Progressive 2010 Annual Report Download - page 10

Agency, more so than Direct, maintained a rea-
sonably consistent pattern throughout the year.
Our policies in force for Agency had fallen from
our all-time highs and, while not happy for that
experience, we are now back to levels closely
approximating our best, with reason to believe
in continued momentum and new highs in 2011.
We ended the year with both channels and all
Personal Lines products meeting targets both on
the GAAP presentation of numbers and our more
preferred accident-year presentation. We started
the year with significant problems in several
large states and personal injury protection (PIP)
coverage was one common denominator. Efforts
throughout the year to manage these states, in-
volving actions and rate level changes to position
us for future profitable growth, were generally
effective, with profitability first among priorities.
We now have reason to be more optimistic for
the growth outlook in these states for 2011.
In Personal Lines, 4 out of 51 regulatory juris-
dictions in which we operate failed to make
a profit. One, a recent market entry that in retro-
spect was mispriced and the recovery while
slow is very much on track; one in which extreme
and unusual weather is an identifiable condition;
one where our management of the PIP coverage
is still a work in progress; and a fourth just
missed. Several others, while profitable, did not
meet their planned targets. I offer this perspec-
tive to reinforce the point that we manage the
business at the local level with talented product
managers focused on the issues and condi-
tions of their state, a view which is not always
visible from the aggregate reporting offered
in our financial presentations.
Our Commercial Auto business, largely dis-
tributed by our agents, had about as good of
a year as we could expect. Our year-over-year
reduction in active policies was a very small
negative by year-end, down somewhat more on
a multi-year basis, reflecting general economic
and employment conditions. Profitability was
strong at an 87. 5 combined ratio and meaningful
signs of growth were emerging during the year.
We will need large and important states to reflect
greater growth going forward to regain lost
ground in this segment. Similar to our work in all
products, our Commercial Auto group has been
actively redesigning its product offering to reflect
our best knowledge and experience and has
done a great deal of work, in a period of less
robust growth, to position for the future.
11
and we’ll move
your things
from your car
to the rental
so you’ll always
know what’s
happening
and they’re
guaranteed
for life
in 15 minutes,
you’ll be
on your way
we’re here to
help anytime,
day or night
DISTINCTIVE SERVICE.
Save time with our Concierge service.
a rental car will be
waiting for you
we’ll keep you
up-to-date
we’ll arrange for
the repairs
schedule appointment
+ drop off your car
report your claim
online or by phone