8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) September 12, 2003

THE PROGRESSIVE CORPORATION
(Exact name of registrant as specified in its charter)

Ohio	1-9518	34-0963169
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

6300 Wilson Mills Road, Mayfield Village, Ohio	44143
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code 440-461-5000

Not Applicable
(Former name or former address, if changed since last report)

TABLE OF CONTENTS

EX-99 News Release

Item 9. Regulation FD Disclosure.

On September 12, 2003, The Progressive Corporation (the “Company”) issued a News Release containing financial results of the Company for the month of August 2003 (the “News Release”). A copy of the News Release is attached hereto as Exhibit 99.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated: September 12, 2003
	THE PROGRESSIVE CORPORATION
	By: /s/ W. Thomas Forrester Name: W. Thomas Forrester Title: Vice President and Chief            Financial Officer

EXHIBIT INDEX

Exhibit No.	Form 8-K
Under Reg.	Exhibit
S-K Item 601	No.		Description
99		99	News Release dated September 12, 2003, containing financial results of The Progressive Corporation for the month of August 2003

EX-99 3 l03038aexv99.htm EX-99 NEWS RELEASE

Exhibit 99

News Release dated September 12, 2003,
containing financial results
of The Progressive Corporation
for the month of August 2003

[PROGRESSIVE LOGO] NEWS
RELEASE

The Progressive Corporation	Company Contact:
6300 Wilson Mills Road Mayfield Village, Ohio 44143 http://www.progressive.com	Thomas A. King (440) 395-2260

FOR IMMEDIATE RELEASE

MAYFIELD VILLAGE, OHIO – September 12, 2003 — The Progressive Corporation today reported the following for August 2003:

(millions)		2003		2002		Change
Net premiums written		$	978.8	$	773.8		26	%
Net premiums earned			901.6		712.2		27	%
Net income			83.7		54.8		53	%
	Per share		.38		.25		53	%
Combined ratio			89.9		94.1	4.2 pts.

See the “Income Statement” for further information.

     Progressive’s Personal Lines business units write insurance for private passenger automobiles and recreation vehicles. Progressive’s Commercial Auto business unit writes primary liability, physical damage and other auto-related insurance for automobiles and trucks owned by small businesses. The Company’s other businesses principally include writing lenders’ collateral protection and directors’ and officers’ liability insurance. See “Supplemental Information” for August’s results.

     The Progressive group of insurance companies ranks third in the nation for auto insurance, offering its products by phone at 1-800-PROGRESSIVE, online at progressive.com and through more than 30,000 independent agencies. The Progressive Corporation, the holding company, is publicly traded at NYSE:PGR.

THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
August 31, 2003
($ in millions)(unaudited)

Current Month
Description		Personal Lines									Commercial
											Auto			Other			Companywide
		Agent			Direct			Total			Business			Businesses (c)			Total
Net Premiums Written		$	600.5		$	274.9		$	875.4		$	103.8		$	(.4	)	$	978.8
% Growth in NPW			25	%		29	%		26	%		36	%	NM				26	%
Premiums Earned		$	550.5		$	246.2		$	796.7		$	98.7		$	6.2		$	901.6
% Growth in Premiums Earned			24	%		30	%		26	%		35	%		15	%		27	%
Loss/LAE Ratio			71.0			69.1			70.4			65.6			37.5			69.7
Expense Ratio			19.8			21.3			20.2			19.4			30.0			20.2
Combined Ratio			90.8			90.4			90.6			85.0			67.5			89.9
Actuarial Adjustments(a) -
	Reserve Decrease/(Increase)	$	1.0		$	.3		$	1.3		$	(1.0	)	$	—		$	.3

Year-to-Date
Description		Personal Lines									Commercial
											Auto			Other			Companywide
		Agent			Direct			Total			Business			Businesses			Total
Net Premiums Written		$	4,925.9		$	2,203.1		$	7,129.0		$	920.1		$	43.9		$	8,093.0
% Growth in NPW			26	%		31	%		28	%		37	%		(32	)%		28	%
Premiums Earned		$	4,535.8		$	2,012.3		$	6,548.1		$	787.0		$	49.7		$	7,384.8
% Growth in Premiums Earned			27	%		34	%		29	%		44	%		(29	)%		30	%
Loss/LAE Ratio			69.0			67.6			68.6			63.5			55.0			68.0
Expense Ratio			19.3			20.3			19.6			19.9			40.6			19.8
Combined Ratio			88.3			87.9			88.2			83.4			95.6			87.8
Actuarial Adjustments(a) -
	Reserve Decrease/(Increase)	$	(.4	)	$	.7		$	.3		$	(11.5	)	$	.9		$	(10.3	)

