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) July 11, 2013
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) |
Registrants 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):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | 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 July 11, 2013, The Progressive Corporation issued a news release containing financial results for the Company and its consolidated subsidiaries for the month of, and year-to-date period ended, June 2013 and selected quarterly financial results. 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.
- 2 -
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: July 11, 2013
THE PROGRESSIVE CORPORATION | ||
By: | /s/ Jeffrey W. Basch | |
Name: Jeffrey W. Basch | ||
Title: Vice President and Chief Accounting Officer |
- 3 -
EXHIBIT INDEX
Exhibit No. |
Form 8-K No. |
Description | ||
99 | 99 | News release dated July 11, 2013, containing financial results of The Progressive Corporation and its consolidated subsidiaries for the month of, and year-to-date period ended, June 2013 and selected quarterly financial results. |
- 4 -
Exhibit 99
NEWS RELEASE |
The Progressive Corporation 6300 Wilson Mills Road Mayfield Village, Ohio 44143 http://www.progressive.com |
Company Contact: Matt Downing (440) 395-4222 |
PROGRESSIVE REPORTS JUNE RESULTS
MAYFIELD VILLAGE, OHIO July 11, 2013 The Progressive Corporation today reported the following results for June and the second quarter 2013:
Month | Quarter | |||||||||||||||||||||||
(millions, except per share amounts and ratios; unaudited) | 2013 | 2012 | Change | 2013 | 2012 | Change | ||||||||||||||||||
Net premiums written |
$ | 1,323.5 | $ | 1,239.7 | 7 | % | $ | 4,387.1 | $ | 4,129.1 | 6 | % | ||||||||||||
Net premiums earned |
$ | 1,321.2 | $ | 1,237.9 | 7 | % | $ | 4,277.0 | $ | 3,996.1 | 7 | % | ||||||||||||
Net income |
$ | 68.4 | $ | 13.5 | 407 | % | $ | 324.6 | $ | 118.6 | 174 | % | ||||||||||||
Per share |
$ | .11 | $ | .02 | 411 | % | $ | .54 | $ | .19 | 176 | % | ||||||||||||
Total pretax net realized gains (losses) on securities (including net impairment losses) |
$ | 23.5 | $ | .5 | 4600 | % | $ | 132.9 | $ | (4.7 | ) | NM | ||||||||||||
Combined ratio |
96.0 | 100.9 | (4.9 | ) pts. | 93.3 | 97.6 | (4.3 | ) pts. | ||||||||||||||||
Average equivalent shares |
603.4 | 608.5 | (1 | )% | 603.6 | 608.9 | (1 | )% |
NM = Not Meaningful
(thousands; unaudited) | June 2013 |
June 2012 |
Change | |||||||||
Policies in Force: |
||||||||||||
Agency auto |
4,849.3 | 4,884.2 | (1 | )% | ||||||||
Direct auto |
4,134.6 | 4,036.5 | 2 | % | ||||||||
|
|
|
|
|||||||||
Total personal auto |
8,983.9 | 8,920.7 | 1 | % | ||||||||
Total special lines |
4,023.9 | 3,972.0 | 1 | % | ||||||||
|
|
|
|
|||||||||
Total Personal Lines |
13,007.8 | 12,892.7 | 1 | % | ||||||||
|
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|
|||||||||
Total Commercial Auto |
526.6 | 525.0 | 0 | % | ||||||||
|
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|
|
Progressive offers insurance to personal and commercial auto drivers throughout the United States. Our Personal Lines business writes insurance for personal autos and recreational vehicles. Our Commercial Auto business writes primary liability, physical damage, and other auto-related insurance for autos and trucks owned by small businesses.
See the Comprehensive Income Statements and Supplemental Information for further month and year-to-date information and the Monthly Commentary at the end of this release for additional discussion.
THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
COMPREHENSIVE INCOME STATEMENT
June 2013
(millions)
(unaudited)
Current Month |
Comments on Monthly Results1 | |||||
Net premiums written |
$ | 1,323.5 | ||||
|
|
|||||
Revenues: |
||||||
Net premiums earned |
$ | 1,321.2 | ||||
Investment income |
35.7 | |||||
Net realized gains (losses) on securities: |
||||||
Other-than-temporary impairment (OTTI) losses: |
||||||
Total OTTI losses |
(1.5 | ) | ||||
Non-credit losses, net of credit losses recognized on previously recorded non-credit OTTI losses2 |
(.1 | ) | ||||
|
|
|||||
Net impairment losses recognized in earnings |
(1.6 | ) | ||||
Net realized gains (losses) on securities |
25.1 | |||||
|
|
|||||
Total net realized gains (losses) on securities |
23.5 | |||||
Fees and other revenues |
22.3 | |||||
Service revenues |
3.6 | |||||
|
|
|||||
Total revenues |
1,406.3 | |||||
|
|
|||||
Expenses: |
||||||
Losses and loss adjustment expenses |
999.8 | |||||
Policy acquisition costs |
112.0 | |||||
Other underwriting expenses |
178.3 | |||||
Investment expenses |
1.3 | |||||
Service expenses |
3.5 | |||||
Interest expense |
10.1 | |||||
|
|
|||||
Total expenses |
1,305.0 | |||||
|
|
|||||
Income before income taxes |
101.3 | |||||
Provision for income taxes |
32.9 | |||||
|
|
|||||
Net income |
68.4 | |||||
|
|
|||||
Other comprehensive income (loss), net of tax: |
||||||
Net unrealized gains (losses) on securities: |
||||||
Net non-credit related OTTI losses, adjusted for valuation changes |
.1 | |||||
Other net unrealized gains (losses) on securities |
(127.0 | ) | ||||
|
|
|||||
Total net unrealized gains (losses) on securities |
(126.9 | ) | ||||
Net unrealized gains on forecasted transactions |
(.1 | ) | ||||
Foreign currency translation adjustment |
(.5 | ) | ||||
|
|
|||||
Other comprehensive income (loss) |
(127.5 | ) | ||||
|
|
|||||
Total comprehensive income (loss) |
$ | (59.1 | ) | |||
|
|
1 | See the Monthly Commentary at the end of this release for additional discussion. For a description of our reporting and accounting policies, see Note 1 to our 2012 audited consolidated financial statements included in our 2012 Shareholders Report, which can be found at www.progressive.com/annualreport. |
2 | A negative amount for the period reflects credit losses reclassified from other comprehensive income, which exceeded the amount of non-credit OTTI losses recognized in other comprehensive income during the period. |
- 2 -
THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
COMPREHENSIVE INCOME STATEMENTS
June 2013
(millions)
(unaudited)
Year-to-Date | ||||||||||||
2013 | 2012 | % Change | ||||||||||
Net premiums written |
$ | 8,836.5 | $ | 8,291.6 | 7 | |||||||
|
|
|
|
|||||||||
Revenues: |
||||||||||||
Net premiums earned |
$ | 8,456.3 | $ | 7,857.6 | 8 | |||||||
Investment income |
202.7 | 227.2 | (11 | ) | ||||||||
Net realized gains (losses) on securities: |
||||||||||||
Other-than-temporary impairment (OTTI) losses: |
||||||||||||
Total OTTI losses |
(1.7 | ) | (5.6 | ) | (70 | ) | ||||||
Non-credit losses, net of credit losses recognized on previously recorded non-credit OTTI losses1 |
(.1 | ) | (.7 | ) | (86 | ) | ||||||
|
|
|
|
|||||||||
Net impairment losses recognized in earnings |
(1.8 | ) | (6.3 | ) | (71 | ) | ||||||
Net realized gains (losses) on securities |
215.3 | 79.1 | 172 | |||||||||
|
|
|
|
|||||||||
Total net realized gains (losses) on securities |
213.5 | 72.8 | 193 | |||||||||
Fees and other revenues |
139.3 | 135.1 | 3 | |||||||||
Service revenues |
19.0 | 18.4 | 3 | |||||||||
Gains (losses) on extinguishment of debt |
0 | (1.7 | ) | NM | ||||||||
|
|
|
|
|||||||||
Total revenues |
9,030.8 | 8,309.4 | 9 | |||||||||
|
|
|
|
|||||||||
Expenses: |
||||||||||||
Losses and loss adjustment expenses |
6,102.5 | 5,806.1 | 5 | |||||||||
