Progressive 2004 Annual Report Download - page 39

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APP.-B-39
Write-downs Write-downs
Total On Securities On Securities
(millions) Write-downs Subsequently Sold Held at Period End
2004
Fixed income $.3 $ — $.3
Common equities 11.3 3.8 7.5
Total portfolio $ 11.6 $ 3.8 $ 7.8
2003
Fixed income $ 17.5 $ 2.3 $ 15.2
Common equities 47.7 12.6 35.1
Total portfolio $ 65.2 $ 14.9 $ 50.3
2002
Fixed income $ 45.6 $ 19.7 $ 25.9
Common equities 156.5 45.9 110.6
Total portfolio $ 202.1 $ 65.6 $ 136.5
The following is a summary of the 2004 equity security market write-downs by sector (both market-related and issuer specific):
Remaining
(millions)
Gross
Equity Portfolio Russell 1000
Unrealized
Allocation at Allocation at
Loss at
Amount of December 31, December 31, Russell 1000
December 31,
Sector Write-down 2004 2004 Sector Return
2004
Auto and Transportation $ — 2.5% 2.4% 15.2% $ —
Consumer Discretionary — 14.2 15.7 13.3 .9
Consumer Staples —7.27.08.7 .9
Financial Services .5 23.1 22.9 13.1 .1
Health Care 9.0 12.8 12.7 2.4 .7
Integrated Oil — 4.9 4.4 28.7 —
Materials and Processing — 3.8 3.7 16.5 —
Other Energy — 1.9 2.0 39.7 —
Producer Durables —4.74.211.0 —
Technology — 13.6 13.8 1.8 .6
Utilities — 7.1 6.7 18.3 —
Other Equities — 4.2 4.5 15.5 —
Total Common Stocks 9.5 100.0% 100.0% 11.4% 3.2
Other Risk Assets 1.8 .7
Total Common Equities $ 11.3 $ 3.9
See
Critical Accounting Policies, Other-than-Temporary Impairment
section for a further discussion.
When a security in the Company’s investment portfolio has an unrealized loss in market value that is deemed to be other than temporary,
the Company reduces the book value of such security to its current market value, recognizing the decline as a realized loss in the income
statement. All other unrealized gains or losses are reflected in shareholders’ equity. The write-down activity for the years ended December
31 was as follows: