||||||||||||
All outstanding liabilities before 2017, net of reinsurance1 | 2.1 | |||||||||||||||||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 277.6 |
Personal Lines - Direct - Liability | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | As of | |||||||||||||||||||||||||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, | Total of IBNR Liabilities Plus Expected Development on Reported Claims | Cumulative Number of Incurred Claim Counts | ||||||||||||||||||||||||||||||||||||||||||
Accident Year | 20171 | 20181 | 20191 | 20201 | 2021 | |||||||||||||||||||||||||||||||||||||||
2017 | $ | 4,209.5 | $ | 4,209.9 | $ | 4,229.3 | $ | 4,254.4 | $ | 4,219.2 | $ | (0.5) | 772,945 | |||||||||||||||||||||||||||||||
2018 | 4,904.8 | 4,980.9 | 5,003.2 | 5,052.5 | 77.1 | 871,243 | ||||||||||||||||||||||||||||||||||||||
2019 | 5,756.5 | 5,811.7 | 5,837.9 | 91.9 | 957,488 | |||||||||||||||||||||||||||||||||||||||
2020 | 5,356.9 | 5,322.7 | 263.2 | 787,231 | ||||||||||||||||||||||||||||||||||||||||
2021 | 6,964.7 | 972.2 | 970,710 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 27,397.0 | ||||||||||||||||||||||||||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||
Accident Year | 20171 | 20181 | 20191 | 20201 | 2021 | |||||||||||||||||||||||||||||||||||||||
2017 | $ | 1,912.6 | $ | 3,255.2 | $ | 3,808.3 | $ | 4,035.6 | $ | 4,147.1 | ||||||||||||||||||||||||||||||||||
2018 | 2,235.1 | 3,863.5 | 4,481.7 | 4,787.7 | ||||||||||||||||||||||||||||||||||||||||
2019 | 2,630.3 | 4,452.5 | 5,218.8 | |||||||||||||||||||||||||||||||||||||||||
2020 | 2,301.3 | 4,018.7 | ||||||||||||||||||||||||||||||||||||||||||
2021 | 2,915.0 | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 21,087.3 | ||||||||||||||||||||||||||||||||||||||||||
All outstanding liabilities before 2017, net of reinsurance1 | 63.5 | |||||||||||||||||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 6,373.2 |
Personal Lines - Direct - Physical Damage | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | As of | |||||||||||||||||||||||||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, | Total of IBNR Liabilities Plus Expected Development on Reported Claims | Cumulative Number of Incurred Claim Counts | ||||||||||||||||||||||||||||||||||||||||||
Accident Year | 20171 | 20181 | 20191 | 20201 | 2021 | |||||||||||||||||||||||||||||||||||||||
2017 | $ | 2,750.6 | $ | 2,743.7 | $ | 2,749.0 | $ | 2,745.6 | $ | 2,750.8 | $ | 0.8 | 1,791,658 | |||||||||||||||||||||||||||||||
2018 | 3,202.3 | 3,181.9 | 3,182.0 | 3,179.3 | (6.2) | 2,070,183 | ||||||||||||||||||||||||||||||||||||||
2019 | 3,787.9 | 3,737.8 | 3,749.6 | (5.5) | 2,271,699 | |||||||||||||||||||||||||||||||||||||||
2020 | 3,775.6 | 3,753.3 | (26.1) | 2,136,940 | ||||||||||||||||||||||||||||||||||||||||
2021 | 5,752.3 | (311.9) | 2,618,463 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 19,185.3 | ||||||||||||||||||||||||||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||
Accident Year | 20171 | 20181 | 20191 | 20201 | 2021 | |||||||||||||||||||||||||||||||||||||||
2017 | $ | 2,742.1 | $ | 2,753.5 | $ | 2,748.4 | $ | 2,747.6 | $ | 2,747.9 | ||||||||||||||||||||||||||||||||||
2018 | 3,170.0 | 3,193.8 | 3,183.0 | 3,182.6 | ||||||||||||||||||||||||||||||||||||||||
2019 | 3,782.6 | 3,751.3 | 3,746.8 | |||||||||||||||||||||||||||||||||||||||||
2020 | 3,720.0 | 3,765.9 | ||||||||||||||||||||||||||||||||||||||||||
2021 | 5,421.9 | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 18,865.1 | ||||||||||||||||||||||||||||||||||||||||||
All outstanding liabilities before 2017, net of reinsurance1 | 2.1 | |||||||||||||||||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 322.3 |
Commercial Lines - Liability | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | As of | |||||||||||||||||||||||||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, | Total of IBNR Liabilities Plus Expected Development on Reported Claims | Cumulative Number of Incurred Claim Counts | ||||||||||||||||||||||||||||||||||||||||||
Accident Year | 20171 | 20181 | 20191 | 20201 | 2021 | |||||||||||||||||||||||||||||||||||||||
2017 | $ | 1,477.2 | $ | 1,470.2 | $ | 1,492.6 | $ | 1,472.2 | $ | 1,462.3 | $ | 5.9 | 102,806 | |||||||||||||||||||||||||||||||
2018 | 1,880.4 | 1,913.7 | 1,976.2 | 1,971.4 | 34.7 | 119,972 | ||||||||||||||||||||||||||||||||||||||
2019 | 2,301.1 | 2,370.9 | 2,426.3 | 82.0 | 136,273 | |||||||||||||||||||||||||||||||||||||||
2020 | 2,335.7 | 2,388.8 | 175.5 | 117,027 | ||||||||||||||||||||||||||||||||||||||||
2021 | 3,446.6 | 650.0 | 153,749 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 11,695.4 | ||||||||||||||||||||||||||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||
Accident Year | 20171 | 20181 | 20191 | 20201 | 2021 | |||||||||||||||||||||||||||||||||||||||
2017 | $ | 337.2 | $ | 759.5 | $ | 1,085.4 | $ | 1,257.1 | $ | 1,353.0 | ||||||||||||||||||||||||||||||||||
2018 | 401.4 | 979.9 | 1,392.3 | 1,666.8 | ||||||||||||||||||||||||||||||||||||||||
2019 | 474.8 | 1,184.4 | 1,684.5 | |||||||||||||||||||||||||||||||||||||||||
2020 | 440.8 | 1,110.4 | ||||||||||||||||||||||||||||||||||||||||||
2021 | 573.6 | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 6,388.3 | ||||||||||||||||||||||||||||||||||||||||||
All outstanding liabilities before 2017, net of reinsurance1 | 74.0 | |||||||||||||||||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 5,381.1 |
Commercial Lines - Physical Damage | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | As of | |||||||||||||||||||||||||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, | Total of IBNR Liabilities Plus Expected Development on Reported Claims | Cumulative Number of Incurred Claim Counts | ||||||||||||||||||||||||||||||||||||||||||
Accident Year | 20171 | 20181 | 20191 | 20201 | 2021 | |||||||||||||||||||||||||||||||||||||||
2017 | $ | 463.9 | $ | 459.3 | $ | 457.3 | $ | 456.1 | $ | 456.6 | $ | 0 | 87,721 | |||||||||||||||||||||||||||||||
2018 | 528.7 | 528.3 | 526.3 | 525.6 | (1.1) | 93,305 | ||||||||||||||||||||||||||||||||||||||
2019 | 633.1 | 628.3 | 626.6 | (1.9) | 99,456 | |||||||||||||||||||||||||||||||||||||||
2020 | 631.8 | 624.9 | (4.4) | 99,436 | ||||||||||||||||||||||||||||||||||||||||
2021 | 920.9 | (11.4) | 123,801 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 3,154.6 | ||||||||||||||||||||||||||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||
Accident Year | 20171 | 20181 | 20191 | 20201 | 2021 | |||||||||||||||||||||||||||||||||||||||
2017 | $ | 408.5 | $ | 456.0 | $ | 455.4 | $ | 455.6 | $ | 455.6 | ||||||||||||||||||||||||||||||||||
2018 | 467.6 | 524.8 | 524.9 | 525.4 | ||||||||||||||||||||||||||||||||||||||||
2019 | 561.1 | 625.1 | 624.8 | |||||||||||||||||||||||||||||||||||||||||
2020 | 540.6 | 621.8 | ||||||||||||||||||||||||||||||||||||||||||
2021 | 764.2 | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 2,991.8 | ||||||||||||||||||||||||||||||||||||||||||
All outstanding liabilities before 2017, net of reinsurance1 | 0.7 | |||||||||||||||||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 163.5 |
Commercial Lines - Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | As of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, | Total of IBNR Liabilities Plus Expected Development on Reported Claims | Cumulative Number of Incurred Claim Counts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accident Year | 20121 | 20131 | 20141 | 20151 | 20161 | 20171 | 20181 | 20191 | 20201 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2012 | $ | 62.2 | $ | 59.2 | $ | 57.0 | $ | 61.7 | $ | 68.8 | $ | 71.9 | $ | 70.1 | $ | 70.0 | $ | 70.9 | $ | 71.1 | $ | 3.0 | 7,434 | |||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 66.4 | 68.1 | 65.3 | 75.4 | 81.6 | 77.9 | 78.9 | 78.9 | 78.9 | 4.4 | 7,703 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 74.9 | 70.0 | 68.3 | 70.5 | 70.7 | 69.4 | 70.7 | 70.9 | 4.3 | 7,969 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 51.2 | 45.4 | 46.1 | 48.3 | 47.0 | 44.8 | 45.1 | 4.9 | 8,519 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 51.8 | 43.3 | 41.0 | 41.5 | 40.2 | 40.1 | 3.8 | 7,065 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 62.6 | 54.6 | 51.1 | 48.8 | 46.2 | 5.8 | 17,653 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 81.5 | 81.3 | 76.7 | 77.0 | 7.8 | 15,389 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 80.7 | 83.1 | 85.4 | 14.7 | 10,577 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 75.0 | 80.7 | 24.8 | 9,260 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 84.1 | 45.9 | 8,472 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 679.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accident Year | 20121 | 20131 | 20141 | 20151 | 20161 | 20171 | 20181 | 20191 | 20201 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2012 | $ | 14.0 | $ | 28.2 | $ | 38.4 | $ | 47.3 | $ | 53.6 | $ | 58.6 | $ | 62.1 | $ | 63.3 | $ | 64.2 | $ | 64.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 13.7 | 30.6 | 43.6 | 55.6 | 61.9 | 66.9 | 68.9 | 70.8 | 71.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 18.6 | 33.9 | 44.3 | 51.1 | 56.9 | 59.0 | 61.1 | 64.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 6.5 | 18.1 | 26.5 | 30.9 | 33.9 | 36.1 | 37.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 8.5 | 20.9 | 27.0 | 30.6 | 32.7 | 33.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 9.6 | 24.4 | 30.8 | 34.5 | 36.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 17.6 | 39.6 | 49.5 | 56.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 20.0 | 42.4 | 56.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 15.8 | 38.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 16.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 476.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
