Exhibit 99
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News Release dated May 16, 2003,
containing certain selected underwriting results
of The Progressive Corporation
for the month of April 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 - May 16, 2003 -- The Progressive Corporation today
reported that for April 2003, the Company produced a GAAP combined ratio of
88.3. Net premiums written increased 28% to $1,191.0 million for the month,
compared to $928.0 million last year. Net premiums earned for the month
increased 31% to $1,045.7 million, compared to $800.7 million last year.
During April, the Company experienced $20.0 million, or 1.9 points, of
catastrophic, weather-related losses, primarily due to hailstorms in Texas.
Progressive's Personal Lines business units write insurance for private
passenger automobiles and recreation vehicles. Progressive's Commercial Auto
business unit writes primary liability, physical damage and other auto-related
insurance for automobiles and trucks owned by small businesses. The Company's
other businesses primarily include writing lenders' collateral protection and
directors' and officers' liability insurance. See "Supplemental Information" for
April's results.
The Progressive group of insurance companies ranks third in the nation
for auto insurance, offering its products by phone at 1-800-PROGRESSIVE, online
at progressive.com and through more than 30,000 independent agencies. The
Progressive Corporation, the holding company, is publicly traded at NYSE:PGR.
The Progressive Corporation
Supplemental Information
April 2003
($ in million)(unaudited)
Current Month
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Personal Lines Commercial
------------------------------------ Auto Other Companywide
Agent Direct Total Business Businesses Total
----- ------ ----- --------- ---------- -----
Net Premiums Written $719.1 $316.3 $1,035.4 $147.8 $7.8 $1,191.0
% Growth in NPW 25% 31% 27% 43% (18)% 28%
Premiums Earned $644.5 $284.5 $929.0 $109.7 $7.0 $1,045.7
% Growth in Premiums Earned 28% 35% 30% 44% (31)% 31%
Loss/LAE Ratio 70.3 71.5 70.7 57.1 63.9 69.2
Expense Ratio 18.8 19.2 18.9 20.0 33.5 19.1
Combined Ratio 89.1 90.7 89.6 77.1 97.4 88.3
Actuarial Adjustments(a) - $(17.6) $(5.8) $(23.4) $1.5 $(.2) $(22.1)
Favorable (Unfavorable)
Year-to-Date
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Personal Lines Commercial
--------------------------------------- Auto Other Companywide
Agent Direct Total Business Businesses Total
----- ------ ----- -------- ---------- -----
Net Premiums Written $2,470.5 $1,111.6 $3,582.1 $462.0 $26.2 $4,070.3
% Growth in NPW 29% 34% 31% 38% (34)% 31%
Premiums Earned $2,245.0 $991.6 $3,236.6 $382.4 $25.0 $3,644.0
% Growth in Premiums Earned 29% 36% 31% 50% (38)% 32%
Loss/LAE Ratio 68.1 67.9 68.0 62.5 66.4 67.4
Expense Ratio 19.4 20.0 19.6 19.5 42.1 19.8
Combined Ratio 87.5 87.9 87.6 82.0 108.5 87.2
Actuarial Adjustments(a) - $(7.2) $(3.7) $(10.9) $(6.2) $(.6) $(17.7)
Favorable (Unfavorable)
April April
Policies in Force 2003 2002 Change
---- ---- ------
(in thousands)
Agent - Auto 3,694 2,996 23%
Direct - Auto 1,681 1,336 26%
Other Personal Lines(b) 1,774 1,482 20%
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Total Personal Lines 7,149 5,814 23%
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Commercial Auto Business 316 242 31%
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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.