8-K

UNITED STATES
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) November 15, 2006

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)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01 Regulation FD Disclosure

On November 15, 2006, The Progressive Corporation issued a news release containing financial results for the Company and its subsidiaries for the month of, and year-to-date period ended, October 2006. A copy of the news release is attached hereto as Exhibit 99.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

See exhibit index on page 4.

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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 hereunto duly authorized.

Date: November 15, 2006

THE PROGRESSIVE CORPORATION
By:	/s/ Jeffrey W. Basch
Name:	Jeffrey W. Basch
Title:	Vice President and Chief Accounting Officer

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EXHIBIT INDEX

Exhibit No.	Form 8-K
Under Reg.	Exhibit
S-K Item 601	No.	Description
(99)	99	News release dated November 15, 2006, containing financial results of The Progressive Corporation and its subsidiaries for the month of, and year-to-date period ended, October 2006

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EX-99

Exhibit 99

NEWS
RELEASE

The Progressive Corporation	Company Contact:
6300 Wilson Mills Road	Patrick Brennan
Mayfield Village, Ohio 44143	(440)395-2370
http://www.progressive.com

FOR IMMEDIATE RELEASE

MAYFIELD VILLAGE, OHIO — November 15, 2006 — The Progressive Corporation today reported the following results for October 2006:

	October		October
(millions, except per share amounts and ratios)	2006		2005		Change
Net premiums written	$	1,315.8	$	1,328.1		(1	)%
Net premiums earned		1,354.7		1,340.0		1	%
Net income		130.1		75.4		73	%
Per share		.17		.09		80	%
Combined ratio		89.1		94.2	(5.1) pts.

See the “Income Statements” for further month and year-to-date information.

     Progressive offers insurance to personal and commercial auto drivers throughout the United States. Our Personal Lines business units write insurance for private passenger automobiles and recreational vehicles. Our Commercial Auto business unit writes primary liability, physical damage and other auto-related insurance for automobiles and trucks owned by small businesses. See “Supplemental Information” for month and year-to-date results.

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THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
INCOME STATEMENT
October 2006
(millions — except per share amounts)
(unaudited)

	Current Month		Comments on Monthly Results1
Direct premiums written	$	1,337.0
Net premiums written	$	1,315.8
Revenues:
Net premiums earned	$	1,354.7
Investment income		52.3
Net realized gains (losses) on securities		.2
Service revenues		2.6
Total revenues		1,409.8
Expenses:
Losses and loss adjustment expenses		936.2
Policy acquisition costs		136.4
Other underwriting expenses		133.9
Investment expenses		1.2
Service expenses		1.9
Interest expense		6.3
Total expenses		1,215.9
Income before income taxes		193.9
Provision for income taxes		63.8
Net income	$	130.1
COMPUTATION OF EARNINGS PER SHARE
Basic:
Average shares outstanding		753.8
Per share	$	.17
Diluted:
Average shares outstanding		753.8
Net effect of dilutive stock-based compensation		9.0
Total equivalent shares		762.8
Per share	$	.17

¹For a description of our reporting and accounting policies, see Note 1 to our 2005 audited consolidated financial statements included in our 2005 Shareholders’ Report, which can be found at www.progressive.com/annualreport.

The following table sets forth the investment results for the month:

Fully taxable equivalent total return:
Fixed-income securities	.6	%
Common stocks	3.3	%
Total portfolio	1.0	%
Pretax recurring investment book yield	4.5	%

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THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
INCOME STATEMENTS
October 2006 Year-to-Date
(millions — except per share amounts)
(unaudited)

	Year-to-Date
	2006			2005			% Change
Direct premiums written	$	12,478.4		$	12,334.0		1
Net premiums written	$	12,253.6		$	12,083.9		1
Revenues:
Net premiums earned	$	11,963.9		$	11,622.7		3
Investment income		536.3			433.6		24
Net realized gains (losses) on securities		(24.0	)		(4.3	)	458
Service revenues		26.2			34.7		(24)
Total revenues		12,502.4			12,086.7		3
Expenses:
Losses and loss adjustment expenses		7,970.9			7,879.0		1
Policy acquisition costs		1,223.1			1,225.9		0
Other underwriting expenses		1,176.1			1,123.1		5
Investment expenses		10.0			10.2		(2)
Service expenses		21.2			20.7		2
Interest expense		64.7			69.0		(6)
Total expenses		10,466.0			10,327.9		1
Income before income taxes		2,036.4			1,758.8		16
Provision for income taxes		659.7			571.1		16
Net income	$	1,376.7		$	1,187.7		16
COMPUTATION OF EARNINGS PER SHARE
Basic:
Average shares outstanding		778.0			788.5		(1)
Per share	$	1.77		$	1.51		17
Diluted:
Average shares outstanding		778.0			788.5		(1)
Net effect of dilutive stock-based compensation		9.7			11.6		(16)
Total equivalent shares		787.7			800.1		(2)
Per share	$	1.75		$	1.48		18

