THE PROGRESSIVE CORPORATION INVE

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					THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING
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         2010 SO FAR…

                                       Private Passenger Auto Top 15 Estimated
                                       Growth vs. Profit, 1Q 2010

                                                                                                                       PGR Direct

                                                                                                                                  Progressive
                                    Written Premium Growth




                                                                                                                                                           USAA

                                                                                                                                       GEICO              PGR Agency
                                                                                                                           Erie
                                                                                                     Liberty Mutual
                                                                        State Farm
                                                             0%                                            Travelers         Allstate
                                                                                                                                   MetLife         AmFam
                                                                                                       Mercury         Hartford
                                                                                                 Nationwide



                                                                                                                                                Farmers



                                                                  105                      100                                                                                 85
                                                                                                       Combined Ratio (high to low)
                                                                  Source: Highline data, company reports, Progressive estimates. Progressive results are for personal lines.



THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                                              1
         2010 SO FAR…

         Demand for our product is up…                                                               Retention is extending…


                                                            Total Auto Retention




                                                         Policy Life Expectancy
                                                                                  Jan   Feb Mar Apr May Jun    Jul   Aug Sep Oct Nov Dec
                                                                                              2007      2008         2009    2010




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                     2
         2010 SO FAR…

         Capital is strong…                                            Estimated Excess Layer + “Extreme Contingency” Layer
                                                                                                                                                                                                                                                                                                          Launched $350 million
                                                                                                                             $1.0 billion Issuance Junior                                                              $1.4 billion                                                                       Tender Offer for Junior
                                                                       $3,500                                                                                                                                                                               $108 million                                 Subordinated Debentures
                                                                                                                              Subordinated Debentures                                                                    Special
                                                                                                                                                                                                                                                           Annual Variable
                                                                                                                                                                                                                        Dividend
                                                                                                                                                                                                                                                              Dividend
                                                                       $3,000                                                             $100 million
                                                                                          $200 million
                                                                                                                                         Bond Maturity                                                                   $98 million
                                                                                         Bond Maturity
                                                                                                                                                                                                                       Annual Variable
                                                                                                                                                                                                                          Dividend
                                                                       $2,500
                                                                                                                                                                                                                                                                                                                                   “Desired Capital”
                                                                                                                        $1.5 billion
                                                                                                                       Dutch Tender
             From January 2004 to April 2010,
                                                                       $2,000
             Progressive generated $7.3 billion of
                                                            Millions




             net income and returned $7.0 billion
             to shareholders in the form of share                      $1,500
             repurchase ($5.3 billion) and dividends
                                                                                                                                                                                                                                                                                                                                   “Several Hundred Million”
             ($1.7 billion).
                                                                       $1,000



                                                                        $500


                                                                                                                                                                                                                                                                                                                                   Capital Concerns
                                                                          $0
                                                                                Dec-03
                                                                                         Mar-04
                                                                                                  Jun-04
                                                                                                           Sep-04
                                                                                                                    Dec-04
                                                                                                                             Mar-05
                                                                                                                                      Jun-05
                                                                                                                                               Sep-05
                                                                                                                                                        Dec-05
                                                                                                                                                                 Mar-06
                                                                                                                                                                          Jun-06
                                                                                                                                                                                   Sep-06
                                                                                                                                                                                            Dec-06
                                                                                                                                                                                                     Mar-07
                                                                                                                                                                                                              Jun-07
                                                                                                                                                                                                                       Sep-07
                                                                                                                                                                                                                                Dec-07
                                                                                                                                                                                                                                         Mar-08
                                                                                                                                                                                                                                                  Jun-08
                                                                                                                                                                                                                                                           Sep-08
                                                                                                                                                                                                                                                                    Dec-08
                                                                                                                                                                                                                                                                             Mar-09
                                                                                                                                                                                                                                                                                      Jun-09
                                                                                                                                                                                                                                                                                               Sep-09
                                                                                                                                                                                                                                                                                                        Dec-09
                                                                                                                                                                                                                                                                                                                 Mar-10
                                                                                                                                                                                                                                                                                                                          May 10
                                                                                22.8%
                                                                                         18.9%
                                                                                                  18.4%
                                                                                                           17.4%
                                                                                                                    19.9%
                                                                                                                             19.5%
                                                                                                                                      18.7%
                                                                                                                                               18.1%
                                                                                                                                                        17.4%
                                                                                                                                                                 16.9%
                                                                                                                                                                          15.6%
                                                                                                                                                                                   15.0%
                                                                                                                                                                                            14.8%
                                                                                                                                                                                                     14.6%
                                                                                                                                                                                                              28.3%
                                                                                                                                                                                                                       28.9%
                                                                                                                                                                                                                                30.6%
                                                                                                                                                                                                                                         31.4%
                                                                                                                                                                                                                                                  31.2%
                                                                                                                                                                                                                                                            33.8%
                                                                                                                                                                                                                                                                    34.0%
                                                                                                                                                                                                                                                                             33.6%
                                                                                                                                                                                                                                                                                      31.2%
                                                                                                                                                                                                                                                                                               28.4%
                                                                                                                                                                                                                                                                                                        27.5%
                                                                                                                                                                                                                                                                                                                 26.0%
                                                                                                                                                                                                                                                                                                                           25.8%
                                                         Debt to
                                                         Capital Ratio




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                                                                                                                                                                                                                         3
         CHECKLIST OF THINGS THAT MATTER BEYOND PRICE

         Positioning is on track…
                             ip
                        ersh ...                                                                                                                                                                              The
                    lead space                                                                                                                                                                              is c Agenc
                hed line                                                                                                                                                                                        han      y
           blis    on      d.                                                                                                                                                                                acc ging busine
      Esta ce in o goo
     pr
           n
        ese o far,
            s
                    s                 Internet Leadership                                                                                        Agent Retailing                                                 ept     f
                                                                                                                                                                                                                     ed or Au ss mod
                                                                                                                                                                                                                       it a    t
                                                                                                                                                                                                                            nd o — w el
                                                                                                                                                                                                                              ada     e
                                                                                                                                                                                                                                  pte ’ve
                                      Quote Initiation Trend                                                                                     % of Quotes Originating on                                                          d.
                                                               6x                                                                                Real-Time Comparative Raters
                                                               5x
                                   Company Quote Initiations




                                                               4x


                                                               3x


                                                               2x


                                                               1x


                                                                0
                                                                       Q108

                                                                              Q208

                                                                                       Q308

                                                                                               Q408

                                                                                                      Q109

                                                                                                              Q209

                                                                                                                     Q309

                                                                                                                            Q409

                                                                                                                                     Q110




                                                                                                                                                  Jan   Feb   Mar   Apr   May      Jun   Jul   Aug    Sep   Oct    Nov   Dec
                                                               Allstate.com          Esurance.com            GEICO.com             Progressive                                  2009           2010

                                                                                              Source: comScore


THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                                                                                                      4
         CHECKLIST OF THINGS THAT MATTER BEYOND PRICE
         Reach is expanding…
                                                                                                             ... Due in large part to improved capabilities
                             Policies in Force (PIF) Growth %                                                 in product and product bundling, especially
                                               (2007—2010)                                                   Progressive Home Advantage® (PHA) product



                                                                                                     Year-over-year PHA Sales
                                                                                                     22.5x
                                   Sam              Diane          Wright Family   Robinson Family
                                                                                                     20.0x
              Agency               (5)                0                  5             296
                                                                                                     17.5x
              Direct                6                14                  9             282
                                                                                                     15.0x
              Total                (1)                6                  7             284           12.5x
                                   Note: See appendix for profile descriptions.                      10.0x

                                                                                                      7.5x
             Customer tier mix has been shifting over the                                             5.0x

             last three years                                                                         2.5x
                      — Nonstandard is a smaller percentage of total PIFs                             0.0x
                      — More preferred tiers have grown meaningfully over the same time                         Jan Feb Mar Apr May Jun   Jul Aug Sep Oct Nov Dec
                                                                                                                      2007      2008       2009     2010



                                                              “Know Your Target; Act With Purpose”

THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                              5
         CHECKLIST OF THINGS THAT MATTER BEYOND PRICE

         Brand is resonating…
                                                          Degree of change signals real progress on improving
                                                               consumer perceptions toward Progressive


                     Top of Mind Awareness                  Unaided Awareness                      Familiarity             Consideration                  Preference
                      0        20           40             0           50             100     0         50       100   0          20         40   0             20        40
      Progressive             10                                            56                         26                              23                  10

           GEICO                    22                                           75                    25                              22                  11

          Allstate             15                                            66                        27                              27                            19

       State Farm                  18                                       66                              39                          28                           22


      Nationwide          3                                      20                               11                         11                       5


                               April 2010                 April 2009

         Source: Progressive’s Brand Tracker Study (Millward Brown, April 2010, April 2009)




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                                         6
         CHECKLIST OF THINGS THAT MATTER BEYOND PRICE

         Culture is the catalyst…


                 People                                    Actions
                                                                – Eliminate Reasons to Leave                                Positioning—Value/Care
                                                                – Create Reasons to Stay                                                    35
                                                                                                                                            30




                                           +
                                                           ›




                                                                                                                          Value for Money
                                                                RATE STABILITY                                                              25                                                           Progressive

                                                           ›    NET PROMOTER SCORE     ®
                                                                                                                                            20                                                           GEICO

                                                           ›    LOYALTY                                                                     15                                                           Allstate

                                                           ›    PET INSURANCE
                                                                                                                                            10
                                                                                                                                             5
                                                                                                                                                                                                         State Farm

                                                           ›    CONCIERGE CLAIMS CENTERS                                                     0
                                                                                                                                                                                                         Nationwide

                                                           ›    MULTI-PRODUCT DISCOUNTS                                                          0         10         20         30         40
                                                                                                                                                                Cares for Customers

                                                     Net Promoter® is a registered trademark of Satmetrix Systems, Inc.                              Source: Progressive’s Brand Tracker Study (Millward Brown)




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                                                                                 7
         FinAnCiAl STRUCTURE                                              Objectives
         › Manage to a 96 combined ratio                                  Profitability Progressive’s most important goal is for our
         › Maintain a liquid, diversified, and high quality               insurance subsidiaries to produce an aggregate calendar-
           investment portfolio
                                                                          year underwriting profit of at least 4%. Our business is a
         › Maintain sufficient capital to support insurance operations,
           while maximizing premium-to-surplus ratio                      composite of many product offerings defined in part by
                                                                          product type, distribution channel, geography, customer
                                                                          tenure, and underwriting grouping. Each of these prod-
                                                                          ucts has targeted operating parameters based on level of
                                                                          maturity, underlying cost structures, customer mix, and
                                                                          policy life expectancy. Our aggregate goal is the balanced
                                                                          blend of these individual performance targets in any
                                                                          calendar year.




