What is the company's stance on share repurchases?

Progressive has a strong commitment to share repurchases, having bought back over 4.5 million shares in the first nine months of 2009. This is part of a larger authorization to repurchase up to 50 million common shares. The primary purposes are to neutralize dilution from equity-based compensation and to return capital to shareholders when management deems it appropriate.

How has Progressive's market risk exposure changed?

The company has seen a reduction in its exposure to interest rate risk, with the duration of fixed-income instruments shortening to 2.5 years from 3.2 years at year-end 2008. Furthermore, the potential loss exposure as measured by Value-at-Risk (VaR) has significantly decreased for the total investment portfolio, falling from over $539 million at the end of 2008 to approximately $268 million by the end of Q3 2009. This reduction is attributed partly to diversification benefits.

Are there any significant changes in Progressive's internal controls or risk factors?

No, Progressive reported that its disclosure controls and procedures are effective and that there have been no material changes in its internal control over financial reporting. Additionally, there have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2008.

PGR 10-Q Quarterly Report Q3 FY2009 — Revenue, Net Income, EPS

Summary

Progressive Corporation (PGR) filed its Form 10-Q for the period ending September 29, 2009, on November 8, 2009. This report provides an update on market risk disclosures and controls, alongside details on share repurchases and executive compensation. For investors, a key takeaway is the company's continued commitment to returning capital through share repurchases, with over 4.5 million shares bought back in the first nine months of 2009, primarily to neutralize dilution from equity compensation and return underleveraged capital. The company also reassures investors that its disclosure controls and procedures remain effective and that there have been no material changes to risk factors from the prior annual report.

Financial Highlights

32 data points

Beta

Revenue

$3.61B

Net Income

$269.90M

0.1% Net Margin

EPS (Diluted)

$0.40

Total Assets

$20.05B

Cash & Equivalents

$172.50M

Free Cash Flow

$475.00M

Financial Statements

Beta

Revenue	$3.61B
Interest Expense	$35.30M
Net Income	$269.90M
EPS (Basic)	$0.40
EPS (Diluted)	$0.40
Shares Outstanding (Basic)	666.70M
Shares Outstanding (Diluted)	672.80M

Key Highlights

1Progressive Corp reported effective disclosure controls and procedures as of the end of the fiscal quarter, with no material changes to internal control over financial reporting.
2The company repurchased 4,502,476 shares of common stock in the first nine months of 2009, totaling approximately $73 million, under a board authorization for up to 50 million shares.
3Share repurchases in the first nine months of 2009 were primarily to neutralize dilution from equity-based compensation and return underleveraged capital to investors.
4The duration of the financial instruments subject to interest rate risk has decreased from 3.2 years at the end of 2008 to 2.5 years at September 30, 2009.
5Value-at-Risk (VaR) analysis indicates a reduction in potential investment portfolio losses, with the total portfolio's 66-day VaR at 99% confidence decreasing from $(539.8) million at the end of 2008 to $(267.7) million at September 30, 2009.
6The equity portfolio's beta has decreased from 1.0 at the end of 2008 to 1.1 at September 30, 2009, indicating a slight increase in sensitivity to market movements.
7A restricted stock award totaling approximately $133,000 was granted to a newly appointed director, Ms. Lawton Fitt, vesting in April 2010.

PROGRESSIVE CORP/OH/ Quarterly Report for Q3 Ended Sep 30, 2009

Summary

Financial Highlights

Key Highlights

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