Progressive Distributes July Results

MAYFIELD VILLAGE, Ohio--Aug. 16, 2006--The Progressive Corporation today reported the following results for July 2006:

(millions, except per share amounts    July        July       Change
 and ratios)                            2006       2005
                                    ----------- ----------- ----------
Net premiums written                  $1,427.7    $1,403.2          2%
Net premiums earned                    1,367.1     1,337.8          2%
Net income                               148.8       143.9          3%
   Per share                               .19         .18          6%
Combined ratio                            86.6        86.9   (.3) pts.

See the complete monthly release at http://investors.progressive.com/releases/2006/pdf/mreport_0706.pdf for further month and year-to-date information.

Progressive also announced that its Drive business has signed a joint marketing agreement with Homesite Insurance group, a national provider of homeowners, rental and condo insurance. We expect to commence a three-state test program before the end of the year to enable specially selected independent agents in Ohio, Pennsylvania and Oregon to offer a stand-alone homeowners product to eligible Drive auto insurance customers.

The Progressive Group of Insurance Companies, in business since 1937, ranks third in the nation for auto insurance based on premiums written and provides drivers with competitive rates and 24/7, in-person and online service. The products and services of the Progressive Direct Group of Insurance Companies are marketed directly to consumers by phone at 1-800-PROGRESSIVE and online at www.progressivedirect.com through the Progressive Direct(R) brand. The Drive Group of Progressive Insurance Companies offers insurance through more than 30,000 independent insurance agencies that market their products and services through the Drive(R) Insurance from Progressive brand. For more information about Drive Insurance, go to www.driveinsurance.com. The Common Shares of The Progressive Corporation, the Mayfield Village, Ohio-based holding company, are publicly traded at . More information, including a guide to interpreting the monthly reporting package, can be found at www.progressive.com.