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                 8
         MANAGING TO A 96 COMBINED RATIO

         Aggregate measures of combined ratio ultimately are
         most important, and our goal of an aggregate
         companywide 96 in any calendar year is unchanged.
                                                                                 Commission-Based               Direct Demand-Based
         With room for some debate, the Agency auto business, along                 Businesses                        Businesses
         with the special lines and Commercial Auto businesses, are best
         thought of as variable cost acquisition businesses for
                                                                               Agency   Commercial    Special      Direct Auto   Direct Auto
         which calendar-year combined ratio is an accurate                      Auto      Auto         lines          new         Renewal
         assessment.
         With a substantial base of renewal business in the Direct book,
         our calendar combined ratios have been consistently below 96.          Managed to a calendar-year          Managed to new and
         However, under certain high growth new business                          combined ratio target          renewal targets that derive
         scenarios, we would be happy to see the reported monthly                                                 a lifetime combined ratio
         and calendar-year combined ratios go above 96 for                                                              of 96 or better
         our Direct business, as long as our new and renewal
         business consistently meets predefined targets that
         ensure a lifetime result at or below 96.                              Managed to a calendar-year companywide 96 combined ratio


                                             PROGRESSIVE ANNUAL REPORT, 2009



THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                         9
         CHANNEL CHOICE DETERMINES ECONOMICS

         Cash Flow Differences (Illustrative example)
                                                           Term 1    Term 2       Term 3       Term 4   Cumulative
          Agent Channel    Policy Premium                 $ 1,000   $ 1,000      $ 1,000      $ 1,000      $ 4,000
          Personal Auto    Losses & LAE                       790         750          750        750          3,040
                           Commission                         100         100          100        100           400
                           Direct Acquisition Costs             -            -            -         -              -
                           Other Underwriting Expenses        100         100          100        100           400
                           Underwriting Margin            $    10   $      50    $      50    $    50      $    160
                           Policy Period Combined Ratio       99           95           95         95            96


                                                           Term 1       Term 2       Term 3    Term 4   Cumulative
          Direct Channel   Policy Premium                 $ 1,000   $ 1,000      $ 1,000      $ 1,000      $ 4,000
          Personal Auto    Losses & LAE                       790         750          750        750          3,040
                           Commission                           -            -            -         -              -
                           Direct Acquisition Costs           400            -            -         -           400
                           Other Underwriting Expenses        100         100          100        100           400
                           Underwriting Margin            $ (290)   $     150    $     150    $   150      $    160
                           Policy Period Combined Ratio       129          85           85         85            96




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                 10
         HOw MuCH SHOuLD wE SPEND?

         Economic Yield Analysis

         Targeted Acquisition Cost (TAC)—The amount of                 Cost per term is a
         acquisition cost assumed in pricing selections over           function of policy life
         the expected life of the policy                               expectancy

                                                                       Key question:
         Cost Per Sale (CPS)—The amount of actual acquisition
         cost (e.g., media costs and quoting platform) per             Is CPS < TAC ?
         new policy                                                    If yes, spend more
                                                                       If no, reduce spend

         Subject to:
         › Direct auto lifetime result at or below 96 combined ratio
         › Aggregate companywide calendar-year combined ratio at or below 96

THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                           11
         wHICH SCENARIO MEETS OuR OBjECTIVES?

        Direct Auto (Illustrative example)
                                                                Stylized Target   Case #1   Case #2   Q110 vs. Actual Target
         NEW
           Loss & LAE                                                   79          85        79
           Ad spend                                                     40          40        40
           Other expenses                                               10          10        10
           Combined Ratio—New                                          129         135       129
         RENEWAL
           Loss & LAE                                                   75          75        75
           Ad spend                                                      –           –         –
           Other expenses                                               10          10        10
           Combined Ratio—Renewal                                       85          85        85
         NEW PREMIUM (% OF TOTAL)                                      25%          22%       30%
         COMBINED RATIO
           Calendar Year                                                            96.0      98.2
           Lifetime                                                    96.0         97.5      96.0
         Note: Stylized targets are not Progressive’s actual targets

THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                         12
                                             DIRECT AuTO: GROwTH wITH CONTROLS
                                                                                                                                                                                                                                                                                                                                                                                                                              Media Spend
                                                                                                                                                                                                                                                                                                                                                                                                                                             $600

                                                                                                                                                                                                                                                                                                                                                                                                                                             $500

                                                                                                                                                                                                                                                                                                                                                                                                                                             $400




                                                                                                                                                                                                                                                                                                                                                                                                                              $ (Millions)
                                                                                                                                                                                                                                                                                                                                                                                                                                             $300

                                                                                                                                                                                                                                                                                                                                                                                                                                             $200
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Coupled with better creative
                                                                                                                                                                                                                                                                                                                                                                                                                                             $100
   Indexed Policies in Force
   Per Full-Time-Equivalent Employee
                                                                                                                                                                                                                                                                                                                                                                                                                                               $0
                                                                                                                                                                                                                                                                                                                                                                                                                                                      2001     2002   2003    2004   2005   2006    2007   2008    2009 2010*
   1.6                                                                                                                                      Up 11% over                                                                                                                                                                                                                                                                                                                 TV         Radio     Internet      Other
                                                                                                                                              last year                                                                                                                                                                                                                                                                                                      *2010 based on YTD Q110 actual and ROY planned spend
   1.5

   1.4                                                                                                                                                                                                                                                                                                                                                                                                      Allowing for
   1.3

   1.2
                                                                                                                                                                                                                                                                                                                                                                                                        increased marketing
   1.1                                                                                                                                                                                                                                                                                                                                                                                                         spend
   1.0

   0.9                                                                                                                                                                                                                                                                                                         Creating                                                                                                                                                                                                 Generating more
                                                                                                                                                                                                                                                                                                                                                       Subject to:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Direct Auto Quotes
                                                                                                                                                                                                                                                                                                           efficiency gains                                                                                                                                                                                                demand
         Jan-04
                  Apr-04
                           Jul-04
                                    Oct-04
                                             Jan-05
                                                           Apr-05
                                                                    Jul-05
                                                                             Oct-05
                                                                                      Jan-06
                                                                                               Apr-06
                                                                                                        Jul-06
                                                                                                                 Oct-06
                                                                                                                          Jan-07
                                                                                                                                   Apr-07
                                                                                                                                            Jul-07
                                                                                                                                                     Oct-07
                                                                                                                                                              Jan-08
                                                                                                                                                                       Apr-08
                                                                                                                                                                                Jul-08
                                                                                                                                                                                         Oct-08
                                                                                                                                                                                                  Jan-09
                                                                                                                                                                                                           Apr-09
                                                                                                                                                                                                                    Jul-09
                                                                                                                                                                                                                               Oct-09
                                                                                                                                                                                                                                          Jan-10
                                                                                                                                                                                                                                                     Apr-10




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           2x




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    New Unique Prospects
                                                                                                                                                                                                                                                                                                                                                       › Direct Auto lifetime result at or                                                                                                                                                                                                                                 1x




                                                                                                                                                                                                                                                                                                                                                                        below 96 combined ratio                                                                                                                                                                                                                                 Jan Feb Mar Apr May Jun       Jul Aug Sep Oct Nov Dec




                                                                                                                                                                                                                                                                                                                                                       ›
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  2008       2009         2010




                                                                                                                                                                                                                                                                                                                                                                        Aggregate companywide calendar-year
                                                                                                                                                                                                                                                                                                                                                                        combined ratio at or below 96
                                             Direct Auto Policies in Force                                                                                                                                                                                                                                            Building a                                                                                                                                                                                Driving a                                                                                                                             Coupled with
                                                               3,500
                                                                                                                                                                                                                                                                                                                    larger Direct                                                                                                                                                                               different                                                                                                                             improving
                                                               3,250
                                                                                                                                                                                                                                                                                                                       business                                                                                                                                                                               customer mix                                                                                                                            conversion
                                                               3,000
                                                                                                                                                                                                                                                                                                                                                                                                            leading to
                                             PIFs (000s)




                                                               2,750

                                                               2,500                                                                                                                                                                                                                                                                                                                                      better retention                                                                                                                                                 Direct Auto Conversion
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           3.0X
                                                               2,250
                                                                                                                                                                                                                                                                                                                              Direct Auto Retention                                                            rates                                              Policies in Force (PIF) Growth %
                                                               2,000
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           2.5X




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Indexed Conversion
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            (2007—2010)
                                                                                        Jan-05
                                                                                                 Apr-05
                                                                                                           Jul-05
                                                                                                                    Oct-05
                                                                                                                             Jan-06
                                                                                                                                      Apr-06
                                                                                                                                                Jul-06
                                                                                                                                                         Oct-06
                                                                                                                                                                  Jan-07
                                                                                                                                                                           Apr-07
                                                                                                                                                                                     Jul-07
                                                                                                                                                                                              Oct-07
                                                                                                                                                                                                       Jan-08
                                                                                                                                                                                                                Apr-08
                                                                                                                                                                                                                             Jul-08
                                                                                                                                                                                                                                        Oct-08
                                                                                                                                                                                                                                                   Jan-09
                                                                                                                                                                                                                                                              Apr-09
                                                                                                                                                                                                                                                                       Jul-09
                                                                                                                                                                                                                                                                                Oct-09
                                                                                                                                                                                                                                                                                         Jan-10
                                                                                                                                                                                                                                                                                                  Apr-10




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           2.0X


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           1.5X
                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Sam                   Diane            Wright Family   Robinson Family