All outstanding liabilities before 2012, net of reinsurance1 | 26.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 229.8 |
Property Business | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | As of | |||||||||||||||||||||||||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, | Total of IBNR Liabilities Plus Expected Development on Reported Claims | Cumulative Number of Incurred Claim Counts | ||||||||||||||||||||||||||||||||||||||||||
Accident Year | 20171 | 20181 | 20191 | 20201 | 2021 | |||||||||||||||||||||||||||||||||||||||
2017 | $ | 672.8 | $ | 680.9 | $ | 683.4 | $ | 681.3 | $ | 681.5 | $ | 0.4 | 76,236 | |||||||||||||||||||||||||||||||
2018 | 839.0 | 845.2 | 845.4 | 846.5 | 11.0 | 64,872 | ||||||||||||||||||||||||||||||||||||||
2019 | 971.7 | 965.2 | 962.8 | 2.4 | 75,434 | |||||||||||||||||||||||||||||||||||||||
2020 | 1,223.5 | 1,246.8 | 56.8 | 109,427 | ||||||||||||||||||||||||||||||||||||||||
2021 | 1,539.6 | 333.4 | 118,874 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 5,277.2 | ||||||||||||||||||||||||||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||
Accident Year | 20171 | 20181 | 20191 | 20201 | 2021 | |||||||||||||||||||||||||||||||||||||||
2017 | $ | 506.7 | $ | 647.1 | $ | 670.1 | $ | 675.0 | $ | 679.1 | ||||||||||||||||||||||||||||||||||
2018 | 595.9 | 781.2 | 812.6 | 826.6 | ||||||||||||||||||||||||||||||||||||||||
2019 | 708.0 | 930.4 | 950.5 | |||||||||||||||||||||||||||||||||||||||||
2020 | 832.5 | 1,141.2 | ||||||||||||||||||||||||||||||||||||||||||
2021 | 1,035.4 | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 4,632.8 | ||||||||||||||||||||||||||||||||||||||||||
All outstanding liabilities before 2017, net of reinsurance1 | 6.1 | |||||||||||||||||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 650.5 |
(millions) | 2021 | 2020 | |||||||||
Net outstanding liabilities | |||||||||||
Personal Lines | |||||||||||
Agency, Liability | $ | 6,274.3 | $ | 5,378.7 | |||||||
Agency, Physical Damage | 277.6 | 82.4 | |||||||||
Direct, Liability | 6,373.2 | 5,277.3 | |||||||||
Direct, Physical Damage | 322.3 | 40.6 | |||||||||
Commercial Lines | |||||||||||
Liability | 5,381.1 | 3,586.3 | |||||||||
Physical Damage | 163.5 | 82.7 | |||||||||
Other | 229.8 | 0 | |||||||||
Property | 650.5 | 474.7 | |||||||||
Other business | 62.6 | 66.7 | |||||||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 19,734.9 | 14,989.4 | |||||||||
Reinsurance recoverable on unpaid claims | |||||||||||
Personal Lines | |||||||||||
Agency, Liability | 916.9 | 959.6 | |||||||||
Agency, Physical Damage | 0 | 0 | |||||||||
Direct, Liability | 1,472.7 | 1,475.8 | |||||||||
Direct, Physical Damage | 0 | 0 | |||||||||
Commercial Lines | |||||||||||
Liability | 1,266.4 | 758.5 | |||||||||
Physical Damage | 2.4 | (0.3) | |||||||||
Other | 202.0 | 0 | |||||||||
Property | 370.0 | 226.9 | |||||||||
Other business | 463.8 | 358.6 | |||||||||
Total reinsurance recoverable on unpaid claims | 4,694.2 | 3,779.1 | |||||||||
Unallocated claims adjustment expense related to: | |||||||||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 1,695.6 | 1,478.2 | |||||||||
Reinsurance recoverable on unpaid claims | 39.4 | 19.1 | |||||||||
Total gross liability for unpaid claims and claim adjustment expense | $ | 26,164.1 | $ | 20,265.8 |
(Required Supplementary Information - Unaudited) | |||||||||||||||||
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance | Years | ||||||||||||||||
1 | 2 | 3 | 4 | 5 | |||||||||||||
Personal Lines | |||||||||||||||||
Agency, Liability | 44.6% | 31.3% | 12.2% | 5.6% | 2.9% | ||||||||||||
Agency, Physical Damage | 97.3 | 1.6 | (0.2) | 0 | 0 | ||||||||||||
Direct, Liability | 43.8 | 31.9 | 12.8 | 5.8 | 2.6 | ||||||||||||
Direct, Physical Damage | 98.2 | 0.4 | (0.2) | 0 | 0 | ||||||||||||
Commercial Lines | |||||||||||||||||
Liability | 19.0 | 28.9 | 21.1 | 13.0 | 6.6 | ||||||||||||
Physical Damage | 86.9 | 11.2 | 0 | 0.1 | 0 | ||||||||||||
Other | 20.8 | 25.6 | 15.2 | 10.9 | 7.4 | ||||||||||||
Property | 69.7 | 22.9 | 3.0 | 1.2 | 0.6 |
2021 | 2020 | 2019 | ||||||||||||||||||||||||
(millions) | Written | Earned | Written | Earned | Written | Earned | ||||||||||||||||||||
Direct premiums | $ | 48,129.6 | $ | 46,018.6 | $ | 41,736.4 | $ | 40,687.7 | $ | 39,222.0 | $ | 37,519.7 | ||||||||||||||
Ceded premiums: | ||||||||||||||||||||||||||
Regulated | (674.5) | (650.2) | (648.2) | (686.5) | (711.1) | (670.8) | ||||||||||||||||||||
Non-Regulated | (1,049.9) | (999.7) | (519.5) | (739.6) | (933.0) | (656.5) | ||||||||||||||||||||
Total ceded premiums | (1,724.4) | (1,649.9) | (1,167.7) | (1,426.1) | (1,644.1) | (1,327.3) | ||||||||||||||||||||
Net premiums | $ | 46,405.2 | $ | 44,368.7 | $ | 40,568.7 | $ | 39,261.6 | $ | 37,577.9 | $ | 36,192.4 |
Reinsurance Recoverables | Prepaid Reinsurance Premiums | ||||||||||||||||||||||||||||||||||
($ in millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||
Regulated: | |||||||||||||||||||||||||||||||||||
MCCA | $ | 2,364.0 | 47 | % | $ | 2,428.8 | 60 | % | $ | 26.7 | 6 | % | $ | 33.3 | 9 | % | |||||||||||||||||||
CAIP | 529.0 | 11 | 397.8 | 10 | 111.2 | 24 | 84.7 | 23 | |||||||||||||||||||||||||||
NCRF | 118.7 | 2 | 88.6 | 2 | 44.4 | 10 | 41.9 | 11 | |||||||||||||||||||||||||||
FHCF | 81.3 | 2 | 54.8 | 1 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
NFIP | 13.9 | 0 | 24.2 | 1 | 62.4 | 14 | 60.7 | 17 | |||||||||||||||||||||||||||
Other | 2.2 | 0 | 3.2 | 0 | 1.4 | 0 | 1.3 | 0 | |||||||||||||||||||||||||||
Total Regulated | 3,109.1 | 62 | 2,997.4 | 74 | 246.1 | 54 | 221.9 | 60 | |||||||||||||||||||||||||||
Non-Regulated: | |||||||||||||||||||||||||||||||||||
Commercial Lines | 1,518.4 | 31 | 753.2 | 19 | 198.2 | 43 | 134.5 | 37 | |||||||||||||||||||||||||||
Property | 345.8 | 7 | 261.7 | 7 | 13.3 | 3 | 11.7 | 3 | |||||||||||||||||||||||||||
Other | 7.2 | 0 | 7.1 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Total Non-Regulated | 1,871.4 | 38 | 1,022.0 | 26 | 211.5 | 46 | 146.2 | 40 | |||||||||||||||||||||||||||
Total | $ | 4,980.5 | 100 | % | $ | 4,019.4 | 100 | % | $ | 457.6 | 100 | % | $ | 368.1 | 100 | % |
2021 | 2020 | 2019 | ||||||||||||||||||||||||
(millions) | Pretax | After Tax | Pretax | After Tax | Pretax | After Tax | ||||||||||||||||||||
Non-equity incentive plans – cash | $ | 619.3 | $ | 489.2 | $ | 688.8 | $ | 544.2 | $ | 598.4 | $ | 472.7 | ||||||||||||||
Equity incentive plans | 100.7 | 79.6 | 89.4 | 70.6 | 90.1 | 71.2 |
Performance Measurement | Year(s) of Grant | Vesting range (as a percentage of target) | ||||||
Growth of our personal auto and commercial auto businesses and homeowners multi-peril business, each compared to its respective market | 2019-2021 | 0-250% | ||||||
Investment results relative to peer group | 2019-2021 | 0-200% |
2021 | 2020 | 2019 | ||||||||||||||||||||||||
Restricted Equity Awards | Number of Shares1 | Weighted Average Grant Date Fair Value | Number of Shares1 | Weighted Average Grant Date Fair Value | Number of Shares1 | Weighted Average Grant Date Fair Value | ||||||||||||||||||||
Beginning of year | 3,570,271 | $ | 57.68 | 3,879,077 | $ | 48.28 | 4,856,356 | $ | 38.56 | |||||||||||||||||
Add (deduct): | ||||||||||||||||||||||||||
Granted2 | 1,476,802 | 70.11 | 1,629,534 | 55.28 | 1,835,145 | 49.61 | ||||||||||||||||||||
Vested | (1,452,353) | 46.88 | (1,861,442) | 36.19 | (2,691,337) | 31.85 | ||||||||||||||||||||
Forfeited | (55,698) | 60.81 | (76,898) | 52.79 | (121,087) | 43.98 | ||||||||||||||||||||
End of year3,4 | 3,539,022 | $ | 67.24 | 3,570,271 | $ | 57.68 | 3,879,077 | $ | 48.28 |
2021 | 2020 | 2019 | ||||||||||||||||||||||||
Restricted Stock | Number of Shares | Weighted Average Grant Date Fair Value | Number of Shares | Weighted Average Grant Date Fair Value | Number of Shares | Weighted Average Grant Date Fair Value | ||||||||||||||||||||
Beginning of year | 39,403 | $ | 74.77 | 38,451 | $ | 73.43 | 41,706 | $ | 62.23 | |||||||||||||||||
Add (deduct): | ||||||||||||||||||||||||||
Granted | 29,206 | 105.16 | 39,403 | 74.77 | 38,451 | 73.43 | ||||||||||||||||||||
Vested | (39,403) | 74.77 | (38,451) | 73.43 | (41,706) | 62.23 | ||||||||||||||||||||
End of year1 | 29,206 | $ | 105.16 | 39,403 | $ | 74.77 | 38,451 | $ | 73.43 |
(millions) | 2021 | 2020 | ||||||
Progressive common shares1 | $ | 137.1 | $ | 134.2 | ||||
Other investment funds2 | 189.1 | 167.2 | ||||||
Total | $ | 326.2 | $ | 301.4 |
2021 | 2020 | 2019 | ||||||||||||||||||||||||
(millions) | Revenues | Pretax Profit (Loss) | Revenues | Pretax Profit (Loss) | Revenues | Pretax Profit (Loss) | ||||||||||||||||||||
Personal Lines | ||||||||||||||||||||||||||
Agency | $ | 16,881.0 | $ | 992.1 | $ | 15,789.5 | $ | 2,236.5 | $ | 14,904.1 | $ | 1,673.2 | ||||||||||||||
Direct | 18,492.3 | 619.2 | 16,830.6 | 2,076.5 | 15,305.9 | 1,181.4 | ||||||||||||||||||||
Total Personal Lines1 | 35,373.3 | 1,611.3 | 32,620.1 | 4,313.0 | 30,210.0 | 2,854.6 | ||||||||||||||||||||
Commercial Lines | 6,945.2 | 767.8 | 4,875.8 | 634.8 | 4,427.6 | 458.8 | ||||||||||||||||||||
Property2 | 2,042.5 | (312.3) | 1,765.7 | (125.1) | 1,554.8 | (26.1) | ||||||||||||||||||||