Policy acquisition costs |
722.9 | 724.1 | 0 | |||||||||
Other underwriting expenses |
1,166.7 | 1,138.7 | 2 | |||||||||
Investment expenses |
9.3 | 8.0 | 16 | |||||||||
Service expenses |
19.0 | 18.1 | 5 | |||||||||
Interest expense |
61.0 | 62.6 | (3 | ) | ||||||||
|
|
|
|
|||||||||
Total expenses |
8,081.4 | 7,757.6 | 4 | |||||||||
|
|
|
|
|||||||||
Income before income taxes |
949.4 | 551.8 | 72 | |||||||||
Provision for income taxes |
316.2 | 175.6 | 80 | |||||||||
|
|
|
|
|||||||||
Net income |
633.2 | 376.2 | 68 | |||||||||
|
|
|
|
|||||||||
Other comprehensive income (loss), net of tax: |
||||||||||||
Net unrealized gains (losses) on securities: |
||||||||||||
Net non-credit related OTTI losses, adjusted for valuation changes |
.3 | 3.1 | (90 | ) | ||||||||
Other net unrealized gains (losses) on securities |
(55.4 | ) | 148.4 | NM | ||||||||
|
|
|
|
|||||||||
Total net unrealized gains (losses) on securities |
(55.1 | ) | 151.5 | NM | ||||||||
Net unrealized gains on forecasted transactions |
(.7 | ) | (1.2 | ) | (42 | ) | ||||||
Foreign currency translation adjustment |
(1.0 | ) | (.1 | ) | 900 | |||||||
|
|
|
|
|||||||||
Other comprehensive income (loss) |
(56.8 | ) | 150.2 | NM | ||||||||
|
|
|
|
|||||||||
Total comprehensive income |
$ | 576.4 | $ | 526.4 | 9 | |||||||
|
|
|
|
NM = Not Meaningful
1 | A negative amount for the period reflects credit losses reclassified from other comprehensive income, which exceeded the amount of non-credit OTTI losses recognized in other comprehensive income during the period. |
- 3 -
THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
COMPUTATION OF NET INCOME AND COMPREHENSIVE INCOME PER SHARE
&
INVESTMENT RESULTS
June 2013
(millions except per share amounts)
(unaudited)
The following table sets forth the computation of net income per share and comprehensive income (loss) per share:
Current | Year-to-Date | |||||||||||
Month | 2013 | 2012 | ||||||||||
Net income |
$ | 68.4 | $ | 633.2 | $ | 376.2 | ||||||
|
|
|
|
|
|
|||||||
Per share: |
||||||||||||
Basic |
$ | .11 | $ | 1.06 | $ | .62 | ||||||
Diluted |
$ | .11 | $ | 1.05 | $ | .62 | ||||||
Comprehensive income (loss) |
$ | (59.1 | ) | $ | 576.4 | $ | 526.4 | |||||
|
|
|
|
|
|
|||||||
Per share: |
||||||||||||
Diluted |
$ | (.10 | ) | $ | .95 | $ | .86 | |||||
Average shares outstandingBasic |
599.3 | 600.1 | 605.5 | |||||||||
Net effect of dilutive stock-based compensation |
4.1 | 3.9 | 4.0 | |||||||||
|
|
|
|
|
|
|||||||
Total equivalent sharesDiluted |
603.4 | 604.0 | 609.5 | |||||||||
|
|
|
|
|
|
The following table sets forth the investment results for the period:
Current | Year-to-Date | |||||||||||
Month | 2013 | 2012 | ||||||||||
Fully taxable equivalent (FTE) total return: |
||||||||||||
Fixed-income securities |
(.8 | )% | .4 | % | 2.8 | % | ||||||
Common stocks |
(1.2 | )% | 13.8 | % | 9.1 | % | ||||||
Total portfolio1 |
(.7 | )% | 2.2 | % | 3.6 | % | ||||||
Pretax annualized investment income book yield |
2.7 | % | 2.6 | % | 3.1 | % |
1 | Includes the total return on our other risk investments, which reflects an increase in fair value as a result of a negotiated sale on a private common equity security that is expected to be completed by the end of 2013. Excluding other risk investments, the total portfolio FTE total return would be (0.9)% for June and 2.0% year to date. |
- 4 -
THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
June 2013
($ in millions)
(unaudited)
Current Month |
||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||
Personal Lines Business | Auto | Other | Companywide | |||||||||||||||||||||
Agency | Direct | Total | Business | Businesses1 | Total | |||||||||||||||||||
Net Premiums Written |
$ | 671.7 | $ | 505.2 | $ | 1,176.9 | $ | 146.6 | $ | 0 | $ | 1,323.5 | ||||||||||||
% Growth in NPW |
