8-KOther Events

PROGRESSIVE CORP/OH/ 8-K Report (Nov 1, 2002)

Filed November 1, 2002For Securities:PGR

Summary

Progressive Corporation (PGR) has filed an 8-K report on November 1, 2002, to disclose important administrative and compliance-related information. The primary focus is the implementation of a trading blackout on the company's Retirement Security Program, including its 401(k) plan, effective November 5, 2002. This temporary restriction, expected to last about two weeks, is necessary due to a change in the plan's trustee and record-keeper to a new third-party provider. During this period, participants will be unable to make investment changes or move funds between investment options, including the Progressive Stock Fund. In addition to the plan blackout, Progressive's Board of Directors has directed all Directors and Executive Officers to refrain from any transactions in the company's stock, both inside and outside the plan, for the duration of the blackout. This measure aims to prevent potential conflicts of interest or the appearance thereof during a period of limited trading access for employees. The report also confirms that Principal Officers have provided certifications under Section 906 of the Sarbanes-Oxley Act of 2002, accompanying the company's recent quarterly report.

Key Highlights

  • 1Implementation of a trading blackout on Progressive's Retirement Security Program (including 401(k) plan) starting November 5, 2002, for approximately two weeks.
  • 2The blackout is due to a change in the plan's trustee and record-keeper to a new third-party provider.
  • 3During the blackout, participants cannot change investment elections or move funds between investment options, including the Progressive Stock Fund.
  • 4Normal bi-weekly and company matching contributions will continue to be made into the plan.
  • 5Progressive's Board of Directors has restricted all Directors and Executive Officers from trading company stock (inside or outside the plan) during the blackout period.
  • 6The trading restriction for Directors and Executive Officers will automatically terminate when the plan blackout is lifted.
  • 7Principal Executive and Financial Officers have made Sarbanes-Oxley Act Section 906 certifications for the quarter ended September 30, 2002.

Frequently Asked Questions

The 'Blackout' refers to a temporary restriction on trading within The Progressive Corporation's Retirement Security Program, including its 401(k) plan. This means participants will not be able to change their investment elections or move funds between different investment options, such as the Progressive Stock Fund, for about two weeks starting November 5, 2002.

The Blackout is an administrative necessity arising from the change of the plan's trustee and record-keeper to a new third-party provider. This transition requires a temporary suspension of trading activity within the plan to ensure a smooth and accurate transfer of administration.

No, normal bi-weekly employee contributions and company matching contributions will continue to be made into the plan investments according to each participant’s existing investment elections, even during the Blackout period.

Yes, in light of the employee plan Blackout, Progressive's Board of Directors has directed all Directors and Executive Officers to refrain from trading the company's stock, both within and outside the plan, for the duration of the Blackout. This restriction is not an indefinite ban but applies only while the plan trading is suspended.