1
EXHIBIT 28
Form 2 ANNUAL STATEMENT FOR THE YEAR 1994 OF THE PROGRESSIVE INSURANCE GROUP
SCHEDULE P - ANALYSIS OF LOSSES AND LOSS EXPENSES
Notes to Schedule P
1. The Parts of Schedule P:
Part 1 - Detailed information on losses and loss expenses.
Part 2 - History of incurred losses and allocated expenses.
Part 3 - History of loss and allocated expense payments.
Part 4 - History of bulk and incurred but not reported reserves.
Part 5 - History of claims.
Part 6 - History of premiums earned.
Schedule P Interrogatories.
2. Lines of business A through M, R and S are groupings of the lines of
business used on page 14, the state page.
3. Reinsurance A, B, C, and D (lines N to Q) are:
Reinsurance A = nonproportional property (1988 and subsequent)
Reinsurance B = nonproportional liability (1988 and subsequent)
Reinsurance C = financial lines (1988 and subsequent)
Reinsurance D = old Schedule O line 30 (1987 and prior)
SCHEDULE P--PART 1--SUMMARY
(000 omitted)
_________________________________________________________________________________________________________________
| 1 | Premiums Earned | Loss and Loss Expense Payments |
| |_________________________________________|_______________________________________________________|
| | 2 | 3 | 4 | | Allocated Loss |
| Years In | | | | Loss Payments | Expense Payments |
| Which | | | |___________________________|___________________________|
|Premiums Were| | | | 5 | 6 | 7 | 8 |
| Earned and | Direct | | | Direct | | Direct | |
| Losses Were | and | | Net | and | | and | |
| Incurred | Assumed | Ceded |(Cols. 2 - 3)| Assumed | Ceded | Assumed | Ceded |
|_____________|_____________|_____________|_____________|_____________|_____________|_____________|_____________|
| 1. Prior...| X X X X | X X X X | X X X X | 737 | 6,022 | 804 | 5,298 |
| 2. 1985....| 461,512 | 9,678 | 451,834 | 249,321 | 6,052 | 15,696 | 897 |
| 3. 1986....| 726,141 | 42,619 | 683,522 | 324,139 | 14,908 | 21,574 | 1,093 |
| 4. 1987....| 1,066,680 | 64,496 | 1,002,184 | 484,551 | 31,795 | 30,481 | 1,377 |
| 5. 1988....| 1,292,530 | 67,431 | 1,225,099 | 650,409 | 39,898 | 37,551 | 1,195 |
| 6. 1989....| 1,357,845 | 109,736 | 1,248,109 | 710,694 | 80,579 | 38,936 | 1,441 |
| 7. 1990....| 1,397,185 | 144,903 | 1,252,282 | 667,191 | 85,295 | 32,791 | 1,763 |
| 8. 1991....| 1,528,677 | 199,174 | 1,329,503 | 726,347 | 106,148 | 29,825 | 3,088 |
| 9. 1992....| 1,579,938 | 195,139 | 1,384,799 | 751,091 | 96,880 | 27,925 | 3,071 |
| 10. 1993....| 1,795,466 | 150,074 | 1,645,392 | 797,759 | 65,918 | 16,480 | 1,714 |
| 11. 1994....| 2,359,681 | 191,788 | 2,167,893 | 797,807 | 37,339 | 10,815 | 1,171 |
|_____________|_____________|_____________|_____________|_____________|_____________|_____________|_____________|
| 12. Totals | X X X X | X X X X | X X X X | 6,160,046 | 570,834 | 262,858 | 22,107 |
|----------------------------------------------------------------------------------------------------------------
________________________________________________________________________
| 1 | Loss and Loss Expense Payments | |
| |__________________________________________| |
| | 9 | 10 | 11 | 12 |
| Years In | | | | |
| Which | | | | Number of |
|Premiums Were| Salvage | Unallocated | Total | Claims |
| Earned and | and | Loss | Net Paid | Reported- |
| Losses Were | Subrogation | Expense |(Cols. 5 - 6 +| Direct and |
| Incurred | Received | Payments | 7 - 8 + 10) | Assumed |
|_____________|_____________|_____________|______________|______________|
| 1. Prior...| 0 | 0 | (9,779) | X X X X |
| 2. 1985....| 13,558 | 25,947 | 284,014 | X X X X |
| 3. 1986....| 19,398 | 40,936 | 370,648 | X X X X |
| 4. 1987....| 44,416 | 66,769 | 548,629 | X X X X |
| 5. 1988....| 76,427 | 95,143 | 742,010 | X X X X |