Other indemnity3 | 7.7 | (1.4) | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Total underwriting operations | 44,368.7 | 2,065.4 | 39,261.6 | 4,822.7 | 36,192.4 | 3,287.3 | ||||||||||||||||||||
Fees and other revenues4 | 691.8 | NA | 603.5 | NA | 563.7 | NA | ||||||||||||||||||||
Service businesses | 271.4 | 18.6 | 226.4 | 20.9 | 195.0 | 16.1 | ||||||||||||||||||||
Investments5 | 2,370.1 | 2,344.6 | 2,566.6 | 2,546.6 | 2,071.2 | 2,046.6 | ||||||||||||||||||||
Interest expense | NA | (218.6) | NA | (217.0) | NA | (189.7) | ||||||||||||||||||||
Consolidated total | $ | 47,702.0 | $ | 4,210.0 | $ | 42,658.1 | $ | 7,173.2 | $ | 39,022.3 | $ | 5,160.3 |
2021 | 2020 | 2019 | ||||||||||||||||||||||||
Underwriting Margin | Combined Ratio | Underwriting Margin | Combined Ratio | Underwriting Margin | Combined Ratio | |||||||||||||||||||||
Personal Lines | ||||||||||||||||||||||||||
Agency | 5.9 | % | 94.1 | 14.2 | % | 85.8 | 11.2 | % | 88.8 | |||||||||||||||||
Direct | 3.4 | 96.6 | 12.3 | 87.7 | 7.7 | 92.3 | ||||||||||||||||||||
Total Personal Lines | 4.6 | 95.4 | 13.2 | 86.8 | 9.5 | 90.5 | ||||||||||||||||||||
Commercial Lines | 11.1 | 88.9 | 13.0 | 87.0 | 10.4 | 89.6 | ||||||||||||||||||||
Property1 | (15.3) | 115.3 | (7.1) | 107.1 | (1.7) | 101.7 | ||||||||||||||||||||
Total underwriting operations | 4.7 | 95.3 | 12.3 | 87.7 | 9.1 | 90.9 |
Components of Changes in Accumulated Other Comprehensive Income (after tax) | |||||||||||||||||||||||||||||||||||
(millions) | Pretax total accumulated other comprehensive income (loss) | Total tax (provision) benefit | After tax total accumulated other comprehensive income (loss) | Total net unrealized gains (losses) on securities | Net unrealized gains (losses) on forecasted transactions | Foreign currency translation adjustment | |||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 1,187.4 | $ | (255.7) | $ | 931.7 | $ | 947.3 | $ | (15.6) | $ | 0 | |||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications: | |||||||||||||||||||||||||||||||||||
Investment securities | (892.4) | 193.0 | (699.4) | (699.4) | 0 | 0 | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | (0.8) | 0.2 | (0.6) | 0 | 0 | (0.6) | |||||||||||||||||||||||||||||
Total other comprehensive income (loss) before reclassifications | (893.2) | 193.2 | (700.0) | (699.4) | 0 | (0.6) | |||||||||||||||||||||||||||||
Less: Reclassification adjustment for amounts realized in net income by income statement line item: | |||||||||||||||||||||||||||||||||||
Net realized gains (losses) on securities | 242.8 | (51.1) | 191.7 | 191.7 | 0 | 0 | |||||||||||||||||||||||||||||
Interest expense | (0.9) | 0.2 | (0.7) | 0 | (0.7) | 0 | |||||||||||||||||||||||||||||
Total reclassification adjustment for amounts realized in net income | 241.9 | (50.9) | 191.0 | 191.7 | (0.7) | 0 | |||||||||||||||||||||||||||||
Total other comprehensive income (loss) | (1,135.1) | 244.1 | (891.0) | (891.1) | 0.7 | (0.6) | |||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | 52.3 | $ | (11.6) | $ | 40.7 | $ | 56.2 | $ | (14.9) | $ | (0.6) |
Components of Changes in Accumulated Other Comprehensive Income (after tax) | |||||||||||||||||||||||||||||||||||
(millions) | Pretax total accumulated other comprehensive income (loss) | Total tax (provision) benefit | After tax total accumulated other comprehensive income (loss) | Total net unrealized gains (losses) on securities | Net unrealized gains (losses) on forecasted transactions | (Income) loss attributable to NCI | |||||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | 435.7 | $ | (94.0) | $ | 341.7 | $ | 360.8 | $ | (16.4) | $ | (2.7) | |||||||||||||||||||||||
Reclassification of disproportionate amounts1 | 3.4 | (0.7) | 2.7 | 0 | 0 | 2.7 | |||||||||||||||||||||||||||||
Adjusted balance at December 31, 2019 | 439.1 | (94.7) | 344.4 | 360.8 | (16.4) | 0 | |||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications: | |||||||||||||||||||||||||||||||||||
Investment securities | 1,557.2 | (306.1) | 1,251.1 | 1,251.1 | 0 | 0 | |||||||||||||||||||||||||||||
Total other comprehensive income (loss) before reclassifications | 1,557.2 | (306.1) | 1,251.1 | 1,251.1 | 0 | 0 | |||||||||||||||||||||||||||||
Less: Reclassification adjustment for amounts realized in net income by income statement line item: | |||||||||||||||||||||||||||||||||||
Net realized gains (losses) on securities | 810.0 | (145.4) | 664.6 | 664.6 | 0 | 0 | |||||||||||||||||||||||||||||
Interest expense | (1.1) | 0.3 | (0.8) | 0 | (0.8) | 0 | |||||||||||||||||||||||||||||
Total reclassification adjustment for amounts realized in net income | 808.9 | (145.1) | 663.8 | 664.6 | (0.8) | 0 | |||||||||||||||||||||||||||||
Total other comprehensive income (loss) | 748.3 | (161.0) | 587.3 | 586.5 | 0.8 | 0 | |||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 1,187.4 | $ | (255.7) | $ | 931.7 | $ | 947.3 | $ | (15.6) | $ | 0 |
Components of Changes in Accumulated Other Comprehensive Income (after tax) | |||||||||||||||||||||||||||||||||||
(millions) | Pretax total accumulated other comprehensive income (loss) | Total tax (provision) benefit | After tax total accumulated other comprehensive income (loss) | Total net unrealized gains (losses) on securities | Net unrealized gains (losses) on forecasted transactions | (Income) loss attributable to NCI | |||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | (153.0) | $ | 32.1 | $ | (120.9) | $ | (105.6) | $ | (17.2) | $ | 1.9 | |||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications: | |||||||||||||||||||||||||||||||||||
Investment securities | 825.8 | (174.9) | 650.9 | 650.9 | 0 | 0 | |||||||||||||||||||||||||||||
Loss attributable to noncontrolling interest | (5.9) | 1.3 | (4.6) | 0 | 0 | (4.6) | |||||||||||||||||||||||||||||
Total other comprehensive income (loss) before reclassifications | 819.9 | (173.6) | 646.3 | 650.9 | 0 | (4.6) | |||||||||||||||||||||||||||||
Less: Reclassification adjustment for amounts realized in net income by income statement line item: | |||||||||||||||||||||||||||||||||||
Net realized gains (losses) on securities | 232.2 | (47.7) | 184.5 | 184.5 | 0 | 0 | |||||||||||||||||||||||||||||
Interest expense | (1.0) | 0.2 | (0.8) | 0 | (0.8) | 0 | |||||||||||||||||||||||||||||
Total reclassification adjustment for amounts realized in net income | 231.2 | (47.5) | 183.7 | 184.5 | (0.8) | 0 | |||||||||||||||||||||||||||||
Total other comprehensive income (loss) | 588.7 | (126.1) | 462.6 | 466.4 | 0.8 | (4.6) | |||||||||||||||||||||||||||||
Total at December 31, 2019 | $ | 435.7 | $ | (94.0) | $ | 341.7 | $ | 360.8 | $ | (16.4) | $ | (2.7) |
(millions) | 2021 | 2020 | ||||||
Operating lease assets | $ | 172.6 | $ | 165.5 | ||||
Operating lease liabilities | $ | 180.9 | $ | 179.0 | ||||
Weighted-average remaining term | 2.9 years | 3.0 years | ||||||
Weighted-average discount rate | 1.6 | % | 2.5 | % |
(millions) | Commitments | ||||
2022 | $ | 72.4 | |||
2023 | 56.4 | ||||
2024 | 39.3 | ||||
2025 | 13.8 | ||||
2026 | 3.1 | ||||
Thereafter | 0.1 | ||||
Total | 185.1 | ||||
Interest | (4.2) | ||||
Present value of lease liabilities | $ | 180.9 |
(millions) | Expense | ||||
2021 | $ | 90.4 | |||
2020 | 95.4 | ||||
2019 | 102.0 |
(millions, except per share amounts) | Amount | ||||||||||
Declared | Payable | Per Share | Accrued/Paid1 | ||||||||
Common - Annual Variable Dividends: | |||||||||||
December 2021 | December 2021 | $ | 1.50 | $ | 876.5 | ||||||
December 2020 | January 2021 | 4.50 | 2,635.9 | ||||||||
December 2019 | January 2020 | 2.25 | 1,316.9 | ||||||||
December 2018 | February 2019 | 2.5140 | 1,467.9 | ||||||||
Common - Quarterly Dividends: | |||||||||||
December 2021 | January 2022 | 0.10 | 58.5 | ||||||||
August 2021 | October 2021 | 0.10 | 58.5 | ||||||||
May 2021 | July 2021 | 0.10 | 58.5 | ||||||||
March 2021 | April 2021 | 0.10 | 58.5 | ||||||||
December 2020 | January 2021 | 0.10 | 58.6 | ||||||||
August 2020 | October 2020 | 0.10 | 58.6 | ||||||||
May 2020 | July 2020 | 0.10 | 58.5 | ||||||||
February 2020 | April 2020 | 0.10 | 58.5 | ||||||||
December 2019 | January 2020 | 0.10 | 58.5 | ||||||||
August 2019 | October 2019 | 0.10 | 58.5 | ||||||||
May 2019 | July 2019 | 0.10 | 58.4 | ||||||||
February 2019 | April 2019 | 0.10 | 58.4 | ||||||||
Preferred Dividends: | |||||||||||
December 2021 | March 2022 | 26.875 | 13.4 | ||||||||
August 2021 | September 2021 | 26.875 | 13.4 | ||||||||
December 2020 | March 2021 | 26.875 | 13.4 | ||||||||
August 2020 | September 2020 | 26.875 | 13.4 | ||||||||
February 2020 | March 2020 | 26.875 | 13.4 | ||||||||
August 2019 | September 2019 | 26.875 | 13.4 | ||||||||
February 2019 | March 2019 | 26.875 | 13.4 |
(millions) | 2021 | 2020 | 2019 | ||||||||
Balance, beginning of year | $ | 0 | $ | 225.6 | $ | 214.5 | |||||
Net income attributable to NCI | 0 | 0 | 9.7 | ||||||||
Other comprehensive income (loss) attributable to NCI1 | 0 | 0 | 4.6 | ||||||||
Exercise of stock options | 0 | 16.0 | 7.7 | ||||||||
Purchase/change of ARX minority shares | 0 | (241.6) | (11.2) | ||||||||
Change in redemption value | 0 | 0 | 0.3 | ||||||||
Balance, end of year | $ | 0 | $ | 0 | $ | 225.6 |
(millions) | 2021 | 2020 | |||||||||
Intangible assets subject to amortization | $ | 104.9 | $ | 159.0 | |||||||
Indefinite-lived intangible assets1 | 12.4 | 12.4 | |||||||||
Total | $ | 117.3 | $ | 171.4 |
(millions) | 2021 | 2020 | |||||||||||||||||||||
Category | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||
