Exhibit 99(b)
News Release dated March 14, 2003,
containing certain selected underwriting results
of The Progressive Corporation
for the month of February 2003
PROGRESSIVE
NEWS
RELEASE
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The Progressive Corporation COMPANY CONTACT:
6300 Wilson Mills Road Thomas A. King
Mayfield Village, Ohio 44143 (440) 395-2260
http://www.progressive.com
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FOR IMMEDIATE RELEASE
MAYFIELD VILLAGE, OHIO - March 14, 2003 -- The Progressive Corporation today
reported that for February 2003, the Company produced a GAAP combined ratio of
89.8. Net premiums written increased 31% to $942.7 million for the month,
compared to $719.6 million last year. Net premiums earned for the month
increased 32% to $805.8 million, compared to $608.7 million last year.
Progressive's Personal Lines business units write insurance for private
passenger automobiles and recreation vehicles. Progressive's Commercial Auto
business unit writes primary liability, physical damage and other auto-related
insurance for automobiles and trucks owned by small businesses. The Company's
other businesses primarily include writing lenders' collateral protection and
directors' and officers' liability insurance. See "Supplemental Information" for
February's results.
The Progressive group of insurance companies ranks third in the nation
for auto insurance, offering its products by phone at 1-800-PROGRESSIVE, online
at progressive.com and through more than 30,000 independent agencies. The
Progressive Corporation, the holding company, is publicly traded at NYSE:PGR.
The Progressive Corporation
Supplemental Information
February 2003
($ in million)(unaudited)
Current Month
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Personal Lines Commercial
------------------------------------- Auto Other Companywide
Agent Direct Total Business Businesses(c) Total
----- ------ ----- --------- ---------- -----
Net Premiums Written $577.0 $261.7 $838.7 $97.9 $6.1 $942.7
% Growth in NPW 30% 37% 32% 31% (40)% 31%
Premiums Earned $495.7 $219.4 $715.1 $84.4 $6.3 $805.8
% Growth in Premiums Earned 29% 37% 32% 52% (36)% 32%
Loss/LAE Ratio 69.1 69.8 69.3 71.5 67.6 69.5
Expense Ratio 20.2 20.5 20.3 16.8 59.6 20.3
Combined Ratio 89.3 90.3 89.6 88.3 127.2 89.8
Actuarial Adjustments(a) - $2.2 $.3 $2.5 $(5.6) $(.2) $(3.3)
Favorable (Unfavorable)
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Year-to-Date
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Personal Lines Commercial
--------------------------------------- Auto Other Companywide
Agent Direct Total Business Businesses Total
----- ------ ----- -------- ---------- -----
Net Premiums Written $1,181.3 $535.6 $1,716.9 $205.9 $12.4 $1,935.2
% Growth in NPW 30% 35% 32% 40% (42)% 32%
Premiums Earned $1,091.8 $482.3 $1,574.1 $186.5 $12.6 $1,773.2
% Growth in Premiums Earned 29% 36% 31% 55% (40)% 32%
Loss/LAE Ratio 68.7 67.9 68.5 65.9 71.8 68.2
Expense Ratio 19.8 20.0 19.8 18.3 51.6 19.9
Combined Ratio 88.5 87.9 88.3 84.2 123.4 88.1
Actuarial Adjustments(a) - $5.6 $.8 $6.4 $(5.6) $(.2) $.6
Favorable (Unfavorable)
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February February
Policies in Force 2003 2002 Change
(in thousands) ---- ---- ------
Agent - Auto 3,571 2,866 25%
Direct - Auto 1,624 1,271 28%
Other Personal Lines(b) 1,669 1,406 19%
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Total Personal Lines 6,864 5,543 24%
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Commercial Auto Business 298 220 35%
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(a)Represents adjustments solely based on the Company's corporate actuarial
review.
(b) Includes insurance for motorcycles, recreation vehicles, mobile homes,
watercraft, snowmobiles, homeowners and similar items.
(c) In February 2003, the Company expensed $1.9 million of deferred acquisition
costs to eliminate the premium deficiency (i.e. expected costs in excess of
unearned premium balance) related to a portion of its other businesses.