The Progressive Corporation (PGR) 10-K 1 Mar 10 2009 FY Annual report Financial data

Statement Of Income Insurance B

Statement Of Income Insurance Based Revenue (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009		12 Months Ended Dec. 31, 2008		12 Months Ended Dec. 31, 2007
Revenues
Net premiums earned	14012.8		13631.4		13877.4
Investment income	507		637.7		680.8
Other-than-temporary impairment (OTTI) losses:
Total OTTI losses	-80.9		0		0
Less: portion of OTTI losses recognized in other comprehensive income	40.1		0		0
Net impairment losses recognized in earnings	-40.8		0		0
Net realized gains (losses) on securities	67.9		-1445.1		106.3
Total net realized gains (losses) on securities	27.1		-1445.1		106.3
Service revenues	16.7		16.1		22.3
Total revenues	14563.6		12840.1		14686.8
Expenses
Losses and loss adjustment expenses	9904.9		10,015		9926.2
Policy acquisition costs	1364.6		1358.1		1399.9
Other underwriting expenses	1567.7		1523.4		1526.2
Investment expenses	11.1		8.8		12.4
Service expenses	19.4		20.4		20.5
Interest expense	139		136.7		108.6
Total expenses	13006.7		13062.4		12993.8
Net Income (Loss)
Income (loss) before income taxes	1556.9		-222.3		1,693
Provision (benefit) for income taxes	499.4		-152.3		510.5
Net income (loss)	1057.5		($70)		1182.5
Basic:
Average shares outstanding	666.8		668		710.4
Per share	1.59		-0.1		1.66
Diluted:
Average shares outstanding	666.8		668		710.4
Net effect of dilutive stock-based compensation	5.4		5.9		8.1
Total equivalent shares	672.2		673.9		718.5
Per share	1.57	[1]	-0.1	[1]	1.65	[1]
[1]For 2008, amount represents basic earnings per share since diluted earnings per share was antidilutive due to the net loss for the year.

Statement of Financial Position

Statement of Financial Position, Unclassified - Insurance Based Operations (USD $)
In Millions	Dec. 31, 2009		Dec. 31, 2008
Investments - Available-for-sale, at fair value:
Fixed maturities (amortized cost: $11,717.0 and $10,295.3)	11563.4		9946.7
Equity securities:
Nonredeemable preferred stocks (cost: $665.4 and $1,131.3)	1255.8		1,150
Common equities (cost: $598.4 and $553.6)	816.2		727.8
Short-term investments (amortized cost: $1,078.0 and $1,153.6)	1,078		1153.6
Total investments	14713.4		12978.1
Cash	160.7		2.9
Accrued investment income	110.4		125.7
Premiums receivable, net of allowance for doubtful accounts of $116.4 and $113.7	2454.8		2408.6
Reinsurance recoverables, including $35.4 and $44.0 on paid losses and loss adjustment expenses	564.8		288.5
Prepaid reinsurance premiums	69.3		62.4
Deferred acquisition costs	402.2		414
Income taxes	416.7		821.6
Property and equipment, net of accumulated depreciation of $595.8 and $653.6	961.3		997.1
Other assets	195.7		151.6
Total assets	20049.3		18250.5
Liabilities and Shareholders' Equity
Unearned premiums	4172.9		4175.9
Loss and loss adjustment expense reserves	6,653		6177.4
Accounts payable, accrued expenses, and other liabilities	1297.6	[1]	1506.4	[1]
Debt	2177.2		2175.5
Total liabilities	14300.7		14035.2
Common Shares, $1.00 par value (authorized 900.0; issued 797.8 and 797.9, including treasury shares of 125.2 and 121.4)	672.6		676.5
Paid-in capital	939.7		892.9
Retained earnings	3683.1		2697.8
Accumulated other comprehensive income (loss):
Net unrealized gains (losses) on securities	456.3		-76.8
Portion of OTTI losses recognized in other comprehensive income	-26.1		0
Total net unrealized gains (losses) on securities	430.2		-76.8
Net unrealized gains on forecasted transactions	21.6		24.9
Foreign currency translation adjustment	1.4		0
Total accumulated other comprehensive income (loss)	453.2		-51.9
Total shareholders' equity	5748.6		4215.3
Total liabilities and shareholders' equity	20049.3		18250.5
[1]See Note 12 - Litigation and Note 13 - Commitments and Contingencies for further discussion.

1_Statement of Financial Positi

Statement of Financial Position, Unclassified - Insurance Based Operations (Parenthetical) (USD $)
In Millions, except Per Share data	Dec. 31, 2009	Dec. 31, 2008
Fixed maturities, amortized cost	$11,717	10295.3
Nonredeemable preferred stocks, cost	665.4	1131.3
Common equities, cost	598.4	553.6
Short-term investments, amortized cost	1,078	1153.6
Premiums receivable, allowance for doubtful accounts	116.4	113.7
Reinsurance recoverables, paid losses and loss adjustment expenses	35.4	44
Property and equipment, accumulated depreciation	595.8	653.6
Common Shares, par value	$1	$1
Common Shares, authorized	900	900
Common Shares, issued	797.8	797.9
Common Shares, treasury shares	125.2	121.4

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Millions	Retained Earnings	Accumulated Other Comprehensive Income (Loss), Net of Tax		Paid-In Capital	Total
Balance, Beginning of year at Dec. 31, 2006	4646.9	604.3	$748	847.4
Stock options exercised			3.4	27.4
Cumulative effect of change in accounting principle	0	0
Tax benefits from exercise/vesting of stock-based compensation				15.5
Net income (loss)	1182.5				1182.5
Cash dividends declared on common shares ($.1613, $0, and $2.1450 per share)	-1507.6
Changes in:
Other comprehensive income (loss)		-111.5
Treasury shares purchased	-1388.4		-72.9	-87.1
Restricted stock issued, net of forfeitures			1.7	-1.7
Amortization of stock-based compensation				28
Other	-5.7			5.3
Balance, End of year at Dec. 31, 2007	2927.7	492.8	680.2	834.8	4935.5
Stock options exercised			3.5	23.5
Cumulative effect of change in accounting principle	0	0
Tax benefits from exercise/vesting of stock-based compensation				11.1
Net income (loss)	(70)				(70)
Cash dividends declared on common shares ($.1613, $0, and $2.1450 per share)	0
Changes in:
Other comprehensive income (loss)		-544.7
Treasury shares purchased	-157.1		-9.9	-12.4
Restricted stock issued, net of forfeitures			2.7	-2.7
Amortization of stock-based compensation				35.1
Other	-2.8			3.5
Balance, End of year at Dec. 31, 2008	2697.8	-51.9	676.5	892.9	4215.3
Stock options exercised			3.5	15.3
Cumulative effect of change in accounting principle	189.6	-189.6
Tax benefits from exercise/vesting of stock-based compensation				9.7
Net income (loss)	1057.5				1057.5
Cash dividends declared on common shares ($.1613, $0, and $2.1450 per share)	-108.5
Changes in:
Other comprehensive income (loss)		694.7
Treasury shares purchased	-154.5		-11.1	(15)
Restricted stock issued, net of forfeitures			3.7	-3.7
Amortization of stock-based compensation				39.2
Other	1.2			1.3
Balance, End of year at Dec. 31, 2009	3683.1	453.2	672.6	939.7	5748.6

