Profile: Progressive Corp (PGR)
23 Jan 2015
The Progressive Corporation, incorporated on February 4, 1965, is an insurance holding company. The Company’s insurance subsidiaries and mutual insurance company affiliate provide personal and commercial automobile insurance and other specialty property-casualty insurance and related services. The Company’s property-casualty insurance products protect customers against losses due to collision and physical damage to their motor vehicles, uninsured and underinsured bodily injury, and liability to others for personal injury or property damage arising out of the use of those vehicles. The Company operates businesses throughout the United States and sells personal auto insurance on an Internet-only basis in Australia.
The Company offers personal and commercial property-casualty insurance products related to motor vehicles. The Company’s customer service groups, located at call centers in Mayfield Village, Ohio; Austin, Texas; Tampa, Florida; Sacramento, California; Phoenix, Arizona; and Colorado Springs, Colorado, support its policy servicing, agency distribution, claims, and direct sales operations.
The Company’s Personal Lines segment writes insurance for personal autos and recreational and other vehicles. The Personal Lines business accounted for approximately 90% of total net premiums. The Company’s personal lines products are sold through both the Agency and Direct channels.
The Personal Lines segment consists of personal auto insurance products, as well as special lines products. Special lines products include insurance for motorcycles, ATVs, RVs, mobile homes, watercraft, snowmobiles, and similar items, and represent about 10% of the Company’s personal lines business. The Company also offers a personal umbrella insurance product in 37 states and the District of Columbia through certain independent agents and to Direct customers via telephone.
The Commercial Lines business writes primary liability and physical damage insurance for automobiles and trucks owned and/or operated predominantly by small businesses and represented approximately 10% of the total net premiums written. The majority of the Company’s commercial lines customers insure two or fewer vehicles.
The commercial lines business is distributed through the independent agency channel, operates in the business market targets: Business auto – autos, vans, and pick-up trucks used by small businesses, such as retailing, farming, services, and private trucking; For-hire transportation – tractors, trailers, and straight trucks primarily used by regional general freight and expeditor-type businesses and non-fleet long-haul operators; Contractor – vans, pick-up trucks, and dump trucks used by small businesses, such as artisans, heavy construction, and landscapers/snowplowers; For-hire specialty – dump trucks, log trucks, and garbage trucks used by dirt, sand and gravel, logging, and coal-type businesses, and Tow – tow trucks and wreckers used in towing services and gas/service station businesses.
The Company’s other indemnity businesses consist of managing run-off businesses, including the run-off of the Company’s professional liability business. The Company writes these policies, principally directors and officers liability insurance for community banks which were 100% reinsured.
The Company’s service businesses include Commercial Auto Insurance Procedures/Plans (CAIP) and Commission-Based Businesses. The Company is a servicing carrier on a nationwide basis for CAIP, servicing the involuntary market in 42 states and the District of Columbia. As a service provider, the Company provides policy issuance and claims adjusting services and collects fee revenue. The Company has two commission-based service businesses. Through Progressive Home Advantage, the Company offers, either directly or through the network of independent agents, home, condominium, and renters insurance written by eleven unaffiliated homeowner’s insurance companies. Through Progressive Commercial AdvantageSM, the Company offers customers the ability to package their auto coverage with other commercial coverages that are written by seven unaffiliated insurance companies or placed with additional companies through unaffiliated insurance agencies. This program offers general liability and business owner policies throughout the continental United States and workers’ compensation coverage in 44 states as of December 31, 2013.
The Company manages claims handling on a companywide basis through approximately 275 claims offices located throughout the United States. In 48 metropolitan areas across the country, the Company has in operation 63 Service Centers, of which 30 have combined its claims offices and Service Centers. If a customer elects to repair their vehicle through this option, these service centers provide end-to-end resolution for auto physical damage losses.
6300 Wilson Mills Road
MAYFIELD VILLAGE OH 44143