6 | % | 8 | % | 7 | % | 4 | % | NM | 7 | % | |||||||||||||
Net Premiums Earned |
$ | 664.3 | $ | 520.1 | $ | 1,184.4 | $ | 136.8 | $ | 0 | $ | 1,321.2 | ||||||||||||
% Growth in NPE |
6 | % | 7 | % | 7 | % | 7 | % | NM | 7 | % | |||||||||||||
GAAP Ratios |
||||||||||||||||||||||||
Loss/LAE ratio |
75.9 | 74.2 | 75.1 | 77.7 | NM | 75.7 | ||||||||||||||||||
Expense ratio |
20.2 | 20.2 | 20.2 | 21.1 | NM | 20.3 | ||||||||||||||||||
|
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|
|
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|
|
|
|
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|
|||||||||||||
Combined ratio |
96.1 | 94.4 | 95.3 | 98.8 | NM | 96.0 | ||||||||||||||||||
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|
|||||||||||||
Actuarial Adjustments2 |
||||||||||||||||||||||||
Reserve Decrease/(Increase) |
||||||||||||||||||||||||
Prior accident years |
$ | 4.9 | ||||||||||||||||||||||
Current accident year |
(2.4 | ) | ||||||||||||||||||||||
|
|
|||||||||||||||||||||||
Calendar year actuarial adjustment |
$ | .8 | $ | 3.0 | $ | 3.8 | $ | (1.3 | ) | $ | 0 | $ | 2.5 | |||||||||||
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|
|||||||||||||||||||||||
Prior Accident Years Development |
||||||||||||||||||||||||
Favorable/(Unfavorable) |
||||||||||||||||||||||||
Actuarial adjustment |
$ | 4.9 | ||||||||||||||||||||||
All other development |
(8.2 | ) | ||||||||||||||||||||||
|
|
|||||||||||||||||||||||
Total development |
$ | (3.3 | ) | |||||||||||||||||||||
|
|
|||||||||||||||||||||||
Calendar year loss/LAE ratio |
75.7 | |||||||||||||||||||||||
|
|
|||||||||||||||||||||||
Accident year loss/LAE ratio |
75.5 | |||||||||||||||||||||||
|
|
|||||||||||||||||||||||
Statutory Ratios |
||||||||||||||||||||||||
Loss/LAE ratio |
75.7 | |||||||||||||||||||||||
Expense ratio |
20.9 | |||||||||||||||||||||||
|
|
|||||||||||||||||||||||
Combined ratio |
96.6 | |||||||||||||||||||||||
|
|
1 | The other businesses generated an underwriting loss of $3.8 million for the month, reflecting adverse loss development on our run-off businesses. Combined ratios and % growth are not meaningful (NM) due to the low level of premiums earned by, and the variability of loss costs in, such businesses. |
2 | Represents adjustments solely based on our corporate actuarial reviews. |
- 5 -
THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
June 2013
($ in millions)
(unaudited)
Year-to-Date |
||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||
Personal Lines Business | Auto | Other | Companywide | |||||||||||||||||||||
Agency | Direct | Total | Business | Businesses1 | Total | |||||||||||||||||||
Net Premiums Written |
$ | 4,425.9 | $ | 3,467.4 | $ | 7,893.3 | $ | 943.2 | $ | 0 | $ | 8,836.5 | ||||||||||||
% Growth in NPW |
6 | % | 8 | % | 7 | % | 5 | % | NM | 7 | % | |||||||||||||
Net Premiums Earned |
$ | 4,258.7 | $ | 3,327.0 | $ | 7,585.7 | $ | 870.5 | $ | .1 | $ | 8,456.3 | ||||||||||||
% Growth in NPE |
7 | % | 8 | % | 7 | % | 10 | % | NM | 8 | % | |||||||||||||
GAAP Ratios |
||||||||||||||||||||||||
Loss/LAE ratio |
72.5 | 71.6 | 72.1 | 72.4 | NM | 72.2 | ||||||||||||||||||
Expense ratio |
20.3 | 20.8 | 20.5 | 22.2 | NM | 20.7 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Combined ratio |
92.8 | 92.4 | 92.6 | 94.6 | NM | 92.9 | ||||||||||||||||||
|
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|
|
|
|
|
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|
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|
|||||||||||||
Actuarial Adjustments2 |
||||||||||||||||||||||||
Reserve Decrease/(Increase) |
||||||||||||||||||||||||
Prior accident years |
$ | 29.0 | ||||||||||||||||||||||
Current accident year |
(4.2 | ) | ||||||||||||||||||||||
|
|
|||||||||||||||||||||||
Calendar year actuarial adjustment |
$ | 11.1 | $ | 13.9 | $ | 25.0 | $ | (.2 | ) | $ | 0 | $ | 24.8 | |||||||||||