2_Statement Of Shareholders Equ

Statement Of Shareholders Equity And Other Comprehensive Income (Parenthetical) (Retained Earnings, USD $)
	Total
Cash dividends declared on common shares, per share	2.145
Cash dividends declared on common shares, per share	$0
Cash dividends declared on common shares, per share	0.1613

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect Insurance Based Operations (USD $)
In Millions	12 Months Ended Dec. 31, 2009		12 Months Ended Dec. 31, 2008		12 Months Ended Dec. 31, 2007
Cash Flows From Operating Activities
Net income (loss)	1057.5		($70)		1182.5
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation	87.3		99.1		106.9
Amortization of fixed-income securities	230.8		249.6		284.1
Amortization of stock-based compensation	40.3		34.5		26.5
Net realized (gains) losses on securities	-27.1		1445.1		-106.3
Net loss on disposition of property and equipment	13.3		1.6		0.4
Changes in:
Premiums receivable	-46.2		-13.5		103.1
Reinsurance recoverables	-276.3		46.6		98.7
Prepaid reinsurance premiums	-6.9		7.4		19.7
Deferred acquisition costs	11.8		12.3		14.7
Income taxes	29.7		-423.8		-30.3
Unearned premiums	(3)		-34.5		-124.6
Loss and loss adjustment expense reserves	475.6		234.7		217.7
Accounts payable, accrued expenses, and other liabilities	-71.8		-101.2		2.4
Other, net	-28.2		61.3		-4.5
Net cash provided by operating activities	1486.8		1549.2		1,791
Purchases:
Fixed maturities	-10046.3		-7593.9		-8184.6
Equity securities	-624.2		-598.3		-1490.3
Short-term investments - auction rate securities	0		-631.5		-7156.6
Sales:
Fixed maturities	7,950		5629.5		8327.6
Equity securities	919.4		1,401		775.2
Short-term investments - auction rate securities	0		631.5		7325.4
Maturities, paydowns, calls, and other:
Fixed maturities	842.5		505.5		557.9
Equity securities	15.7		34.9		10.7
Net sales (purchases) of short-term investments - other	75.6		(771)		30
Net unsettled security transactions	-246.5		177.2		35.1
Purchases of property and equipment	-66.6		-98.5		-136.3
Sales of property and equipment	1.8		1.1		2
Net cash provided by (used in) investing activities	-1178.6		-1312.5		96.1
Cash Flows From Financing Activities
Proceeds from exercise of stock options	18.8		27		30.8
Tax benefits from exercise/vesting of stock-based compensation	9.7		11.1		15.5
Proceeds from debt	0	[1]	0	[1]	1021.7	[1]
Dividends paid to shareholders	0		-98.3		-1406.5
Acquisition of treasury shares	-180.6		-179.4		-1548.4
Net cash used in financing activities	-152.1		-239.6		-1886.9
Effect of exchange rate changes on cash	1.7		0		0
Increase (decrease) in cash	157.8		-2.9		0.2
Cash, Beginning of year	2.9		5.8		5.6
Cash, End of year	160.7		2.9		5.8
[1]2007 includes a pretax gain received upon closing a forecasted debt issuance hedge. See Note 4 - Debt for further discussion.

SCHEDULE I - SUMMARY OF INVESTM

SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES
	12 Months Ended Dec. 31, 2009 USD / shares
SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES	SCHEDULE I SUMMARY OF INVESTMENTS OTHER THAN INVESTMENTS IN RELATED PARTIES THE PROGRESSIVE CORPORATION AND SUBSIDIARIES (millions) December31, 2009 Type of Investment Cost Fair Value Amount At WhichShown In The Balance Sheet Available-for-sale Fixed maturities: Bonds: United States Government and government agencies and authorities $ 4,939.6 $ 4,817.5 $ 4,817.5 States, municipalities, and political subdivisions 1,974.2 2,024.0 2,024.0 Public utilities 78.8 78.9 78.9 Corporate and other debt securities 1,167.2 1,203.6 1,203.6 Asset-backed securities 2,885.9 2,832.7 2,832.7 Redeemable preferred stock 671.3 606.7 606.7 Total fixed maturities 11,717.0 11,563.4 11,563.4 Equity securities: Common stocks: Public utilities 53.5 68.2 68.2 Banks, trusts, and insurance companies 84.5 109.3 109.3 Industrial, miscellaneous, and all other 460.4 638.7 638.7 Nonredeemable preferred stocks 665.4 1,255.8 1,255.8 Total equity securities 1,263.8 2,072.0 2,072.0 Short-term investments 1,078.0 1,078.0 1,078.0 Total investments $ 14,058.8 $ 14,713.4 $ 14,713.4 Progressive did not have any securities of any one issuer with an aggregate cost or fair value exceeding 10% of total shareholders equity at December31, 2009.