Policies in force | $ | 256.2 | $ | 247.1 | $ | 9.1 | $ | 256.2 | $ | 210.4 | $ | 45.8 | |||||||||||
Agency relationships | 159.2 | 76.8 | 82.4 | 159.2 | 65.4 | 93.8 | |||||||||||||||||
Software rights | 69.1 | 58.3 | 10.8 | 69.1 | 49.7 | 19.4 | |||||||||||||||||
Trade name | 3.6 | 1.0 | 2.6 | 0 | 0 | 0 | |||||||||||||||||
Total | $ | 488.1 | $ | 383.2 | $ | 104.9 | $ | 484.5 | $ | 325.5 | $ | 159.0 |
(millions) | Amortization Expense | ||||
2022 | $ | 31.0 | |||
2023 | 14.3 | ||||
2024 | 11.4 | ||||
2025 | 11.4 | ||||
2026 | 11.4 |
/s/ PricewaterhouseCoopers LLP | ||
Cleveland, Ohio | ||
February 28, 2022 |
2021 | 2020 | 2019 | |||||||||||||||
Personal Lines | |||||||||||||||||
Agency | 37 | % | 40 | % | 41 | % | |||||||||||
Direct | 41 | 42 | 42 | ||||||||||||||
Total Personal Lines | 78 | 82 | 83 | ||||||||||||||
Commercial Lines | 17 | 13 | 13 | ||||||||||||||
Property | 5 | 5 | 4 | ||||||||||||||
Total underwriting operations | 100 | % | 100 | % | 100 | % |
2021 | 2020 | 2019 | ||||||||||||||||||||||||
Underwriting Profit (Loss) | Underwriting Profit (Loss) | Underwriting Profit (Loss) | ||||||||||||||||||||||||
($ in millions) | $ | Margin | $ | Margin | $ | Margin | ||||||||||||||||||||
Personal Lines | ||||||||||||||||||||||||||
Agency | $ | 992.1 | 5.9 | % | $ | 2,236.5 | 14.2 | % | $ | 1,673.2 | 11.2 | % | ||||||||||||||
Direct | 619.2 | 3.4 | 2,076.5 | 12.3 | 1,181.4 | 7.7 | ||||||||||||||||||||
Total Personal Lines | 1,611.3 | 4.6 | 4,313.0 | 13.2 | 2,854.6 | 9.5 | ||||||||||||||||||||
Commercial Lines | 767.8 | 11.1 | 634.8 | 13.0 | 458.8 | 10.4 | ||||||||||||||||||||
Property1 | (312.3) | (15.3) | (125.1) | (7.1) | (26.1) | (1.7) | ||||||||||||||||||||
Other indemnity2 | (1.4) | NM | 0 | NM | 0 | NM | ||||||||||||||||||||
Total underwriting operations | $ | 2,065.4 | 4.7 | % | $ | 4,822.7 | 12.3 | % | $ | 3,287.3 | 9.1 | % |
Underwriting Performance1 | 2021 | 2020 | 2019 | ||||||||
Personal Lines – Agency | |||||||||||
Loss & loss adjustment expense ratio | 75.6 | 63.5 | 69.8 | ||||||||
Underwriting expense ratio | 18.5 | 22.3 | 19.0 | ||||||||
Combined ratio | 94.1 | 85.8 | 88.8 | ||||||||
Personal Lines – Direct | |||||||||||
Loss & loss adjustment expense ratio | 77.2 | 62.9 | 71.4 | ||||||||
Underwriting expense ratio | 19.4 | 24.8 | 20.9 | ||||||||
Combined ratio | 96.6 | 87.7 | 92.3 | ||||||||
Total Personal Lines | |||||||||||
Loss & loss adjustment expense ratio | 76.4 | 63.2 | 70.6 | ||||||||
Underwriting expense ratio | 19.0 | 23.6 | 19.9 | ||||||||
Combined ratio | 95.4 | 86.8 | 90.5 | ||||||||
Commercial Lines | |||||||||||
Loss & loss adjustment expense ratio | 69.3 | 64.5 | 68.5 | ||||||||
Underwriting expense ratio | 19.6 | 22.5 | 21.1 | ||||||||
Combined ratio | 88.9 | 87.0 | 89.6 | ||||||||
Property | |||||||||||
Loss & loss adjustment expense ratio | 86.4 | 77.3 | 71.2 | ||||||||
Underwriting expense ratio2 | 28.9 | 29.8 | 30.5 | ||||||||
Combined ratio2 | 115.3 | 107.1 | 101.7 | ||||||||
Total Underwriting Operations | |||||||||||
Loss & loss adjustment expense ratio | 75.7 | 64.0 | 70.4 | ||||||||
Underwriting expense ratio | 19.6 | 23.7 | 20.5 | ||||||||
Combined ratio | 95.3 | 87.7 | 90.9 | ||||||||
Accident year – Loss & loss adjustment expense ratio3 | 75.7 | 63.5 | 69.8 |
(millions) | 2021 | 2020 | 2019 | ||||||||
Change in net loss and LAE reserves | $ | 4,233.7 | $ | 1,574.4 | $ | 2,065.1 | |||||
Paid losses and LAE | 29,393.9 | 23,547.4 | 23,405.4 | ||||||||
Total incurred losses and LAE | $ | 33,627.6 | $ | 25,121.8 | $ | 25,470.5 |
($ in millions) | 2021 | 2020 | 2019 | ||||||||
Personal Lines | $ | 652.0 | $ | 439.4 | $ | 323.4 | |||||
Commercial Lines | 26.7 | 14.8 | 13.6 | ||||||||
Property | 633.4 | 423.8 | 214.5 | ||||||||
Total catastrophe losses incurred | $ | 1,312.1 | $ | 878.0 | $ | 551.5 | |||||
Combined ratio effect | 3.0 | pts. | 2.2 | pts. | 1.5 | pts. |
(in millions) | 2021 | 2020 | 2019 | ||||||||
Aggregate excess of loss | |||||||||||
Current accident year | $ | 0 | $ | 120.9 | NA | ||||||
Prior accident years | 27.4 | NA | NA | ||||||||
Per occurrence excess of loss: | |||||||||||
Current accident year1 | 200.0 | 10.0 | $ | 0 | |||||||
Prior accident years2 | 139.6 | 117.5 | 191.4 | ||||||||
Total | $ | 367.0 | $ | 248.4 | $ | 191.4 |
($ in millions) | 2021 | 2020 | 2019 | ||||||||
ACTUARIAL ADJUSTMENTS | |||||||||||
Reserve decrease (increase) | |||||||||||
Prior accident years | $ | (78.5) | $ | (27.5) | $ | (65.8) | |||||
Current accident year | 103.9 | 68.4 | (120.4) | ||||||||
Calendar year actuarial adjustments | $ | 25.4 | $ | 40.9 | $ | (186.2) | |||||
PRIOR ACCIDENT YEARS DEVELOPMENT | |||||||||||
Favorable (unfavorable) | |||||||||||
Actuarial adjustments | $ | (78.5) | $ | (27.5) | $ | (65.8) | |||||
All other development | 83.2 | (167.8) | (166.5) | ||||||||
Total development | $ | 4.7 | $ | (195.3) | $ | (232.3) | |||||
(Increase) decrease to calendar year combined ratio | 0 | pts. | (0.5) | pts. | (0.6) | pts. |
For the years ended December 31, | 2021 | 2020 | 2019 | |||||||||||||||||||||||
($ in millions) | $ | % Growth | $ | % Growth | $ | % Growth | ||||||||||||||||||||
NET PREMIUMS WRITTEN | ||||||||||||||||||||||||||
Personal Lines | ||||||||||||||||||||||||||
Agency | $ | 17,257.9 | 7 | % | $ | 16,133.8 | 5 | % | $ | 15,336.5 | 13 | % | ||||||||||||||
Direct | 18,910.9 | 10 | 17,208.8 | 9 | 15,765.7 | 16 | ||||||||||||||||||||
Total Personal Lines | 36,168.8 | 8 | 33,342.6 | 7 | 31,102.2 | 15 | ||||||||||||||||||||
Commercial Lines | 8,015.9 | 51 | 5,315.3 | 11 | 4,791.8 | 20 | ||||||||||||||||||||
Property | 2,216.2 | 16 | 1,910.8 | 13 | 1,683.9 | 16 | ||||||||||||||||||||
Other indemnity1 | 4.3 | NM | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Total underwriting operations | $ | 46,405.2 | 14 | % | $ | 40,568.7 | 8 | % | $ | 37,577.9 | 15 | % | ||||||||||||||
NET PREMIUMS EARNED | ||||||||||||||||||||||||||
Personal Lines | ||||||||||||||||||||||||||
Agency | $ | 16,881.0 | 7 | % | $ | 15,789.5 | 6 | % | $ | 14,904.1 | 14 | % | ||||||||||||||
Direct | 18,492.3 | 10 | 16,830.6 | 10 | 15,305.9 | 18 | ||||||||||||||||||||
Total Personal Lines | 35,373.3 | 8 | 32,620.1 | 8 | 30,210.0 | 16 | ||||||||||||||||||||
Commercial Lines | 6,945.2 | 42 | 4,875.8 | 10 | 4,427.6 | 23 | ||||||||||||||||||||
Property | 2,042.5 | 16 | 1,765.7 | 14 | 1,554.8 | 21 | ||||||||||||||||||||
Other indemnity1 | 7.7 | NM | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Total underwriting operations | $ | 44,368.7 | 13 | % | $ | 39,261.6 | 8 | % | $ | 36,192.4 | 17 | % | ||||||||||||||
NM = Not meaningful | ||||||||||||||||||||||||||
1 Represents Protective Insurance’s run-off business. | ||||||||||||||||||||||||||
December 31, | 2021 | 2020 | 2019 | |||||||||||||||||||||||
(# in thousands) | # | % Growth | # | % Growth | # | % Growth | ||||||||||||||||||||
POLICIES IN FORCE | ||||||||||||||||||||||||||
Agency auto | 7,879.0 | 3 | % | 7,617.0 | 9 | % | 6,994.3 | 10 | % | |||||||||||||||||
Direct auto | 9,568.2 | 8 | 8,881.4 | 13 | 7,866.5 | 12 | ||||||||||||||||||||
Total auto | 17,447.2 | 6 | 16,498.4 | 11 | 14,860.8 | 11 | ||||||||||||||||||||
Special lines1 | 5,288.5 | 8 | 4,915.1 | 8 | 4,547.8 | 4 | ||||||||||||||||||||
Personal Lines - total | 22,735.7 | 6 | 21,413.5 | 10 | 19,408.6 | 9 | ||||||||||||||||||||
Commercial Lines | 971.2 | 18 | 822.0 | 9 | 751.4 | 8 | ||||||||||||||||||||
Property | 2,776.2 | 12 | 2,484.4 | 13 | 2,202.1 | 14 | ||||||||||||||||||||
Companywide total | 26,483.1 | 7 | % | 24,719.9 | 11 | % | 22,362.1 | 10 | % |
Growth Over Prior Year | |||||||||||
2021 | 2020 | 2019 | |||||||||
Applications | |||||||||||
New | (2) | % | 3 | % | 8 | % | |||||
Renewal | 11 | 8 | 13 | ||||||||
Written premium per policy - Auto | 0 | (1) | 2 | ||||||||
Policy life expectancy - Auto | |||||||||||
Trailing 3 months | (1) | 7 | 0 | ||||||||
Trailing 12 months | 2 | 10 | 0 |
Growth Over Prior Year | |||||||||||
2021 | 2020 | 2019 | |||||||||
Applications - Auto | |||||||||||
New | (8) | % | (5) | % | 7 | % | |||||
Renewal | 8 | 7 | 12 | ||||||||
Written premium per policy - Auto | 1 | 0 | 3 | ||||||||
Policy life expectancy - Auto | |||||||||||
Trailing 3 months | (3) | 6 | 4 | ||||||||
Trailing 12 months | 1 | 10 | 3 |
Growth Over Prior Year | |||||||||||
2021 | 2020 | 2019 | |||||||||
Applications - Auto | |||||||||||
New | 0 | % | 5 | % | 9 | % | |||||
Renewal | 13 | 11 | 17 | ||||||||
Written premium per policy - Auto | (1) | (1) | 2 | ||||||||
Policy life expectancy - Auto | |||||||||||
Trailing 3 months | 2 | 6 | (3) | ||||||||
Trailing 12 months | 3 | 10 | (3) |
Growth Over Prior Year | |||||||||||
2021 | 2020 | 2019 | |||||||||
Applications | |||||||||||
New | 27 | % | 5 | % | 11 | % | |||||
Renewal | 12 | 6 | 9 | ||||||||
Written premium per policy | 17 | 4 | 8 | ||||||||
Policy life expectancy Trailing 12 months | 11 | 5 | (2) |
Growth Over Prior Year | |||||||||||
2021 | 2020 | 2019 | |||||||||
Applications | |||||||||||
New | 20 | % | 12 | % | (1) | % | |||||
Renewal | 10 | 14 | 22 | ||||||||
Written premium per policy | 1 | 0 | 2 | ||||||||
Policy life expectancy Trailing 12 months | (9) | (3) | (1) |
2021 | 2020 | 2019 | |||||||||
Pretax recurring investment book yield | 1.9 | % | 2.4 | % | 3.1 | % | |||||
FTE total return: | |||||||||||
Fixed-income securities | (0.1) | 6.7 | 6.0 | ||||||||
Common stocks | 33.4 | 24.3 | 30.5 | ||||||||
Total portfolio | 2.6 | 7.9 | 7.9 |
