v3.26.3
Segment Information
 9 Months Ended
Sep. 30, 2026
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.
Our Commercial Lines segment writes auto-related liability and physical damage insurance, business-related
general liability and commercial property insurance predominantly for small businesses, and workers’ compensation insurance primarily for the transportation industry.
Our service businesses primarily 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; 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, 2026
Net premiums earned$19,060 $2,807 $2 $21,869 
Fees and other revenues291 20 0 311 
Total underwriting revenue19,351 2,827 2 22,180 
Losses and loss adjustment expenses:
Losses (excluding catastrophe losses)10,888 1,689 7 12,584 
Catastrophe losses373 15 0 388 
Loss adjustment expenses1,605 327 0 1,932 
Total losses and loss adjustment expenses12,866 2,031 7 14,904 
Underwriting expenses:
Distribution expenses2
2,749 340 3 3,092 
Other underwriting expenses3
1,455 249 7 1,711 
Total underwriting expenses4,204 589 10 4,803 
Pretax underwriting profit (loss)$2,281 $207 $(15)2,473 
Investment profit (loss)4
855 
Service businesses profit (loss)(5)
Interest expense(87)
Total pretax profit (loss)$3,236 
(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
Nine Months Ended September 30, 2026
Net premiums earned$56,324 $8,081 $5 $64,410 
Fees and other revenues855 58 0 913 
Total underwriting revenue57,179 8,139 5 65,323 
Losses and loss adjustment expenses:
Losses (excluding catastrophe losses)31,608 4,536 14 36,158 
Catastrophe losses1,395 34 0 1,429 
Loss adjustment expenses4,798 918 0 5,716 
Total losses and loss adjustment expenses37,801 5,488 14 43,303 
Underwriting expenses:
Distribution expenses2
7,949 956 8 8,913 
Other underwriting expenses3
4,227 807 18 5,052 
Total underwriting expenses12,176 1,763 26 13,965 
Pretax underwriting profit (loss)$7,202 $888 $(35)8,055 
Investment profit (loss)4
3,217 
Service businesses profit (loss)(16)
Interest expense(245)
Total pretax profit (loss)$11,011 
(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 
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. Personal Lines results for both the three and nine months ended September 30, 2025, included $950 million of policyholder credit expense, related to estimated profit we earned for the three-accident-year period ended December 31, 2025, in excess of the statutory profit limit that a Florida statute imposes on the profit that any insurance group can earn on personal auto insurance over any contiguous three-accident-year period. See our 2025 Annual Report to Shareholders for further discussion of the Florida policyholder credit expense.
4 Calculated as recurring investment income plus total net realized gains (losses) on securities, less investment expenses.
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. 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. Combined ratio is the complement of the underwriting margin. 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,
2026202520262025
Under-
writing
Margin		Combined
Ratio		Under-
writing
Margin		Combined
Ratio		Under-
writing
Margin		Combined
Ratio		Under-
writing
Margin		Combined
Ratio
Personal Lines12.0 %88.0 10.5 %89.5 12.8 %87.2 12.9 %87.1 
Commercial Lines7.4 92.6 10.8 89.2 11.0 89.0 12.2 87.8 
Total underwriting operations11.3 88.7 10.5 89.5 12.5 87.5 12.7 87.3