Progressive 2004 Annual Report Download - page 23

Download and view the complete annual report

Please find page 23 of the 2004 Progressive annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 55

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55

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, during the three year period ended
December 31, 2004. The 2004 transaction was part of the Company’s “Dutch auction” tender offer and the price per share was the same
price given to all shareholders who elected to participate in the tender offer. The prices per share for 2003 and 2002 equaled the then
current market price of the Company’s stock as quoted on the New York Stock Exchange and were 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 December 31 are summarized as follows:
2004 2003
Market Market
(millions) Cost Value Cost Value
Investments:
Available-for-sale: fixed maturities $ 8,972.6 $ 9,084.3 $ 8,899.0 $ 9,133.4
preferred stocks 749.4 768.9 751.3 778.8
common equities 1,314.0 1,851.9 1,590.6 1,972.1
Short-term investments 1,376.6 1,376.9 648.0 648.0
Debt (1,284.3) (1,402.1) (1,489.8) (1,592.0)
Number of Price per
Date of Purchase Shares Share
October 2004 1,100,000 $ 88.00
September 2003 200,000 71.00
January 2003 400,000 52.23
March 200216,182 53.92
1Per share amount was adjusted for the April 22, 2002, 3-for-1 stock split.