Progressive 2012 Annual Report Download - page 77

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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,
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 of governmental, corporate, or
other securities by a rating agency; 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.
App.-A-77