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Progressive Announces Annual Dividend Information


progressive

MAYFIELD VILLAGE, OH--December 9, 2011: The Progressive Corporation today announced that its Board of Directors declared an annual dividend to be paid on February 3, 2012, to shareholders of record at the close of business on January 26, 2012 (ex-dividend date of January 24, 2012). The amount of the dividend will be determined based on the Company's 2011 financial results and the formula discussed below, and announced in the Company's year-end earnings release, which is currently scheduled for January 19, 2012.

The dividend amount will be calculated using the Company's operating results for the full year of 2011, as follows:

Dividend
Amount Per
Share

=

After-Tax
Underwriting
Income

X

33 1/3%
Target

X

Gainshare
Factor

Common Shares Outstanding on 12/31/11

For a more detailed discussion of the Company's annual variable dividend policy, the components of the formula set forth above, and the limitations included in the policy, please go to Progessive Investors. Under the Board's action, in accordance with the Company's previously announced policy, no dividend will be paid if the Company experiences an after-tax underwriting loss for 2011 or if the Company's after-tax comprehensive income is less than its after-tax underwriting income for the year.

The Gainshare Factor and the components of underwriting income and comprehensive income are disclosed by the Company throughout the year in its monthly earnings releases, and the final amounts will be included in the full-year results to be published in January 2012. Year-to-date through October, the Company's after-tax underwriting income was $539.2 million, after-tax comprehensive income was $740.2 million, and the Gainshare Factor was 1.03. Results for November will be released on December 14, 2011.

Consistent with the Company's policy of not providing projections of its financial results, the Company is not providing an estimate of the 2011 dividend at this time. Investors who choose to calculate or project a dividend amount based on interim results are cautioned, however, that any such estimates may vary from the dividend that may ultimately be paid on the basis of the Company's full-year results and the final Gainshare Factor.

The Board also decided that the dividend for 2012 will be calculated using the same formula described above, including keeping the target percentage for 2012 at 33 1/3% of after-tax underwriting income. In addition to the limitations included in our dividend policy (discussed above), the 2012 dividend will be subject to the Board's discretion and a declaration by the Board at the end of 2012 or beginning of 2013.

About Progressive

The Progressive Group of Insurance Companies makes it easy to understand, buy, and use auto insurance. Progressive offers choices so consumers can reach us whenever, wherever, and however it's most convenient for them--online at Progressive, by phone at 1-800-PROGRESSIVE, or in-person with a local agent.

Progressive offers insurance for personal and commercial autos and trucks, motorcycles, boats, recreational vehicles, and homes. We're the fourth largest auto insurer in the country, the largest seller of motorcycle insurance, and a leader in commercial auto insurance.

Founded in 1937, Progressive continues its long history of offering shopping tools and services that save customers time and money, like Name Your Price®, the Snapshot Discount®, and a concierge level of claims service.