| 6. 1989....| 77,094 | 108,215 | 775,826 | X X X X |
| 7. 1990....| 57,211 | 119,395 | 732,320 | X X X X |
| 8. 1991....| 48,874 | 139,297 | 786,233 | X X X X |
| 9. 1992....| 46,025 | 110,702 | 789,767 | X X X X |
| 10. 1993....| 41,980 | 121,433 | 868,020 | X X X X |
| 11. 1984....| 34,867 | 126,579 | 896,691 | X X X X |
|_____________|_____________|_____________|______________|______________|
| 12. Totals | 459,849 | 954,416 | 6,784,379 | X X X X |
- -------------------------------------------------------------------------
_______________________________________________________________________________________________________________________________
| | Losses Unpaid | Allocated Loss Expenses Unpaid |
| |_______________________________________________________|_______________________________________________________|
| Years In | Case Basis | Bulk + IBNR | Case Basis | Bulk + IBNR |
| Which |___________________________|___________________________|___________________________|___________________________|
|Premiums Were| 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| Earned and | Direct | | Direct | | Direct | | Direct | |
| Losses Were | and | | and | | and | | and | |
| Incurred | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded |
|_____________|_____________|_____________|_____________|_____________|_____________|_____________|_____________|_____________|
| 1. Prior...| 12,174 | 3,578 | 15,000 | 4,714 | 6,300 | 1,561 | 0 | 0 |
| 2. 1985....| 140 | 3 | 0 | 0 | 24 | 0 | 0 | 0 |
| 3. 1986....| 592 | 10 | 0 | 0 | 38 | 0 | 0 | 0 |
| 4. 1987....| 1,992 | 138 | 0 | 0 | 341 | 55 | 0 | 0 |
| 5. 1988....| 10,524 | 1,203 | 162 | 84 | 1,080 | 185 | 17 | 12 |
| 6. 1989....| 15,697 | 4,299 | 905 | 303 | 2,337 | 162 | 95 | 42 |
| 7. 1990....| 32,418 | 10,984 | 7,912 | 2,672 | 4,780 | 661 | 870 | 360 |
| 8. 1991....| 64,467 | 28,593 | 10,184 | 5,379 | 8,416 | 917 | 1,118 | 503 |
| 9. 1992....| 114,940 | 45,764 | 32,476 | 14,819 | 17,614 | 1,994 | 3,537 | 1,521 |
| 10. 1993....| 203,844 | 66,773 | 45,894 | 16,448 | 27,842 | 3,091 | 4,207 | 1,393 |
| 11. 1994....| 493,082 | 71,026 | 149,558 | 37,025 | 52,545 | 4,233 | 13,911 | 3,215 |
|_____________|_____________|_____________|_____________|_____________|_____________|_____________|_____________|_____________|
| 12. Totals | 949,869 | 232,370 | 262,091 | 81,443 | 121,316 | 12,859 | 23,755 | 7,046 |
- -------------------------------------------------------------------------------------------------------------------------------
________________________________________________________________________
| | | | | |
| | 21 | 22 | 23 | 24 |
| Years In | | | | |
| Which | | | | Number of |
|Premiums Were| Salvage | Unallocated | Total | Claims |
| Earned and | and | Loss | Net Losses |Outstanding-|
| Losses Were | Subrogation | Expenses | and Expenses | Direct and |
| Incurred | Anticipated | Unpaid | Unpaid | Assumed |
|_____________|_____________|______________|______________|____________|
| 1. Prior...| 0 | 0 | 23,621 | X X X X |
| 2. 1985....| 0 | 0 | 161 | X X X X |
| 3. 1986....| 32 | 5 | 624 | X X X X |
| 4. 1987....| 111 | 51 | 2,190 | X X X X |
| 5. 1988....| 272 | 139 | 10,438 | X X X X |
| 6. 1989....| 582 | 371 | 14,600 | X X X X |
| 7. 1990....| 1,613 | 781 | 32,084 | X X X X |
| 8. 1991....| 2,665 | 1,867 | 50,661 | X X X X |
| 9. 1992....| 4,227 | 4,260 | 108,728 | X X X X |
| 10. 1993....| 9,430 | 10,991 | 205,072 | X X X X |
| 11. 1994....| 41,903 | 46,179 | 639,777 | X X X X |
|_____________|_____________|______________|______________|____________|
| 12. Totals | 60,835 | 64,643 | 1,087,956 | X X X X |
- ------------------------------------------------------------------------
