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Segment Information
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
Our Personal Lines segment writes insurance for personal autos, special lines products (e.g., recreational vehicles, such as motorcycles, RVs, and watercraft), personal residential property insurance for homeowners and renters, umbrella insurance, and flood insurance through the “Write Your Own” program for the National Flood Insurance Program. Property information for the three and nine months ended September 30, 2024, was recast to conform to the current year presentation; see Note 10 – Segment Information in our 2024 Annual Report to Shareholders for further discussion.
Our Commercial Lines segment writes auto-related liability and physical damage insurance, business-related
general liability and commercial property insurance predominately for small businesses, and workers’ compensation insurance primarily for the transportation industry.
Our service businesses provide insurance-related services, including serving as an agent for homeowners, general liability, and workers’ compensation insurance, among other products, through programs in our direct Personal Lines and Commercial Lines businesses.
All segment revenues are generated from external customers and all intercompany transactions are eliminated in consolidation.

Following are the operating results for the respective periods:
(millions)Personal LinesCommercial Lines
Other1
Companywide
Three Months Ended September 30, 2025
Net premiums earned$18,089 $2,760 $0 $20,849 
Fees and other revenues272 34 0 306 
Total underwriting revenue18,361 2,794 0 21,155 
Losses and loss adjustment expenses:
Losses (excluding catastrophe losses)9,801 1,575 1 11,377 
Catastrophe losses207 12 0 219 
Loss adjustment expenses1,554 296 (1)1,849 
Total losses and loss adjustment expenses11,562 1,883 0 13,445 
Underwriting expenses:
Distribution expenses2
2,507 313 1 2,821 
Other underwriting expenses3
2,394 300 5 2,699 
Total underwriting expenses4,901 613 6 5,520 
Pretax underwriting profit (loss)$1,898 $298 $(6)2,190 
Investment profit (loss)4
1,209 
Service businesses profit (loss)(6)
Interest expense(70)
Total pretax profit (loss)$3,323 

(millions)Personal LinesCommercial Lines
Other1
Companywide
Three Months Ended September 30, 2024
Net premiums earned$15,570 $2,727 $0 $18,297 
Fees and other revenues235 43 0 278 
Total underwriting revenue15,805 2,770 0 18,575 
Losses and loss adjustment expenses:
Losses (excluding catastrophe losses)8,514 1,607 (1)10,120 
Catastrophe losses698 34 0 732 
Loss adjustment expenses1,382 276 0 1,658 
Total losses and loss adjustment expenses10,594 1,917 (1)12,510 
Underwriting expenses:
Distribution expenses2
2,267 297 0 2,564 
Other underwriting expenses3
1,245 248 3 1,496 
Total underwriting expenses3,512 545 3 4,060 
Pretax underwriting profit (loss)$1,699 $308 $(2)2,005 
Investment profit (loss)4
1,020 
Service businesses profit (loss)(9)
Interest expense(70)
Total pretax profit (loss)$2,946 
(millions)Personal LinesCommercial Lines
Other1
Companywide
Nine Months Ended September 30, 2025
Net premiums earned$52,343 $8,224 $1 $60,568 
Fees and other revenues784 112 0 896 
Total underwriting revenue53,127 8,336 1 61,464 
Losses and loss adjustment expenses:
Losses (excluding catastrophe losses)28,484 4,695 0 33,179 
Catastrophe losses1,349 36 0 1,385 
Loss adjustment expenses4,415 875 0 5,290 
Total losses and loss adjustment expenses34,248 5,606 0 39,854 
Underwriting expenses:
Distribution expenses2
7,183 907 2 8,092 
Other underwriting expenses3
4,967 823 13 5,803 
Total underwriting expenses12,150 1,730 15 13,895 
Pretax underwriting profit (loss)$6,729 $1,000 $(14)7,715 
Investment profit (loss)4
3,053 
Service businesses profit (loss)(18)
Interest expense(209)
Total pretax profit (loss)$10,541 

(millions)Personal LinesCommercial Lines
Other1
Companywide
Nine Months Ended September 30, 2024
Net premiums earned$43,706 $7,949 $0 $51,655 
Fees and other revenues647 127 0 774 
Total underwriting revenue44,353 8,076 0 52,429 
Losses and loss adjustment expenses:
Losses (excluding catastrophe losses)24,225 4,781 (4)29,002 
Catastrophe losses2,279 69 0 2,348 
Loss adjustment expenses3,903 824 0 4,727 
Total losses and loss adjustment expenses30,407 5,674 (4)36,077 
Underwriting expenses:
Distribution expenses2
5,655 855 0 6,510 
Other underwriting expenses3
3,468 726 7 4,201 
Total underwriting expenses9,123 1,581 7 10,711 
Pretax underwriting profit (loss)$4,823 $821 $(3)5,641 
Investment profit (loss)4
2,339 
Service businesses profit (loss)(25)
Interest expense(209)
Total pretax profit (loss)$7,746 
1 Includes other underwriting business and run-off operations.
2 Includes policy acquisition costs, agents’ contingent commissions, and advertising costs attributable to our operating segments. A portion of our companywide advertising costs are also attributed to our service businesses.
3 Primarily consists of employee compensation and benefit costs, policyholder credits, and the increase in the allowance for credit loss exposure on our premiums receivable.
4 Calculated as recurring investment income plus total net realized gains (losses) on securities, less investment expenses.
In the tables above, the results for the Personal Lines segment for both the three and nine months ended September 30, 2025, included $950 million of policyholder credit expense, included within other underwriting expenses. During the third quarter 2025, we determined it was probable that our personal auto profit in Florida for the 2023 to 2025 period will exceed the statutory profit limit that a Florida statute imposes on the profit that any insurance group can earn on personal auto insurance over any three-calendar-year period. In such event, we would need to credit any profit, above the limit, to all Florida personal auto policyholders active at December 31, 2025. Further, the accrual represents our current estimate of the profit we will earn on the three-calendar-year period ending December 31, 2025, in excess of the permitted profit limit. The expense is reported in policyholder credit expense on the consolidated statements of comprehensive income and the accrual is included in accounts payable, accrued expenses, and other liabilities on our consolidated balance sheets.
Our management uses underwriting margin and combined ratio as primary measures of underwriting profitability. The underwriting margin is the pretax underwriting profit (loss) expressed as a percentage of net premiums earned. Pretax underwriting profit (loss) is calculated as net premiums earned plus fees and other revenues, less: (i) losses and loss adjustment expenses; (ii) policy acquisition costs; (iii) other underwriting expenses; and (iv) policyholder credit expense. Combined ratio is the complement of the underwriting margin. Fees and other revenues are netted against either loss adjustment expenses or underwriting expenses in the ratio calculations, based on the underlying activity that generated the revenue. Following are the underwriting margins and combined ratios for our underwriting operations for the respective periods:
Three Months Ended September 30,Nine Months Ended September 30,
 2025202420252024
Under-
writing
Margin		Combined
Ratio		Under-
writing
Margin		Combined
Ratio		Under-
writing
Margin		Combined
Ratio		Under-
writing
Margin		Combined
Ratio
Personal Lines10.5 %89.5 10.9 %89.1 12.9 %87.1 11.0 %89.0 
Commercial Lines10.8 89.2 11.3 88.7 12.2 87.8 10.3 89.7 
Total underwriting operations10.5 89.5 11.0 89.0 12.7 87.3 10.9 89.1