2021 | 2020 | 2019 | |||||||||
Fixed-income securities: | |||||||||||
U.S. Treasury Notes | (1.2) | % | 7.4 | % | 4.9 | % | |||||
Municipal bonds | (0.2) | 9.4 | 5.5 | ||||||||
Corporate bonds | (0.4) | 8.4 | 8.9 | ||||||||
Residential mortgage-backed securities | 1.3 | 3.0 | 3.3 | ||||||||
Commercial mortgage-backed securities | 0.5 | 4.2 | 6.2 | ||||||||
Other asset-backed securities | 0.7 | 2.8 | 3.4 | ||||||||
Preferred stocks | 6.9 | 6.6 | 13.8 | ||||||||
Short-term investments | 0.1 | 1.0 | 2.4 | ||||||||
($ in millions) | Fair Value | % of Total Portfolio | Duration (years) | Rating1 | ||||||||||
2021 | ||||||||||||||
U.S. government obligations | $ | 18,488.2 | 35.9 | % | 3.6 | AAA | ||||||||
State and local government obligations | 2,185.3 | 4.2 | 3.6 | AA+ | ||||||||||
Foreign government obligations | 17.9 | 0.1 | 4.5 | AAA | ||||||||||
Corporate debt securities | 10,692.1 | 20.7 | 2.9 | BBB | ||||||||||
Residential mortgage-backed securities | 790.0 | 1.5 | 0.4 | A- | ||||||||||
Commercial mortgage-backed securities | 6,535.6 | 12.7 | 3.2 | A+ | ||||||||||
Other asset-backed securities | 4,982.3 | 9.7 | 1.2 | AA | ||||||||||
Preferred stocks | 1,821.6 | 3.6 | 3.6 | BBB- | ||||||||||
Short-term investments | 942.6 | 1.8 | 0.2 | AA | ||||||||||
Total fixed-income securities | 46,455.6 | 90.2 | 3.0 | AA- | ||||||||||
Common equities | 5,058.5 | 9.8 | na | na | ||||||||||
Total portfolio2 | $ | 51,514.1 | 100.0 | % | 3.0 | AA- | ||||||||
2020 | ||||||||||||||
U.S. government obligations | $ | 12,740.0 | 26.8 | % | 3.3 | AAA | ||||||||
State and local government obligations | 3,221.8 | 6.8 | 4.4 | AA | ||||||||||
Corporate debt securities | 10,185.2 | 21.4 | 3.8 | BBB | ||||||||||
Residential mortgage-backed securities | 509.5 | 1.1 | 1.0 | AA | ||||||||||
Commercial mortgage-backed securities | 6,175.1 | 13.0 | 3.2 | AA- | ||||||||||
Other asset-backed securities | 3,784.6 | 7.9 | 1.0 | AA+ | ||||||||||
Preferred stocks | 1,617.6 | 3.4 | 3.6 | BBB- | ||||||||||
Short-term investments3 | 5,218.5 | 11.0 | <0.1 | AA | ||||||||||
Total fixed-income securities | 43,452.3 | 91.4 | 2.9 | AA- | ||||||||||
Common equities | 4,078.0 | 8.6 | na | na | ||||||||||
Total portfolio2 | $ | 47,530.3 | 100.0 | % | 2.9 | AA- | ||||||||
na = not applicable |
2021 | 2020 | ||||||||||||||||
($ in millions) | Fair Value | % of Total Portfolio | Fair Value | % of Total Portfolio | |||||||||||||
Group I securities: | |||||||||||||||||
Non-investment-grade fixed maturities | $ | 2,032.4 | 3.9 | % | $ | 1,006.4 | 2.1 | % | |||||||||
Redeemable preferred stocks1 | 90.9 | 0.2 | 97.3 | 0.2 | |||||||||||||
Nonredeemable preferred stocks | 1,639.9 | 3.2 | 1,422.9 | 3.0 | |||||||||||||
Common equities | 5,058.5 | 9.8 | 4,078.0 | 8.6 | |||||||||||||
Total Group I securities | 8,821.7 | 17.1 | 6,604.6 | 13.9 | |||||||||||||
Group II securities: | |||||||||||||||||
Other fixed maturities | 41,749.8 | 81.1 | 35,707.2 | 75.1 | |||||||||||||
Short-term investments | 942.6 | 1.8 | 5,218.5 | 11.0 | |||||||||||||
Total Group II securities | 42,692.4 | 82.9 | 40,925.7 | 86.1 | |||||||||||||
Total portfolio | $ | 51,514.1 | 100.0 | % | $ | 47,530.3 | 100.0 | % |
(millions) | Gross Holding Period Gains | Gross Holding Period Losses | Net Holding Period Gains (Losses) | ||||||||
Balance at December 31, 2020 | |||||||||||
Hybrid fixed-maturity securities | $ | 15.2 | $ | 0 | $ | 15.2 | |||||
Equity securities | 2,961.5 | (6.6) | 2,954.9 | ||||||||
Total holding period securities | 2,976.7 | (6.6) | 2,970.1 | ||||||||
Current year change in holding period securities | |||||||||||
Hybrid fixed-maturity securities | (2.2) | (5.5) | (7.7) | ||||||||
Equity securities | 915.7 | (8.1) | 907.6 | ||||||||
Total changes in holding period securities | 913.5 | (13.6) | 899.9 | ||||||||
Balance at December 31, 2021 | |||||||||||
Hybrid fixed-maturity securities | 13.0 | (5.5) | 7.5 | ||||||||
Equity securities | 3,877.2 | (14.7) | 3,862.5 | ||||||||
Total holding period securities | $ | 3,890.2 | $ | (20.2) | $ | 3,870.0 |
Duration Distribution | 2021 | 2020 | ||||||
1 year | 22.0 | % | 19.5 | % | ||||
2 years | 18.8 | 18.7 | ||||||
3 years | 23.5 | 24.9 | ||||||
5 years | 17.6 | 18.5 | ||||||
7 years | 13.1 | 10.9 | ||||||
10 years | 5.0 | 7.5 | ||||||
Total fixed-income portfolio | 100.0 | % | 100.0 | % |
Rating | 2021 | 2020 | ||||||
AAA | 54.7 | % | 53.3 | % | ||||
AA | 8.7 | 9.8 | ||||||
A | 8.6 | 11.1 | ||||||
BBB | 21.7 | 22.9 | ||||||
Non-investment grade/non-rated:1 | ||||||||
BB | 4.8 | 2.4 | ||||||
B | 1.1 | 0.2 | ||||||
CCC and lower | 0.1 | 0.1 | ||||||
Non-rated | 0.3 | 0.2 | ||||||
Total fixed-income portfolio | 100.0 | % | 100.0 | % |
($ in millions) | Fair Value | Duration (years) | |||||||||
U.S. Treasury Notes | |||||||||||
Less than one year | $ | 1,112.9 | 0.7 | ||||||||
One to two years | 3,913.3 | 1.5 | |||||||||
Two to three years | 4,628.5 | 2.4 | |||||||||
Three to five years | 4,533.1 | 4.1 | |||||||||
Five to seven years | 3,172.3 | 6.2 | |||||||||
Seven to ten years | 1,128.1 | 8.6 | |||||||||
Total U.S. Treasury Notes | $ | 18,488.2 | 3.6 | ||||||||
($ in millions) | Fair Value | Net Unrealized Gains (Losses) | % of Asset- Backed Securities | Duration (years) | Rating (at period end)1 | ||||||||||||
2021 | |||||||||||||||||
Residential mortgage-backed securities | $ | 790.0 | $ | 1.7 | 6.4 | % | 0.4 | A- | |||||||||
Commercial mortgage-backed securities | 6,535.6 | (25.4) | 53.1 | 3.2 | A+ | ||||||||||||
Other asset-backed securities | 4,982.3 | 0.9 | 40.5 | 1.2 | AA | ||||||||||||
Total asset-backed securities | $ | 12,307.9 | $ | (22.8) | 100.0 | % | 2.2 | AA- | |||||||||
2020 | |||||||||||||||||
Residential mortgage-backed securities | $ | 509.5 | $ | 6.2 | 4.9 | % | 1.0 | AA | |||||||||
Commercial mortgage-backed securities | 6,175.1 | 132.5 | 59.0 | 3.2 | AA- | ||||||||||||
Other asset-backed securities | 3,784.6 | 39.6 | 36.1 | 1.0 | AA+ | ||||||||||||
Total asset-backed securities | $ | 10,469.2 | $ | 178.3 | 100.0 | % | 2.3 | AA |
Commercial Mortgage-Backed Securities (at December 31, 2021) | ||||||||||||||
($ in millions) Rating1 | Multi-Borrower | Single-Borrower | Total | % of Total | ||||||||||
AAA | $ | 279.3 | $ | 1,669.4 | $ | 1,948.7 | 29.8 | % | ||||||
AA | 0 | 1,648.8 | 1,648.8 | 25.2 | ||||||||||
A | 0 | 1,202.8 | 1,202.8 | 18.4 | ||||||||||
BBB | 0 | 1,261.1 | 1,261.1 | 19.3 | ||||||||||
Non-investment grade/non-rated: | ||||||||||||||
BB | 0 | 474.0 | 474.0 | 7.3 | ||||||||||
B | 0.2 | 0 | 0.2 | 0 | ||||||||||
Total fair value | $ | 279.5 | $ | 6,256.1 | $ | 6,535.6 | 100.0 | % | ||||||
Increase (decrease) in value | 3.7 | % | (0.6) | % | (0.4) | % |
Municipal Securities (at December 31, 2021) | |||||||||||
(millions) Rating | General Obligations | Revenue Bonds | Total | ||||||||
AAA | $ | 653.1 | $ | 245.2 | $ | 898.3 | |||||
AA | 484.7 | 720.7 | 1,205.4 | ||||||||
A | 0 | 80.3 | 80.3 | ||||||||
BBB | 0 | 1.0 | 1.0 | ||||||||
Non-rated | 0 | 0.3 | 0.3 | ||||||||
Total | $ | 1,137.8 | $ | 1,047.5 | $ | 2,185.3 |
Corporate Securities (at December 31, 2021) | |||||||||||||||||||||||||||||
(millions) Rating | Consumer | Industrial | Communication | Financial Services | Agency | Technology | Basic Materials | Energy | Total | ||||||||||||||||||||
AAA | $ | 0 | $ | 0 | $ | 0 | $ | 30.0 | $ | 0 | $ | 1.7 | $ | 0 | $ | 0 | $ | 31.7 | |||||||||||
AA | 62.3 | 0 | 0 | 111.4 | 1.0 | 18.2 | 0 | 13.6 | 206.5 | ||||||||||||||||||||
A | 374.4 | 244.2 | 232.4 | 1,008.4 | 0 | 145.7 | 123.6 | 99.8 | 2,228.5 | ||||||||||||||||||||
BBB | 2,302.6 | 1,424.6 | 134.0 | 994.5 | 0 | 689.8 | 14.7 | 893.7 | 6,453.9 | ||||||||||||||||||||
Non-investment grade/non-rated: | |||||||||||||||||||||||||||||
BB | 532.6 | 129.1 | 204.8 | 166.6 | 0 | 85.5 | 36.0 | 85.1 | 1,239.7 | ||||||||||||||||||||
B | 355.3 | 83.3 | 0 | 42.8 | 0 | 0 | 0 | 0 | 481.4 | ||||||||||||||||||||
CCC and lower | 50.4 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 50.4 | ||||||||||||||||||||
Total fair value | $ | 3,677.6 | $ | 1,881.2 | $ | 571.2 | $ | 2,353.7 | $ | 1.0 | $ | 940.9 | $ | 174.3 | $ | 1,092.2 | $ | 10,692.1 |
Preferred Stocks (at December 31, 2021) | |||||||||||||||||||||||
Financial services | |||||||||||||||||||||||
(millions) Rating | U.S. Banks | Foreign Banks | Insurance | Other Financial | Industrials | Utilities | Total | ||||||||||||||||
BBB | $ | 1,019.2 | $ | 54.5 | $ | 127.4 | $ | 46.1 | $ | 130.8 | $ | 41.3 | $ | 1,419.3 | |||||||||
Non-investment grade/non-rated: | |||||||||||||||||||||||
BB | 201.2 | 23.5 | 0 | 0 | 25.2 | 41.6 | 291.5 | ||||||||||||||||
Non-rated | 0 | 0 | 35.0 | 41.4 | 34.4 | 0 | 110.8 | ||||||||||||||||
Total fair value | $ | 1,220.4 | $ | 78.0 | $ | 162.4 | $ | 87.5 | $ | 190.4 | $ | 82.9 | $ | 1,821.6 |
($ in millions) | 2021 | 2020 | |||||||||||||||
Common stocks | $ | 5,041.6 | 99.7 | % | $ | 4,074.9 | 99.9 | % | |||||||||
Other risk investments | 16.9 | 0.3 | 3.1 | 0.1 | |||||||||||||
Total common equities | $ | 5,058.5 | 100.0 | % | $ | 4,078.0 | 100.0 | % |
Sector | Equity Portfolio Allocation at December 31, 2021 | Russell 1000 Allocation at December 31, 2021 | Russell 1000 Sector Return in 2021 | ||||||||
Consumer discretionary | 16.0 | % | 17.1 | % | 17.4 | % | |||||
Consumer staples | 4.8 | 5.0 | 18.2 | ||||||||
Financial services | 11.1 | 10.3 | 34.9 | ||||||||
Health care | 12.1 | 12.2 | 23.3 | ||||||||
Materials and processing | 1.6 | 1.6 | 25.4 | ||||||||
Other energy | 2.7 | 2.6 | 51.2 | ||||||||
