Exhibit 99(a)
News Release dated December 13, 2002,
containing certain selected underwriting results
of The Progressive Corporation
for the month of November 2002
and
for year-to-date through November 2002
NEWS
RELEASE
[PROGRESSIVE LOGO]
The Progressive Corporation COMPANY CONTACT:
6300 Wilson Mills Road Thomas A. King
Mayfield Village, Ohio 44143 (440) 395-2260
http://www.progressive.com
FOR IMMEDIATE RELEASE
MAYFIELD VILLAGE, OHIO - December 13, 2002 -- The Progressive Corporation today
reported that for November 2002, the Company produced a GAAP combined ratio of
96.3. Net premiums written increased 30% to $711.2 million for the month,
compared to $546.8 million last year. Net premiums earned for the month
increased 29% to $762.4 million, compared to $588.8 million last year.
During November, the Company established a $10 million reserve
representing the Company's best estimate of its total exposure for its lawsuit
relating to the classification of the Company's California claims employees as
exempt workers for purpose of state wage and hour laws, which is reflected in
the loss/LAE ratio, and accrued an additional $3.1 million to reflect the final
claims made in the settlement of its several alternative commission program
lawsuits, which is reflected in the Agent Personal Lines expense ratio. In
addition, the Company reserved $7.8 million for its estimated exposure to
guaranty fund assessments related to the Aries Insurance Company insolvency in
Florida.
Progressive's Personal Lines business units write insurance for private
passenger automobiles and recreation vehicles. Progressive's Commercial Auto
business unit writes insurance for automobiles and trucks owned by small
businesses for primary liability, physical damage and other auto-related
insurance coverages. The Company's other businesses primarily include writing
lenders' collateral protection and directors' and officers' liability insurance
and providing insurance-related services, primarily processing business for
Commercial Auto Insurance Procedures (CAIP), which are state supervised plans
serving the involuntary market. See "Supplemental Information" for November's
results.
The Progressive group of insurance companies ranks fourth in the nation
for auto insurance, offering its products by phone at 1-800-PROGRESSIVE, online
at progressive.com and through more than 30,000 independent agencies. The
Progressive Corporation, the holding company, is publicly traded at NYSE:PGR.
The Progressive Corporation
Supplemental Information
November 2002
($ in million)(unaudited)
Current Month
----------------------------------------------------------------
Personal Lines Commercial
------------------------ Auto Other Companywide
Agent Direct Total Business Businesses Total
------- ------- ------- ---------- ---------- -----------
Net Premiums Written $437.6 $190.2 $627.8 $76.7 $ 6.7 $711.2
% Growth in NPW 27% 37% 30% 45% (35)% 30%
Premiums Earned $471.1 $205.3 $676.4 $79.5 $ 6.5 $762.4
% Growth in Premiums Earned 25% 35% 28% 59% (32)% 29%
Loss/LAE Ratio 74.2 73.0 73.8 84.3(a) 36.9 74.6
Expense Ratio 21.2 22.2 21.5 21.7 40.8 21.7
Combined Ratio 95.4 95.2 95.3 106.0 77.7 96.3
Year-to-Date
---------------------------------------------------------------------
Personal Lines Commercial
------------------------------- Auto Other Companywide
Agent Direct Total Business Businesses Total
-------- --------- --------- ---------- ---------- -----------
Net Premiums Written $5,384.4 $2,332.6 $7,717.0 $927.3 $82.1 $8,726.4
% Growth in NPW 26% 35% 29% 51% (24)% 30%
Premiums Earned $5,070.2 $2,157.4 $7,227.6 $799.8 $90.0 $8,117.4
% Growth in Premiums Earned 17% 32% 21% 59% (15)% 23%
Loss/LAE Ratio 72.0 68.8 71.0 70.7 52.6 70.8
Expense Ratio 21.1 22.4 21.5 20.3 36.0 21.5
Combined Ratio 93.1 91.2 92.5 91.0 88.6 92.3
November 30, November 30,
2002 2001 Change
----------- ----------- ------
Policies in Force
(in thousands)
Agent - Auto 3,362 2,783 21%
Direct - Auto 1,523 1,201 27%
Other Personal Lines(b) 1,640 1,381 19%
----- -----
Total Personal Lines 6,525 5,365 22%
----- -----
Commercial Auto Business 286 206 39%
----- -----
(a) Includes corporate actuarial adjustments based on routine analysis completed
during the month.
(b) Includes insurance for motorcycles, recreation vehicles, mobile homes,
watercraft, snowmobiles, homeowners and similar items.