Progressive Announces Annual Dividend Information
The Progressive Corporation today announced that its Board of Directors declared an annual dividend to be paid on February 1, 2013, to shareholders of record at the close of business on January 25, 2013 (ex-dividend date of January 23, 2013). The amount of the dividend will be determined based on the Company’s 2012 financial results and the formula discussed below, and announced in the Company’s year-end earnings release, which is currently scheduled for January 18, 2013.
The dividend amount will be calculated using the Company’s operating results for the full year of 2012, as follows:
Common Shares Outstanding on 12/31/12
For a 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 http://investors.progressive.com/phoenix.zhtml?c=81824&p=irol-dividends. 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 2012 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 2013. Year-to-date through October, the Company’s after-tax underwriting income was $354.1 million, after-tax comprehensive income was $914.9 million, and the Gainshare Factor was 1.14. Results for November will be released on December 12, 2012.
Consistent with the Company’s policy of not providing projections of its financial results, the Company is not providing an estimate of the 2012 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 2013 will be calculated using the same formula described above, including keeping the target percentage for 2013 at 33 1/3% of after-tax underwriting income. In addition to the limitations included in our dividend policy (discussed above), the 2013 dividend will be subject to the Board’s discretion and a declaration by the Board at the end of 2013 or beginning of 2014.
Celebrating its 75th anniversary in 2012, The Progressive Group of Insurance Companies makes it easy to understand, buy, and use auto insurance. Progressive offers choices so consumers can reach it whenever, wherever, and however it’s most convenient—online at http://www.progressive.com, 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. It’s the fourth largest auto insurer in the country, the largest seller of motorcycle insurance, and a leader in commercial auto insurance. Progressive also offers car insurance online in Australia at http://www.progressiveonline.com.au.
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.
The Common Shares of The Progressive Corporation, the Mayfield Village, Ohio-based holding company, trade publicly at (NYSE:PGR).
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Statements in this release that are not historical fact are forward-looking statements that are subject to certain risks and uncertainties that could cause actual events and results to differ materially from those discussed herein. These risks and uncertainties include, without limitation, uncertainties related to estimates, assumptions, and projections generally; inflation and changes in economic conditions (including changes in interest rates and financial markets); the possible failure of one or more governmental entities to make scheduled debt payments or satisfy other obligations; the potential or actual downgrading of governmental, corporate, or other securities by a rating agency; the financial condition of, and other issues relating to the strength of and liquidity available to, issuers of securities held in our investment portfolios and other companies with which we have ongoing business relationships, including counterparties to certain financial transactions; the accuracy and adequacy of our pricing and loss reserving methodologies; the competitiveness of our pricing and the effectiveness of our initiatives to retain more customers; initiatives by competitors and the effectiveness of our response; our ability to obtain regulatory approval for requested rate changes and the timing thereof; the effectiveness of our brand strategy and advertising campaigns relative to those of competitors; legislative and regulatory developments, including, but not limited to, health care reform and tax law changes; disputes relating to intellectual property rights; the outcome of litigation pending or that may be filed against us; weather conditions (including the severity and frequency of storms, hurricanes, snowfalls, hail, and winter conditions); changes in driving patterns and loss trends; acts of war and terrorist activities; our ability to maintain the uninterrupted operation of our facilities, systems (including information technology systems), and business functions; court decisions and trends in litigation and health care and auto repair costs; and other matters described from time to time in our releases and publications, and in our periodic reports and other documents filed with the United States Securities and Exchange Commission. In addition, investors should be aware that generally accepted accounting principles prescribe when a company may reserve for particular risks, including litigation exposures. Accordingly, results for a given reporting period could be significantly affected if and when a reserve is established for one or more contingencies. Also, our regular reserve reviews may result in adjustments of varying magnitude as additional information regarding claims activity becomes known. Reported results, therefore, may be volatile in certain accounting periods.
The Progressive Corporation
Matt Downing, 440-395-4222