Progressive 2011 Annual Report Download - page 27

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28
For the years ended December 31, 2011 2010 2009
REVENUES
Net premiums earned $ 14,902.8 $ 14,314.8 $ 14,012.8
Investment income 480.0 520.1 507.0
Net realized gains (losses) on securities:
Other-than-temporary impairment (OTTI) losses:
Total OTTI losses (6.0) (19.1) (80.9)
Non-credit losses, net of credit losses recognized on previously
recorded non-credit OTTI losses .5 5.2 40.1
Net impairment losses recognized in earnings (5.5) (13.9) (40.8)
Net realized gains (losses) on securities 108.1 110.0 67.9
Total net realized gains (losses) on securities 102.6 96.1 27.1
Service revenues 22.8 25.9 16.7
Net gains (losses) on extinguishment of debt (.1) 6.4 0
Total revenues 15,508.1 14,963.3 14,563.6
EXPENSES
Losses and loss adjustment expenses 10,634.8 10,131.3 9,904.9
Policy acquisition costs 1,399.2 1,359.9 1,364.6
Other underwriting expenses 1,821.5 1,740.1 1,567.7
Investment expenses 13.5 11.9 11.1
Service expenses 19.4 21.4 19.4
Interest expense 132.7 133.5 139.0
Total expenses 14,021.1 13,398.1 13,006.7
NET INCOME
Income before income taxes 1,487.0 1,565.2 1,556.9
Provision for income taxes 471.5 496.9 499.4
Net income 1,015.5 1,068.3 1,057.5
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
Net unrealized gains (losses) on securities:
Net non-credit related OTTI losses, adjusted for valuation changes (3.6) 13.9 (15.7)
Other net unrealized gains (losses) on securities (80.9) 323.2 712.3
Total net unrealized gains (losses) on securities (84.5) 337.1 696.6
Net unrealized gains on forecasted transactions (6.8) (6.9) (3.3)
Foreign currency translation adjustment .1 .3 1.4
Other comprehensive income (loss) (91.2) 330.5 694.7
Comprehensive income $ 924.3 $ 1,398.8 $ 1,752.2
COMPUTATION OF NET INCOME PER SHARE
Average shares outstanding – Basic 632.3 657.9 666.8
Net effect of dilutive stock-based compensation 4.6 5.4 5.4
Total equivalent shares – Diluted 636.9 663.3 672.2
Basic: Net income per share $ 1.61 $ 1.62 $ 1.59
Diluted: Net income per share $ 1.59 $ 1.61 $ 1.57
See Notes to the complete Consolidated Financial Statements included in Progressive’s 2011 Annual Report to Shareholders,
which is attached as an Appendix to Progressive’s 2012 Proxy Statement.
(millions
–
except per share amounts)
Consolidated Statements of Comprehensive Income
The Progressive Corporation and Subsidiaries