SCHEDULE II - CONDENSED FINANCI

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
	12 Months Ended Dec. 31, 2009 USD / shares
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT	SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT CONDENSED STATEMENTS OF INCOME THE PROGRESSIVE CORPORATION (PARENT COMPANY) (millions) Years Ended December31, 2009 2008 2007 Revenues Dividends from subsidiaries* $ 1,230.6 $ 300.5 $ 1,507.7 Intercompany investment income* 8.5 41.3 92.6 Total revenues 1,239.1 341.8 1,600.3 Expenses Interest expense 146.4 146.3 114.1 Deferred compensation1 4.8 (5.7 ) (2.7 ) Other operating costs and expenses 3.3 3.4 4.7 Total expenses 154.5 144.0 116.1 Income before income taxes and other items below 1,084.6 197.8 1,484.2 Income tax provision (benefit) (51.6 ) (36.4 ) (9.0 ) Net income - parent company only 1,136.2 234.2 1,493.2 Net income (loss) of subsidiaries after current year dividend distributions (78.7 ) (304.2 ) (310.7 ) Net income (loss) - consolidated $ 1,057.5 $ (70.0 ) $ 1,182.5 * Eliminated in consolidation. 1 See Note 4 Employee Benefit Plans on page 32. CONDENSED BALANCE SHEETS THE PROGRESSIVE CORPORATION (PARENT COMPANY) (millions) December31, 2009 2008 ASSETS Investment in non-consolidated affiliates $ 1.0 $ 1.0 Investment in subsidiaries* 5,680.8 4,873.7 Receivable from investment subsidiary* 2,242.2 1,392.7 Intercompany receivable* 125.0 103.0 Income taxes 36.5 67.6 Other assets 65.5 56.1 TOTAL ASSETS $ 8,151.0 $ 6,494.1 LIABILITIES AND SHAREHOLDERS EQUITY Accounts payable and accrued expenses $ 116.7 $ 103.3 Dividend payable 108.5 Debt 2,177.2 2,175.5 Total liabilities 2,402.4 2,278.8 Common Shares, $1.00 par value (authorized 900.0 shares; issued 797.8 and 797.9, including treasury shares of 125.2 and 121.4) 672.6 676.5 Paid-in capital 939.7 892.9 Retained earnings 3,683.1 2,697.8 Total accumulated other comprehensive income (loss) 453.2 (51.9 ) Total shareholders equity 5,748.6 4,215.3 TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $ 8,151.0 $ 6,494.1 * Eliminated in consolidation. CONDENSED STATEMENTS OF CASH FLOWS THE PROGRESSIVE CORPORATION (PARENT COMPANY) (millions) Years Ended December31, 2009 2008 2007 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 1,057.5 $ (70.0 ) $ 1,182.5 Adjustments to reconcile net income (loss) to cash provided by operating activities: Net (income) loss of subsidiaries

SCHEDULE III - SUPPLEMENTARY IN

SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION
	12 Months Ended Dec. 31, 2009 USD / shares
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION	SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION THE PROGRESSIVE CORPORATION AND SUBSIDIARIES (millions) Segment Deferred policy acquisition costs1 Future policy benefits, losses, claims, and loss expenses1 Unearned premiums1 Other policy claims and benefits payable1 Premium revenue Net investment income1,2 Benefits, claims, losses, and settlement expenses Amortization of deferred policy acquisition costs Other operating expenses Net premiums written Year ended December31, 2009: Personal Lines $ 12,365.9 $ 8,847.0 $ 1,171.6 $ 1,410.2 $ 12,453.1 Commercial Auto 1,623.3 1,050.7 187.0 155.8 1,533.9 Other indemnity 23.6 7.2 6.0 1.7 15.9 Total $ 402.2 $ 6,653.0 $ 4,172.9 $ $ 14,012.8 $ 495.9 $ 9,904.9 $ 1,364.6 $ 1,567.7 $ 14,002.9 Year ended December31, 2008: Personal Lines $ 11,847.8 $ 8,716.2 $ 1,147.9 $ 1,348.2 $ 11,878.8 Commercial Auto 1,762.2 1,290.2 203.3 174.6 1,704.8 Other indemnity 21.4 8.6 6.9 .6 20.7 Total $ 414.0 $ 6,177.4 $ 4,175.9 $ $ 13,631.4 $ 628.9 $ 10,015.0 $ 1,358.1 $ 1,523.4 $ 13,604.3 Year ended December31, 2007: Personal Lines $ 12,009.0 $ 8,625.7 $ 1,183.9 $ 1,359.3 $ 11,921.2 Commercial Auto 1,846.9 1,288.3 210.5 162.4 1,828.9 Other indemnity 21.5 12.2 5.5 4.5 22.4 Total $ 426.3 $ 5,942.7 $ 4,210.4 $ $ 13,877.4 $ 668.4 $ 9,926.2 $ 1,399.9 $ 1,526.2 $ 13,772.5 1 Progressive does not allocate assets, liabilities, or investment income to operating segments. 2 Excludes net realized gains (losses) on securities.

SCHEDULE IV - REINSURANCE

SCHEDULE IV - REINSURANCE
	12 Months Ended Dec. 31, 2009 USD / shares
SCHEDULE IV - REINSURANCE	SCHEDULE IV REINSURANCE THE PROGRESSIVE CORPORATION AND SUBSIDIARIES (millions) Year Ended: Gross Amount Ceded to Other Companies Assumed From Other Companies NetAmount Percentage of Amount Assumed to Net December31, 2009 Premiums earned: Property and liability insurance $ 14,199.4 $ 186.6 $ $ 14,012.8 December31, 2008 Premiums earned: Property and liability insurance $ 13,810.1 $ 178.7 $ $ 13,631.4 December31, 2007 Premiums earned: Property and liability insurance $ 14,107.0 $ 229.6 $ $ 13,877.4

SCHEDULE VI - SUPPLEMENTAL INFO

SCHEDULE VI - SUPPLEMENTAL INFORMATION CONCERNING PROPERTY - CASUALTY INSURANCE OPERATIONS
	12 Months Ended Dec. 31, 2009 USD / shares
SCHEDULE VI - SUPPLEMENTAL INFORMATION CONCERNING PROPERTY - CASUALTY INSURANCE OPERATIONS	SCHEDULE VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY - CASUALTY INSURANCE OPERATIONS THE PROGRESSIVE CORPORATION AND SUBSIDIARIES (millions) LossesandLossAdjustment ExpensesIncurredRelatedto Paid Losses and Loss AdjustmentExpenses Year Ended CurrentYear PriorYears December31, 2009 $ 10,040.9 $ (136.0 ) $ 9,714.2 December31, 2008 $ 9,981.8 $ 33.2 $ 9,737.3 December31, 2007 $ 9,845.9 $ 80.3 $ 9,634.6 Pursuant to Rule 12-18 of Regulation S-X. See Schedule III, page 33, for the additional information required in Schedule VI.