		August		August
Policies in Force		2003		2002		Change
(in thousands)
	Agent – Auto		3,859		3,210		20	%
	Direct – Auto		1,770		1,441		23	%
	Other Personal Lines(b)		1,968		1,630		21	%
Total Personal Lines			7,597		6,281		21	%
Commercial Auto Business			349		273		28	%

(a)	Represents adjustments based solely on the Company’s corporate actuarial review.
(b)	Includes insurance for motorcycles, recreation vehicles, mobile homes, watercraft, snowmobiles, homeowners and similar items.
(c)	Includes $6.5 million of negative net premiums written due to the in-force cancellation of a collateral protection insurance customer in August 2003.

NM = Not meaningful

THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
INCOME STATEMENT
August 31, 2003
(millions – except per share amounts)
(unaudited)

			Current		Year-to
			Month		Date
Direct premiums written			$	999.2	$	8,277.7
Net premiums written			$	978.8	$	8,093.0
Revenues:
Premiums earned			$	901.6	$	7,384.8
Recurring investment income1				38.1		302.4
Net realized gains (losses) on securities				1.1		18.9
Service revenues				3.4		26.7
Other income2				.2		30.6
	Total revenues			944.4		7,763.4
Expenses:
Losses and loss adjustment expenses				627.8		5,019.1
Underwriting expenses				182.4		1,461.2
Investment expenses				.8		7.4
Service expenses				2.3		17.1
Interest expense				8.0		63.8
	Total expenses			821.3		6,568.6
Income before income taxes				123.1		1,194.8
Provision for income taxes				39.4		391.4
Net income			$	83.7	$	803.4
COMPUTATION OF EARNINGS PER SHARE
Basic:
Average shares outstanding				216.9		217.6
		Per share	$	.39	$	3.69
Diluted:
Average shares outstanding				216.9		217.6
Net effect of dilutive stock options				3.5		3.7
		Total equivalent shares		220.4		221.3
		Per share	$	.38	$	3.63

¹ The following table sets forth the total return for the periods ended August 31, 2003:

		Current			Year-to
		Month			Date
Fully taxable equivalent total return:
	Fixed income securities		.5	%		2.4	%
	Common stocks		1.9	%		16.0	%
	Total portfolio		.7	%		4.3	%

² Amount represents the estimated interest earned through August on the income tax refund the Company will receive. See the Company’s quarterly report on Form 10-Q for the period ended June 30, 2003 for further information.

THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
BALANCE SHEET AND OTHER INFORMATION
(millions– except per share amounts)
(unaudited)

				August 31, 2003
CONDENSED GAAP BALANCE SHEETS:1
		Investments - Available-for-sale:
			Fixed maturities, at market (amortized cost: $8,443.1)	$	8,564.0
			Equity securities, at market:
			Preferred stocks (cost: $771.2)		796.1
			Common equities (cost: $1,590.8)		1,780.2
			Short-term investments, at amortized cost (market: $1,437.2)		1,437.2
			Total investments		12,577.5
		Net premiums receivable			2,138.9
		Deferred acquisition costs			433.8
		Other assets			1,104.2
			Total assets	$	16,254.4
		Unearned premiums		$	4,031.9
		Loss and loss adjustment expense reserves			4,316.5
		Other liabilities2			1,991.6
		Debt			1,489.5
		Shareholders’ equity			4,424.9
			Total liabilities and shareholders’ equity	$	16,254.4
	Common Shares outstanding				216.5
	Shares repurchased — August				.5
			Average cost per share	$	69.50
	Book value per share			$	20.44
	Return on average shareholders’ equity				27.5	%

1	Pursuant to SFAS 113, “Accounting and Reporting for Reinsurance of Short-Duration and Long-Duration Contracts,” loss and loss adjustment expense reserves are stated gross of reinsurance recoverables on unpaid losses of $209.5 million at August 31, 2003.
2	Amounts include net unsettled security acquisitions of $752.0 million at August 31, 2003, including repurchase commitment transactions.

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EX-99

EX-99 News Release