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) April 20, 2007

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 communication 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 2.02 Results of Operations and Financial Condition.

On April 20, 2007, Glenn M. Renwick, President and Chief Executive Officer of The Progressive Corporation, will summarize the first quarter 2007 operating results and provide an update on the status of the Company during the Company’s 2007 Annual Meeting of Shareholders. A copy of Mr. Renwick’s prepared remarks are attached hereto as Exhibit 99.

Item 7.01 Regulation FD Disclosure.

See the information provided under Item 2.02 above and on the attached 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.

Dated: April 20, 2007

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	Copy of the prepared remarks that Glenn M. Renwick, President and Chief Executive Officer of The Progressive Corporation, will read at the Company’s 2007 Annual Meeting of Shareholders on April 20, 2007

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EX-99

Exhibit 99

Following is a copy of the prepared remarks that Glenn M. Renwick, President and Chief Executive Officer of The Progressive Corporation, will read at the Company’s 2007 Annual Meeting of Shareholders on April 20, 2007:

The top-line results for the first quarter were our most disappointing for some time.

For the quarter, aggregate growth measures were slow, and it was late into the quarter before we saw any measurable response to the more aggressive rating actions we had previously announced. Margins remained strong at 10.5%, even with higher mid-quarter frequency from seasonal storms. The strength of margin suggests less closure of the gap between our reaffirmed target of a 4% underwriting profit and the last several years of sustained double-digit margins; this measure moves slowly and rates from new premium levels are not reflected instantaneously in aggregate numbers. We believe we are on the correct course in evaluating the trade-offs between growth and margin with additional opportunities in selected segments. We elevated 104 auto rate revisions during the quarter, an increased level over similar period norms and consistent with the higher third and fourth quarter 2006 activity. As we expected, reaction to lowering prices is less dramatic in the current market, defined by relative rate stability or reduction.

It is no longer news to talk about reduced frequency, although over the last several years this has been the most significant external influence that has caused the industry to reshuffle and ultimately begin to settle at new, and lower, price levels. We have generally responded quickly to upward pricing pressure and more hesitantly to downward pressures for the fear of a reversal and subsequent rate shock to our customers. The quarter did not suggest any highly notable changes in frequency or severity, outside of seasonality and some rapidly rising costs in PIP coverage, particularly in New York.

Since signaling our commitment to respond to the low-cost environment, we have reduced our average premiums per auto policy in the range of 2-4%, with selected segments showing wider and deeper ranges. While average premiums are influenced by a number of mix issues, such as selected limits and vehicle-age composition, because of the 2-4% reduction referenced above, it is reasonable to conclude that we will face a deflationary effect on premium per policy, period-over-period, for some time. Appropriately, our focus has been on unit growth and we have adapted our most important measures of performance to reflect the emphasis on growth in polices in force. Total policies in force for the quarter grew by about 220,000, or 2.2%, from year-end 2006 and about 3% from the same period in 2006.

Our Direct Business’ private passenger auto product policies in force grew about 5% year over year, responding quite well to recent rate actions with increased new business conversion and early signs of improving retention. The shift to both Internet quoting and complete policy purchase online continues to be notable for this business and

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during the quarter we increased availability of “e-fulfillment,” paperless fulfillment of an auto insurance policy. Similar efforts to reduce paper billing forms during the life of a policy have been well received and, in some markets, are even better received when we test our offer to fund the planting of a tree for each customer who enrolls.

By the end of the first quarter, we experienced new private passenger auto business application growth in half of our states for both our Agency and Direct Businesses. We have several large and important states that are not meeting our growth objectives and they have a disproportionate influence on aggregate numbers. Florida, Texas and Virginia top this list and have our attention.

We have made some exciting and definitive steps to address identified structural impediments to meeting our long-term customer rate expectations that we believe will lead to improved retention in the future. Our retention focus, discussed in great depth in our recent year-end report, remains appropriately intense and multi-faceted. During the quarter, both our retention and our estimation of policy life measures increased in almost every tier, but still trail the performance of the same period a year ago. Directionally this is an encouraging result and consistent with our efforts, but there is still considerable opportunity for significant improvement. Retention gains are critical for ongoing growth in policies in force, especially given the slowed growth in new applications. Renewal policies now account for 78% of our book of private passenger auto policies.

During the quarter, we aired the first television commercials produced in collaboration with our new ad agency. The initial focus was on telling the story of our concierge claims offering and just what consumers should expect from this distinctive service. With over 50 operating centers, we are now in a position to promote the service more broadly and the commercials are having the intended positive effect of increasing consumers’ awareness of the service. Our customer satisfaction measures and ultimate retention of those who used the service are some of the most encouraging of any offering we have made. We are now positioned to capitalize on this concept and expect to increase our marketing focus and price attractiveness in areas where we offer the service.

While this is clearly a challenging period in which to demonstrate growth consistent with our aspirations, the slower growth has created, and will continue to create, appropriate focus on our most important operational challenges. We are genuinely excited by the potential for increased performance on several fronts.

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