                                                                                                                                                                                                                                                                                                                                                                                                                                              Agency                         (5)                    0                    5              296                                1.0X
                                                                                                                                                                                                                                                                                                                                                                                                                                              Direct                         6                     14                    9              282                                       Jan   Feb   Mar   Apr                    May    Jun     Jul   Aug   Sep   Oct     Nov   Dec
                                                                                                                                                                                                                                                                                                                               Jan   Feb   Mar   Apr May   Jun    Jul   Aug    Sep    Oct   Nov   Dec
                                                                                                                                                                                                                                                                                                                                             2007          2008         2009         2010                                                     Total                          (1)                    6                    7              284                                                                         2008                2009      2010




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  13
                                                                                                                    Claims Quality                                                                                                                         Indexed Loss Adjustment
      SUPERioR ClAiMS SERviCE
                                                                                                                    1.00                                                                                                                                   Cost Per Feature
      › Consumer-focused solutions and choices                                                                      0.90                                                                                                                                                1.10

        that allow for effective claims resolution                                                                  0.80
                                                                                                                                                                                                                                                                        1.05
                                                                                                                                                                                                                                                                                                                                                          No
                                                                                                                                                                                                                                                                                                                                                            ta
                                                                                                                    0.70                                                                                                                                                                                                                                           ble
      › Empathetic support for people during what are usually                                                       0.60
                                                                                                                                                                                                                                                                        1.00
                                                                                                                                                                                                                                                                                                                                                                         an
                                                                                                                                                                                                                                                                                                                                                                                d
                                                                                                                                                                                                                                                                                                                                                                                    su
        difficult and frustrating circumstances                                                                     0.50
                                                                                                                                                                                                   eme
                                                                                                                                                                                                       nt
                                                                                                                                                                                                                                                                                                                                                                                      sta
                                                                                                                                                                                                                                                                                                                                                                                              ina
                                                                                                                                                                                             nc                                                                         0.95                                                                                                                     ble
                                                                                                                                                                                        adva
                                                                                                                    0.40

      › Match employee skills with claims and feature complexity                                                    0.30
                                                                                                                                                                S  usta
                                                                                                                                                                        ine         d
                                                                                                                                                                                                                                                                        0.90
                                                                                                                    0.20
      › Local presence with high quality outcomes                                                                   0.10                                                                                                                                                0.85
                                                                                                                    0.00
                                                                         Moving the curve by                                                                                                                                                                            0.80




                                                                                                                           2001

                                                                                                                                      2002

                                                                                                                                                       2003

                                                                                                                                                                    2004

                                                                                                                                                                              2005

                                                                                                                                                                                         2006

                                                                                                                                                                                                   2007

                                                                                                                                                                                                             2008

                                                                                                                                                                                                                        2009

                                                                                                                                                                                                                                   2010
                                                                                                                                                                                                                                    YTD
                                                                         process restructuring




                                                                                                                                                                                                                                                                                        2005




                                                                                                                                                                                                                                                                                                           2006




                                                                                                                                                                                                                                                                                                                             2007




                                                                                                                                                                                                                                                                                                                                                 2008




                                                                                                                                                                                                                                                                                                                                                                         2009



                                                                                                                                                                                                                                                                                                                                                                                              2010
                                                                                                                                                                                                                                                                                                                                                                                               YTD
                                                                                                                    Overall Claims Work Environment                                                                                                  Claims Customer Loyalty
                        Total Loss Costs & LAE




                                                                                                                    1.10                                                                                                                                                82
                                                        Dr




                                                                                                                                                                                                             Understandable and
                                                         ive




                                                                                                                                                                                                                                                                        78
                                                                                                                    1.08                                                                                      a new trajectory
                                                          do
                                                             wn




                                                                                                                                                                                                                                                                        74




                                                                                                                                                                                                                                                   Net Promoter Score
                                                                                                                    1.06
                                                                                                                                                                                                                                                                                                                                                           ctory
                                                                th




                                                                                                                                                                                                                                                                                                                                               r traje
                                                                   e




                                                                                                                                                                                                                                                                                                                               steepe
                                                                                                                                                                                                                                                                        70
                                                                 cu




                                                                                                                    1.04                                                                                                                                                                                        even
                                                                                                                                                                                                                                                                                                          ng an
                                                                   rve




                                                                                              e                                                                                                                                                                                                       ti
                                                                                           rv                                                                                                                                                                                              Expec
                                                                                                                                                                                                                                                                        66
                                                                                         cu
                                                                                     e                              1.02
                                                                                   th                                                                                                                                                                                   62
                                                                           o  ve
                                                                          M                                         1.00                                                                                                                                                58

                                                                                                                    0.98                                                                                                                                                54
                                                                                                  Competitiveness
                                                                                                  Gain                                                                                                                                                                  50
                                                                                                                    0.96




                                                                                                                                                                                                                                                                               Sep-06

                                                                                                                                                                                                                                                                                        Jan-07

                                                                                                                                                                                                                                                                                                 May-07

                                                                                                                                                                                                                                                                                                           Sep-07

                                                                                                                                                                                                                                                                                                                    Jan-08

                                                                                                                                                                                                                                                                                                                             May-08

                                                                                                                                                                                                                                                                                                                                      Sep-08

                                                                                                                                                                                                                                                                                                                                                 Jan-09

                                                                                                                                                                                                                                                                                                                                                               May-09

                                                                                                                                                                                                                                                                                                                                                                          Sep-09

                                                                                                                                                                                                                                                                                                                                                                                     Jan-10

                                                                                                                                                                                                                                                                                                                                                                                                May-10
                                                                                                                             Mar-07


                                                                                                                                             June-07


                                                                                                                                                              Sep-07


                                                                                                                                                                           Mar-08


                                                                                                                                                                                         June-08


                                                                                                                                                                                                    Sep-08


                                                                                                                                                                                                               Mar-09


                                                                                                                                                                                                                               Sep-09


                                                                                                                                                                                                                                          Mar-10
                                                 Loss Adjustment Expenses (LAE)




                                                                          “Can Claims create a sustainable pricing advantage?”
THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                                                                                                                                                                                                                                                                   14
         inDUSTRy-lEADinG PRoDUCT oFFERinG
         › Open and priced for all drivers, and designed
             for those who intend to maintain coverage
         › Industry-leading price segmentation reflecting
             the economics of each segment
         › Accurate pricing at acquisition coupled
             with renewal treatments responsive to life
             and insurance events
         › Consumer segment-focused features and coverages

THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING       15
         SEGMENTATION OVERVIEw


         ›     We price to cover expected lifetime costs of insuring a risk in a
               channel
         ›     Costs include:
         	        L
               •	 	 osses
         	        O
               •	 	 perations
         	        A
               •	 	 cquisition
         ›     Channels include:
         	        A
               •	 	 gency
         	     •	 Direct

THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                             16
         wHY SEGMENTATION MATTERS



                                Carrier A                 Both carriers price all risks at   Carrier B
                                                         $1,000 each year to cover costs.




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                   17
         wHY SEGMENTATION MATTERS



                                Carrier A                 Both carriers price all risks at         Carrier B
                                                         $1,000 each year to cover costs.




              Average indicated price = $1,000                                          Average indicated price = $1,000
              Average charged price = $1,000                                            Average charged price = $1,000


THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                     18
         wHY SEGMENTATION MATTERS



                                Carrier A                 Carrier B figures out that while the     Carrier B
                                                           average price needs to be $1,000
                                                         each year, half of the risks should be
                                                          priced at $1,200 each year and the
                                                         other half at $800 each year. Carrier A
                                                            still prices at $1,000 each year.




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                         19
         wHY SEGMENTATION MATTERS

                                                          Carrier B figures out that while the
                                                           average price needs to be $1,000
                                Carrier A                each year, half of the risks should be         Carrier B
                                                          priced at $1,200 each year and the
                                                         other half at $800 each year. Carrier A
                                                            still prices at $1,000 each year.

                                                                   Carrier A wins the
                                                                   underpriced risks

                                                             Carrier B wins the lower-risk,
                                                              appropriately-priced risks


              Average indicated price = $1,200                                                Average indicated price = $800
              Average charged price = $1,000                                                  Average charged price = $800


THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                         20
         ENHANCING SEGMENTATION CAPABILITIES


                                                         › Credit
             new variables/data                          › Occupation/education

                                                         › Age and gender
                   interactions                          › Age and vehicle

                                                         › Modeling frequency and severity separately versus modeling pure premium
                 Better science                          › Using improved statistical techniques to estimate loss relativities (e.g., generalized linear models,
                                                             neural networks, etc.)


                                                         › Legal/regulatory                                   › Gaming/verification
                   Constraints                           › Consumer acceptance                                › Ability to acquire data
                                                         › Customer experience
                                                         	   •	 Illogical	rates
                                                         	   •	 Customer	knowledge	at	time	of	quote




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                             21
         HISTORY OF IMPROVING SEGMENTATION


                                                        100%
                                                                          Uneven
                                                                        Distribution

                                                        80%
                               Cumulative % of Wealth




                                                        60%
                                                                                                             Perfectly Evenly
                                                                                                               Distributed
                                                        40%



                                                        20%



                                                         0%
                                                               0%               20%     40%                 60%                 80%          100%
                                                               High Wealth                                                            Low Wealth
                                                                                       Population Sorted by Wealth




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                              22
         A HISTORY OF IMPROVING SEGMENTATION


                                                               100%
                                                                                      Approximate Annual
                                                                                  Distribution of Actual Losses

                                                               80%
                               Cumulative % of Actual Losses




                                                               60%
                                                                                                                                    Average Pricing


                                                               40%



                                                               20%



                                                                0%
                                                                      0%                   20%                    40%              60%                80%        100%
                                                                      High Risk                                                                             Low Risk
                                                                                                          Population Sorted by Predicted Risk




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                                  23
         A HISTORY OF IMPROVING SEGMENTATION


                                                               100%


                                                                                  Perfect Model
                                                               80%
                               Cumulative % of Actual Losses




                                                                                          8.0 – 2009                     2.0 – ca. 1994
                                                               60%

                                                                                                        4.0 – ca. 2000            Average Pricing


                                                               40%



                                                               20%



                                                                0%
                                                                      0%               20%                  40%                   60%               80%        100%
                                                                      High Risk                                                                           Low Risk
                                                                                                       Population Sorted by Predicted Risk




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                                24
         TAKING THE BEST OF BOTH wORLDS