The following table sets forth the investment results for the year-to-date period:

	2006			2005
Fully taxable equivalent total return:
Fixed-income securities		5.2	%		2.3	%
Common stocks		12.3	%		2.9	%
Total portfolio		6.2	%		2.4	%
Pretax recurring investment book yield		4.6	%		4.0	%

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THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
October 2006
($ in millions)
(unaudited)

Current Month

	Personal Lines									Commercial
										Auto			Other		Companywide
	Drive			Direct			Total			Business			Businesses1		Total
Net Premiums Written	$	729.1		$	404.2		$	1,133.3		$	180.6		$	1.9	$	1,315.8
% Growth in NPW		(2	)%		3	%		0	%		(3	)%	NM			(1	)%
Net Premiums Earned	$	752.1		$	419.5		$	1,171.6		$	180.8		$	2.3	$	1,354.7
% Growth in NPE		(2	)%		4	%		0	%		8	%	NM			1	%
GAAP Ratios
Loss/LAE ratio		70.1			69.2			69.8			65.7		NM			69.1
Expense ratio		20.0			20.0			20.0			19.2		NM			20.0
Combined ratio		90.1			89.2			89.8			84.9		NM			89.1
Actuarial Adjustments2
Reserve Decrease/(Increase)
Prior accident years															$	19.0
Current accident year																7.9
Calendar year actuarial adjustment	$	12.2		$	8.5		$	20.7		$	6.2		$	0	$	26.9
Prior Accident Years Development
Favorable/(Unfavorable)
Actuarial adjustment															$	19.0
All other development																(5.0	)
Total development															$	14.0
Calendar year loss/LAE ratio																69.1
Accident year loss/LAE ratio																70.1
Statutory Ratios
Loss/LAE ratio																69.1
Expense ratio																19.8
Combined ratio																88.9

NM = Not Meaningful

¹Primarily includes professional liability insurance for community banks and Progressive’s run-off businesses. The other businesses generated an underwriting profit of $1.2 million for the month.

²Represents adjustments solely based on our corporate actuarial reviews.

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THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
October 2006 Year-to-Date
($ in millions)
(unaudited)

Year-to-Date

										Commercial
	Personal Lines									Auto			Other		Companywide
	Drive			Direct			Total			Business			Businesses1		Total
Net Premiums Written	$	6,804.9		$	3,766.4		$	10,571.3		$	1,660.7		$	21.6	$	12,253.6
% Growth in NPW		(2	)%		5	%		1	%		7	%	NM			1	%
Net Premiums Earned	$	6,709.0		$	3,669.9		$	10,378.9		$	1,564.0		$	21.0	$	11,963.9
% Growth in NPE		(1	)%		7	%		2	%		12	%	NM			3	%
GAAP Ratios
Loss/LAE ratio		67.9			66.6			67.4			61.4		NM			66.6
Expense ratio		20.2			20.2			20.2			19.1		NM			20.1
Combined ratio		88.1			86.8			87.6			80.5		NM			86.7
Actuarial Adjustments2
Reserve Decrease/(Increase)
Prior accident years															$	142.0
Current accident year																41.1
Calendar year actuarial adjustment	$	93.4		$	46.2		$	139.6		$	43.3		$	.2	$	183.1
Prior Accident Years Development
Favorable/(Unfavorable)
Actuarial adjustment															$	142.0
All other development																113.7
Total development															$	255.7
Calendar year loss/LAE ratio																66.6
Accident year loss/LAE ratio																68.7
Statutory Ratios
Loss/LAE ratio																66.7
Expense ratio																19.7
Combined ratio																86.4
Statutory Surplus															$	5,433.4
NM = Not Meaningful

	October		October
Policies in Force	2006		2005		Change
(in thousands)
Drive — Auto		4,470		4,511		(1	)%
Direct — Auto		2,425		2,313		5	%
Special Lines3		2,894		2,684		8	%
Total Personal Lines		9,789		9,508		3	%
Commercial Auto Business		506		466		9	%

¹ The other businesses generated an underwriting profit of $6.3 million.