_______________________________________________________________________________________________________________________________
| | | Loss and Loss Expense Percentage | Discount for Time |
| | Total Losses and Loss Expenses Incurred| (Incurred/Premiums Earned) | Value of Money |
| Years In |_________________________________________|_________________________________________|___________________________|
| Which | | | | | | | | |
|Premiums Were| 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 |
| Earned and | Direct | | | Direct | | | | |
| Losses Were | and | | | and | | | | Loss |
| Incurred | Assumed | Ceded | Net | Assumed | Ceded | Net | Loss | Expense |
|_____________|_____________|_____________|_____________|_____________|_____________|_____________|_____________|_____________|
| 1. Prior...| X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | 0 | 0 |
| 2. 1985....| 291,128 | 6,952 | 284,176 | 63.1 | 71.8 | 62.9 | 0 | 0 |
| 3. 1986....| 387,283 | 16,012 | 371,272 | 53.3 | 37.6 | 54.3 | 0 | 0 |
| 4. 1987....| 584,184 | 33,365 | 550,819 | 54.8 | 51.7 | 55.0 | 0 | 0 |
| 5. 1988....| 795,024 | 42,576 | 752,448 | 61.5 | 63.1 | 61.4 | 0 | 0 |
| 6. 1989....| 877,251 | 86,826 | 790,425 | 64.6 | 79.1 | 63.3 | 0 | 0 |
| 7. 1990....| 866,139 | 101,735 | 764,404 | 62.0 | 70.2 | 61.0 | 0 | 0 |
| 8. 1991....| 981,521 | 144,627 | 836,894 | 64.2 | 72.6 | 62.9 | 0 | 0 |
| 9. 1992....| 1,062,544 | 164,049 | 898,495 | 67.3 | 84.1 | 64.9 | 0 | 0 |
| 10. 1993....| 1,228,429 | 155,337 | 1,073,092 | 68.4 | 103.5 | 65.2 | 0 | 0 |
| 11. 1994....| 1,690,477 | 154,008 | 1,536,468 | 71.6 | 80.3 | 70.9 | 0 | 0 |
|_____________|_____________|_____________|_____________|_____________|_____________|_____________|_____________|_____________|
| 12. Totals | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | 0 | 0 |
- -------------------------------------------------------------------------------------------------------------------------------
__________________________________________________________
| | | Net Balance Sheet Reserves |
| | 33 | After Discount |
| Years In | |_____________________________|
| Which | | | |
|Premiums Were|Inter-Company| 34 | 35 |
| Earned and | Pooling | | Loss |
| Losses Were |Participation| Losses | Expenses |
| Incurred | Percentage | Unpaid | Unpaid |
|_____________|_____________|______________|______________|
| 1. Prior...| X X X X | 18,882 | 4,739 |
| 2. 1985....| | 138 | 24 |
| 3. 1986....| | 581 | 42 |
| 4. 1987....| | 1,853 | 337 |
| 5. 1988....| | 9,399 | 1,039 |
| 6. 1989....| | 12,000 | 2,600 |
| 7. 1990....| | 26,675 | 5,409 |
| 8. 1991....| | 40,680 | 9,981 |
| 9. 1992....| | 86,833 | 21,896 |
| 10. 1993....| | 166,517 | 38,555 |
| 11. 1994....| | 534,590 | 105,187 |
|_____________|_____________|______________|______________|
| 12. Totals | X X X X | 898,147 | 189,809 |
- -----------------------------------------------------------
72
2
Form 2
ANNUAL STATEMENT FOR THE YEAR 1994 OF THE
PROGRESSIVE INSURANCE GROUP
SCHEDULE P - PART 2 - SUMMARY
_______________________________________________________________________________________________________________________
| | |
| 1 | INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED) |
| |_____________________________________________________________________________________________________|
| Years | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |
| in Which | | | | | | | | |
| Losses Were | | | | | | | | |
| Incurred | 1985 | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|________________| ____________|____________|____________|__________|____________|____________|____________|___________|
| | | | | | | | | |
| 1. Prior.......| 82,053 | 82,984 | 77,363 | 70,991 | 69,639 | 68,860 | 69,870 | 71,046 |
