Progressive 2003 Annual Report Download - page 23

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- APP.-B-23 -
- 13 - FAIR VALUE OF FINANCIAL INSTRUMENTS
- 14 - RELATED PARTY TRANSACTIONS
The following table summarizes the Company’s repurchase of its Common Shares, $1.00 par value, from Peter B. Lewis,the
Company’s Chairman of the Board,or through an entity owned and controlled,directly or indirectly,by Mr.Lewis.The prices
per share equaled the then current market price of the Company’s stock as quoted on the New York Stock Exchange.These
transactions are part of the Company’s ongoing repurchase program to eliminate the effect of dilution created by equity
compensation awards.
Information about specific valuation techniques and related fair value detail is provided in Note 1 – Reporting and
Accounting Policies, Note 2 – Investments and Note 4 – Debt.The cost and market value of the financial instruments as of Decem-
ber 31are summarized as follows:
2003 2002
Market Market
(millions) Cost Value Cost Value
Investments:
Available-for-sale: fixed maturities $ 8,899.0 $9,133.4 $ 7,409.4 $7,712.5
preferred stocks 751.3 778.8 631.9 656.7
common equities 1,590.6 1,972.1 1,425.3 1,347.3
Short-term investments 648.0 648.0 567.8 567.8
Debt (1,489.8) (1,592.0) (1,489.0) (1,588.9)
To t a l ex p e n se incurred by the Company was:
(millions)
Operating Service
Year Leases Contracts Total
2003 $ 101.6 $ 80.1 $ 181.7
2002 71.0 77.5 148.5
2001 69.9 49.9 119.8
During 2003,the Company incurred $12.2 million of guaranty fund assessments,compared to $21.2 million in 2002 and $14.6
million in 2001.At December 31,2003 and 2002,the Company had $10.1million and $17.9 million,respectively,reserved for
future assessments on current insolvencies.The Company believes that any assessment in excess of its current reserves will
not materially affect the Company’s financial condition, cash flows or results of operations.
As of December 31,2003,the Company had open investment funding commitments of $28.4 million.The Company had
no uncollateralized lines or letters of credit as of December 31, 2003 or 2002.
Number of Price per
Date of Purchase Shares Share1
September 2003 200,000 $ 71.00
January 2003 400,000 52.23
March 2002 6,182 53.92
October 2001 30,866 47.82
1Per share amounts were adjusted for the April 22, 2002, 3-for-1stock split.