|
|
|||||||||||||||||||||||
Prior Accident Years Development |
||||||||||||||||||||||||
Favorable/(Unfavorable) |
||||||||||||||||||||||||
Actuarial adjustment |
$ | 29.0 | ||||||||||||||||||||||
All other development |
(111.0 | ) | ||||||||||||||||||||||
|
|
|||||||||||||||||||||||
Total development |
$ | (82.0 | ) | |||||||||||||||||||||
|
|
|||||||||||||||||||||||
Calendar year loss/LAE ratio |
72.2 | |||||||||||||||||||||||
|
|
|||||||||||||||||||||||
Accident year loss/LAE ratio |
71.2 | |||||||||||||||||||||||
|
|
|||||||||||||||||||||||
Statutory Ratios |
||||||||||||||||||||||||
Loss/LAE ratio |
72.2 | |||||||||||||||||||||||
Expense ratio |
20.4 | |||||||||||||||||||||||
|
|
|||||||||||||||||||||||
Combined ratio |
92.6 | |||||||||||||||||||||||
|
|
|||||||||||||||||||||||
Statutory Surplus |
$ | 6,320.5 | ||||||||||||||||||||||
|
|
NM = Not Meaningful
1 | The other businesses generated an underwriting loss of $3.5 million. Combined ratios and % growth are not meaningful (NM) due to the low level of premiums earned by, and the variability of loss costs in, such businesses. |
2 | Represents adjustments solely based on our corporate actuarial reviews. |
- 6 -
THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
BALANCE SHEET AND OTHER INFORMATION
(millions except per share amounts)
(unaudited)
June 2013 |
||||
CONDENSED GAAP BALANCE SHEET: |
||||
Investments Available-for-sale, at fair value: |
||||
Fixed maturities1(amortized cost: $12,824.1) |
$ | 12,949.4 | ||
Equity securities: |
||||
Nonredeemable preferred stocks1(cost: $416.8) |
754.4 | |||
Common equities (cost: $1,438.2) |
2,224.5 | |||
Short-term investments (amortized cost: $1,558.1) |
1,558.1 | |||
|
|
|||
Total investments2, 3 |
17,486.4 | |||
Net premiums receivable |
3,401.9 | |||
Deferred acquisition costs |
468.1 | |||
Other assets4 |
2,485.4 | |||
|
|
|||
Total assets |
$ | 23,841.8 | ||
|
|
|||
Unearned premiums |
$ | 5,323.5 | ||
Loss and loss adjustment expense reserves4 |
8,086.2 | |||
Other liabilities2 |
1,844.3 | |||
Debt |
2,063.9 | |||
Shareholders equity |
6,523.9 | |||
|
|
|||
Total liabilities and shareholders equity |
$ | 23,841.8 | ||
|
|
|||
Common shares outstanding |
600.4 | |||
Shares repurchased June |
1.3 | |||
Average cost per share |
$ | 24.73 | ||
Book value per share |
$ | 10.87 | ||
Trailing 12-month return on average shareholders equity |
||||
Net income |
18.3 | % | ||
Comprehensive income |
17.9 | % | ||
Net unrealized pretax gains (losses) on investments |
$ | 1,242.4 | ||
Increase (decrease) from May 2013 |
$ | (195.3 | ) | |
Increase (decrease) from December 2012 |
$ | (84.9 | ) | |
Debt-to-total capital ratio |
24.0 | % | ||
Fixed-income portfolio duration |
1.9 years | |||
Weighted average credit quality |
AA- | |||
Year-to-date Gainshare factor |
1.19 |
1 | As of June 30, 2013, we held certain hybrid securities and recognized a change in fair value of $6.8 million as a realized gain during the period we held these securities. |
2 | At June 30, 2013, we had $117.0 million of net unsettled security transactions, including collateral on open derivative positions. |
3 | Includes $1.2 billion, net of unsettled security transactions, of investments in a consolidated, non-insurance subsidiary of the holding company. |
4 | Loss and loss adjustment expense reserves are stated gross of reinsurance recoverables on unpaid losses of $927.1 million, which are included in other assets. |
- 7 -
Monthly Commentary
| During June, we incurred about $18 million, or 1.4 loss ratio points, of catastrophe losses, including additional development on May storms. This compares with $37 million, or 3.0 points, of catastrophe losses last year. For the second quarter 2013, total catastrophe losses were about $83 million, or 1.9 points, compared to $107 million, or 2.7 points, last year. Year to date, total catastrophe losses were about $130 million, or 1.5 points, compared to $123 million, or 1.6 points, last year. |