REPORTING AND ACCOUNTING POLICI

REPORTING AND ACCOUNTING POLICIES
	12 Months Ended Dec. 31, 2009 USD / shares
REPORTING AND ACCOUNTING POLICIES	1.REPORTING AND ACCOUNTING POLICIES Nature of OperationsThe Progressive Corporation, an insurance holding company formed in 1965, owned 53 subsidiaries and had 1 mutual insurance company affiliate as of December31, 2009. Our insurance subsidiaries provide personal and commercial automobile insurance and other specialty property-casualty insurance and related services. Our Personal Lines segment writes insurance for personal autos and recreational vehicles through both an independent insurance agency channel and a direct channel. Our Commercial Auto segment writes primary liability and physical damage insurance for automobiles and trucks owned by small businesses through both the independent agency and direct channels. We operate our businesses throughout the United States; in December 2009, we began selling personal auto physical damage insurance via the Internet in Australia. Basis of Consolidation and ReportingThe accompanying consolidated financial statements include the accounts of The Progressive Corporation, its subsidiaries, and affiliate. All of the subsidiaries and the mutual company affiliate are wholly owned or controlled. We achieve control of our mutual company affiliate through a 100% reinsurance contract and a management service contract between a wholly-owned insurance subsidiary and such affiliate. All intercompany accounts and transactions are eliminated in consolidation. Subsequent events have been evaluated through March1, 2010, the date the financial statements were issued via filing our Annual Report on Form 10-K with the Securities and Exchange Commission. EstimatesWe are required to make estimates and assumptions when preparing our financial statements and accompanying notes in conformity with accounting principles generally accepted in the United States of America (GAAP). As estimates develop into fact (e.g., losses are paid), results may, and will likely, differ from those estimates. InvestmentsProgressives fixed-maturity securities, equity securities, and short-term investments are accounted for on an available-for-sale basis. See Note 2 Investments for the detailed composition of our investment portfolio. Fixed-maturity securities include debt securities and redeemable preferred stocks, which may have fixed or variable principal payment schedules, may be held for indefinite periods of time, and may be used as a part of our asset/liability strategy or sold in response to changes in interest rates, anticipated prepayments, risk/reward characteristics, liquidity needs, or other economic factors. These securities are carried at fair value with the corresponding unrealized gains (losses), net of deferred income taxes, reported in accumulated other comprehensive income. Fair values are obtained from recognized pricing services or are quoted by market makers and dealers, with limited exceptions discussed in Note 3 Fair Value. Included in the fixed-maturity portfolio are asset-backed securities. The asset-backed securities are generally accounted for under the retrospective method. Under the current accounting guidance, the prospective method is used primarily for interest-only securities, non-investment-

INVESTMENTS

INVESTMENTS
	12 Months Ended Dec. 31, 2009 USD / shares
INVESTMENTS	2.INVESTMENTS The following table presents the composition of our investment portfolio by major security type, consistent with our internal classification of how we manage, monitor, and measure the portfolio: ($ in millions) Cost Gross Unrealized Gains Gross Unrealized Losses Net Realized Gains (Losses)1 Fair Value % of Total Fair Value December31, 2009 Fixed maturities: U.S. government obligations $ 4,939.6 $ 6.4 $ (128.5 ) $ $ 4,817.5 32.8 % State and local government obligations 1,974.2 55.1 (5.3 ) 2,024.0 13.8 Corporate debt securities 1,244.9 43.4 (6.9 ) 1,281.4 8.7 Residential mortgage-backed securities 592.0 4.3 (79.9 ) 516.4 3.5 Commercial mortgage-backed securities 1,572.0 37.0 (18.9 ) 1,590.1 10.8 Other asset-backed securities 721.9 6.1 (1.8 ) 726.2 4.9 Redeemable preferred stocks 671.3 20.7 (85.3 ) 606.7 4.1 Other debt obligations 1.1 1.1 Total fixed maturities 11,717.0 173.0 (326.6 ) 11,563.4 78.6 Equity securities: Nonredeemable preferred stocks 665.4 597.6 (7.2 ) 1,255.8 8.5 Common equities 598.4 220.1 (2.3 ) 816.2 5.6 Short-term investments - other 1,078.0 1,078.0 7.3 Total portfolio2,3 $ 14,058.8 $ 990.7 $ (328.9 ) $ (7.2 ) $ 14,713.4 100.0 % ($ in millions) Cost Gross Unrealized Gains Gross Unrealized Losses Net Realized Gains (Losses)1 Fair Value % of Total Fair Value December31, 2008 Fixed maturities: U.S. government obligations $ 3,565.7 $ 129.0 $ (1.1 ) $ $ 3,693.6 28.5 % State and local government obligations 3,041.4 53.1 (90.1 ) 3,004.4 23.1 Foreign government obligations 16.2 .2 16.4 .1 Corporate debt securities 692.1 1.6 (54.4 ) 639.3 4.9 Residential mortgage-backed securities 758.7 1.4 (137.1 ) 623.0 4.8 Commercial mortgage-backed securities 1,692.7 1.0 (243.7 ) 1,450.0 11.2 Other asset-backed securities 139.2 (10.1 ) 129.1 1.0 Redeemable preferred stocks 387.2 8.7 (8.0 ) 387.9 3.0 Other debt obligations 2.1 .9 3.0 Total fixed maturities 10,295.3 195.9 (544.5 ) 9,946.7 76.6 Equity securities: Nonredeemable preferred stocks 1,131.3 73.5 (17.3 ) (37.5 ) 1,150.0 8.9 Common equities 553.6 203.5 (29.3 ) 727.8 5.6 Short-term investments - other 1,153.6 1,153.6 8.9

