Progressive 2003 Annual Report Download - page 44

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- APP.-B-44 -
(millions – except per share amounts) 2003 2002 2001 2000 1999
Direct premiums written:
Personal Lines $ 10,594.4 $ 8,431.1 $6,485.1 $5,773.2 $ 5,799.4
Commercial Auto Business 1,359.2 1,004.3 665.7 442.2 321.4
Other businesses 234.3 230.3 228.4 186.7 184.5
To t a l direct premiums written 12,187.9 9,665.7 7,379.2 6,402.1 6,305.3
Reinsurance assumed — .1 .1 — —
Reinsurance ceded (274.5) (213.8) (119.2) (206.0) (180.6)
Net premiums written 11,913.4 9,452.0 7,260.1 6,196.1 6,124.7
Net change in unearned premiums reserve1(572.4) (568.5) (98.3) 152.3 (441.1)
Net premiums earned 11,341.0 8,883.57,161.86,348.45,683.6
Expenses:
Losses and loss adjustment expenses27,6 4 0.4 6,2 9 9.1 5,264.1 5,27 9.4 4,256.4
Policy acquisition costs 1,249.1 1,031.6 864.9 788.0 745.0
Other underwriting expenses 1,010.1 874.2 686.9 559.3 583.8
To t a l u n d e rwriting expenses 9,899.6 8,204.9 6,815.9 6,626.7 5,585.2
Underwriting profit (loss) before taxes 1,441.4 678.6 345.9 (278.3) 98.4
Provision (benefit) for income taxes 504.5 237.5 121.1 (97.4) 34.4
Underwriting profit (loss) after taxes 936.9 441.1 224.8 (180.9) 64.0
Service operations profit (loss) after taxes 10.5 8.0 3.2 (.6) 4.3
947.4 449.1 228.0 (181.5) 68.3
Investment income after taxes 345.9 324.4 296.1 278.3 249.6
Net realized gains (losses) on securities
after taxes 8.3 (51.1) (72.7) 11.0 30.7
Interest expense after taxes (62.1) (48.5) (33.9) (50.6) (49.7)
Nonrecurring items after taxes3———(4.2)—
Other income after taxes420.3 ———3.4
Net expenses after taxes5(4.4) (6.6) (6.1) (6.9) (7.1)
Net income $ 1,255.4 $ 667.3 $ 411.4 $ 46.1 $ 295.2
Per share6
Net income $ 5.69 $ 2.99 $ 1.83 $ .21 $ 1.32
Dividends .100 .096 .093 .090 .087
Avera ge equivalent shares
Basic 216.8 219.0 221.0 219.6 218.7
Diluted 220.5 223.2225.2223.0223.9
All share and per share amounts were adjusted for the April 22, 2002,3-for-1stock split.
1Amount represents change in unearned premiums reserve less change in prepaid reinsurance premiums.
2In 1994, the “supplemental reserve”was eliminated,resulting in a one-time decrease to losses and loss adjustment expenses of $71.0 million,or $.21per share.
32000 reflects a foreign currency translation loss.
42003 reflects interest income related to an income tax refund; 1999 reflects a gain on the sale of the corporate aircraft.
5Reflects investment expenses after taxes and other tax adjustments.
6Presented on a diluted basis. In 1997,the Company adopted SFAS 128,“Earnings Per Share,”and,as a result,restated prior periods per share amounts, if applicable.
THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
TEN YEAR SUMMARY—GAAP CONSOLIDATED OPERATING RESULTS
(unaudited — not covered by report of independent auditors)