Events
We are currently scheduled to hold a one-hour conference call to address questions on Thursday, August 8, 2013 at 9:00 a.m., eastern time, subsequent to the posting of our Shareholders Report online and the filing of our Quarterly Report on Form 10-Q with the SEC. Registration for the teleconference and webcast will soon be available at http://investors.progressive.com/phoenix.zhtml?c=81824&p=irol-calendar.
We are currently scheduled to release July results on Wednesday, August 14, 2013, before the market opens.
About Progressive
The Progressive Group of Insurance Companies makes it easy to understand, buy and use auto insurance. Progressive offers choices so consumers can reach it whenever, wherever, and however its most convenientonline at http://www.progressive.com, by phone at 1-800-PROGRESSIVE, on a mobile device or in-person with a local agent.
Progressive offers insurance for personal and commercial autos and trucks, motorcycles, boats and recreational vehicles, as well as home insurance from select carriers. Its the fourth largest auto insurer in the country, the largest seller of motorcycle insurance, and a leader in commercial auto insurance. Progressive also offers car insurance online in Australia at http://www.progressiveonline.com.au.
Founded in 1937, Progressive continues its long history of offering shopping tools and services that save customers time and money, like Name Your Price®, Snapshot®, and Service Centers.
The Common Shares of The Progressive Corporation, the Mayfield Village, Ohio-based holding company, trade publicly at NYSE:PGR.
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 possible failure of one or more governmental entities to make scheduled debt payments or satisfy other obligations; the potential or actual downgrading by one or more rating agencies of our securities or governmental, corporate, or other securities we hold; the financial condition of, and other issues relating to the strength of and liquidity available to, issuers of securities held in our investment portfolios and other companies with which we have ongoing business relationships, including counterparties to certain financial transactions; the accuracy and adequacy of our pricing and loss reserving methodologies; the competitiveness of our pricing and the effectiveness of our initiatives to retain more customers; initiatives by competitors and the effectiveness of our response; our ability to obtain regulatory approval for requested rate changes and the timing thereof; the effectiveness of our brand strategy and advertising campaigns relative to those of competitors; legislative and regulatory developments, including, but not limited to, health care reform and tax law changes; the outcome of disputes relating to intellectual property rights; the outcome of litigation or governmental investigations that may be pending or filed against us; 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; our ability to maintain the uninterrupted operation of our facilities, systems (including information technology systems), and business functions, and safeguard personal and sensitive information in our possession; court decisions and trends in litigation and health care and auto repair costs; and other matters described from time to time in our releases and publications, and in our 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. Also, our regular reserve reviews may result in adjustments of varying magnitude as additional information regarding claims activity becomes known. Reported results, therefore, may be volatile in certain accounting periods.
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