FAIR VALUE

FAIR VALUE
	12 Months Ended Dec. 31, 2009 USD / shares
FAIR VALUE	3.FAIR VALUE We have categorized our financial instruments, based on the degree of subjectivity inherent in the method by which they are valued, into a fair value hierarchy of three levels, as follows: Level 1:Inputs are unadjusted, quoted prices in active markets for identical instruments at the measurement date (e.g., U.S. government obligations and active exchange-traded equity securities). Level 2:Inputs (other than quoted prices included within Level 1) that are observable for the instrument either directly or indirectly (e.g., certain corporate and municipal bonds and certain preferred stocks). This includes: (i)quoted prices for similar instruments in active markets, (ii)quoted prices for identical or similar instruments in markets that are not active, (iii)inputs other than quoted prices that are observable for the instruments, and (iv)inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3:Inputs that are unobservable. Unobservable inputs reflect the reporting entitys subjective evaluation about the assumptions market participants would use in pricing the financial instrument (e.g., certain structured securities and privately held investments). During 2009, we adopted the recently issued fair value guidance, pursuant to generally accepted accounting principles, that requires us to evaluate whether a market is distressed or inactive in determining the fair value for our portfolio. Based on this new guidance, we added to our review certain additional market level inputs to evaluate whether sufficient activity, volume, and new issuances existed to create an active market. Based on this evaluation, we concluded that there was sufficient activity related to the sectors and securities for which we obtained valuations. The composition of the investment portfolio by major security type was: Fair Value (millions) Level 1 Level 2 Level3 Total Cost December31, 2009 Fixed maturities: U.S. government obligations $ 4,817.5 $ $ $ 4,817.5 $ 4,939.6 State and local government obligations 2,024.0 2,024.0 1,974.2 Corporate and other debt securities 1,253.2 29.3 1,282.5 1,246.0 Subtotal 4,817.5 3,277.2 29.3 8,124.0 8,159.8 Asset-backed securities: Residential mortgage-backed 470.3 46.1 516.4 592.0 Commercial mortgage-backed 1,568.5 21.6 1,590.1 1,572.0 Other asset-backed 718.4 7.8 726.2 721.9 Subtotal asset-backed securities 2,757.2 75.5 2,832.7 2,885.9 Redeemable preferred stocks: Financials 17.8 231.9 249.7 277.2 Utilities 66.9 66.9 69.4 Industrials 237.0 53.1 290.1 324.7 Subtotal redeemable preferred stocks 17.8 535.8 53.1 606.7 671.3 Total fixed maturities 4,835.3 6,570.2 157.9 11,563.4

DEBT

DEBT
	12 Months Ended Dec. 31, 2009 USD / shares
DEBT	4.DEBT Debt at December31 consisted of: 2009 2008 (millions) Carrying Value Fair Value Carrying Value Fair Value 6.375% Senior Notes due 2012 (issued: $350.0, December 2001) $ 349.2 $ 375.1 $ 348.9 $ 355.3 7% Notes due 2013 (issued: $150.0, October 1993) 149.5 166.9 149.3 154.3 6 5/8% Senior Notes due 2029 (issued: $300.0, March 1999) 294.7 317.9 294.6 272.0 6.25% Senior Notes due 2032 (issued: $400.0, November 2002) 394.1 409.4 394.0 350.0 6.70% Fixed-to-Floating Rate Junior Subordinated Debentures due 2067 (issued: $1,000.0, June 2007) 989.7 884.9 988.7 450.0 Total $ 2,177.2 $ 2,154.2 $ 2,175.5 $ 1,581.6 All of the outstanding debt was issued by The Progressive Corporation. Debt includes amounts we have borrowed and contributed to the capital of our insurance subsidiaries or used, or have available for use, for other business purposes. Fair values are obtained from publicly quoted sources. There are no restrictive financial covenants or credit rating triggers on our debt. Interest on all debt is payable semiannually at the stated rates. However, the 6.70% Fixed-to-Floating Rate Junior Subordinated Debentures due 2067 (the Debentures) will only bear interest at this fixed annual rate through, but excluding, June15, 2017. Thereafter, the Debentures will bear interest at an annual rate equal to the three-month LIBOR plus 2.0175%, and the interest will be payable quarterly. In addition, subject to certain conditions, we have the right to defer the payment of interest on the Debentures for one or more periods not exceeding ten consecutive years each. During any such deferral period, among other conditions, interest would continue to accrue, including interest on the deferred interest, and we generally would not be able to declare or pay any dividends on, or repurchase any of, our common shares. Except for the Debentures, all principal is due at the maturity stated in the table above. The Debentures will become due on June15, 2037, the scheduled maturity date, but only to the extent that we have received sufficient net proceeds from the sale of certain qualifying capital securities. We must use our commercially reasonable efforts, subject to certain market disruption events, to sell enough qualifying capital securities to permit repayment of the Debentures in full on the scheduled maturity date or, if sufficient proceeds are not realized from the sale of such qualifying capital securities by such date, on each interest payment date thereafter. Any remaining outstanding principal will be due on June15, 2067, the final maturity date. The 7% Notes are noncallable. The 6.375% Senior Notes, the 65/8% Senior Notes, and the 6.25% Senior Notes (collectively, Senior Notes) may be redeemed in whole or in part at any time, at our option, subject to a make-whole provision. Subject to the Replacement Capital Covenant discussed below, the Debentures may be redeemed, in whole or in part, at any time: (a)prior to June15, 2017, at a redemption price equal to the greate

INCOME TAXES

INCOME TAXES
	12 Months Ended Dec. 31, 2009 USD / shares
INCOME TAXES	5.INCOME TAXES The components of our income tax provision (benefit) were as follows: (millions) 2009 2008 2007 Current tax provision $ 491.0 $ 255.4 $ 503.7 Deferred tax expense (benefit) 8.4 (407.7 ) 6.8 Total income tax provision (benefit) $ 499.4 $ (152.3 ) $ 510.5 The provision (benefit) for income taxes in the accompanying consolidated statements of income differed from the statutory rate as follows: ($ in millions) 2009 2008 2007 Income (loss) before income taxes $ 1,556.9 $ (222.3 ) $ 1,693.0 Tax at statutory rate $ 544.9 35 % $ (77.8 ) 35 % $ 592.6 35 % Tax effect of: Exempt interest income (26.7 ) (2 ) (38.7 ) 17 (40.3 ) (3 ) Dividends received deduction (17.9 ) (1 ) (35.0 ) 16 (35.4 ) (2 ) Other items, net (.9 ) (.8 ) (6.4 ) Total income tax provision (benefit) $ 499.4 32 % $ (152.3 ) 68 % $ 510.5 30 % Deferred income taxes reflect the effect for financial statement reporting purposes of temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities. At December31, 2009 and 2008, the components of the net deferred tax assets were as follows: (millions) 2009 2008 Deferred tax assets: Write-downs on securities $ 353.8 $ 478.4 Unearned premiums reserve 290.5 291.4 Non-deductible accruals 158.5 150.0 Loss reserves 118.9 117.9 Derivative instruments 2.8 Net unrealized losses on securities 41.4 Other 1.4 10.0 Deferred tax liabilities: Net unrealized gains on securities (231.6 ) Hedges on forecasted transactions (11.6 ) (13.4 ) Deferred acquisition costs (140.8 ) (144.9 ) Depreciable assets (97.9 ) (96.1 ) Derivative instruments (23.8 ) Other (24.0 ) (17.6 ) Net deferred tax assets 420.0 793.3 Net income taxes recoverable (payable) (3.3 ) 28.3 Income taxes $ 416.7 $ 821.6 The decrease in our net deferred tax asset during the year is primarily due to the net unrealized gains that occurred in the investment portfolio. Although realization of the deferred tax asset is not assured, management believes that it is more likely than not that the deferred tax asset will be realized based on our expectation that we will be able to fully utilize the deductions that are ultimately recognized for tax purposes. Our IRS exams for 2004-2007 have been completed. Technically the statute of limitations for all of these years remains open (for 2004 and 2005 until June30, 2010 due to a statute extension, and for 2006 and 2007 until three years from the date the returns were filed). However, since the audits of these years have

