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Actionable news in PGR: PROGRESSIVE CORPORATION,

Progressive Corporation: 6300 Wilson Mills Road Julia Hornack

The following excerpt is from the company's SEC filing.

Mayfield Village, Ohio 44143

(440) 395-2164

http://www.progressive.com

PROGRESSIVE REPORTS

RESULTS

MAYFIELD VILLAGE, OHIO --

April 14, 2016

-- The Progressive Corporation (NYSE:PGR) today reported the following results for March and the first quarter of 2016:

Quarter

(millions, except per share amounts and ratios; unaudited)

Change

Net premiums written

1,859.1

1,606.3

5,818.4

5,066.8

Net premiums earned

1,676.2

1,457.4

5,317.4

4,666.3

Net income attributable to Progre ssive

Per share

Total pretax net realized gains (losses) on securities

(including net impairment losses)

Combined ratio

7.6 pts.

1.9 pts.

Average diluted equivalent shares

We acquired a controlling interest in ARX Holding Corp. (ARX), parent company of American Strategic Insurance Corp. and other subsidiaries (ASI), on April 1, 2015. Beginning in April 2015, our companywide results include the results of ARX and its subsidiaries, which are included in the "Property business" throughout the release. Periods prior to April 1, 2015, do not include ARX's results.

(thousands; unaudited)

Policies in Force

Vehicle businesses:

Agency – auto

4,865.4

4,765.6

Direct – auto

5,175.4

4,679.8

Total personal auto

10,040.8

9,445.4

Total special lines

4,145.0

4,046.9

Total Personal Lines

14,185.8

13,492.3

Total Commercial Lines

1,078.5

NM = Not meaningful; Property business written by Progressive prior to April 2015 was negligible.

Progressive offers insurance to personal and commercial auto drivers throughout the United States. Our Personal Lines business writes insurance for personal autos and recreational vehicles. Our Commercial Lines business writes primary liability, physical damage, and other auto-related insurance for autos and trucks owned and/or operated predominantly by small businesses. Our Property business writes personal and commercial property insurance for homeowners, other property owners, and renters.

See the “Comprehensive Income Statements” and “Supplemental Information” for further month and year-to-date information and

the "Monthly Commentary" at the end of this release for additional discussion.

THE PROGRESSIVE CORPORATION AND SUBSIDIARIES

COMPREHENSIVE INCOME STATEMENT

March 2016

(millions)

(unaudited)

Current Month

Comments on Monthly Results

Revenues:

Investment income

Net realized gains (losses) on securities:

Net impairment losses recognized in earnings

Total net realized gains (losses) on securities

Fees and other revenues

Service revenues

Total revenues

1,765.7

Expenses:

Losses and loss adjustment expenses

1,278.9

Policy acquisition costs

Other underwriting expenses

Investment expenses

Service expenses

Interest expense

Total expenses

1,682.9

Income before income taxes

Provision for income taxes

Net income (loss) attributable to noncontrolling interest (NCI), net of tax

Other comprehensive income, net of tax

Changes in:

Total net unrealized gains (losses) on securities

Net unrealized gains (losses) on forecasted transactions

Foreign currency translation adjustment

Other comprehensive income (loss)

Other comprehensive (income) loss attributable to NCI

Total comprehensive income (loss) attributable to Progressive

For a description of our financial reporting and accounting policies, see Note 1 to our 2015 audited consolidated financial statements included in our 2015 Shareholders’ Report, which can be found at

www.progressive.com/annualreport

COMPREHENSIVE INCOME STATEMENTS

Year-to-Date

% Change

5,557.5

4,895.3

3,913.4

3,368.6

5,170.1

4,452.1

Net income attributable to noncontrolling interest (NCI), net of tax

Other comprehensive income (loss), net of tax

Total comprehensive income attributable to Progressive

NM = Not Meaningful

COMPUTATION OF NET INCOME AND COMPREHENSIVE INCOME PER SHARE

INVESTMENT RESULTS

(millions – except per share amounts)

The following table sets forth the computation of per share results:

Per share:

Diluted

Comprehensive income attributable to Progressive

Average shares outstanding - Basic

Net effect of dilutive stock-based compensation

Total equivalent shares - Diluted

The following table sets forth the investment results for the period:

Fully taxable equivalent (FTE) total return:

Fixed-income securities

Common stocks

Total portfolio

Pretax annualized investment income book yield

SUPPLEMENTAL INFORMATION

($ in millions)

Vehicles

Personal Lines Business

Companywide

Net Premiums Written

1,566.6

% Growth in NPW

Net Premiums Earned

1,435.1

% Growth in NPE

GAAP Ratios

Loss/LAE ratio

Expense...


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