Progressive 2010 Annual Report Download - page 31

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SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995
Statements in this report 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, uncertain-
ties related to estimates, assumptions, and projections generally; inflation
and changes in economic conditions (including changes in interest rates
and financial markets); 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 trans-
actions; 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; disputes relating to intellectual property
rights; the outcome of litigation pending or that may be filed against us;
weather conditions (including the severity and frequency of storms, hurri-
canes, snowfalls, hail, and winter conditions); changes in driving patterns
and loss trends; acts of war and terrorist activ ities;
our ability to maintain the uninterrupted opera-
tion of our 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 in our releases and
publications, and in our periodic reports and
other documents filed with the United States
Securities and Exchange Commission. In addi-
tion, investors should be aware that generally
accepted accounting principles prescribe when
a company may reserve for particular risks, in-
cluding 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 re-
garding claims activity becomes known. Reported
results, therefore, may be volatile in certain
accounting periods.