Progressive 2009 Annual Report Download

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The Progressive Corporation 2009 Annual Report

Table of contents

  • Page 1
    The Progressive Corporation 2009 Annual Report

  • Page 2
    respecteveryindividual

  • Page 3
    ... 24-hour claims service, such as its concierge level of claims service available at service centers located in major metropolitan areas throughout the United States. Progressive companies offer consumers choices in how to shop for, buy and manage their auto insurance policies. Progressive offers its...

  • Page 4
    ... outstanding (millions) Book value per share Consolidated shareholders' equity Market capitalization Return on average shareholders' equity Policies in force (thousands) Personal Lines Agency - Auto Direct - Auto Special Lines Total Personal Lines Growth over prior year Commercial Auto Growth over...

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    M NM NM NM NM NM NM NM NM N M NM NM NM NM NM NM NM NM N M NM NM NM NM NM NM NM NM N M NM NM NM NM NM NM NM NM N M NM NM NM NM NM NM NM NM N everyone M NM NM NM NM NM NM NM NM N M NM NM NM NM NM NM NM NM N M NM NM NM NM NM NM NM NM N M NM NM NM NM NM NM NM NM N M NM NM NM NM NM NM NM NM N NM NM NM NM...

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    ... savvy about insurance, and ready for new, easy ways to quote, buy, and manage their policies, including claims service that respects their time and reduces the trauma and inconvenience of loss. Profit The opportunity to earn a profit is how the competitive free-enterprise system motivates...

  • Page 7
    everywhere

  • Page 8
    ... use of underleveraged capital and the frequency of discussion about book value impairment to invested assets faded like old news stories. Underwriting Results Commenting on the 94.6% combined ratio for 2008 I wrote that "Duplicating this profit margin next year will be very pleasing, but will take...

  • Page 9
    ... certainly contributed on margin with an aggregate 85.8 combined ratio with just five states on the wrong side of breakeven. I suggest readers add a point to the total combined ratio above to get a more accurate read on the 2009 accident year results and, more importantly, the price adequacy for the...

  • Page 10
    .../7, online and off, to answer questions and provide peace of mind. Our comparison rates deliver information that helps customers feel confident they've made an informed decision. And, our Name Your Price option gives customers control by telling us ® what they would like to pay for car insurance...

  • Page 11
    ... by our offer to fund the planting of a tree in a U.S. National Forest on behalf of each of the first one million customers who chose to go paperless by receiving their policy documents online. The key to controlling the Direct business is having a very clear understanding of target margins during...

  • Page 12
    ... and expanded multi-product offering. A return to greater employment levels, which is harder to predict, will almost certainly have an across-the-board effect and most importantly in our Commercial Auto products. I believe 2010 will be a year to build on the momentum from 2009 In Claims, 2009 was...

  • Page 13
    ... for our policy processing system went live in its first state during the year, with excellent quality. Changing things that work because there is a better way is difficult and requires a special mindset and leadership. Relentlessly improving our products and services and providing reasons...

  • Page 14
    ... was exactly the right approach to capital management at the time. The 2009 dividend, while only one way to facilitate a return of capital to shareholders, represents the largest regular dividend we have paid to date. For 2010, the Board of Directors has proposed an increased target of 25% of after...

  • Page 15
    ... A report on our actions is available online. To the people who make all this possible-our employees, the customers we are privileged to serve, the agents and brokers who choose to represent us, and shareholders who t hat we are doing-Thank you. Glenn M.Renwick President and Chief Executive Officer...

  • Page 16
    everytime

  • Page 17
    ... customer service. Progressive is a growthoriented company and management incentives are tied to profitable growth. We report Personal Lines and Commercial Auto results separately. We further break down our Personal Lines' results by channel (Agency and Direct) to give shareholders a clearer picture...

