Profile: Progressive Corp (PGR.N)
14 Mar 2014
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. Its personal lines business includes insurance for personal autos and special lines products (such as motorcycles, all terrain vehicles (ATVs), recreational vehicles (RVs), mobile homes, watercraft and snowmobiles). Its Commercial Auto business offers products in 49 states. Its Claims business area is organized into four groups. Three of the groups are based on geographic region, and one is a nationwide group that provides various claims-related services, including catastrophe response and special investigations.
The Company’s property-casualty insurance products protect its 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. Its non-insurance subsidiaries and limited partnership investment affiliate generally support its insurance and investment operations. It operates its businesses throughout the United States and sells personal auto insurance on an Internet-only basis in Australia.
The Company’s Personal auto insurance includes Snapshot, its usage-based insurance product, which is available to consumers through both the Agency and Direct channels in 38 states and the District of Columbia and to consumers in five more states. It also offers a personal umbrella insurance product in 32 states through certain independent agents and to direct customers via telephone. Its Personal Lines products are sold through both the agency and direct channels. The Agency business includes business written by its network of more than 35,000 independent insurance agencies located throughout the United States, including brokerages in New York and California. The Agency business writes insurance through strategic alliance business relationships with other insurance companies, financial institutions, and national agencies. The Direct business includes business written directly by it online, via mobile devices, and over the phone.
The Commercial Auto business writes primary liability and physical damage insurance for automobiles and trucks owned by small businesses and represented approximately 10% of its total net premiums written during each of the last three years. The majority of its Commercial Auto customers insure two or fewer vehicles. The Commercial Auto business, which is primarily distributed through the independent agency channel, operates business market targets, such as business auto, which include autos, vans, and pick-up trucks used by small businesses, such as retailing, farming, services, and private trucking; for-hire transportation, which include tractors, trailers, and straight trucks primarily used by regional general freight and expeditor-type businesses and non-fleet long-haul operators; contractor, which include vans, pick-up trucks, and dump trucks used by small businesses, such as artisans, heavy construction, and landscapers/snowplowers; for-hire specialty, which include dump trucks, log trucks, and garbage trucks used by dirt, sand and gravel, logging, and coal-type businesses, and Tow, which include tow trucks and wreckers used in towing services and gas/service station businesses.
The Company’s other indemnity businesses consist of managing its run-off businesses, including the run-off of its professional liability business. It 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, which are state-supervised plans servicing the involuntary market in 42 states and the District of Columbia. As a service provider, it provides policy issuance and claims adjusting services and collects fee revenue that is earned on a pro rata basis over the terms of the related policies. It has two commission-based service businesses. Through Progressive Home Advantage, it offer, either directly or through its network of independent agents, new and existing Agency and Direct customers home, condominium, and renters insurance written by unaffiliated homeowner’s insurance companies. Through Progressive Commercial AdvantageS, it offers customers the ability to package their auto coverage with other commercial coverages that are underwritten by four unaffiliated insurance companies or placed with other companies through an unaffiliated agency. This program offers general liability and business owners policies in the 49 states where it write commercial auto insurance and workers’ compensation coverage in 14 states as of December 31, 2012.
The Company manages its claims handling on a companywide basis through approximately 280 claims offices located throughout the United States. In addition, it has operations in 54 service centers, in 41 metropolitan areas across the country, that provide its concierge level claims service, of which 14 have combined its claims offices and service centers to improve our efficiency. 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