PGR Progressive Corp.

Risks

• Our success depends on our ability to establish accurate loss reserves.
• Our insurance operating results may be materially adversely affected by severe weather or other catastrophe events, and changing climate conditions may be exacerbating these impacts.
• Our success will depend on our ability to continue to accurately predict our reinsurance needs, obtain sufficient reinsurance coverage for our Property and other businesses at reasonable cost, and collect under our reinsurance contracts.
• We compete in property-casualty markets that are highly competitive.
• Our success depends on our ability to innovate effectively and respond to our competitors’ initiatives.
• We must effectively manage complexity as we develop and deliver high quality products and customer experiences.
• Intellectual property rights could affect our competitiveness and our business operations.
• Our success depends on our ability to adjust claims accurately.
• We must maintain a brand that is recognized and trusted by consumers.
• Our ability to attract, develop, and retain talent, including employees, managers, and executives, and to maintain appropriate staffing levels, is critical to our success.
• We are subject to a variety of complex laws and regulations.
• Lawsuits challenging our business practices, and those of our competitors and other companies, are pending and more may be filed in the future.
• Our business could be materially adversely affected by a security breach or other attack involving our computer systems or the systems of one or more of our vendors.
• Our business depends on the secure and uninterrupted operation of our facilities, systems, and business functions and the operation of various third-party systems.
• Efforts to develop new products or enter new areas of business may not be successful and may create enhanced risks.
• If we were not able to send or accept electronic payments, our business and financial results could be adversely affected.
• We may be required to recognize impairments in the value of the goodwill or intangible assets recorded in our financial statements.
• The performance of our fixed-income and equity investment portfolios is subject to a variety of investment risks.
• The elimination of or change in the London Interbank Offered Rate (LIBOR) may adversely affect the interest rates on and value of certain floating rate securities and other instruments that we hold.
• The inability to access our cash accounts or to convert investments into cash on favorable terms when we desire to do so may materially and adversely affect our business.
• Our financial condition may be adversely affected if one or more parties with which we enter into significant contracts or transact business (including under certain government programs) become insolvent, experience other financial difficulties, or default in the performance of contractual or reimbursement obligations.
• Our insurance subsidiaries may be limited in the amount of dividends that they can pay, which in turn may limit our ability to repay indebtedness, make capital contributions to other subsidiaries or affiliates, pay dividends to shareholders, repurchase securities, or meet other obligations.
• The terms of our outstanding preferred shares prohibit us from paying a dividend on our common shares in certain circumstances.
• If we are unable to obtain capital when necessary to support our business, our financial condition and our ability to grow could be materially adversely affected.
• Our access to capital markets, ability to obtain or renew financing arrangements, obligations to post collateral under certain derivative contracts, and business operations are dependent on favorable evaluations and ratings by credit and other rating agencies.
• Our dividend policy may result in varying amounts being paid to our common shareholders, or no payment in some periods, and the dividend policy ultimately may be changed in the discretion of the Board of Directors.
• Our investments in certain tax-advantaged projects may not generate the anticipated tax benefits and related returns.
• We do not manage to short-term earnings expectations; our goal is to maximize the long-term value of the enterprise, which, at times, may adversely affect short-term results.