  • Page 18
    ... investors. We expect to earn a return on equity greater than its cost. Presented is an overview of Progressive's Operating, Investing, and Financing policies. - Manage profitability targets and operational performance at our lowest level of product definition - Sustain premiums-to-surplus ratios...

  • Page 19
    ... our approaches to ensuring that our agents see our most competitive price through whatever means they use to quote Progressive. Direct auto new business growth was driven by an increase in the number of consumers shopping with Progressive, and by an increase in the conversion of those shoppers to...

  • Page 20
    ... Lines needs of more preferred customers. We added two more providers to our Progressive Home Advantage® program, through which we package auto and home insurance for consumers. We've also continued to roll out an umbrella product, which we now offer in 30 states. In 2009, our new preferred auto...

  • Page 21
    ... to take advantage of current opportunities and the anticipated economic recovery. Commercial Auto 2009 2008 Change Net premiums written (in billions) Net premiums earned (in billions) Loss and loss adjustment expense ratio Underwriting expense ratio Combined ratio Policies in force (in thousands...

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    d c d c everyday d c ¢ d c s s d c s d c s s d c s d c ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ d c

  • Page 23
    ... and Supplemental Information, which are included in Progressive's 2009 Annual Report to Shareholders, which is attached as an Appendix to Progressive's 2010 Proxy Statement. CEO and CFO Certifications Glenn M. Renwick, President and Chief Executive Officer of The Progressive Corporation, and Brian...

  • Page 24
    ... was antidilutive due to the net loss for the year. See Notes to the complete Consolidated Financial Statements included in Progressive's 2009 Annual Report to Shareholders, which is attached as an Appendix to Progressive's 2010 Proxy Statement. 32 THE PROGRESSIVE CORPORATION AND SUBSIDIARIES

  • Page 25
    ...in Progressive's 2009 Annual Report to Shareholders, for further discussion. See Notes to the complete Consolidated Financial Statements included in Progressive's 2009 Annual Report to Shareholders, which is attached as an Appendix to Progressive's 2010 Proxy Statement. THE PROGRESSIVE CORPORATION...

  • Page 26
    ... Shares authorized; no such shares have been issued. See Notes to the complete Consolidated Financial Statements included in Progressive's 2009 Annual Report to Shareholders, which is attached as an Appendix to Progressive's 2010 Proxy Statement. 34 THE PROGRESSIVE CORPORATION AND SUBSIDIARIES

  • Page 27
    ...in Progressive's 2009 Annual Report to Shareholders, for further discussion. See Notes to the complete Consolidated Financial Statements included in Progressive's 2009 Annual Report to Shareholders, which is attached as an Appendix to Progressive's 2010 Proxy Statement. THE PROGRESSIVE CORPORATION...

  • Page 28
    ... information technology systems), and business functions; court decisions and trends in litigation and health care and auto repair costs; and other matters described from time to time in our releases and publications, and in our periodic reports and other documents filed with the United States...

  • Page 29
    ...with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of The Progressive Corporation and its subsidiaries as of December 31, 2009 and 2008, and the related consolidated statements of income, changes in shareholders' equity and cash flows...

  • Page 30
    ... Drive, Mayfield Village, Ohio 44143 on April 23, 2010, at 10 a.m. eastern time. There were 3,794 shareholders of record on December 31, 2009. Shareholder/Investor Relations Progressive does not maintain a mailing list for distribution of shareholders' reports. To view Progressive's publicly filed...

  • Page 31
    ... e-mail: [email protected] Commercial autos/trucks 1-888-806-9598 progressivecommercial.com 1-800-274-4499 To Report a Claim For Customer Service: If you bought your policy through an independent agent or broker If you bought your policy directly through Progressive online or by phone...

  • Page 32
    ... Corporation To see Respect:The Making of the 2009 Progressive Annual Report Artwork, please visit progressive.com/annualreport2009video This publication was printed at an FSC-certified printer (Certification No. SW-COC-001530). The FSC Label identifies products that contain wood from well-managed...

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    everybody

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