Producer durable | 12.8 | 12.5 | 16.1 | ||||||||
Real estate | 3.2 | 3.3 | 38.6 | ||||||||
Technology | 30.2 | 29.9 | 37.2 | ||||||||
Telecommunications | 3.1 | 2.9 | 5.4 | ||||||||
Utilities | 2.4 | 2.6 | 18.7 | ||||||||
Total common stocks | 100.0 | % | 100.0 | % | 26.4 | % |
Estimated Changes in Severity for Accident Year 2021 | |||||||||||||||||
(millions) | -4% | -2% | As Reported | +2% | +4% | ||||||||||||
Personal auto liability | $ | 13,178.8 | $ | 13,487.8 | $ | 13,796.8 | $ | 14,105.8 | $ | 14,414.8 | |||||||
Commercial auto liability | 5,274.8 | 5,346.2 | 5,417.6 | 5,489.0 | 5,560.4 | ||||||||||||
Other1 | 2,216.1 | 2,216.1 | 2,216.1 | 2,216.1 | 2,216.1 | ||||||||||||
Total | $ | 20,669.7 | $ | 21,050.1 | $ | 21,430.5 | $ | 21,810.9 | $ | 22,191.3 |
Estimated Changes in Severity for Accident Years 2021, 2020, and 2019 | |||||||||||||||||
(millions) | -4% | -2% | As Reported | +2% | +4% | ||||||||||||
Personal auto liability | $ | 12,159.2 | $ | 12,978.0 | $ | 13,796.8 | $ | 14,615.6 | $ | 15,434.4 | |||||||
Commercial auto liability | 5,079.6 | 5,248.6 | 5,417.6 | 5,586.6 | 5,755.6 | ||||||||||||
Other1 | 2,216.1 | 2,216.1 | 2,216.1 | 2,216.1 | 2,216.1 | ||||||||||||
Total | $ | 19,454.9 | $ | 20,442.7 | $ | 21,430.5 | $ | 22,418.3 | $ | 23,406.1 |
(millions – except ratios, policies in force, per share amounts, and number of people employed) | 2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||
Net premiums written | $ | 46,405.2 | $ | 40,568.7 | $ | 37,577.9 | $ | 32,609.9 | $ | 27,132.1 | |||||||
Growth | 14 | % | 8 | % | 15 | % | 20 | % | 16 | % | |||||||
Net premiums earned | $ | 44,368.7 | $ | 39,261.6 | $ | 36,192.4 | $ | 30,933.3 | $ | 25,729.9 | |||||||
Growth | 13 | % | 8 | % | 17 | % | 20 | % | 14 | % | |||||||
Policies in force (thousands): | |||||||||||||||||
Personal Lines | 22,735.7 | 21,413.5 | 19,408.6 | 17,759.0 | 16,075.5 | ||||||||||||
Growth | 6 | % | 10 | % | 9 | % | 10 | % | 10 | % | |||||||
Commercial Lines | 971.2 | 822.0 | 751.4 | 696.9 | 646.8 | ||||||||||||
Growth | 18 | % | 9 | % | 8 | % | 8 | % | 6 | % | |||||||
Property1 | 2,776.2 | 2,484.4 | 2,202.1 | 1,936.5 | 1,461.7 | ||||||||||||
Growth1 | 12 | % | 13 | % | 14 | % | 32 | % | 22 | % | |||||||
Total revenues | $ | 47,702.0 | $ | 42,658.1 | $ | 39,022.3 | $ | 31,979.0 | $ | 26,839.0 | |||||||
Underwriting margins:2 | |||||||||||||||||
Personal Lines | 4.6 | % | 13.2 | % | 9.5 | % | 9.7 | % | 6.9 | % | |||||||
Commercial Lines | 11.1 | % | 13.0 | % | 10.4 | % | 13.3 | % | 7.7 | % | |||||||
Property1 | (15.3) | % | (7.1) | % | (1.7) | % | (6.9) | % | (5.1) | % | |||||||
Total underwriting operations | 4.7 | % | 12.3 | % | 9.1 | % | 9.4 | % | 6.6 | % | |||||||
Net income attributable to Progressive | $ | 3,350.9 | $ | 5,704.6 | $ | 3,970.3 | $ | 2,615.3 | $ | 1,592.2 | |||||||
Per common share - diluted | 5.66 | 9.66 | 6.72 | 4.42 | 2.72 | ||||||||||||
Average equivalent common shares - diluted | 587.1 | 587.6 | 587.2 | 586.7 | 585.7 | ||||||||||||
Comprehensive income attributable to Progressive | $ | 2,459.9 | $ | 6,291.9 | $ | 4,432.9 | $ | 2,520.1 | $ | 1,941.0 | |||||||
Total assets | $ | 71,132.3 | $ | 64,098.3 | $ | 54,895.3 | $ | 46,575.0 | $ | 38,701.2 | |||||||
Debt outstanding | 4,898.8 | 5,396.1 | 4,407.1 | 4,404.9 | 3,306.3 | ||||||||||||
Redeemable noncontrolling interest | 0 | 0 | 225.6 | 214.5 | 503.7 | ||||||||||||
Total shareholders’ equity | 18,231.6 | 17,038.6 | 13,673.2 | 10,821.8 | 9,284.8 | ||||||||||||
Statutory surplus | 16,423.7 | 15,194.6 | 13,671.1 | 11,571.8 | 9,664.4 | ||||||||||||
Common shares outstanding | 584.4 | 585.2 | 584.6 | 583.2 | 581.7 | ||||||||||||
Common share close price (at December 31) | $ | 102.65 | $ | 98.88 | $ | 72.39 | $ | 60.33 | $ | 56.32 | |||||||
Rate of return3 | 10.8 | % | 41.4 | % | 25.1 | % | 9.3 | % | 61.6 | % | |||||||
Market capitalization | $ | 59,988.7 | $ | 57,864.6 | $ | 42,319.2 | $ | 35,184.5 | $ | 32,761.3 | |||||||
Book value per common share | 30.35 | 28.27 | 22.54 | 17.71 | 15.96 | ||||||||||||
Ratios: | |||||||||||||||||
Return on average common shareholders’ equity: | |||||||||||||||||
Net income attributable to Progressive | 18.6 | % | 35.6 | % | 31.3 | % | 24.7 | % | 17.8 | % | |||||||
Comprehensive income attributable to Progressive | 13.6 | % | 39.3 | % | 35.0 | % | 23.8 | % | 21.7 | % | |||||||
Debt to total capital4 | 21.2 | % | 24.1 | % | 24.4 | % | 28.9 | % | 26.3 | % | |||||||
Price to earnings | 18.1 | 10.2 | 10.8 | 13.6 | 20.7 | ||||||||||||
Price to book | 3.4 | 3.5 | 3.2 | 3.4 | 3.5 | ||||||||||||
Net premiums written to statutory surplus | 2.8 | 2.7 | 2.7 | 2.8 | 2.8 | ||||||||||||
Statutory combined ratio | 94.8 | 87.9 | 90.5 | 89.9 | 92.8 | ||||||||||||
Dividends declared per common share5 | $ | 1.90 | $ | 4.90 | $ | 2.65 | $ | 2.5140 | $ | 1.1247 | |||||||
Number of people employed | 49,077 | 43,326 | 41,571 | 37,346 | 33,656 |
(millions – except ratios, policies in force, per share amounts, and number of people employed) | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||
Net premiums written | $ | 23,353.5 | $ | 20,564.0 | $ | 18,654.6 | $ | 17,339.7 | $ | 16,372.7 | |||||||
Growth | 14 | % | 10 | % | 8 | % | 6 | % | 8 | % | |||||||
Net premiums earned | $ | 22,474.0 | $ | 19,899.1 | $ | 18,398.5 | $ | 17,103.4 | $ | 16,018.0 | |||||||
Growth | 13 | % | 8 | % | 8 | % | 7 | % | 7 | % | |||||||
Policies in force (thousands): | |||||||||||||||||
Personal Lines | 14,656.8 | 13,764.7 | 13,261.9 | 13,056.4 | 12,735.3 | ||||||||||||
Growth | 6 | % | 4 | % | 2 | % | 3 | % | 4 | % | |||||||
Commercial Lines | 607.9 | 555.8 | 514.7 | 514.6 | 519.6 | ||||||||||||
Growth | 9 | % | 8 | % | 0 | % | (1) | % | 2 | % | |||||||
Property1 | 1,201.9 | 1,076.5 | — | — | — | ||||||||||||
Growth1 | 12 | % | NA | — | — | — | |||||||||||
Total revenues | $ | 23,441.4 | $ | 20,853.8 | $ | 19,391.4 | $ | 18,170.9 | $ | 17,083.9 | |||||||
Underwriting margins:2 | |||||||||||||||||
Personal Lines | 4.7 | % | 6.5 | % | 6.7 | % | 6.6 | % | 4.4 | % | |||||||
Commercial Lines | 6.4 | % | 15.9 | % | 17.2 | % | 6.5 | % | 5.2 | % | |||||||
Property1 | 3.8 | % | 10.1 | % | — | — | — | ||||||||||
Total underwriting operations | 4.9 | % | 7.5 | % | 7.7 | % | 6.5 | % | 4.4 | % | |||||||
Net income attributable to Progressive | $ | 1,031.0 | $ | 1,267.6 | $ | 1,281.0 | $ | 1,165.4 | $ | 902.3 | |||||||
Per common share - diluted | 1.76 | 2.15 | 2.15 | 1.93 | 1.48 | ||||||||||||
Average equivalent common shares - diluted | 585.0 | 589.2 | 594.8 | 603.6 | 607.8 | ||||||||||||
Comprehensive income attributable to Progressive | $ | 1,164.0 | $ | 1,044.9 | $ | 1,352.4 | $ | 1,246.1 | $ | 1,080.8 | |||||||
Total assets | $ | 33,427.5 | $ | 29,819.3 | $ | 25,787.6 | $ | 24,408.2 | $ | 22,694.7 | |||||||
Debt outstanding | 3,148.2 | 2,707.9 | 2,164.7 | 1,860.9 | 2,063.1 | ||||||||||||
Redeemable noncontrolling interest | 483.7 | 464.9 | — | — | — | ||||||||||||
Total shareholders’ equity | 7,957.1 | 7,289.4 | 6,928.6 | 6,189.5 | 6,007.0 | ||||||||||||
Statutory surplus | 8,560.0 | 7,575.5 | 6,442.8 | 5,991.0 | 5,605.2 | ||||||||||||
Common shares outstanding | 579.9 | 583.6 | 587.8 | 595.8 | 604.6 | ||||||||||||
Common share close price (at December 31) | $ | 35.50 | $ | 31.80 | $ | 26.99 | $ | 27.27 | $ | 21.10 | |||||||
Rate of return3 | 14.7 | % | 20.9 | % | 5.3 | % | 30.9 | % | 15.4 | % | |||||||
Market capitalization | $ | 20,586.5 | $ | 18,558.5 | $ | 15,864.7 | $ | 16,247.5 | $ | 12,757.1 | |||||||
Book value per common share | 13.72 | 12.49 | 11.79 | 10.39 | 9.94 | ||||||||||||
Ratios: | |||||||||||||||||
Return on average common shareholders’ equity: | |||||||||||||||||
Net income attributable to Progressive | 13.2 | % | 17.2 | % | 19.1 | % | 17.7 | % | 14.5 | % | |||||||
Comprehensive income attributable to Progressive | 14.9 | % | 14.2 | % | 20.1 | % | 19.0 | % | 17.4 | % | |||||||
Debt to total capital4 | 28.3 | % | 27.1 | % | 23.8 | % | 23.1 | % | 25.6 | % | |||||||
Price to earnings | 20.2 | 14.8 | 12.6 | 14.1 | 14.3 | ||||||||||||
Price to book | 2.6 | 2.5 | 2.3 | 2.6 | 2.1 | ||||||||||||
Net premiums written to statutory surplus | 2.7 | 2.7 | 2.9 | 2.9 | 2.9 | ||||||||||||
Statutory combined ratio | 94.8 | 91.8 | 92.1 | 93.4 | 95.2 | ||||||||||||
Dividends declared per common share5 | $ | 0.6808 | $ | 0.8882 | $ | 0.6862 | $ | 1.4929 | $ | 1.2845 | |||||||
Number of people employed | 31,721 | 28,580 | 26,501 | 26,145 | 25,889 |
(Assumes $100 was invested at the close of trading on December 31, 2016) | |||||||||||||||||
For the years ended December 31, | 2017 | 2018 | 2019 | 2020 | 2021 | ||||||||||||
PGR | $ | 161.62 | $ | 176.67 | $ | 220.94 | $ | 312.37 | $ | 346.17 | |||||||
S&P Index | 121.87 | 116.50 | 153.20 | 181.29 | 233.29 | ||||||||||||
P/C Group1 | 125.64 | 124.81 | 158.88 | 165.04 | 226.29 |
Fair Value | |||||||||||||||||
-200 bps | -100 bps | +100 bps | +200 bps | ||||||||||||||
(millions) | Change1 | Change1 | Actual | Change | Change | ||||||||||||
U.S. government obligations | $ | 19,479.2 | $ | 19,183.4 | $ | 18,488.2 | $ | 17,780.1 | $ | 17,072.0 | |||||||
State and local government obligations | 2,319.1 | 2,260.9 | 2,185.3 | 2,108.2 | 2,031.2 | ||||||||||||
Foreign government obligations | 19.1 | 18.6 | 17.9 | 17.1 | 16.3 | ||||||||||||
Asset-backed securities | 12,807.4 | 12,568.9 | 12,307.9 | 12,043.2 | 11,779.0 | ||||||||||||
Corporate securities | 11,255.6 | 11,003.3 | 10,692.1 | 10,378.9 | 10,064.5 | ||||||||||||