                                                         Direct Quoting   Agent Quoting

                       Direct                                                                Agency
                      Servicing                                                             Servicing
                     Procedures                                                            Procedures
                                                         Direct Product   Agency Product

                       Direct                                                                Agency
                     Follow-up                                                             Follow-up
                     Procedures                                                            Procedures




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                  25
         TAKING THE BEST OF BOTH wORLDS


                                                                                                                    Keep these separate to
                                                                                                                    optimize the end-user
                                                                                                                          experience

                                                     Direct Quoting                           Agent Quoting



                     Integrated                                                                                   Integrated




                                                                                                 Specifics
                                                            Specifics




                                                                                                 Agency
                                                             Direct


                     Follow-up                                             Integrated                              Servicing
                     Procedures                                              Product                              Procedures


                                                          Integrate product as much as possible to move to
                                                            lower cost and complexity and improve speed
                                                                                                              Integrate these to minimize
                                                                                                                 service representative
                                                                                                                       complexity



THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                       26
         TAKING THE BEST OF BOTH wORLDS


                                        8.0 vs. Prior Direct Product
                                        ALL COVERAGES COMBINED

                                                                                                       Actual Rate Change




                                                                                                                                       Percent of Policies
                                                                                                                Indicated Rate
                                       Rate Change




                                                                                                                   Change
                                                     0%
                                                                                         Implied New Loss
                                                                                          Ratio Relativity




                                                                                                                                  0%
                                                          Rate Decreases   Rate Change                           Rate Increases




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                       27
         RECOGNIzING MATERIAL CHANNEL DIFFERENCES


                           Agency vs. Direct Loss Cost Estimates (Before and After 8.0)
                         Percent of Policies




                                                                                              RATE CHANGE
                                               Agency Has Higher Prices                                                           Direct Has Higher Prices
                                                                          Before 8.0/Indemnity Only    After 8.0/Indemnity Only




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                       28
         RECOGNIzING MATERIAL CHANNEL DIFFERENCES


                           Post-8.0 Agency vs. Direct Rate Change Histogram
                         Percent of Policies




                                                                                                     RATE CHANGE
                                               Agency Has Higher Prices                                                                           Direct Has Higher Prices
                                                                          After 8.0/Indemnity Only         After 8.0/ With Acquisition Recovery




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                                       29
               INCORPORATING ACquISITION ExPENSES BY CHANNEL


        Low premium, short life expectancy policy                                             High premium, long life expectancy policy
                                     Expenses ($)




                                                                                                 Expenses ($)
       Prorate acquisition expense
         over expected policy life




                                                    1   2   3       4       5    6    7   8                     1   2   3       4       5    6    7   8
                                                                   Policy Term                                                 Policy Term
                                                                Direct       Agency                                         Direct       Agency
                                     Premium ($)




                                                                                                 Premium ($)
                                                    1   2   3       4       5    6    7   8                     1   2   3       4       5    6    7   8
                                                                   Policy Term                                                 Policy Term
                                                                Direct       Agency                                         Direct       Agency




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                    30
         EARLY 8.0 RESuLTS MEETING ExPECTATIONS


        ›     8.0 currently in ~10 states; will be in states representing 60-70% of net
              premiums written by year-end
        ›     Our recent rate stability initiatives will mitigate the effect on renewal
              business
        	        G
              •	 	 ood	for	retention                                                 5%

        	        S
              •	 	 lows	speed	of	adverse	selection




                                                           Percentage point change
                                                                                     4%

        ›     Early results suggest that we’re




                                                                 in sales mix
                                                                                     3%

              getting a slightly more preferred                                      2%

              mix of business and that loss ratios                                   1%


              (very thin) look close to targets                                      0%
                                                                                          Multi-car   Homeowner    Full Coverage   Preferred
                                                                                                          Direct      Agency




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                         31
         MORE wORK IN THE LAB


                                                               100%


                                                                                  Perfect Model
                                                               80%
                               Cumulative % of Actual Losses




                                                                                                        “9.0”?

                                                                                          8.0 – 2009                     2.0 – ca. 1994
                                                               60%

                                                                                                        4.0 – ca. 2000            Average Pricing


                                                               40%



                                                               20%



                                                                0%
                                                                      0%               20%                  40%                   60%               80%        100%
                                                                      High Risk                                                                           Low Risk
                                                                                                       Population Sorted by Predicted Risk




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                                32
         uSAGE-BASED INSuRANCE: THE NExT BIG THING


         Traditional Rating Variables
         › Driving Record                                Single Trip Record
         › Territory
         › Symbol
         › Age
         › Gender




                                                         Speed
         › Marital Status
         › Prior Insurance
                                                                            Time (seconds)
             ~50 data points altogether
         › Credit
             ~2,000 data points altogether                       ~1,000 data points altogether


THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                           33
         uSAGE-BASED INSuRANCE: THE NExT BIG THING


         Traditional Rating Variables                    Trips during first policy period
         › Driving Record
         › Territory
         › Symbol
         › Age
         › Gender
         › Marital Status
         › Prior Insurance
             ~50 data points altogether
         › Credit
             ~2,000 data points altogether                ~750,000 data points altogether


THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                      34
         lEADERSHiP BRAnD
         › Widely recognized as an industry leader with broad
           presence and powerful awareness
         › Messaging and spending aligned with segment needs and
           growth opportunities
         › Marketing communications investments balanced to drive
           both acquisition and retention


THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING              35
                           Discount                                  Coupon Lady

                               wIDELY RECOGNIzED AS AN INDuSTRY LEADER wITH
                                 BROAD PRESENCE AND POwERFuL AwARENESS




                 Shopping                                                    Calculator
                                                         Rival

THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                    36
                  BROAD PRESENCE


     Media Spend                                                                                          Share of Voice (Offline)
                 $600                                                                                     25%


                 $500
                                                                                                          20%

                 $400
                                                                                                          15%
    $ millions




                 $300
                                                                                                          10%
                 $200

                                                                                                          5%
                 $100


                   $0                                                                                     0%
                        2001   2002   2003     2004       2005    2006      2007   2008    2009   2010*         2001   2002   2003   2004   2005     2006     2007   2008   2009   Q110

                                        TV        Radio          Internet      Other
                                                                                                                                            Source: Nielsen
                                 *2010 based on YTD Q110 actual and rest of year planned spend




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                                                    37
          POwERFuL AwARENESS AND POSITIONING
                                                          Unaided Awareness
                                                          58
                                                          56
                                                          54
                                                          52
                                                          50
                                                          48
                                                          46
                                                          44
                                                               Q1 07

                                                                         Q2 07

                                                                                   Q3 07

                                                                                           Q4 07

                                                                                                   Q1 08

                                                                                                           Q2 08

                                                                                                                   Q3 08

                                                                                                                           Q4 08

                                                                                                                                    Q1 09

                                                                                                                                                         Q2 09

                                                                                                                                                                     Q3 09

                                                                                                                                                                             Q4 09

                                                                                                                                                                                     Q1 10
          Positioning—Value/Care                                                                                                    Positioning—Ease/Service
                          35                                                                                                                             35
                          30                                                                                                                             30




                                                                                                                                   Friendly, Personal,
        Value for Money




                          25                                            Progressive                                                                      25                                                 Progressive




                                                                                                                                       Accessible
                          20                                            GEICO                                                                            20                                                 GEICO
                          15                                            Allstate                                                                         15                                                 Allstate
                          10                                            State Farm                                                                       10                                                 State Farm
                           5                                                                                                                               5
                                                                        Nationwide                                                                                                                          Nationwide
                           0                                                                                                                               0
                               0   10      20       30   40                                                                                                      0            10             20   30   40
                                   Cares for Customers                                                                                                                          Makes Process Easier
                                                                       Source: Progressive’s Brand Tracker Study (Millward Brown)


THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                                                                                    38
                                             MESSAGING ALIGNED wITH SEGMENTS;
             Multi-Product
              Households
                                              INVESTMENTS TO DRIVE RETENTION
                                                                                          Pet Owners




                                  Bundlers                              Rewards Seekers

THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                 39
         MESSAGING ALIGNED wITH GROwTH OPPORTuNITIES


                                                         THE SnAPSHoT
                                                         DiSCoUnT




                                                                               “Smile”
                                                                          You can Save up to
                                                                        30% more with SnapShot




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                           40
         SPEND ALIGNED wITH GROwTH OPPORTuNITIES


                                               Media Spend
                                                           $600


                                                           $500
                                                                                                                                          •	Paid	Search
                                                           $400                                                                           •	Display/ Video
                                              $ millions




                                                           $300
                                                                                                                                          •	Fixed/Affiliate
                                                                                                                                          •	Other
                                                           $200


                                                           $100


                                                            $0
                                                                  2001   2002   2003   2004   2005   2006   2007   2008    2009   2010*

                                                                                 TV       Radio       Internet     Other

                                                                   *2010 based on YTD Q110 actual and rest of year planned spend




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                        41
         ONLINE SEARCH MARKETING




                                                         Sponsored Links
                                                                                  Approximate Cost Per Click
                                                                           Generic (“Car Insurance”)         $20.00
                                                                           Brand (“Progressive Insurance”)     $.50
                                                                           Organic                              $0




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                42
         POwER OF BRAND


                                                         › Brand Funnel           › Generic Funnel
                                                         1,000 Quote Starts       1,000 Quote Starts

         Percent Quotes Finished                                              x                        .97x


         Finish Quote and Start Buy                                           y                        .85y


         Start Buy and Finish Buy                                             z                        .84z

                                                             126 Sales                 87 Sales
         Search Media Cost
         Per Sale (implied)                                     $4                      $227

THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                        43
         BRAND AND GENERIC SEARCH

                                                                                                               Indexed Brand Queries
                                                                                                               250

                                                                                                               200

                                                                                                               150

           Progressive Quote Mix                                                                               100

                                                                                                                50

                                                                                                                0




                                                                                                                     Dec-07

                                                                                                                              Mar-08

                                                                                                                                       Jun-08

                                                                                                                                                Sep-08

                                                                                                                                                         Dec-08

                                                                                                                                                                  Mar-09

                                                                                                                                                                           Jun-09

                                                                                                                                                                                    Sep-09

                                                                                                                                                                                             Dec-09

                                                                                                                                                                                                      Mar-10
                                                                                                               Indexed Generic Queries
             Dec-07



