Progressive Corporation

Progressive allocates capital first to profitable growth at or below a 96 combined ratio, then to shareholders primarily via an annual variable dividend plus a small regular dividend, with opportunistic buybacks to offset dilution.

The board declared an annual dividend of $4.50 per share in December 2024 (paid January 2025) and $13.50 per share for 2025 (payable January 8, 2026), both sized to capital and outlook rather than formulaic payout. 2024 operating cash flow was $15.1B; statutory dividends from subs to holdco were $3.67B; and up to $7.0B could be dividended from subs in 2025 without prior regulatory approval.

Share repurchases are modest and policy‑driven, focused on neutralizing equity compensation and used only when shares trade below management’s estimate of long‑term value. Capex is light; investment spend is weighted to pricing, claims, data and digital distribution.

We view this as a shareholder‑oriented, returns‑focused playbook consistent with quality compounding.