| 2. 1985........| 274,757 | 269,226 | 268,315 | 262,237 | 261,392 | 258,581 | 258,380 | 258,206 |
| 3. 1986........| X X X X | 382,994 | 353,616 | 351,417 | 340,706 | 334,564 | 331,385 | 330,779 |
| 4. 1987........| X X X X | X X X X | 555,993 | 524,333 | 504,689 | 492,954 | 490,684 | 485,339 |
| 5. 1988........| X X X X | X X X X | X X X X | 719,839 | 684,469 | 663,722 | 666,604 | 663,150 |
| 6. 1989........| X X X X | X X X X | X X X X | X X X X | 786,249 | 734,190 | 710,990 | 704,871 |
| 7. 1990........| X X X X | X X X X | X X X X | X X X X | X X X X | 751,597 | 692,671 | 676,616 |
| 8. 1991........| X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | 792,930 | 753,500 |
| 9. 1992........| X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | 900,892 |
|10. 1993........| X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X |
|11. 1994 | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X |
|________________| ____________|____________|____________|__________|____________|____________|____________|___________|
______________________________________________________________________
| 1 | (cont.) INCURRED LOSSES | DEVELOPMENT |
| |__________________________|__________________________|
| | | | | |
| Years | 10 | 11 | 12 | 13 |
| in Which | | | | |
| Losses Were | | | One | Two |
| Incurred | 1993 | 1994 | Year | Year |
|_________________|____________|_____________|_____________|____________|
| | | | | |
| 1. Prior.......| 72,630 | 81,663 | 9,033 | 10,617 |
| 2. 1985........| 258,144 | 258,229 | 85 | 23 |
| 3. 1986........| 330,825 | 330,330 | (495) | (449) |
| 4. 1987........| 484,182 | 483,999 | (183) | (1,340) |
| 5. 1988........| 664,095 | 657,166 | (6,929) | (5,984) |
| 6. 1989........| 700,038 | 681,839 | (18,199) | (23,032) |
| 7. 1990........| 663,002 | 644,228 | (18,774) | (32,388) |
| 8. 1991........| 725,991 | 695,730 | (30,261) | (57,770) |
| 9. 1992........| 833,470 | 783,533 | (49,937) | (117,359) |
| 10. 1993........| 1,013,665 | 940,668 | (72,851) | X X X X |
| 11. 1994........| X X X X | 1,363,711 | X X X X | X X X X |
|_________________|____________|_____________|_____________|____________|
12. Totals | (188,511) | (227,682) |
|_____________|____________|
SCHEDULE P - PART 3 - SUMMARY
_____________________________________________________________________________________________________
1 | CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
|______________________________________________________________________________________________________|
| | | | | | | | |
Years | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |
in Which | | | | | | | | |
Losses Were | | | | | | | | |
Incurred | 1985 | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|____________|____________|____________|__________|____________|____________|____________|_____________|
| | | | | | | | |
1. Prior.......| 000 | 31,463 | 50,460 | 57,742 | 60,827 | 63,436 | 64,860 | 66,821 |
2. 1985........| 134,374 | 202,467 | 228,629 | 243,849 | 251,045 | 255,162 | 256,497 | 257,708 |
3. 1986........| X X X X | 168,353 | 255,882 | 291,744 | 312,656 | 322,815 | 326,820 | 328,152 |
4. 1987........| X X X X | X X X X | 240,199 | 360,939 | 420,316 | 447,789 | 467,599 | 476,252 |
5. 1988........| X X X X | X X X X | X X X X | 318,747 | 482,587 | 545,480 | 582,880 | 617,027 |
6. 1989........| X X X X | X X X X | X X X X | X X X X | 362,510 | 521,039 | 595,914 | 636,386 |
7. 1990........| X X X X | X X X X | X X X X | X X X X | X X X X | 354,849 | 499,445 | 569,700 |
8. 1991........| X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | 369,194 | 533,684 |
9. 1992........| X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | 415,371 |
