Progressive 2012 Annual Report Download - page 2

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The Progressive Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income
For the years ended December 31,
(millions — except per share amounts) 2012 2011 2010
Revenues
Net premiums earned $16,018.0 $14,902.8 $14,314.8
Investment income 443.0 480.0 520.1
Net realized gains (losses) on securities:
Other-than-temporary impairment (OTTI) losses:
Total OTTI losses (7.3) (6.0) (19.1)
Non-credit losses, net of credit losses recognized on previously
recorded non-credit OTTI losses (.7) .5 5.2
Net impairment losses recognized in earnings (8.0) (5.5) (13.9)
Net realized gains (losses) on securities 314.8 108.1 110.0
Total net realized gains (losses) on securities 306.8 102.6 96.1
Fees and other revenues 281.8 266.5 252.2
Service revenues 36.1 22.8 25.9
Gains (losses) on extinguishment of debt (1.8) (.1) 6.4
Total revenues 17,083.9 15,774.6 15,215.5
Expenses
Losses and loss adjustment expenses 11,948.0 10,634.8 10,131.3
Policy acquisition costs 1,436.6 1,399.2 1,359.9
Other underwriting expenses 2,206.3 2,088.0 1,992.3
Investment expenses 15.4 13.5 11.9
Service expenses 36.1 19.4 21.4
Interest expense 123.8 132.7 133.5
Total expenses 15,766.2 14,287.6 13,650.3
Net Income
Income before income taxes 1,317.7 1,487.0 1,565.2
Provision for income taxes 415.4 471.5 496.9
Net income 902.3 1,015.5 1,068.3
Other Comprehensive Income (Loss), Net of Tax
Net unrealized gains (losses) on securities:
Net non-credit related OTTI losses, adjusted for valuation changes 5.1 (3.6) 13.9
Other net unrealized gains (losses) on securities 174.8 (80.9) 323.2
Total net unrealized gains (losses) on securities 179.9 (84.5) 337.1
Net unrealized gains on forecasted transactions (1.8) (6.8) (6.9)
Foreign currency translation adjustment .4 .1 .3
Other comprehensive income (loss) 178.5 (91.2) 330.5
Comprehensive income $ 1,080.8 $ 924.3 $ 1,398.8
Computation of Net Income Per Share
Average shares outstanding — Basic 603.3 632.3 657.9
Net effect of dilutive stock-based compensation 4.5 4.6 5.4
Total equivalent shares — Diluted 607.8 636.9 663.3
Basic: Net income per share $ 1.50 $ 1.61 $ 1.62
Diluted: Net income per share $ 1.48 $ 1.59 $ 1.61
See notes to consolidated financial statements.
App.-A-2