                       Mar-08



                                Jun-08



                                          Sep-08



                                                     Dec-08



                                                              Mar-09



                                                                           Jun-09



                                                                                    Sep-09



                                                                                             Dec-09



                                                                                                      Mar-10
                                                                                                               250

                                                                                                               200

                                                   Generic             Brand                                   150

                                                                                                               100

                                                                                                                50

                                                                                                                0




                                                                                                                     Dec-07

                                                                                                                              Mar-08

                                                                                                                                       Jun-08

                                                                                                                                                Sep-08

                                                                                                                                                         Dec-08

                                                                                                                                                                  Mar-09

                                                                                                                                                                           Jun-09

                                                                                                                                                                                    Sep-09

                                                                                                                                                                                             Dec-09

                                                                                                                                                                                                      Mar-10
                                                                                                                                                  Source: Google



THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                                                                         44
          ORGANIC SEARCH

          Search Ranking—Car Insurance                                                                                                               New Quote Starts—Organic
                          30                                                                                                                         5x



                          25
                                                                                                                                                     4x


                          20
        Average Ranking




                                                                                                                                                     3x

                          15                                                                                                                                                                                                                CAGR
                                                                                                                                                                                                                                            ~ 30%
                                                                                                                                                     2x
                          10


                                                                                                                                                     1x
                           5



                           0                                                                                                                         0
                               Mar-08

                                        May-08

                                                 Jul-08

                                                           Sep-08

                                                                    Nov-08

                                                                             Jan-09

                                                                                      Mar-09

                                                                                               May-09

                                                                                                        Jul-09

                                                                                                                 Sep-09

                                                                                                                          Nov-09

                                                                                                                                   Jan-10

                                                                                                                                            Mar-10




                                                                                                                                                          Jan-08

                                                                                                                                                                   Apr-08

                                                                                                                                                                            Jul-08

                                                                                                                                                                                     Oct-08

                                                                                                                                                                                              Jan-09

                                                                                                                                                                                                       Apr-09

                                                                                                                                                                                                                Jul-09

                                                                                                                                                                                                                         Oct-09

                                                                                                                                                                                                                                  Jan-10

                                                                                                                                                                                                                                           Apr-10
                                                          Google             Yahoo              Bing




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                                                                                                              45
         MANAGING VOLuME AND SPEND REAL TIME




                                                         Size = Number of E-Marketing Quotes




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                         46
         LEADERSHIP wITH ONLINE SHOPPING AND BuYING

                  Quote Initiation Trend                                                                                                              Purchase Initiation Trend
                                                                                                                                                                                   10x
                                            6x
                                                                                                                                                                                    9x
                                            5x
                                                                                                                                                                                    8x




                                                                                                                                                    Company Purchase Initiations
                Company Quote Initiations




                                                                                                                                                                                    7x
                                            4x
                                                                                                                                                                                    6x

                                            3x                                                                                                                                      5x

                                                                                                                                                                                    4x
                                            2x
                                                                                                                                                                                    3x

                                            1x                                                                                                                                      2x

                                                                                                                                                                                    1x
                                            0
                                                                                                                                                                                    0
                                                      Q108


                                                                Q208


                                                                       Q308


                                                                              Q408


                                                                                       Q109


                                                                                              Q209


                                                                                                     Q309


                                                                                                            Q409


                                                                                                                     Q110




                                                                                                                                                                                             Q108


                                                                                                                                                                                                        Q208


                                                                                                                                                                                                               Q308


                                                                                                                                                                                                                      Q408


                                                                                                                                                                                                                                Q109


                                                                                                                                                                                                                                       Q209


                                                                                                                                                                                                                                              Q309


                                                                                                                                                                                                                                                     Q409


                                                                                                                                                                                                                                                              Q110
                                                 Allstate.com           Esurance.com           GEICO.com           Progressive
                                                                                                                                                                                         Allstate.com            Esurance.com           GEICO.com           Progressive
                                                                                                                                 Source: comScore



THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                                                                                                                                    47
    Name Your Price ® Continues
           To Go Well
         NAME YOuR PRICE® CONTINuES TO GO wELL




                                Conversion Relativities


   Edit Coverage



        NYP Flow



   No Interaction


                              0.50         1.00          1.50   2.00   2.50




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                             48



                                                                              14
         IMPROVING RETAILING ONLINE

                 Relative Presented Price                                                         Initial Presented Price Difference
                 (Sample Population)
                                                                                                  GEICO Average Price                          $ 745   % of Total
                                       50%
                                                                                                                                                       Difference
                                                                                                     Differences in:
                                       40%                                                             Vehicle Coverage Recommendation         $ 85      46%
           Move on to Purchase Phase




                                                                                                       Liability Coverage Recommendation          49     27%
                                       30%                                                             Roadside/Rental Recommendation             30     16%
                                                                                                       Other (Actual Rate)                        21     11%
                                                                                                          Total Quoted Price                   $ 185
                                       20%


                                                                                                  Progressive Average Price                    $ 930
                                       10%



                                       0%
                                             GEICO                                  PGR
                                             Lower   GEICO/Progressive             Lower
                                                     GEICO      Progressive
                                                                              Source: Analysis conducted internally using data from comScore


THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                              49
         TAILORING COVERAGE RECOMMENDATIONS

               Recommended Liability Limits
               50%
                                                                                                                                                     Quoted Rates on Older Vehicles
               40%
                                                                                                                                                                    10%
               30%
                                                                                                                                                                    8%




                                                                                                                                                    % of Vehicles
               20%
                                                                                                                                                                    6%
               10%
                                                                                                                                                                    4%
                0%
                         <25/50                     25/50                   50/100                     100/300              >100/300                                2%
                                                              GEICO                           Progressive
                                                                                                                                                                    0%
                Source: Analysis conducted internally using data from comScore                                                                                            50   150 250 350 450 550 650 750 850 950 1050 1150 1250 1350 1450

                                                                                                                                                                                               Quoted Premium per Car
               New Business Mix                                                                                                                                                                      Pre       Post
               30%
               28%
               26%
               24%                                                                                                                                                        Vehicles Quoted with Collision Coverage
               22%                                                                                                                                                           Pre: 69%           Post: 50%
               20%
               18%
               16%
                                                                                                                                                                          Total Conversion Lift:                              1.7%
               14%
               12%                                                                                                                                                        Average Written Premium Change: - 0.8%
               10%
                                                                                                                                                                          Total Premium Gain:                                 0.8%
                      Feb-08

                               Apr-08

                                        Jun-08

                                                 Aug-08

                                                          Oct-08

                                                                   Dec-08

                                                                            Feb-09

                                                                                     Apr-09

                                                                                              Jun-09

                                                                                                       Aug-09

                                                                                                                Oct-09

                                                                                                                         Dec-09

                                                                                                                                  Feb-10

                                                                                                                                           Apr-10




                                        100/300                    50/100                        25/50                     <25/50



THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                                                                                                        50
                       Presentation Matters – Special Lines
         ONLINE RETAILING—SPECIAL LINES

           Pre                       Pre                                               Post                   Post
                                                                                                              Post
                                     Pre




                                                         Total Conversion   Average Written   Total Premium
                                                                lift        Premium Change         Gain
                                                              17%                -8%               7%




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                               51
                            DIRECT RESPONSE AND CONVERSION

       Direct Auto Quotes                                                                                                                                                       Direct Auto Conversion
                                                                                                                                                                                                   3.0x
     New Unique Prospects




                            2x




                                                                                                                                                                              Indexed Conversion
                                                                                                                                                                                                   2.5x

                                                                                                                                                                                                   2.0x
                            1x
                                                                                                                                                                                                   1.5x

                                                                                                                                                                                                   1.0x
                                 Jan Feb Mar Apr May Jun   Jul Aug Sep Oct Nov Dec                                                                                                                        Jan   Feb Mar Apr May Jun    Jul    Aug Sep Oct Nov Dec
                                               2008        2009   2010                                                                                                                                                         2008    2009      2010

                                                                              Total—Direct New Business
                                                                                                    1.5x                                                                                                             2.4x
                                                                         Average Premium/Car Year




                                                                                                                                                                                                                     2.2x
                                                                                                                                                                                                                     2.0x




                                                                                                                                                                                                                            $WP/week
                                                                                                                                                                                                                     1.8x
                                                                                                                                                                                                                     1.6x
                                                                                                                                                                                                                     1.4x
                                                                                                                                                                                                                     1.2x
                                                                                                    1.0x                                                                                                             1.0x
                                                                                                           Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10

                                                                                                                                     WP Per Car Year               WP/Week



THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                                                                                                                              52
                                                                                                   Mobile is still early but demonstrating
                                                                                                   substantial growth in adoption
         SERviCE THAT STREnGTHEnS RElATionSHiPS
         › High frequency, routine transactions are very easy to                                                                         Mobile is still early but
           execute electronically and primarily self usage
                         Customers continue to increase serviced                                                                         demonstrating substantial
         › Expert, timely,of online services personal counsel for more
                           relevant, and                                                                                                 growth in adoption
           complex situations via Web, phone, or agent                                                                                       9x

         › Reasonable integration of products within a household                                                                             8x
                                                                                                                                             7x
                                                                                                                                             6x
                                                                                                                                             5x


                  Customers continue to increase
                                                                                                                                             4x
                                                                                                                                             3x


                  usage of online services
                                                                                                                                             2x
                                                                                                                                             1x
                                                                                                                                             0x
                  SELF-SERVICE RATES




                                                                                                                                                  Jan-09

                                                                                                                                                           Feb-09

                                                                                                                                                                    Mar-09

                                                                                                                                                                             Apr-09

                                                                                                                                                                                      May-09

                                                                                                                                                                                               Jun-09

                                                                                                                                                                                                        Jul-09

                                                                                                                                                                                                                 Aug-09

                                                                                                                                                                                                                          Sep-09

                                                                                                                                                                                                                                   Oct-09

                                                                                                                                                                                                                                            Nov-09

                                                                                                                                                                                                                                                     Dec-09

                                                                                                                                                                                                                                                              Jan-10

                                                                                                                                                                                                                                                                       Feb-10

                                                                                                                                                                                                                                                                                Mar-10

                                                                                                                                                                                                                                                                                         Apr-10
                 Completed Online




                                                                                                                                                                         Mobile Web Payments                                         iPhone Payments
                  % Transactions