10. 1993........| X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X |
11. 1994........| X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X |
|____________|____________|____________|__________|____________|____________|____________|_____________|
______________________________________________________________________
| 1 | (cont.) CUMULATIVE PAID | | |
| |_________________________| 12 | 13 |
| | | | | |
| Years | 10 | 11 | Number of | Number of |
| in Which | | | Claims | Claims |
| Losses Were | | | Closed | Closed |
| Incurred | 1993 | 1994 | With Loss | Without |
| | | | Payment | Loss |
| | | | | Payment |
|_________________|____________|____________|_____________|____________|
| | | | | |
| 1. Prior.......| 67,091 | 58,042 | X X X X | X X X X |
| 2. 1985........| 257,991 | 258,067 | X X X X | X X X X |
| 3. 1986........| 328,815 | 329,711 | X X X X | X X X X |
| 4. 1987........| 480,425 | 481,860 | X X X X | X X X X |
| 5. 1988........| 636,778 | 646,867 | X X X X | X X X X |
| 6. 1989........| 657,870 | 667,611 | X X X X | X X X X |
| 7. 1990........| 598,833 | 612,925 | X X X X | X X X X |
| 8. 1991........| 614,888 | 646,936 | X X X X | X X X X |
| 9. 1992........| 597,616 | 679,065 | X X X X | X X X X |
| 10. 1993........| 513,910 | 746,587 | X X X X | X X X X |
| 11. 1994........| X X X X | 770,113 | X X X X | X X X X |
|_________________|____________|____________|_____________|____________|
SCHEDULE P - PART 4 - SUMMARY
_______________________________________________________________________________________________________
1 | BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED) |
|________________________________________________________________________________________________________|
| | | | | | | | |
Years | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |
in Which | | | | | | | | |
Losses Were | | | | | | | | |
Incurred | 1985 | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
|_____________|____________|____________|____________|____________|___________|_____________|____________|
1. Prior..... | 27,457 | 17,951 | 12,238 | 4,097 | 3,431 | 1,728 | 1,667 | 1,614 |
2. 1985...... | 52,241 | 23,471 | 15,767 | 7,600 | 4,247 | 117 | 0 | 2 |
3. 1986...... | X X X X | 83,987 | 35,929 | 23,115 | 10,239 | 3,162 | 0 | 63 |
4. 1987...... | X X X X | X X X X | 126,103 | 57,172 | 31,435 | 13,026 | 4,203 | 178 |
5. 1988...... | X X X X | X X X X | X X X X | 161,589 | 70,035 | 33,821 | 14,301 | 2,013 |
6. 1989...... | X X X X | X X X X | X X X X | X X X X | 179,116 | 62,544 | 27,935 | 15,702 |
7. 1990...... | X X X X | X X X X | X X X X | X X X X | X X X X | 146,165 | 57,375 | 28,293 |
8. 1991...... | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | 155,871 | 51,534 |
9. 1992...... | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | 151,702 |
10. 1993...... | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X |
11. 1994...... | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X |
|_____________|____________|____________|____________|____________|___________|_____________|____________|
___________________________________________
| 1 | (cont.) BULK AND INCURRED|
| |__________________________|
| | | |
| Years | 10 | 11 |
| in Which | | |
| Losses Were | | |
| Incurred | 1993 | 1994 |
|_________________|____________|_____________|
| 1. Prior.......| 1,263 | 10,286 |
| 2. 1985........| 5 | 0 |
| 3. 1986........| 36 | 0 |
| 4. 1987........| 814 | 0 |
| 5. 1988........| 6,663 | 83 |
| 6. 1989........| 14,096 | 655 |
| 7. 1990........| 17,575 | 5,750 |
| 8. 1991........| 29,932 | 5,420 |
| 9. 1992........| 54,711 | 19,673 |
| 10. 1993........| 132,250 | 32,260 |
| 11. 1994........| X X X X | 123,230 |
|_________________|____________|_____________|
73