Progressive Corp. (a property and casualty insurance company) reported "Loss and loss adjustment expense reserves" (an operating liability) of $11,368.0 million its 2016 Form 10-K. What is the allowance for loan and lease losses? How could Progressive's managers use the reserve to manage income? Provide a numerical example of the income statement effect of this sort of earnings management.

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The Answer of Progressive Corp. (a property and casualty insurance company) reported "Loss and loss adjustment expense reserves" (an operating liability) of $11,368.0 million its 2016 Form 10-K. What is the allowance for loan and lease losses? How could Progressive's managers use the reserve to manage income? Provide a numerical example of the income statement effect of this sort of earnings management.