LOSS AND LOSS ADJUSTMENT EXPENS

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES
	12 Months Ended Dec. 31, 2009 USD / shares
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES	6. LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES Activity in the loss and loss adjustment expense reserves is summarized as follows: (millions) 2009 2008 2007 Balance at January1 $ 6,177.4 $ 5,942.7 $ 5,725.0 Less reinsurance recoverables on unpaid losses 244.5 287.5 361.4 Net balance at January1 5,932.9 5,655.2 5,363.6 Incurred related to: Current year 10,040.9 9,981.8 9,845.9 Prior years (136.0 ) 33.2 80.3 Total incurred 9,904.9 10,015.0 9,926.2 Paid related to: Current year 6,542.2 6,700.4 6,737.2 Prior years 3,172.0 3,036.9 2,897.4 Total paid 9,714.2 9,737.3 9,634.6 Net balance at December31 6,123.6 5,932.9 5,655.2 Plus reinsurance recoverables on unpaid losses 529.4 244.5 287.5 Balance at December31 $ 6,653.0 $ 6,177.4 $ 5,942.7 Our objective is to establish case and IBNR reserves that are adequate to cover all loss costs, while sustaining minimal variation from the date that the reserves are initially established until losses are fully developed. Our reserves developed favorably in 2009, compared to unfavorable development in both 2008 and 2007. Total development consists of net changes made by our actuarial department on prior accident year reserves, based on regularly scheduled reviews, claims settling for more or less than reserved, emergence of unrecorded claims at rates different than reserved, and changes in reserve estimates by claim representatives. In 2009, the favorable development was primarily related to lower than expected defense and cost containment reserves and favorable settlements on larger losses in our Commercial Auto business. In 2008, an increase in the number of late reported Commercial Auto claims, and an increase in the estimated severity on these claims, was a primary contributor to the unfavorable development. The unfavorable development in 2007 was due to the settlement of some large outstanding litigation, the number of large losses emerging from prior accident years being more than anticipated, plus the result of reviews of large bodily injury and uninsured motorist claims. Because we are primarily an insurer of motor vehicles, we have limited exposure to environmental, asbestos, and general liability claims. We have established reserves for such exposures, in amounts that we believe to be adequate based on information currently known. These claims are not expected to have a material effect on our liquidity, financial condition, cash flows, or results of operations. We write personal and commercial auto insurance in the coastal states, which could be exposed to hurricanes or other natural catastrophes. Although the occurrence of a major catastrophe could have a significant effect on our monthly or quarterly results, we believe that, based on historical performance, such an event would not be so material as to disrupt the overall normal operations of Progressive. We are unable to predict the frequency or severity of any such eve

REINSURANCE

REINSURANCE
	12 Months Ended Dec. 31, 2009 USD / shares
REINSURANCE	7.REINSURANCE The effect of reinsurance on premiums written and earned for the years ended December31 was as follows: 2009 2008 2007 (millions) Written Earned Written Earned Written Earned Direct premiums $ 14,196.3 $ 14,199.4 $ 13,775.6 $ 13,810.1 $ 13,982.4 $ 14,107.0 Ceded (193.4 ) (186.6 ) (171.3 ) (178.7 ) (209.9 ) (229.6 ) Net premiums $ 14,002.9 $ 14,012.8 $ 13,604.3 $ 13,631.4 $ 13,772.5 $ 13,877.4 Our ceded premiums are attributable to premiums written under state-mandated involuntary Commercial Auto Insurance Procedures/Plans and premiums ceded to state-provided reinsurance facilities (together referred to as State Plans), for which we retain no loss indemnity risk, and premiums ceded related to our non-auto programs. Reinsurance contracts do not relieve us from our obligations to policyholders. Failure of reinsurers to honor their obligations could result in losses to Progressive. Since the majority of our reinsurance is through State Plans, our exposure to losses from their failure is minimal, since the plans are funded by mechanisms supported by the insurance companies in the state. We evaluate the financial condition of our other reinsurers and monitor concentrations of credit risk to minimize our exposure to significant losses from reinsurer insolvencies. We also require unauthorized reinsurers to secure reinsurance through collateral, such as lines of credit or trust accounts. At December31, 2009, approximately 50% of the prepaid reinsurance premiums was comprised of State Plans, compared to about 55% at December31, 2008. As of December31, 2009 and 2008, approximately 90% and 80%, respectively, of the reinsurance recoverables were attributable to State Plans. The remainder of the prepaid reinsurance premiums and reinsurance recoverables was primarily related to non-auto programs. Losses and loss adjustment expenses were net of reinsurance ceded of $417.6 million in 2009, $109.2 million in 2008, and $109.6 million in 2007. During 2009, we changed our loss reserving process regarding lifetime estimates for claims ceded to a state-provided reinsurance program, which increased both the amount of ceded loss reserves and the corresponding reinsurance recoverables on unpaid losses and, therefore, had no impact on our results of operations.

