Exhibit 99
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News Release dated June 13, 2003,
containing certain selected underwriting results
of The Progressive Corporation
for the month of May 2003
[PROGRESSIVE LOGO]
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 - June 13, 2003 -- The Progressive Corporation today
reported that for May 2003, the Company produced a GAAP combined ratio of 88.3.
Net premiums written increased 29% to $910.9 million for the month, compared to
$706.0 million last year. Net premiums earned for the month increased 30% to
$853.9 million, compared to $659.3 million last year.
Progressive's Personal Lines business units write insurance for private
passenger automobiles and recreation vehicles. Progressive's Commercial Auto
business unit writes primary liability, physical damage and other auto-related
insurance for automobiles and trucks owned by small businesses. The Company's
other businesses primarily include writing lenders' collateral protection and
directors' and officers' liability insurance. See "Supplemental Information" for
May's results.
The Progressive group of insurance companies ranks third in the nation
for auto insurance, offering its products by phone at 1-800-PROGRESSIVE, online
at progressive.com and through more than 30,000 independent agencies. The
Progressive Corporation, the holding company, is publicly traded at NYSE:PGR.
The Progressive Corporation
Supplemental Information
May 2003
($ in millions)(unaudited)
Current Month
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Personal Lines Commercial
------------------------------------- Auto Other Companywide
Agent Direct Total Business Businesses (c) Total
----- ------ ----- ---------- -------------- -----------
Net Premiums Written $556.0 $240.9 $796.9 $108.0 $6.0 $910.9
% Growth in NPW 27% 33% 28% 38% (18)% 29%
Premiums Earned $524.2 $232.9 $757.1 $90.7 $6.1 $853.9
% Growth in Premiums Earned 27% 33% 29% 40% (22)% 30%
Loss/LAE Ratio 70.3 67.6 69.4 62.1 41.7 68.5
Expense Ratio 19.4 20.6 19.8 17.7 57.3 19.8
Combined Ratio 89.7 88.2 89.2 79.8 99.0 88.3
Actuarial Adjustments(a) - $ (2.7) $(.2) $(2.9) $(4.3) $-- $(7.2)
Favorable (Unfavorable)
Year-to-Date
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Personal Lines Commercial
------------------------------------- Auto Other Companywide
Agent Direct Total Business Businesses Total
----- ------ ----- ---------- ---------- -----------
Net Premiums Written $3,026.5 $1,352.5 $4,379.0 $570.0 $ 32.2 $4,981.2
% Growth in NPW 29% 34% 30% 38% (32)% 30%
Premiums Earned $2,769.2 $1,224.5 $3,993.7 $473.1 $ 31.1 $4,497.9
% Growth in Premiums Earned 28% 36% 31% 48% (36)% 31%
Loss/LAE Ratio 68.5 67.8 68.3 62.4 61.6 67.6
Expense Ratio 19.4 20.1 19.6 19.2 45.1 19.8
Combined Ratio 87.9 87.9 87.9 81.6 106.7 87.4
Actuarial Adjustments(a) - $ (9.9) $ (3.9) $ (13.8) $(10.5) $ (.6) $ (24.9)
Favorable (Unfavorable)
May May
2003 2002 Change
---- ---- ------
Policies in Force
(in thousands)
Agent - Auto 3,749 3,037 23%
Direct - Auto 1,708 1,356 26%
Other Personal Lines(b) 1,831 1,523 20%
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Total Personal Lines 7,288 5,916 23%
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Commercial Auto Business 326 251 30%
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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 May 2003, the Company expensed $1.8 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.