Progressive 2007 Annual Report Download - page 32

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31
THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
(millions)
Consolidated Balance Sheets
December 31, 2007 2006
ASSETS
Investments
—
Available-for-sale, at fair value:
Fixed maturities (amortized cost: $9,135.6 and $9,959.6) $ 9,184.9 $ 9,958.9
Equity securities:
Preferred stocks (cost: $2,578.1 and $1,761.4) 2,270.3 1,781.0
Common equities (cost: $1,361.0 and $1,469.0) 2,327.5 2,368.1
Short-term investments (amortized cost: $382.4 and $581.0) 382.4 581.2
Total investments 14,165.1 14,689.2
Cash 5.8 5.6
Accrued investment income 142.1 134.4
Premiums receivable, net of allowance for doubtful accounts of $118.1 and $122.0 2,395.1 2,498.2
Reinsurance recoverables, including $47.6 and $72.4 on paid losses 335.1 433.8
Prepaid reinsurance premiums 69.8 89.5
Deferred acquisition costs 426.3 441.0
Income taxes 106.0 16.8
Property and equipment, net of accumulated depreciation of $605.7 and $557.0 1,000.4 973.4
Other assets 197.4 200.2
Total assets $ 18,843.1 $ 19,482.1
LIABILITIES AND SHAREHOLDERS’ EQUITY
Unearned premiums $ 4,210.4 $ 4,335.0
Loss and loss adjustment expense reserves 5,942.7 5,725.0
Accounts payable, accrued expenses and other liabilities11,580.6 1,390.0
Debt22,173.9 1,185.5
Total liabilities 13,907.6 12,635.5
Shareholders’ equity:
Common Shares, $1.00 par value (authorized 900.0; issued 798.1 and 798.7,
including treasury shares of 117.9 and 50.7) 680.2 748.0
Paid-in capital 834.8 847.4
Accumulated other comprehensive income:
Net unrealized gains on securities 465.0 596.8
Net unrealized gains on forecasted transactions 27.8 7.5
Retained earnings 2,927.7 4,646.9
Total shareholders’ equity 4,935.5 6,846.6
Total liabilities and shareholders’ equity $ 18,843.1 $ 19,482.1
1See Note 11 — Litigation and Note 12 — Commitments and Contingencies, in Progressive’s 2007 Annual Report to Shareholders, for further discussion.
2Consists of long-term debt. See Note 4— Debt, in Progressive’s 2007 Annual Report to Shareholders, for further discussion.
See notes to the complete consolidated financial statements included in Progressive’s 2007 Annual Report to Shareholders,
which is attached as an Appendix to Progressive’s 2008 Proxy Statement.