Progressive 2006 Annual Report Download - page 25
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(millions
—
except per share amounts)
Consolidated Statements of Income
THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
For the years ended December 31, 2006 2005 2004
Revenues
Net premiums earned $ 14,117.9 $ 13,764.4 $ 13,169.9
Investment income 647.8 536.7 484.4
Net realized gains (losses) on securities (9.7) (37.9) 79.3
Service revenues 30.4 40.2 48.5
Total revenues 14,786.4 14,303.4 13,782.1
Expenses
Losses and loss adjustment expenses 9,394.9 9,364.8 8,555.0
Policy acquisition costs 1,441.9 1,448.2 1,418.0
Other underwriting expenses 1,402.8 1,312.2 1,238.6
Investment expenses 11 .9 12.1 13.9
Service expenses 24.4 24.6 25.0
Interest expense 77.3 82.6 80.8
Total expenses 12,353.2
12,244.5
11,331.3
Net income
Income before income taxes 2,433.2 2,058.9 2,450.8
Provision for income taxes 785.7 665.0 802.1
Net income $ 1,647.5 $ 1,393.9 $ 1,648.7
Computation of Earnings Per Share
Basic:
Average shares outstanding 774.3 787.7 851.5
Per share $ 2.13 $ 1.77 $ 1.94
Diluted:
Average shares outstanding 774.3 787.7 851.5
Net effect of dilutive stock-based compensation 9.5 11.6 13.3
Total equivalent shares 783.8 799.3 864.8
Per share $ 2.10 $ 1.74 $ 1.91
All share and per share amounts were adjusted for the May 18, 2006, 4-for-1 stock split.
See notes to the complete consolidated financial statements included in Progressive’s 2006 Annual Report to Shareholders,
which is attached as an Appendix to Progressive’s 2007 Proxy Statement.