                                    Jan   Feb   Mar Apr May Jun    Jul   Aug Sep   Oct   Nov Dec

                                                    2008          2009         2010




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                                                                                                                                                            53
         SERVICE THAT STRENGTHENS RELATIONSHIPS

         We are making strides on both service and cost
                  Better




                                       State Farm                                                 1 – 2005
                                                           1                                      2 – 2006
                            GEiCo                  4
                                                               5
                                                                                                  3 – 2007         Indexed Policies in Force
                                           1        2                                             4 – 2008         Per Full-Time-Equivalent Employee
                                   3                                                              5 – 2009
                                                                                                                   1.6                                                                                                                                 Up 11% over
                                       2           3                               Allstate                                                                                                                                                              last year
                                                                           1                                       1.5
        Service




                                   5                                   4
                                                                   3
                    0                                                  2                                           1.4
                                       4
                                                   54
                                                                   5                                               1.3
                                               3                                   2
                                                                                                                   1.2
                                                                                              Travelers
                                                                                       4                           1.1
                                                   2
                                                       1                                                           1.0
                                                                   1           3              5
                  Worse




                                   Progressive                                                                     0.9




                                                                                                                         Jan-04
                                                                                                                                  Apr-04
                                                                                                                                           Jul-04
                                                                                                                                                    Oct-04
                                                                                                                                                             Jan-05
                                                                                                                                                                      Apr-05
                                                                                                                                                                               Jul-05
                                                                                                                                                                                        Oct-05
                                                                                                                                                                                                 Jan-06
                                                                                                                                                                                                          Apr-06
                                                                                                                                                                                                                   Jul-06
                                                                                                                                                                                                                            Oct-06
                                                                                                                                                                                                                                     Jan-07
                                                                                                                                                                                                                                              Apr-07
                                                                                                                                                                                                                                                       Jul-07
                                                                                                                                                                                                                                                                Oct-07
                                                                                                                                                                                                                                                                         Jan-08
                                                                                                                                                                                                                                                                                  Apr-08
                                                                                                                                                                                                                                                                                           Jul-08
                                                                                                                                                                                                                                                                                                    Oct-08
                                                                                                                                                                                                                                                                                                             Jan-09
                                                                                                                                                                                                                                                                                                                      Apr-09
                                                                                                                                                                                                                                                                                                                               Jul-09
                                                                                                                                                                                                                                                                                                                                        Oct-09
                                                                                                                                                                                                                                                                                                                                                 Jan-10
                                                                                                                                                                                                                                                                                                                                                          Apr-10
                           Lower                                   0                                      Higher

                                                               Cost
         Source: Progressive analysis based on JD Power Customer Satisfaction Study (Service) and
         IEE data from Highline (Cost); “0” on each axis denotes industry average; year reflects JD
         Power results with prior year estimated statutory expense ratio.



THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                                                                                                                                                                                                                             54
         SERVICE THAT STRENGTHENS RELATIONSHIPS


              Multi-Product
              Personal Lines Customers                                                                                                            Year-over-year PHA Sales
              10%                                                                                                                                 22.5x

                                                                                                                                                  20.0x
               9%                                                                                                                                 17.5x

                                                                                                                                                  15.0x
               8%
                                                                                                                                                  12.5x

                                                                                                                                                  10.0x
               7%
                                                                                                                                                   7.5x

                                                                                                                                                   5.0x
               6%
                                                                                                                                                   2.5x

               5%                                                                                                                                  0.0x

                                                                                                                                                          Jan   Feb Mar Apr May Jun   Jul   Aug Sep Oct Nov Dec
                    Jan-08

                             Mar-08

                                      May-08

                                               Jul-08

                                                        Sep-08

                                                                 Nov-08

                                                                          Jan-09

                                                                                   Mar-09

                                                                                            May-09

                                                                                                     Jul-09

                                                                                                              Sep-09

                                                                                                                       Nov-09

                                                                                                                                Jan-10

                                                                                                                                         Mar-10




                                                                                                                                                                     2007      2008         2009     2010




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                                                                            55
         BRoAD DiSTRiBUTion
         › Broad independent agency distribution
           supported by channel leading ease of use
           and its most recognizable consumer brand
         › Preferred agency distributors supported by
           broader product offerings and closer brand ties
         › Direct-to-consumer alternatives offering unique and leading
           shopping experiences

THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                   56
         BROAD INDEPENDENT AGENT DISTRIBuTION



         Broad independent agent                                                 Core strengths to support
         distribution strategically important                                    broad distribution remain strong
         PROGRESSIVE ESTIMATED CHANNEL SHARE                                     PROGRESSIVE AGENT SURVEY
         Personal Auto—Monoline         Motorcycle                RV                          TECHnoloGy THAT WoRkS
                                                                                 Their technology saves me time and money
                                                                                                                                                                   Now
                                                                                                   Is the technology leader
                                                                                                                                                                   Then


                                                                                          QUAliTy SERviCE FoR AGEnTS
                                                                                 Has the best claims service in the industry
                  Boat            Business Auto—Monoline Personal Auto—Package
                                                                                             Has superior customer service


                                                                                                       RESPECTED BRAnD
                                                                                                Has strong company brand


                                       Progressive Share                                                                       30%   40%     50%      60%   70%   80%     90%

                              Source: Progressive Estimates                                                    Source: Progressive Agent Tracker Surveys


THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                                          57
           BROAD INDEPENDENT AGENT DISTRIBuTION

           Brand more valuable
                                    “Having the Progressive logo on my front door has allowed new customers to enter my agency with confidence because they recognize the brand…
                                    The quality of the brand reflects positively on our agency and helps us to easily write more business with Progressive.”
                                    Claudia McClain, McClain Insurance Services, Inc., Everett, Wash.

                                    “Our new Progressive outdoor sign, combined with Progressive’s advertising campaign has been bringing business into our agency like never before!
                                    After all, who doesn’t know and love Flo?”
                                    Jessica Ceriani, Front Range Insurance Services, Littleton, Colo.

                                    “What drives people to my door? That blue and white sign on the front of my office! Progressive is one of the best, most recognizable names in the industry.”
                                    Jeff Reed, Main Street Insurance, Mesa, Ariz.


           Technology influencing business placement                                                                                            Responding to new environment
           MORE OPPORTUNITIES                                                                                                                   RATIO OF COMPARATIVE RATER TO PROGRESSIVE RATER CONVERSION
                                    140
        Indexed Quotes Per Agency




                                                                                                                                                                         1.5x




                                                                                                                                             Relative Conversion Ratio
                                    130
                                                                                                                                                                         1.4x
                                    120
                                                                                                                                                                         1.3x
                                    110
                                                                                                                                                                         1.2x
                                    100
                                                                                                                                                                         1.1x
                                     90
                                           Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110                                                                                  1.0x
                                                                                                                                                                                Dec-07



                                                                                                                                                                                         Feb-08



                                                                                                                                                                                                  Apr-08



                                                                                                                                                                                                           Jun-08



                                                                                                                                                                                                                    Aug-08



                                                                                                                                                                                                                             oct-08



                                                                                                                                                                                                                                      Dec-08



                                                                                                                                                                                                                                               Feb-09



                                                                                                                                                                                                                                                        Apr-09



                                                                                                                                                                                                                                                                 Jun-09



                                                                                                                                                                                                                                                                          Aug-09



                                                                                                                                                                                                                                                                                   oct-09



                                                                                                                                                                                                                                                                                            Dec-09



                                                                                                                                                                                                                                                                                                     Feb-10
                                                                    Preferred             All
                                                                                                                                                                                                                             Excludes FL, MI, and NJ



THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                                                                                                                                                                        58
         POSITIVE AGENCY RESuLTS

                                       Preferred Auto Growth Accelerating
                                                                       70%

                                                                       60%
                                   % Change Relative to January 2008




                                                                       50%

                                                                       40%

                                                                       30%

                                                                       20%

                                                                       10%

                                                                        0%

                                                                       -10%

                                                                       -20%
                                                                              Jan-08
                                                                                       Feb-08
                                                                                                Mar-08
                                                                                                         Apr-08
                                                                                                                  May-08
                                                                                                                           Jun-08
                                                                                                                                    Jul-08
                                                                                                                                             Aug-08
                                                                                                                                                      Sep-08
                                                                                                                                                               Oct-08
                                                                                                                                                                        Nov-08
                                                                                                                                                                                 Dec-08
                                                                                                                                                                                          Jan-09
                                                                                                                                                                                                   Feb-09
                                                                                                                                                                                                            Mar-09
                                                                                                                                                                                                                     Apr-09
                                                                                                                                                                                                                              May-09
                                                                                                                                                                                                                                       Jun-09
                                                                                                                                                                                                                                                Jul-09
                                                                                                                                                                                                                                                         Aug-09
                                                                                                                                                                                                                                                                  Sep-09
                                                                                                                                                                                                                                                                           Oct-09
                                                                                                                                                                                                                                                                                    Nov-09
                                                                                                                                                                                                                                                                                             Dec-09
                                                                                                                                                                                                                                                                                                      Jan-10
                                                                                                                                                                                                                                                                                                               Feb-10
                                                                                                                                                                                                                                                                                                                        Mar-10
                                                                                                                                                                                                                                                                                                                                 Apr-10
                                                                                                    Preferred New Applications                                                                 Preferred Policies in Force                                                           Preferred Quotes



THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                                                                                                                                                                                                    59
         AGENCY PREFERRED AuTO: PLENTY OF uPSIDE
                                                            Direct Channel Premium
                                                                   $ Billions

                                                                       18       Packaged                            Distribution of PPA Premium in the
                                                                                                                    Independent Agency Channel
                                                                       16       Monoline
                 Auto Insurance                                                                                     PPA MARKET SIzE BY PROFILE AND PGR SHARE
               Industry Premium                                      Direct
                                                                                             Independent Agent
                        $ Billions                                                             Channel Rich in                              $25
                           161
                                                          IA Channel Premium                   Preferred Auto




                                                                                                                 PPA Premium ($ Billions)
               Direct      34                                   $ Billions                                                                  $20

                                                                                                                                            $15
               IA          51                                         33          Packaged
                                                                                                                                            $10