STATUTORY FINANCIAL INFORMATION

STATUTORY FINANCIAL INFORMATION
	12 Months Ended Dec. 31, 2009 USD / shares
STATUTORY FINANCIAL INFORMATION	8.STATUTORY FINANCIAL INFORMATION Consolidated statutory policyholders surplus was $4,953.6 million and $4,470.6 million at December31, 2009 and 2008, respectively. Statutory net income was $1,300.8 million, $368.4 million, and $1,105.2 million for the years ended December31, 2009, 2008, and 2007, respectively. At December31, 2009, $477.7 million of consolidated statutory policyholders surplus represented net admitted assets of our insurance subsidiaries and affiliate that are required to meet minimum statutory surplus requirements in such entities states of domicile. The companies may be licensed in states other than their states of domicile, which may have higher minimum statutory surplus requirements. Generally, the net admitted assets of insurance companies that, subject to other applicable insurance laws and regulations, are available for transfer to the parent company cannot include the net admitted assets required to meet the minimum statutory surplus requirements of the states where the companies are licensed. During 2009, the insurance subsidiaries paid aggregate cash dividends of $1,208.7 million to the parent company. Based on the dividend laws currently in effect, the insurance subsidiaries could pay aggregate dividends of $1,008.5 million in 2010 without prior approval from regulatory authorities, provided the dividend payments are not within 12 months of previous dividends paid by the applicable subsidiary.

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS
	12 Months Ended Dec. 31, 2009 USD / shares
EMPLOYEE BENEFIT PLANS	9.EMPLOYEE BENEFIT PLANS Retirement PlansBeginning January1, 2009, Progressive has a defined contribution pension plan which covers all United States employees who are 18 years or older and have been employed with the company for at least 30 days. Progressive will match up to a maximum of 6% of the employees eligible compensation contributed to the plan. Company matching contributions could be invested by a participant in any of the investments available under the plan. Company matching contributions were $60.7 million in 2009. Prior to January1, 2009, Progressive had a two-tiered Retirement Security Program. The first tier was a defined contribution pension plan covering all employees who met requirements as to age and length of service. Company contributions varied from 1% to 5% of annual eligible compensation up to the Social Security wage base, based on years of eligible service and could be invested by a participant in any of the investments available under the plan. Company contributions were $25.5 million in 2008 and $22.5 million in 2007. The second tier was a long-term savings plan under which Progressive matched, up to a maximum of 3%, of the employees eligible compensation, amounts contributed to the plan by an employee. Company matching contributions could be invested by a participant in any of the investments available under the plan. Company matching contributions were $30.9 million in 2008 and $29.3 million in 2007. Postemployment BenefitsProgressive provides various postemployment benefits to former or inactive employees who meet eligibility requirements, their beneficiaries, and covered dependents. Postemployment benefits include salary continuation and disability-related benefits, including workers compensation, and, if elected, continuation of health-care benefits for specified limited periods. The liability for these benefits was $23.9 million at December31, 2009, compared to $25.9 million in 2008. Postretirement BenefitsWe provide postretirement health and life insurance benefits to all employees who met requirements as to age and length of service at December31, 1988. There are approximately 100 people in this program. Our funding policy for the benefits is to fund these benefits by contributing annually to a 501(c)(4)trust the maximum amount that can be deducted for federal income tax purposes. Incentive Compensation Plans EmployeesOur incentive compensation includes both non-equity incentive plans (cash) and equity incentive plans (stock-based). The cash incentive compensation includes a cash bonus program for a limited number of senior executives and Gainsharing programs for other employees; the bases of these programs are similar in nature. The stock-based incentive compensation plans provide for the granting of restricted stock awards to key members of management. Prior to 2003, we granted non-qualified stock options as stock-based incentive compensation (see below). The amounts charged to income for the incentive compensation plans for the years ended December31 were: (millions) 2009 2008 2007 Cash $ 120.4 $ 140.3 $ 126.2 Stock-based 40.3 34.5

SEGMENT INFORMATION

SEGMENT INFORMATION
	12 Months Ended Dec. 31, 2009 USD / shares
SEGMENT INFORMATION	10.SEGMENT INFORMATION We write personal auto and other specialty property-casualty insurance and provide related services throughout the United States. Our Personal Lines segment writes insurance for personal autos and recreational vehicles. The Personal Lines segment is comprised of both the Agency and Direct businesses. The Agency business includes business written by our network of more than 30,000 independent insurance agencies, including brokerages in New York and California, and strategic alliance business relationships (other insurance companies, financial institutions, and national agencies). The Direct business includes business written directly by us online and by phone. Our Commercial Auto segment writes primary liability and physical damage insurance for automobiles and trucks owned by small businesses in the specialty truck and business auto markets. This segment is distributed through both the independent agency and direct channels. Our other indemnity businesses primarily include writing professional liability insurance for community banks and managing a small amount of run-off businesses. Our service businesses provide insurance-related services, including processing CAIP business and serving as an agent for homeowners insurance through our program with three unaffiliated homeowner insurance companies. All segment revenues are generated from external customers and we do not have a reliance on any major customer. We evaluate segment profitability based on pretax underwriting profit (loss) for the Personal Lines and Commercial Auto businesses. In addition, we use underwriting profit (loss) for the other indemnity businesses and pretax profit (loss) for the service businesses. Pretax underwriting profit (loss) is calculated as follows: Net premiums earned Less: Losses and loss adjustment expenses Policy acquisition costs Other underwriting expenses Pretax underwriting profit (loss) Service business profit (loss) is the difference between service business revenues and service business expenses. Expense allocations are based on certain assumptions and estimates primarily related to revenue and volume; stated segment operating results would change if different methods were applied. We do not allocate assets or income taxes to operating segments. In addition, we do not separately identify depreciation and amortization expense by segment and such disclosure would be impractical. Companywide depreciation expense was $87.3 million in 2009, $99.1 million in 2008, and $106.9 million in 2007. The accounting policies of the operating segments are the same as those described in Note 1 Reporting and Accounting Policies. Following are the operating results for the years ended December31: 2009 2008 2007 (millions) Revenues Pretax Profit (Loss) Revenues Pretax Profit (Loss) Revenues Pretax Profit (Loss) Personal Lines Agency $ 7,414.8 $ 579.2 $ 7,362.0 $ 360.7 $ 7,636.4 $ 500.2 Direct 4,951.1 357.9 4,485.8 274.8 4,372.6 339.9

