Progressive 2006 Annual Report Download - page 5

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(billions
—
except shares outstanding, per share amounts and policies in force)
1
(billions
—
except per share amounts)
Five-Year Financial Highlights
2006 2005 2004 2003 2002
For the Year
Net premiums written $ 14.1 $ 14.0 $ 13.4 $ 11.9 $ 9.5
Growth over prior year 1% 5% 12% 26% 30%
Net premiums earned $ 14.1 $ 13.8 $ 13.2 $ 11.3 $ 8.9
Growth over prior year 3% 5% 16% 28% 24%
Total revenues $ 14.8 $ 14.3 $ 13.8 $ 11.9 $ 9.3
Net income $1.65 $1.39 $1.65 $1.26 $ .67
Underwriting margin 13.3% 11.9% 14.9% 12.7% 7.6%
Net income per share1$2.10 $1.74 $ 1.91 $1.42 $ .75
2006 2005 2004 2003 2002
At Year-End
Common Shares outstanding (millions) 748.0 789.3 801.6 865.8 871.8
Book value per share $ 9.15 $ 7.74 $ 6.43 $ 5.81 $ 4.32
Consolidated shareholders’ equity $ 6.8 $ 6.1 $ 5.2 $ 5.0 $ 3.8
Market capitalization $ 18.1 $ 23.0 $ 17.0 $ 18.1 $ 10.8
Return on average shareholders’ equity 25.3% 25.0% 30.0% 29.1% 19.3%
Policies in Force (thousands)
Personal Lines
Agency
—
Auto 4,433.1 4,491.4 4,244.9 3,965.7 3,385.6
Direct
—
Auto 2,428.5 2,327.7 2,084.1 1,852.2 1,541.3
Special Lines 2,879.5 2,674.9 2,351.3 1,990.0
1,642.2
Total Personal Lines 9,741.1 9,494.0 8,680.3 7,807.9 6,569.1
Growth over prior year 3% 9% 11% 19% 22%
Commercial Auto 503.2 468.2 420.2 365.1 288.9
Growth over prior year 7% 11% 15% 26% 38%
Market share27.6% 7.6% 7.5% 6.9% 6.0%
Industry net premiums written3$161.1 $ 159.5 $ 157.3 $ 151.2 $ 139.7
1-Year 3-Year 5-Year
Stock Price Appreciation4
Progressive (17.0)% 5.2% 14.4%
S&P 500 15.8% 10.4% 6.2%
1Presented on a diluted basis.
2Represents Progressive’s Personal Lines Businesses as a percent of the U.S. personal auto insurance market; 2006 is estimated.
3Represents U.S. personal auto insurance market net premiums written as reported by A.M. Best Company, Inc.; 2006 is estimated.
4Represents average annual compounded rate of increase and assumes dividend reinvestment.
All share and per share amounts were adjusted for the May 18, 2006, 4-for-1 stock split.