                                                                                                                                             $5
                                                                      18          Monoline
               Captive     76
                                                                      IA                                                                     $0
                                                                                                                                                   Small Local/   Large Local           Large
                                                                                                                                                  Nonstandard       Agency            Commercial
                                                            Captive Channel Premium
                                                                                                                                                    Specialist/
                    Total Industry                                 $ Billions
                                                                                                                                                      Other
                                                                                                                                                                  Progressive Share
                                                                       55       Packaged


                                                                       21       Monoline

           Source: Highline Data, Progressive Estimates             Captive




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                                                             60
         CAPTuRING THE BuNDLED HOMEOwNER


                                             PHA Agency Weekly Sales
                                                                      8x

                                                                      7x
                                          New Applications Per Week




                                                                      6x

                                                                      5x

                                                                      4x

                                                                      3x

                                                                      2x

                                                                      1x

                                                                      0
                                                                           Jan   Feb   Mar   Apr   May    Jun      Jul   Aug      Sep   Oct   Nov   Dec
                                                                                                   2008         2009       2010




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                    61
         CAPTuRING THE BuNDLED HOMEOwNER


                            Developing Bundled Customers
                              % of Preferred Customers with:                    Engaged PHA Agents       All PHA Agents      Direct

                             Homeowner Policy                                             11.2%              6.6%            8.8%

                             Homeowner and Umbrella                                        0.5%              0.3%            0.1%

                             Total                                                        11.7%              6.9%            8.9%




                             PHA Helping Agents Grow Preferred
                                                                                         yoy Preferred       yoy Auto     Preferred Apps
                              PHA: Feb – Apr 2010 Results
                                                                                           Growth             Growth        per Agent
                              Engaged Agents (2+ PHA Apps per                                     46%          18%             7x
                              month)
                              Remaining Agents in PHA States                                      31%          14%             1x
                              Total*                                                              33%          14%             1.1x

                             *Total results include all agents in states where PHA is available




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                     62
                                                             Creating Preferred Partners


         CREATING PREFERRED PARTNERS Program
                              Signature Agent
                                                         •
                                           Available to all agents
                                                         •
                                           Qualify on Preferred Production
                                           Benefits:     •
         Signature Agent ProgramSM
                                            – Enhanced Commission                     Leveraging Brand Assets Brand Assets
                                                                                                         Leveraging
                                            – Annual Marketing Allowance
         ›   Available to all agents        – Access to Progressive’s Marketing
                                                              g               g
                                                                                                                                 local online listings
                                                                                                                                     Local on line listings
                                                                                                               new Print
         ›   Qualify on Preferred production    Expertise
                                            – Full Product Portfolio                                         New& Radio
                                                                                                                 Print & Radio
         › Benefits:
         	   •	   F
                  	 ull	Product	Portfolio
         	   •	   E
                  	 nhanced	Commission                                                        online
         	   •	   Annual	Marketing	Allowance                                                 Support
                                                                                           On line Support                           progressiveagent.com

         	   •	   	 ccess	to	Progressive’s	Marketing	Expertise
                  A
         ›   Strategic Account Development




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                        63
         STRonG iT FoUnDATion
         ›   Leverage scale to provide low cost infrastructure
         ›   Architecture standards that support rapid deployment
             of innovations
         ›   Governance processes that ensure resources are focused on
             highest business priorities

                                                IT Costs
                                               IT Spend




                                                                                                          $/PIF
                                                          2005   2006        2007           2008   2009
                                                                             Year
                                                                         IT Spend   $/PIF




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                            64
     Lean,	Adaptable,
     and	Highly	Talented
     Organization
     ›   Unique culture centered on Core Values that breeds
         brand ambassadors
     ›   A diverse and flexible environment where individuals are
         celebrated for who they are, the ideas they bring, and the
         energy they invest
     ›   A place where big ideas are talked about, nurtured, and                      Profit
         brought to life                                          Objectives
     ›   Where innovation drives growth creating opportunities
         for people to realize their full potential

                                                                          Integrity            Excellence

                                                                                               Golden Rule
THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                       65
         APPENDIx

                             Segment descriptor           Biographical synopsis                     Progressive share
                             › Inconsistently Insured     › 25-Year-Old Single Male                 › Very High
                                                          › Renter
                                                          › Liability only policy
                                                          › Agency bias
                Sam


                             › Continuous – Car Only      › 38-Year-Old Single Female               › High
                                                          › Renter
                                                          › Full coverage policy
                                                          › Increasing Direct bias
               Diane


                             › Car and Home – Unbundled   › 37-Year-Old Married Male, 35-Year-Old   › Moderate
                                                            Married Female, 3 Children
                                                          › Homeowner
                                                          › Continuous insurance
                                                          › Full coverage, Higher deductibles
            Wright Family
                                                          › Increasing Direct bias
                             › Car and Home – Bundled     › 49-Year-Old Married Male, 47-Year-Old   › Low, but growing
                                                            Married Female, 19-Year-Old Son
                                                          › Home, Boat owner
                                                          › Full coverage and umbrella
           Robinson Family
                                                          › Agency customer
THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                   66
                                                                                                                                                                          Rate Change (%)
                                                                            Average Premium/Car Year




                                                                                                                                                                          -6
                                                                                                                                                                          -5
                                                                                                                                                                          -4
                                                                                                                                                                          -3
                                                                                                                                                                          -2
                                                                                                                                                                          -1
                                                                                                                                                                           0
                                                                                                                                                                           1
                                                                                                                                                                           2
                                                                                                                                                                           3
                                                                                                                                                                           4
                                                                                                                                                                           5
                                                                                                                                                                           6
                                                                                                                                                                           7
                                                                                                                                                                           8
                                                                                                                                                                           9
                                                                                                                                                                 Jan-07
                                                                                                                                                                                                                                     APPENDIx




                                                                  0.88x
                                                                          0.90x
                                                                                  0.92x
                                                                                          0.94x
                                                                                                  0.96x
                                                                                                          0.98x
                                                                                                                  1.00x
                                                         Jan-07
                                                                                                                                                                May-07

                                                         Apr-07
                                                                                                                                                                Sep-07
                                                         Jul-07
                                                                                                                                                                 Jan-08
                                                         Oct-07

                                                         Jan-08                                                                                                 May-08

                                                         Apr-08
                                                                                                                                                                Sep-08




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING
                                                         Jul-08
                                                                                                                                                                 Jan-09
                                                         Oct-08
                                                                                                                                                                May-09
                                                         Jan-09

                                                         Apr-09                                                                                                 Sep-09


                                                         Jul-09                                                                                                  Jan-10

                                                         Oct-09
                                                                                                                                                                May-10
                                                         Jan-10

                                                         Apr-10


                                                                                                                          Agency Auto Average Written Premium
                                                                                                                                                                                            Agency Auto Jan 07 to Date Rate Change




                                                                            Average Premium/Car Year                                                                      Rate Change (%)
                                                                                                                                                                          -6
                                                                                                                                                                          -5
                                                                                                                                                                          -4
                                                                                                                                                                          -3
                                                                                                                                                                          -2
                                                                                                                                                                          -1
                                                                                                                                                                           0
                                                                                                                                                                           1
                                                                                                                                                                           2
                                                                                                                                                                           3
                                                                                                                                                                           4
                                                                                                                                                                           5
                                                                                                                                                                           6
                                                                                                                                                                           7
                                                                                                                                                                           8
                                                                                                                                                                           9




                                                                                                                                                                Jan-07
                                                                  0.88x
                                                                          0.90x
                                                                                  0.92x
                                                                                          0.94x
                                                                                                  0.96x
                                                                                                          0.98x
                                                                                                                  1.00x




                                                         Jan-07
                                                                                                                                                                May-07

                                                         Apr-07
                                                                                                                                                                Sep-07
                                                         Jul-07
                                                                                                                                                                Jan-08
                                                         Oct-07

                                                         Jan-08                                                                                                 May-08

                                                         Apr-08
                                                                                                                                                                Sep-08
                                                         Jul-08
                                                                                                                                                                Jan-09
                                                         Oct-08

                                                         Jan-09                                                                                                 May-09


                                                         Apr-09                                                                                                 Sep-09

                                                         Jul-09
                                                                                                                                                                Jan-10
                                                         Oct-09
                                                                                                                                                                May-10
                                                         Jan-10

                                                         Apr-10
                                                                                                                          Direct Auto Average Written Premium
                                                                                                                                                                                            Direct Auto Jan 07 to Date Rate Change




 67
         APPENDIx

         Indexed Trailing 12-Month Incurred Frequency                                                                                                                                                         Indexed Trailing 12-Month Paid Severity
         1.05                                                                                                                                                                                                 1.40

         1.00                                                                                                                                                                                                 1.32

         0.95                                                                                                                                                                                                 1.25

         0.90                                                                                                                                                                                                 1.16

         0.85                                                                                                                                                                                                 1.08

         0.80                                                                                                                                                                                                 1.00

         0.75                                                                                                                                                                                                 0.92
                Nov-06
                         Jan-07
                                  Mar-07
                                           May-07
                                                    Jul-07
                                                             Sep-07
                                                                      Nov-07
                                                                               Jan-08
                                                                                        Mar-08
                                                                                                 May-08
                                                                                                          Jul-08
                                                                                                                   Sep-08
                                                                                                                            Nov-08
                                                                                                                                     Jan-09
                                                                                                                                              Mar-09
                                                                                                                                                       May-09
                                                                                                                                                                Jul-09
                                                                                                                                                                          Sep-09
                                                                                                                                                                                   Nov-09
                                                                                                                                                                                            Jan-10
                                                                                                                                                                                                     Mar-10