Preferred stocks | 1,948.6 | 1,885.5 | 1,821.6 | 1,757.5 | 1,693.2 | ||||||||||||
Short-term investments | 942.6 | 942.6 | 942.6 | 942.6 | 942.6 | ||||||||||||
Total at December 31, 2021 | $ | 48,771.6 | $ | 47,863.2 | $ | 46,455.6 | $ | 45,027.6 | $ | 43,598.8 | |||||||
Total at December 31, 2020 | $ | 44,014.4 | $ | 43,987.2 | $ | 43,452.3 | $ | 42,226.6 | $ | 41,030.8 |
Fair Value | |||||||||||
(millions) | -10% | Actual | +10% | ||||||||
Common equities at December 31, 2021 | $ | 4,532.3 | $ | 5,058.5 | $ | 5,584.7 | |||||
Common equities at December 31, 2020 | $ | 3,634.5 | $ | 4,078.0 | $ | 4,521.5 |
($ in millions) | 2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||||||||||||||||||||||||||||
Florida | $ | 6,290.7 | 13.6 | % | $ | 5,533.7 | 13.6 | % | $ | 5,233.4 | 13.9 | % | $ | 4,700.9 | 14.4 | % | $ | 3,808.0 | 14.0 | % | |||||||||||||||||||||||||||
Texas | 5,343.5 | 11.5 | 4,530.5 | 11.2 | 4,081.0 | 10.8 | 3,388.6 | 10.4 | 2,704.9 | 10.0 | |||||||||||||||||||||||||||||||||||||
California | 2,585.1 | 5.6 | 2,241.2 | 5.5 | 2,208.8 | 5.9 | 1,836.0 | 5.6 | 1,520.5 | 5.6 | |||||||||||||||||||||||||||||||||||||
Georgia | 2,147.7 | 4.6 | 1,860.9 | 4.6 | 1,645.3 | 4.4 | 1,452.9 | 4.5 | 1,177.0 | 4.4 | |||||||||||||||||||||||||||||||||||||
New York | 2,008.6 | 4.3 | 1,932.8 | 4.8 | 1,843.2 | 4.9 | 1,699.0 | 5.2 | 1,472.8 | 5.4 | |||||||||||||||||||||||||||||||||||||
Michigan | 1,962.7 | 4.2 | 1,797.6 | 4.4 | 1,673.5 | 4.4 | 1,423.7 | 4.4 | 1,186.8 | 4.4 | |||||||||||||||||||||||||||||||||||||
Ohio | 1,563.0 | 3.4 | 1,404.2 | 3.4 | 1,339.5 | 3.6 | 1,194.0 | 3.7 | 1,033.5 | 3.8 | |||||||||||||||||||||||||||||||||||||
Pennsylvania | 1,504.8 | 3.2 | 1,327.2 | 3.3 | 1,268.3 | 3.4 | 1,157.4 | 3.5 | 1,005.5 | 3.7 | |||||||||||||||||||||||||||||||||||||
New Jersey | 1,417.5 | 3.1 | 1,242.0 | 3.1 | 1,192.3 | 3.2 | 1,088.1 | 3.3 | 985.8 | 3.6 | |||||||||||||||||||||||||||||||||||||
Louisiana | 1,154.4 | 2.5 | 1,039.4 | 2.6 | 965.6 | 2.6 | 856.5 | 2.6 | 739.2 | 2.7 | |||||||||||||||||||||||||||||||||||||
All other | 20,427.2 | 44.0 | 17,659.2 | 43.5 | 16,127.0 | 42.9 | 13,812.8 | 42.4 | 11,498.1 | 42.4 | |||||||||||||||||||||||||||||||||||||
Total | $ | 46,405.2 | 100.0 | % | $ | 40,568.7 | 100.0 | % | $ | 37,577.9 | 100.0 | % | $ | 32,609.9 | 100.0 | % | $ | 27,132.1 | 100.0 | % |
Principal Office | ||
The Progressive Corporation | ||
6300 Wilson Mills Road | ||
Mayfield Village, Ohio 44143 | ||
440-461-5000 | ||
progressive.com |
Personal autos, motorcycles, recreational vehicles, homeowners, other property, and renters | Commercial autos/trucks, business property, and general liability | |||||||
To receive a quote | 1-800-PROGRESSIVE (1-800-776-4737) progressive.com | 1-888-806-9598 progressivecommercial.com | ||||||
To report a claim | 1-800-PROGRESSIVE (1-800-776-4737) progressive.com | 1-800-PROGRESSIVE (1-800-776-4737) progressivecommercial.com | ||||||
For customer service: | ||||||||
If you bought your policy directly through Progressive online or by phone | 1-800-PROGRESSIVE (1-800-776-4737) progressive.com | 1-800-PROGRESSIVE (1-800-776-4737) progressivecommercial.com | ||||||
If you bought your policy through an independent agent or broker | 1-800-925-2886 (1-800-300-3693 in California) progressive.com/agent | 1-800-895-2886 progressivecommercial.com | ||||||
If you bought your policy through an independent agent or broker for the state of California | 1-800-300-3693 Driveinsurance.com | 1-800-895-2886 progressivecommercial.com | ||||||
In addition, iPhone® and Android® users can download the Progressive App to start a quote, report a claim, or service a policy. |
Annual Meeting The Annual Meeting of Shareholders will be held at the offices of The Progressive Corporation, Studio 96, 6671 Beta Drive, Mayfield Village, Ohio 44143 on May 13, 2022, at 10 a.m. eastern time. | ||
Online Annual Report and Proxy Statement Our 2021 Annual Report to Shareholders can be found at: progressive.com/annualreport. | ||
Our 2022 Proxy Statement and 2021 Annual Report to Shareholders, in a PDF format, can be found at: progressiveproxy.com. | ||
Shareholder/Investor Relations Progressive does not maintain a mailing list for distribution of shareholders’ reports. To view Progressive’s publicly filed documents, shareholders can access our website: progressive.com/sec. To view our earnings and other releases, access: progressive.com/financial-releases. | ||
For financial-related information or to request copies of Progressive’s publicly filed documents free of charge, write to: The Progressive Corporation, Investor Relations, 6300 Wilson Mills Road, Box W33, Mayfield Village, Ohio 44143, email: investor_relations@progressive.com, or call: 440-395-2222. | ||
For all other company information, call: 440-461-5000 or access our website at: progressive.com/contactus. | ||
Transfer Agent and Registrar Registered Shareholders: If you have questions or changes to your account and your Progressive common shares are registered in your name, write to: American Stock Transfer & Trust Company, Attn: Operations Center, 6201 15th Avenue, Brooklyn, NY 11219; phone: 1-866-709-7695; email: help@astfinancial.com; or visit their website at: www.astfinancial.com. | ||
Beneficial Shareholders: If your Progressive common shares are held in a brokerage or other financial institution account, contact your broker or financial institution directly regarding questions or changes to your account. | ||
Common Shares, Holders, and Dividends The Progressive Corporation’s common shares are traded on the New York Stock Exchange (symbol PGR). There were 1,856 shareholders of record on December 31, 2021. Progressive currently has a dividend policy under which the Board expects to declare regular, quarterly common share dividends and, on at least an annual basis, to consider declaring an additional variable common share dividend. The dividend policy can be found at: progressive.com/dividend. | ||
Counsel Baker & Hostetler LLP, Cleveland, Ohio | ||
Corporate Governance Progressive’s Corporate Governance Guidelines and Board Committee Charters are available at: progressive.com/governance. | ||
Accounting Complaint Procedure Any employee or other interested party with a complaint or concern regarding accounting, internal accounting controls, or auditing matters relating to Progressive may report such complaint or concern directly to the Chairperson of the Audit Committee, as follows: Stuart B. Burgdoerfer, Chair of the Audit Committee, auditchair@progressive.com. Any such complaint or concern also may be reported anonymously over the following toll-free Alertline: 1-800-683-3604 or online at: www.progressivealertline.com. | ||
Progressive will not retaliate against any individual by reason of his or her having made such a complaint or reported such a concern in good faith. View the complete procedures at: progressive.com/governance. | ||
Contact Non-Management Directors Interested parties have the ability to contact the non-management directors as a group by sending a written communication clearly addressed to the non-management directors to either of the following: | ||
Lawton W. Fitt, Chairperson of the Board, The Progressive Corporation, email: chair@progressive.com; or | ||
Daniel P. Mascaro, Secretary, The Progressive Corporation, 6300 Wilson Mills Road, Mayfield Village, Ohio 44143 or email: secretary@progressive.com. | ||
The recipient will forward communications so received to the non-management directors. | ||
Whistleblower Protections Progressive will not retaliate against any officer or employee of Progressive because of any lawful act done by the officer or employee to provide information or otherwise assist in investigations regarding conduct that the officer or employee reasonably believes to be a violation of federal securities laws or of any rule or regulation of the Securities and Exchange Commission. View the complete Whistleblower Protections at: progressive.com/governance. | ||
Charitable Contributions We contribute to: (i) The Insurance Institute for Highway Safety to further its work in reducing the human trauma and economic costs of auto accidents; (ii) Humble Design, a nonprofit organization we partnered with to furnish homes for families and veterans transitioning from homelessness; and, (iii) The Progressive Insurance Foundation. To more broadly represent our employees and their communities, The Progressive Insurance Foundation provides funds to national charitable organizations identified by our Employee Resource Groups and, beginning mid-2022, will contribute a fixed amount to eligible 501(c)(3) charitable organizations of each participating employee’s choosing without requiring the employee to contribute. Over the last five years, the funds provided by The Progressive Insurance Foundation, which included an employee matching program, averaged approximately $5 million per year. | ||
Social Responsibility and Sustainability Progressive uses an online format to communicate our social responsibility efforts, and we see sustainability as part of the value we bring to our shareholders, customers, employees, agents, and communities. Our social responsibility and sustainability reports can be found at: progressive.com/socialresponsibility and progressive.com/sustainability, respectively. |
Directors | ||||||||||||||
Philip Bleser1,5,7 | Roger N. Farah2,3,5,7 | Jeffrey D. Kelly1,7 | ||||||||||||
Retired Chairman of Global Corporate | Retired Executive Director, | Retired Chief Operating Officer and | ||||||||||||
Banking, | Tory Burch LLC | Chief Financial Officer, | ||||||||||||
JPMorgan Chase & Co. | (retailing) | RenaissanceRe Holdings Ltd. | ||||||||||||
(financial services) | (reinsurance services) | |||||||||||||
Stuart B. Burgdoerfer1,6,7 | Lawton W. Fitt2,4,5,7 | Barbara R. Snyder3,7 | ||||||||||||
Retired Executive Vice President and | Chairperson of the Board, | President, | ||||||||||||
Chief Financial Officer, | Retired Partner, | The Association of American Universities | ||||||||||||
L Brands, Inc. | Goldman Sachs Group | (higher education) | ||||||||||||
(retailing) | (financial services) | |||||||||||||
Pamela J. Craig3,6,7 | Susan Patricia Griffith2 | Jan E. Tighe3,6,7 | ||||||||||||
Retired Chief Financial Officer, | President and | United States Navy, Vice Admiral, Retired | ||||||||||||
Accenture PLC | Chief Executive Officer, | (military) | ||||||||||||
(global management consulting) | The Progressive Corporation | |||||||||||||
Charles A. Davis4,7 | Devin C. Johnson6,7 | Kahina Van Dyke4,6,7 | ||||||||||||
Chief Executive Officer, | Chief Operating Officer, | Global Head, Digital Channels and | ||||||||||||
Stone Point Capital LLC | The SpringHill Company | Client Data Analytics, | ||||||||||||
(private equity investing) | (global consumer and entertainment) | Standard Chartered PLC | ||||||||||||
(international banking) | ||||||||||||||
1 Audit Committee Member | ||||||||||||||
2 Executive Committee Member | ||||||||||||||
3 Compensation Committee Member | ||||||||||||||
4 Investment & Capital Committee | ||||||||||||||
Member | ||||||||||||||
5 Nominating & Governance | ||||||||||||||
Committee Member | ||||||||||||||
6 Technology Committee Member | ||||||||||||||
7 Independent Director | ||||||||||||||
Corporate Officers | Other Executive Officers | |||||||||||||
Lawton W. Fitt | Karen B. Bailo | |||||||||||||
Chairperson of the Board | Commercial Lines President | |||||||||||||
(non-executive) | ||||||||||||||
Jonathan S. Bauer | ||||||||||||||
Susan Patricia Griffith | Chief Investment Officer | |||||||||||||
President | ||||||||||||||
and Chief Executive Officer | Steven A. Broz | |||||||||||||
Chief Information Officer | ||||||||||||||
John P. Sauerland | ||||||||||||||
Vice President | Patrick K. Callahan | |||||||||||||
and Chief Financial Officer | Personal Lines President | |||||||||||||
Daniel P. Mascaro | William L. Clawson II | |||||||||||||
Vice President, Secretary, | Chief Human Resources Officer | |||||||||||||
and Chief Legal Officer | ||||||||||||||
Remi Kent | ||||||||||||||
Patrick S. Brennan | Chief Marketing Officer | |||||||||||||
Treasurer | ||||||||||||||
John Murphy | ||||||||||||||
Mariann Wojtkun Marshall | Claims President | |||||||||||||
Vice President, Assistant Secretary, | ||||||||||||||
and Chief Accounting Officer | Lori Niederst | |||||||||||||
Customer Relationship Management | ||||||||||||||
President | ||||||||||||||
Andrew J. Quigg | ||||||||||||||
Chief Strategy Officer | ||||||||||||||
©2022 The Progressive Corporation |
Jurisdiction | ||||||||
Name of Subsidiary | of Incorporation | |||||||
ARX Holding Corp. | Delaware | |||||||
American Strategic Insurance Corp. | Florida | |||||||
Ark Royal Underwriters, LLC | Florida | |||||||
ASI Assurance Corp. | Florida | |||||||
ASI Home Insurance Corp. | Florida | |||||||
ASI Lloyds, Inc. | Texas | |||||||
ASI Preferred Insurance Corp. | Florida | |||||||
ASI Select Auto Insurance Corp. | California | |||||||
ASI Select Insurance Corp. | Delaware | |||||||
ASI Underwriters Corp. | Florida | |||||||
ASI Underwriters of Texas, Inc. | Texas | |||||||
Progressive Property Insurance Company | Florida | |||||||
PropertyPlus Insurance Agency, Inc. | Delaware | |||||||
Sunshine Security Insurance Agency, Inc. | Florida | |||||||
Drive Insurance Holdings, Inc. | Delaware | |||||||
Drive New Jersey Insurance Company | New Jersey | |||||||
Progressive American Insurance Company | Ohio | |||||||
Progressive Bayside Insurance Company | Ohio | |||||||
Progressive Casualty Insurance Company | Ohio | |||||||
PC Investment Company | Delaware | |||||||
Progressive Gulf Insurance Company | Ohio | |||||||
Progressive Specialty Insurance Company | Ohio | |||||||
Trussville/Cahaba, AL, LLC | Ohio | |||||||
Progressive Classic Insurance Company | Wisconsin | |||||||
Progressive Commercial Advantage Agency, Inc. | Ohio | |||||||
Progressive Commercial Casualty Company | Ohio | |||||||
Progressive Freedom Insurance Company | Ohio | |||||||
Progressive Hawaii Insurance Corp. | Ohio | |||||||
Progressive Michigan Insurance Company | Michigan | |||||||
Progressive Mountain Insurance Company | Ohio | |||||||
Progressive Northern Insurance Company | Wisconsin | |||||||
Progressive Northwestern Insurance Company | Ohio | |||||||
Progressive Preferred Insurance Company | Ohio | |||||||
Progressive Security Insurance Company | Louisiana | |||||||
Progressive Southeastern Insurance Company | Indiana | |||||||
Progressive West Insurance Company | Ohio | |||||||
Garden Sun Insurance Services, Inc. | Hawaii | |||||||
Pacific Motor Club | California | |||||||
ProgNY Agency, Inc. | New York | |||||||
Progressive Adjusting Company, Inc. | Ohio | |||||||
Jurisdiction | ||||||||
Name of Subsidiary | of Incorporation | |||||||
Progressive Capital Management Corp. | New York | |||||||
Progressive Commercial Holdings, Inc. | Delaware | |||||||
Artisan and Truckers Casualty Company | Wisconsin | |||||||
Blue Hill Specialty Insurance Company, Inc. | Illinois | |||||||
National Continental Insurance Company | New York | |||||||
Progressive Express Insurance Company | Ohio | |||||||
Protective Insurance Corporation | Indiana | |||||||
B&L Brokerage Services, Inc. | Indiana | |||||||
Transport Specialty Insurance Agency, Inc. | Michigan | |||||||
B&L Insurance, Ltd. | Bermuda | |||||||
B&L Management Inc. | Delaware | |||||||
Protective Insurance Company | Indiana | |||||||
Protective Specialty Insurance Company | Indiana | |||||||
Sagamore Insurance Company | Indiana | |||||||
United Financial Casualty Company | Ohio | |||||||
Progressive Direct Holdings, Inc. | Delaware | |||||||
Mountain Laurel Assurance Company | Ohio | |||||||
Progressive Advanced Insurance Company | Ohio | |||||||
Progressive Advantage Agency, Inc. | Ohio | |||||||
Progressive Auto Pro Insurance Agency, Inc. | Florida | |||||||
Progressive Choice Insurance Company | Ohio | |||||||
Progressive Direct Insurance Company | Ohio | |||||||
Gadsden, AL, LLC | Ohio | |||||||
Progressive Garden State Insurance Company | New Jersey | |||||||
Progressive Marathon Insurance Company | Michigan | |||||||
Progressive Max Insurance Company | Ohio | |||||||
Progressive Paloverde Insurance Company | Indiana | |||||||
Progressive Premier Insurance Company of Illinois | Ohio | |||||||
Progressive Select Insurance Company | Ohio | |||||||
Progressive Universal Insurance Company | Wisconsin | |||||||
Progressive Innovation Co. | Delaware | |||||||
Progressive Investment Company, Inc. | Delaware | |||||||
Progressive Life Insurance Company | Ohio | |||||||
Progressive Premium Budget, Inc. | Ohio | |||||||
Progressive RSC, Inc. | Ohio | |||||||
Progressive Vehicle Service Company | Ohio | |||||||
Village Transport Corp. | Delaware | |||||||
Wilson Mills Land Co. | Ohio | |||||||
358 Ventures, Inc. | Ohio | |||||||
/s/ Mariann Wojtkun Marshall | |||||
Date: | February 22, 2022 | ||||
Mariann W. Marshall | |||||
Vice President and Chief Accounting Officer |
/s/ John P. Sauerland | |||||
Date: | February 21, 2022 | ||||
John P. Sauerland | |||||
Vice President and Chief Financial Officer |
/s/ Susan P. Griffith | |||||
Date: | February 21, 2022 | ||||
Susan Patricia Griffith | |||||
Director, President and Chief Executive Officer |
/s/ Lawton Wehle Fitt | |||||
Date: | February 21, 2022 | ||||
Lawton W. Fitt | |||||
Chairperson of the Board |
/s/ Philip Bleser | |||||
Date: | February 21, 2022 | ||||
Philip Bleser | |||||
Director |
/s/ Stuart B. Burgdoerfer | |||||
Date: | February 21, 2022 | ||||
Stuart B. Burgdoerfer | |||||
Director |
/s/ Pamela J. Craig | |||||
Date: | February 21, 2022 | ||||
Pamela J. Craig | |||||
Director |
/s/ Charles A. Davis | |||||
Date: | February 21, 2022 | ||||
Charles A. Davis | |||||
Director |
/s/ Roger N. Farah | |||||
Date: | February 21, 2022 | ||||
Roger N. Farah | |||||
Director |
/s/ Devin C. Johnson | |||||
Date: | February 25, 2022 | ||||
Devin C. Johnson | |||||
Director |
/s/ Jeffrey D. Kelly | |||||
Date: | February 21, 2022 | ||||
Jeffrey D. Kelly | |||||
Director |
/s/ Barbara R. Snyder | |||||
Date: | February 25, 2022 | ||||
Barbara R. Snyder | |||||
Director |
/s/ Jan E. Tighe | |||||
Date: | February 21, 2022 | ||||
Jan E. Tighe | |||||
Director |
/s/ Kahina R. Van Dyke | |||||
Date: | February 25, 2022 | ||||
Kahina R. Van Dyke | |||||
Director |
Date: | February 28, 2022 | /s/ Susan Patricia Griffith | ||||||
Susan Patricia Griffith | ||||||||
President and Chief Executive Officer |
Date: | February 28, 2022 | /s/ John P. Sauerland | ||||||
John P. Sauerland | ||||||||
Vice President and Chief Financial Officer |
/s/ Susan Patricia Griffith | ||
Susan Patricia Griffith | ||
President and Chief Executive Officer | ||
February 28, 2022 |
/s/ John P. Sauerland | ||
John P. Sauerland | ||
Vice President and Chief Financial Officer | ||
February 28, 2022 |