Summary
The Progressive Corporation (PGR) filed an 8-K on April 15, 2009, primarily to disclose financial results for the month and year-to-date period ended March 2009, as detailed in an accompanying press release (Exhibit 99). A significant event reported under Item 2.06 is a material impairment charge of $216.5 million related to securities with "other-than-temporary" declines in market value as of March 31, 2009. This charge primarily impacted the preferred stock portfolio ($199.4 million), with smaller impacts on common equities and structured debt. While the impairment represents a realized loss, the company stated it does not anticipate future cash expenditures resulting from these charges. Investors should refer to the attached press release for a more comprehensive overview of the company's operational and financial performance during the reported period, as well as to the company's 2008 Form 10-K for further details on its accounting policies regarding other-than-temporary impairments.
Key Highlights
- 1Progressive Corporation announced financial results for the period ending March 2009 via an attached press release.
- 2The company recorded a $216.5 million charge for other-than-temporary impairments on securities as of March 31, 2009.
- 3The majority of the impairment charge ($199.4 million) was related to the preferred stock portfolio.
- 4Common equities and structured debt also experienced impairment charges of $15.7 million and $1.4 million, respectively.
- 5The company indicated that these impairment charges are not expected to result in future cash expenditures.
- 6Investors are directed to the press release (Exhibit 99) for detailed financial results and to the 2008 10-K for accounting policy explanations.