² Represents adjustments solely based on our corporate actuarial reviews.

³ Includes insurance for motorcycles, recreational vehicles, mobile homes, watercraft, snowmobiles and similar items.

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

	October
	2006
CONDENSED GAAP BALANCE SHEET:1
Investments — Available-for-sale, at market:
Fixed maturities (amortized cost: $10,146.6)	$	10,182.8
Equity securities:
Preferred stocks (cost: $1,623.3)		1,646.7
Common equities (cost: $1,454.7)		2,287.1
Short-term investments (amortized cost: $1,582.4)		1,582.9
Total investments2		15,699.5
Net premiums receivable		2,646.9
Deferred acquisition costs		472.9
Other assets		1,790.6
Total assets	$	20,609.9
Unearned premiums	$	4,616.3
Loss and loss adjustment expense reserves		5,740.2
Other liabilities2		2,257.8
Debt		1,185.4
Shareholders’ equity		6,810.2
Total liabilities and shareholders’ equity	$	20,609.9
Common Shares outstanding		758.4
Shares repurchased — October		4.7
Average cost per share	$	24.44
Book value per share	$	8.98
Trailing 12-month return on average shareholders’ equity		24.8	%
Net unrealized pre-tax gains on investments	$	892.5
Increase (decrease) from September 2006	$	91.9
Increase (decrease) from December 2005	$	292.4
Debt to total capital ratio		14.8	%
Fixed-income portfolio duration	3.1 Years
Weighted average credit quality	AA
Year-to-date Gainshare factor		1.21

¹Pursuant 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 $328.7 million.

²Amounts include net unsettled security acquisitions, including repurchase commitments, of $709.5 million.

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Monthly Commentary

• The Company has no additional commentary regarding October’s results.

The Progressive Group of Insurance Companies, in business since 1937, ranks third in the nation for auto insurance based on premiums written and provides drivers with competitive rates and 24/7, in-person and online service. The products and services of the Progressive Direct Group of Insurance Companies are marketed directly to consumers online at www.progressivedirect.com and by phone at 1-800-PROGRESSIVE through the Progressive Direct^® brand. The Drive Group of Progressive Insurance Companies offers insurance through more than 30,000 independent insurance agencies that market their products and services through the Drive^® Insurance from Progressive brand. For more information about Drive Insurance, go to www.driveinsurance.com. The Common Shares of The Progressive Corporation, the Mayfield Village, Ohio-based holding company, are publicly traded at NYSE:PGR. More information, including a guide to interpreting the monthly reporting package, can be found at www.progressive.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in this release that are not historical fact are forward-looking statements that are subject to certain risks and uncertainties that could cause actual events and results to differ materially from those discussed herein. These risks and uncertainties include, without limitation, uncertainties related to estimates, assumptions and projections generally; inflation and changes in economic conditions (including changes in interest rates and financial markets); the accuracy and adequacy of the Company’s pricing and loss reserving methodologies; pricing competition and other initiatives by competitors; the Company’s ability to obtain regulatory approval for requested rate changes and the timing thereof; the effectiveness of the Company’s advertising campaigns; legislative and regulatory developments; disputes relating to intellectual property rights; the outcome of litigation pending or that may be filed against the Company; weather conditions (including the severity and frequency of storms, hurricanes, snowfalls, hail and winter conditions); changes in driving patterns and loss trends; acts of war and terrorist activities; the Company’s ability to maintain the uninterrupted operation of its facilities, systems (including information technology systems) and business functions; court decisions and trends in litigation and health care and auto repair costs; and other matters described from time to time by the Company in releases and publications, and in periodic reports and other documents filed with the United States Securities and Exchange Commission. In addition, investors should be aware that generally accepted accounting principles prescribe when a company may reserve for particular risks, including litigation exposures. Accordingly, results for a given reporting period could be significantly affected if and when a reserve is established for one or more contingencies. Reported results, therefore, may appear to be volatile in certain accounting periods.

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