                                                                                                                                                                                                                     Nov-06
                                                                                                                                                                                                                              Jan-07
                                                                                                                                                                                                                                       Mar-07
                                                                                                                                                                                                                                                May-07
                                                                                                                                                                                                                                                         Jul-07
                                                                                                                                                                                                                                                                  Sep-07
                                                                                                                                                                                                                                                                           Nov-07
                                                                                                                                                                                                                                                                                    Jan-08
                                                                                                                                                                                                                                                                                             Mar-08
                                                                                                                                                                                                                                                                                                      May-08
                                                                                                                                                                                                                                                                                                               Jul-08
                                                                                                                                                                                                                                                                                                                        Sep-08
                                                                                                                                                                                                                                                                                                                                 Nov-08
                                                                                                                                                                                                                                                                                                                                          Jan-09
                                                                                                                                                                                                                                                                                                                                                   Mar-09
                                                                                                                                                                                                                                                                                                                                                            May-09
                                                                                                                                                                                                                                                                                                                                                                     Jul-09
                                                                                                                                                                                                                                                                                                                                                                               Sep-09
                                                                                                                                                                                                                                                                                                                                                                                        Nov-09
                                                                                                                                                                                                                                                                                                                                                                                                 Jan-10
                                                                                                                                                                                                                                                                                                                                                                                                          Mar-10
                                                Bodily Injury                                        Property Damage                                                     PIP                                                                         Bodily Injury                                        Property Damage                                                     PIP




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                                                                                                                                                                                                                                                                             68
         APPENDIx

          YTD May Combined Ratio                                                                   May Policies in Force Growth
                                                                  Percent of Channel                                                          Percent of Channel
                           number of States                        Earned Premium                                   number of States           Policies in Force

                          Agency      Direct                     Agency          Direct                             Agency          Direct   Agency       Direct
           <96               33         33                          65%            64%             >10%               15             42       35%          73%
           96-100            8           9                          12%            16%             0 to 10%           19              9       30%          27%
           >100              9           9                          23%            20%             -10% to 0          9               0       21%           0%
                                                                                                   <-10%              7               0       15%           0%




                                                     YTD May New Application Growth
                                                                                                            Percent of Channel
                                                                          number of States                   new Applications

                                                                          Agency          Direct           Agency          Direct
                                                         >10%               32             45                 70%            84%
                                                         0 to 10%           6               3                 10%            6%
                                                         -10% to 0          4               1                  8%            2%
                                                         <-10%              8               2                 12%            8%




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                             69
         APPENDIx

                                     ›   Raised rates in both channels                        ›   Raised rates—especially PIP and BI
                                     ›   Tightened new business and renewal                   ›   Tightened bill plans
                                         acceptance criteria in both channels                 ›   Trailing six-month Accident Year
                                     ›   Reduced local advertising spend                          Combined Ratio at or below targets for
                                                                                                  both channels
                  Florida                                                        New Jersey

                                     ›   Raised rates and increased                           ›   New state-specific product performing
                                         segmentation throughout the past 12                      well
                                         months
                                                                                              ›   Increased rates to keep pace with loss
                                     ›   Eliminated all local media (broadcast                    trends, especially in PIP
             Massachusetts               and e-marketing)
                                                                                 New York     ›   Direct growth has moderated as we’ve
                                     ›   Waiting on Agency Auto entry until                       raised rates
                                         Direct Auto reaches profit targets
                                                                                              ›   Agency new application growth has
                                                                                                  turned positive
                                     ›   Raised rates in response to increased
                                         liability frequency
                                     ›   Tightened bill plans
                                     ›   Profit improving

                Maryland             ›   Direct growing again, agency not yet
                                         growing


THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                     70
         APPENDIx



                                          Glenn	is	President	and	Chief	Executive	Officer	of	Progressive.	Prior	to	being	named	CEO	in	
                                          January	2001,	Glenn	served	as	Chief	Executive	Officer	–	Insurance	Operations.	In	this	role,	Glenn	
                                          led	the	company’s	product	and	claims	development	and	delivery,	its	customer	service	function	and	
                                          insurance	sales	efforts	(through	independent	agencies,	the	Internet	and	Direct	over	the	phone).	

                                          Glenn	served	as	Business	Technology	Leader	from	1998	through	2000.	Prior	to	serving	as	
                                          Business	Technology	Leader,	Glenn	led	the	company’s	Consumer	Marketing	group	in	developing	
                                          and	communicating	Progressive’s	consumer	proposition	–	competitively	priced	auto	insurance	that	
                                          comes	with	24/7,	in-person	services	from	a	company	that	listens	and	responds	to	consumer	needs.	

                                          Glenn	joined	the	company	in	1986	as	Auto	Product	Manager	for	Florida.	In	1988,	he	became	
                 Glenn Renwick            President	of	several	Mid-Atlantic	states,	headquartered	in	Richmond,	Va.	Prior	to	assuming	the	
                  President and           Consumer	Marketing	role	he	served	as	President	of	the	California	division	in	Sacramento,	Calif.	
              Chief Executive Officer
                                          Glenn	has	an	undergraduate	degree	in	Mathematics	and	Economics	from	the	University	of	Canterbury,	
                                          Christchurch,	New	Zealand.	He	has	a	master’s	degree	in	Engineering	from	the	University	of	Florida,	
                                          Gainesville.




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                          71
         APPENDIx



                                           John	joined	Progressive	in	1983	as	a	                           Brian	joined	Progressive	in	1987	as	Controller	
                                           claims	adjuster.	Since	then,	he	has	held	                       for	Central	States	Division	(an	Agency	business	
                                           management	positions	in	Claims,	Sales,	                         unit).	He	went	on	to	serve	in	numerous	other	
                                           Operations	and	Marketing.	John	served	                          roles,	including	general	management,	product	
                                           as	general	manager	of	the	12-state	                             management	and	business	controllerships.	
                                           Great	Plains	Region,	and	then	the	Atlantic	                     Prior	to	becoming	CFO	in	March	2007,	Brian	
                                           Region.	In	2006	he	was	named	president	                         served	as	Demand	Manager,	overseeing	all	
                                           of	our	Agency	business,	and	following	                          media	buying	for	Progressive	Direct.	
                                           the	reorganization	in	2007	was	named	
                                           president	of	Commercial	Lines,	which	                           Brian	holds	a	bachelor’s	degree	from	Duke	
                                           includes	leadership	of	the	company’s	                           University	and	an	MBA	from	the	Kellogg	
                John Barbagallo                                                          Brian Domeck
                                           Agency	distribution	efforts.                                    School	at	Northwestern	University.
                 Group President,                                                        Chief Financial
                 Commercial Lines                                                            Officer
                                           John	earned	his	bachelor’s	degree	
                                           in	economics	from	Union	College	in	
                                           Schenectady,	New	York	and	his	master’s	
                                           degree	in	management	from	Purdue	
                                           University,	West	Lafayette,	Indiana.




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                        72
         APPENDIx



                                           Jim	joined	Progressive	in	2002	as	the	                          John	joined	Progressive	in	1990	as	a	summer	
                                           Direct	Product	Manager	for	MN,	WI,	and	                         intern	before	starting	full	time	in	1991	as	an	
                                           NH.	He	went	on	to	manage	several	other	                         assistant	product	manager	in	Cleveland,	Ohio.	
                                           states	before	becoming	the	Direct	general	                      Since	then	he	has	served	as	product	manager	
                                           manager	for	the	Midwest	and	Northeast	                          for,	at	various	times,	Iowa,	Kansas,	South	
                                           regions.	In	late	2006,	Jim	became	the	                          Dakota	and	Pennsylvania.	He	has	also	served	
                                           leader	of	the	company’s	Direct	Auto	                            as	general	manager	for	Mississippi	and	later	as	
                                           Research	and	Development	group,	before	                         general	manager	for	Minnesota	and	Wisconsin.	       	
                                           taking	on	his	current	role	following	the	                       John	was	the	Midwest	claims	general	manager	
                                           Personal	Lines	reorganization	in	2007.                          responsible	for	the	delivery	of	24/7	Progressive	
                                                                                                           Claims	Service	in	Illinois,	Indiana,	Iowa,	Michigan,	
                     Jim Haas                                                           John Sauerland
                                           Jim	has	a	bachelor’s	degree	in	economics	                       Minnesota,	Ohio	and	Wisconsin.	In	2006	he	
                    Director of                                                         Group President,
                                           from	Allegheny	College	in	Meadville,	PA	                        was	named	president	of	our	Direct	business,	
              Personal Auto Research                                                     Personal Lines
                 and Development           and	an	MBA	from	The	University	of	Chicago.                      and	following	the	2007	reorganization	was	
                                                                                                           named	president	of	Personal	Lines.	

                                                                                                           John	has	a	bachelor’s	degree	in	applied	
                                                                                                           mathematics	from	UCLA	and	an	MBA	from	
                                                                                                           The	University	of	Chicago.




THE PROGRESSIVE CORPORATION INVESTOR RELATIONS MEETING                                                                                                             73
Safe Harbor Statement Under the Private Securities litigation Reform Act of 1995:
Statements in this report that are not historical fact are forward-looking statements that are subject
to certain risks and uncertainties that could cause actual events and results to differ materially from
those discussed herein. These risks and uncertainties include, without limitation, uncertainties related to
estimates, assumptions, and projections generally; inflation and changes in economic conditions (including
changes in interest rates and financial markets); the financial condition of, and other issues relating to
the strength of and liquidity available to, issuers of securities held in our investment portfolios and
other companies with which we have ongoing business relationships, including counterparties to certain
financial transactions; the accuracy and adequacy of our pricing and loss reserving methodologies; the
competitiveness of our pricing and the effectiveness of our initiatives to retain more customers; initiatives
by competitors and the effectiveness of our response; our ability to obtain regulatory approval for
requested rate changes and the timing thereof; the effectiveness of our brand strategy and advertising
campaigns relative to those of competitors; legislative and regulatory developments, including, but not
limited to, health care reform and tax law changes; disputes relating to intellectual property rights; the
outcome of litigation pending or that may be filed against us; weather conditions (including the severity
and frequency of storms, hurricanes, snowfalls, hail, and winter conditions); changes in driving patterns
and loss trends; acts of war and terrorist activities; our ability to maintain the uninterrupted operation of
our facilities, systems (including information technology systems), and business functions; court decisions
and trends in litigation and health care and auto repair costs; and other matters described from time to
time in our releases and publications, and in our periodic reports and other documents filed with the
United States Securities and Exchange Commission. In addition, investors should be aware that generally
accepted accounting principles prescribe when a company may reserve for particular risks, including
litigation exposures. Accordingly, results for a given reporting period could be significantly affected if
and when a reserve is established for one or more contingencies. Also, our regular reserve reviews may
result in adjustments of varying magnitude as additional information regarding claims activity becomes
known. Reported results, therefore, may be volatile in certain accounting periods.

				
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