Progressive 2003 Annual Report Download - page 10

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- APP.-B-10 -
The components of net investment income for the years ended December 31were:
(millions) 2003 2002 2001
Available-for-sale: fixed maturities $ 369.5 $ 379.4 $ 335.0
preferred stocks 53.0 45.1 53.8
common equities 31.1 22.8 14.2
Short-term investments 11.7 7.9 10.6
Investment income 465.3 455.2 413.6
Investment expenses 11.5 11.5 12.7
Net investment income $ 453.8 $ 443.7 $ 400.9
See Note 10 – Other Comprehensive Income for changes in the net unrealized gains (losses) during the period.
At December 31, 2003, bonds in the principal amount of $79.6 million were on deposit with various regulatory agencies to
meet statutory requirements.The Company did not have any securities of one issuer with an aggregate cost or market value
exceeding ten percent of total shareholders’ equity at December 31, 2003 or 2002.
- 2 - INVESTMENTS
The composition of the investment portfolio at December 31was:
Gross Gross % of
Unrealized Unrealized Market Total
(millions) Cost Gains Losses Value Portfolio
2003
Available-for-sale:
U.S. government obligations $ 1,307.9 $ 7.3 $ (3.0) $ 1,312.2 10.5%
State and local government obligations 2,841.7 94.6 (6.1) 2,930.2 23.4
Foreign government obligations 13.9 .7 — 14.6 .1
Corporate and U.S. agency debt securities 1,763.1 73.9 (3.2) 1,833.8 14.6
Asset-backed securities 2,972.4 83.4 (13.2) 3,042.6 24.3
8,899.0 259.9 (25.5) 9,133.4 72.9
Preferred stocks 751.3 34.9 (7.4) 778.8 6.2
Common equities 1,590.6 390.3 (8.8) 1,972.1 15.7
Short-term investments 648.0 — — 648.0 5.2
$11,888.9 $ 685.1 $ (41.7) $ 12,532.3 100.0%
2002
Available-for-sale:
U.S. government obligations $ 1,619.6 $ 27.3 $ — $ 1,646.9 16.0%
State and local government obligations 1,900.3 76.2 (.5) 1,976.0 19.2
Foreign government obligations 25.6 .8 — 26.4 .3
Corporate and U.S. agency debt securities 1,443.1 75.6 (5.9) 1,512.8 14.7
Asset-backed securities 2,420.8 140.1 (10.5) 2,550.4 24.8
7,4 09.4 320.0 (16.9) 7,712.5 75.0
Preferred stocks 631.9 35.1 (10.3) 656.7 6.4
Common equities 1,425.3 55.3 (133.3) 1,347.3 13.1
Short-term investments 567.8 — — 567.8 5.5
$10,034.4 $ 410.4 $ (160.5) $ 10,284.3 100.0%