OTHER COMPREHENSIVE INCOME

OTHER COMPREHENSIVE INCOME (LOSS)
	12 Months Ended Dec. 31, 2009 USD / shares
OTHER COMPREHENSIVE INCOME (LOSS)	11. OTHER COMPREHENSIVE INCOME (LOSS) The components of other comprehensive income (loss) for the years ended December31 were as follows: 2009 2008 2007 (millions) Pretax Tax (Provision) Benefit After Tax Pretax Tax (Provision) Benefit After Tax Pretax Tax (Provision) Benefit After Tax Unrealized gains (losses) arising during period: Fixed maturities $ 535.4 $ (187.4 ) $ 348.0 $ (407.6 ) $ 142.7 $ (264.9 ) $ 52.1 $ (18.2 ) $ 33.9 Non-credit related OTTI1 (40.1 ) 14.0 (26.1 ) Equity securities 671.7 (235.1 ) 436.6 (238.6 ) 83.5 (155.1 ) (189.2 ) 66.2 (123.0 ) Reclassification adjustment for (gains) losses realized in netincome: Fixed maturities (8.5 ) 3.0 (5.5 ) 9.7 (3.4 ) 6.3 (2.3 ) .8 (1.5 ) Equity securities (86.7 ) 30.3 (56.4 ) (197.1 ) 69.0 (128.1 ) (63.4 ) 22.2 (41.2 ) Change in unrealized gains (losses)2 1,071.8 (375.2 ) 696.6 (833.6 ) 291.8 (541.8 ) (202.8 ) 71.0 (131.8 ) Net unrealized gains on forecasted transactions3 (5.1 ) 1.8 (3.3 ) (4.4 ) 1.5 (2.9 ) 31.2 (10.9 ) 20.3 Foreign currency translation adjustment4 1.4 1.4 Other comprehensive income (loss) $ 1,068.1 $ (373.4 ) $ 694.7 $ (838.0 ) $ 293.3 $ (544.7 ) $ (171.6 ) $ 60.1 $ (111.5 ) 1 Portion of other-than-temporary impairment losses that were non-credit related (see Note 2 Investments for further discussion). 2 Excludes the $189.6 million ($291.8 million pretax) cumulative effect of change in accounting principle we recorded in June 2009 in accordance with the new accounting guidance for other-than-temporary impairments we adopted during the second quarter 2009 (see Note 2 Investments for further discussion). 3 Entered into for the purpose of managing interest rate risk associated with our debt issuances (see Note 4 Debt for further discussion), and managing foreign currency risk associated with our forecasted foreign currency transaction (see Note 2 Investments for further discussion). We expect to reclassify $5.2 million into income within the next 12 months. 4 Foreign currency translation adjustments have no tax effect.

LITIGATION

LITIGATION
	12 Months Ended Dec. 31, 2009 USD / shares
LITIGATION	12. LITIGATION The Progressive Corporation and/or its insurance subsidiaries are named as defendants in various lawsuits arising out of claims made under insurance policies in the ordinary course of our business. All legal actions relating to such insurance claims are considered by us in establishing our loss and loss adjustment expense reserves. In addition, The Progressive Corporation and/or its insurance subsidiaries are named as defendants in a number of class action or individual lawsuits arising out of the operation of the insurance subsidiaries. Other insurance companies face many of these same issues. The lawsuits discussed below are in various stages of development. We plan to contest these suits vigorously, but may pursue settlement negotiations in some cases, if appropriate. The outcomes of these cases are uncertain at this time. Under current accounting guidance, we establish accruals for lawsuits when it is probable that a loss has been incurred and we can reasonably estimate its potential exposure (referred to as a loss that is both probable and estimable in the discussion below). Certain of the cases for which we have established accurals under this standard are mentioned in the discussion below. Based on currently available information, we believe that our accruals for these lawsuits are reasonable and that the amounts accrued did not have a material effect on our consolidated financial condition or results of operations. However, if any one or more of these cases results in a judgment against, or settlement by, our insurance subsidiaries for an amount that is significantly greater than the amount so accrued, the resulting liability could have a material effect on our consolidated financial condition, cash flows, and results of operations. As to lawsuits that do not satisfy both parts of this GAAP standard (i.e., the loss is not both probable and estimable), we have not established a liability at this time. In the event that any one or more of these cases results in a substantial judgment against, or settlement by, Progressive, the resulting liability could also have a material effect on our consolidated financial condition, cash flows, and results of operations. The following is a discussion of potentially significant pending cases at December31, 2009, and certain cases resolved during 2009, 2008, and 2007. Unless specifically noted: 1) we do not consider the losses from these cases to be probable and estimable, and we are unable to estimate a range of loss, if any, at this time; and 2) settlements were not material to our consolidated financial condition, cash flows, or results of operations. The outcomes of the unsettled cases are uncertain, but in each case we do not believe that the outcome will have a material impact on our consolidated financial condition, cash flows, and results of operations. There is one putative class action lawsuit, and one lawsuit that was certified as a class action during 2009 that challenges our insurance subsidiaries use of certain automated database vendors or software to assist in the adjustment of bodily injury claims. The other lawsuits relating to this issue were either con

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES
	12 Months Ended Dec. 31, 2009 USD / shares
COMMITMENTS AND CONTINGENCIES	13. COMMITMENTS AND CONTINGENCIES We have certain noncancelable operating lease commitments with lease terms greater than one year for property and computer equipment. The minimum commitments under these agreements at December31, 2009, were as follows: (millions) Year Commitment 2010 $ 73.5 2011 58.5 2012 42.8 2013 25.3 2014 11.9 Thereafter 16.2 Total $ 228.2 Some of the leases have options to renew at the end of the lease periods. The expense we incurred for the leases disclosed above, as well as other operating leases that may be cancelable or have terms less than one year, was: (millions) Year Expense 2009 $ 109.0 2008 124.8 2007 139.5 We also have certain noncancelable purchase obligations. The minimum commitment under these agreements at December31, 2009 was $132.3 million. As of December31, 2009, we had open investment funding commitments of $0.2 million; we had no uncollateralized lines or letters of credit as of December31, 2009 or 2008.

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Jan. 31, 2010	Jun. 30, 2009
Trading Symbol	PGR
Entity Registrant Name	PROGRESSIVE CORP/OH/
Entity Central Index Key	0000080661
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		671,559,722
Entity Public Float			$9,411,470,311