Progressive 2007 Annual Report Download - page 4

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2
(billions
—
except shares outstanding, per share amounts and policies in force)
(billions
—
except per share amounts)
Five-Year Financial Highlights
2007 2006 2005 2004 2003
FOR THE YEAR
Net premiums written $ 13.8 $ 14.1 $ 14.0 $ 13.4 $ 11.9
Growth over prior year (3)% 1% 5% 12% 26%
Net premiums earned $ 13.9 $ 14.1 $ 13.8 $ 13.2 $ 11.3
Growth over prior year (2)% 3% 5% 16% 28%
Total revenues $ 14.7 $ 14.8 $ 14.3 $ 13.8 $ 11.9
Net income $ 1.18 $ 1.65 $ 1.39 $ 1.65 $ 1.26
Underwriting margin 7.4% 13.3% 11.9% 14.9% 12.7%
Net income per share (diluted basis) $ 1.65 $ 2.10 $ 1.74 $ 1.91 $ 1.42
2007 2006 2005 2004 2003
AT YEAR-END
Common Shares outstanding (millions) 680.2 748.0 789.3 801.6 865.8
Book value per share $ 7.26 $ 9.15 $ 7.74 $ 6.43 $ 5.81
Consolidated shareholders’ equity $ 4.9 $ 6.8 $ 6.1 $ 5.2 $ 5.0
Market capitalization $ 13.0 $ 18.1 $ 23.0 $ 17.0 $ 18.1
Return on average shareholders’ equity 19.5% 25.3% 25.0% 30.0% 29.1%
Policies in Force (thousands)
Personal Lines
Agency
—
Auto 4,396.8 4,433.1 4,491.4 4,244.9 3,965.7
Direct
—
Auto 2,598.5 2,428.5 2,327.7 2,084.1 1,852.2
Special Lines 3,120.3 2,879.5 2,674.9 2,351.3 1,990.0
Total Personal Lines 10,1 15.6 9,741.1 9,494.0 8,680.3 7,807.9
Growth over prior year 4% 3% 9% 11% 19%
Commercial Auto 539.2 503.2 468.2 420.2 365.1
Growth over prior year 7% 7% 11% 15% 26%
Market share17.2% 7.4% 7.5% 7.3% 6.8%
Industry net premiums written2$ 160.8 $ 160.2 $ 159.6 $ 157.3 $ 151.2
1-Year 3-Year 5-Year
STOCK PRICE APPRECIATION (DEPRECIATION)3
Progressive (12.6)% 0% 11.3%
S&P 500 5.5% 8.6% 12.8%
1Represents Progressive’s personal auto business as a percent of the U.S. personal auto insurance market; 2007 is estimated.
2Represents U.S. personal auto insurance market net premiums written as reported by A.M. Best Company, Inc.; 2007 is estimated.
3Represents average annual compounded rate of increase (decrease) and assumes dividend reinvestment.
All share and per share amounts were adjusted for the May 18, 2006, 4-for-1stock split.