About The Progressive

The Progressive Corporation (Progressive) operates as an insurance holding company. The company insurance subsidiaries provide personal and commercial auto insurance, personal residential and commercial property insurance, workers’ compensation insurance primarily for the transportation industry, business-related general liability insurance, and other specialty property-casualty insurance and related services in the United States. The company’s non-insurance subsidiaries generally support its insurance and investment operations. The company operates throughout the United States. In California, the company operates a separate agency auto organization with its own management and customer relationship management organization. Personal Lines The company’s Personal Lines segment writes insurance for personal autos and recreational vehicles, which it refers to as its special lines products. This business generally offers more than one program in a single state, with each program targeted to a specific distribution channel, market, or customer group. The Personal Lines segment consists of personal auto and special lines products. Special lines products, which include insurance for motorcycles, ATVs, RVs, watercraft, snowmobiles, and similar items, represented the remaining Personal Lines net premiums written for the years. Due to the seasonal nature of these products, it typically experiences higher losses during the warmer weather months. The company’s Personal Lines products are sold through both the Agency and Direct channels. The Agency business includes business written by the company’s network of more than 40,000 independent insurance agencies located throughout the United States, including brokerages in New York and California. These independent insurance agents and brokers have the ability to place business with Progressive for specified insurance coverages within prescribed underwriting guidelines, subject to compliance with its mandated procedures. The agents and brokers do not have authority to establish underwriting guidelines, develop rates, settle or adjust claims, or enter into other transactions or commitments. The Agency business also writes insurance through strategic alliance business relationships with other insurance companies, financial institutions, and national agencies. The Direct business includes business written directly by the company on the Internet, through the Progressive mobile app, and over the phone. The company seeks to refine its personal auto segmentation, underwriting models, and pricing over time, and it regularly elevates new product models. The company continues to provide customers in both the Agency and Direct channels the opportunity to improve their auto insurance rates based on their personal driving behavior through Snapshot, its usage-based insurance (UBI) program. The company offers Snapshot through its hardware-based and/or mobile-app versions in all states, other than California. The company’s updated auto product models, often also include Snapshot enhancements intended to improve its accuracy and competitiveness and broaden its applicability. The company’s Personal Lines business focuses on efforts to form deeper and longer-term relationships with its customers through its Destination Era strategy, which supports the pursuit of its vision. Through this strategy, the company seeks to leverage its Property business, as well as insurance and non-insurance products offered by unaffiliated third parties, to provide its customers access to a range of products addressing their diverse needs and, if the customer chooses, to bundle certain of the products together. The company’s Destination Era strategy involves a number of initiatives, including: In its Agency channel, the company offers customers the opportunity to bundle its auto, special lines, and Property offerings. To further drive bundling in the Agency channel, the company offers the Platinum program to those select agents who have the appropriate customers for its bundled offering. This program combines its auto and home insurance with the compensation, coordinated policy periods, single event deductible, and other features that meet the needs and desires that its agents have expressed. As of December 31, 2022, the company had just over 4,000 Platinum agents. The company offers independent agents an agency quoting system that makes it easier for them to bundle multiple policies with it. The company’s Portfolio quoting system reduces data entry, displays all available products eligible for bundled quotes, simplifies the agents’ experience on third-party comparative rater systems, and provides agents and their customers an overview of premium, bundle savings, and applied discounts to allow them to add or remove products with one click. Portfolio is available for all agents appointed to write new business where it offers Property products. In the Direct channel, the company bundles Progressive auto with Property products in almost all states, as well as with homeowners and renters products provided by unaffiliated insurance carriers nationwide. The company offers these bundles by providing a single destination to which consumers may come for both their auto and property insurance needs. In many cases, the company may offer discounts to incentivize or reward this bundling. Where available, the company’s special lines products and umbrella insurance can be combined with any of the auto, home, or renters coverages that it offers, in either the Direct or Agency channel. HomeQuote Explorer (HQX) is the company’s multi-carrier, direct-to-consumers online property offering. Through HQX, consumers are able to quickly and easily quote and compare homeowners insurance online from Progressive and other carriers. During 2022, the company continued to expand the availability of the online buy button, which was active in all states where it writes Property products via HQX by the end of 2022. As it increases the company’s penetration of the more complex, multi-product customers who are critical to its Destination Era success, it is further expanding the roster of products provided by unaffiliated companies that it makes available through online and telephonic referrals and for which it receives commissions, or other compensation, that are reported as service revenues. The company’s list of unaffiliated company products includes items, such as classic and specialty car, pet, health, life, electronics, travel, and event insurance. Commercial Lines The Commercial Lines segment writes auto-related liability and physical damage insurance, business-related general liability and property insurance predominately for small businesses, and workers’ compensation insurance primarily for the transportation industry. In 2021, the company acquired Protective Insurance Corporation and subsidiaries (Protective Insurance) to expand its portfolio of offerings to larger fleet, workers’ compensation coverage for trucking, along with trucking industry independent contractors, and affinity programs. The company offers its auto products in all states. The company’s commercial auto customers insure approximately two vehicles per policy. The Commercial Lines business operates in the following commercial auto business market targets: Business auto – autos, vans, pick-up trucks used by small businesses (e.g., retailing, manufacturing, farming) and for-hire livery (e.g., non-fleet (i.e., five or fewer vehicles) taxis, black-car services, and airport taxis); For-hire transportation – tractors, trailers, and straight trucks primarily used by regional general freight and expeditor-type businesses and long-haul operators; Contractor – vans, pick-up trucks, and dump trucks used by light contractors (e.g., painters, plumbers, landscapers), and heavy construction; For-hire specialty – dump trucks, log trucks, and garbage trucks used by dirt, sand and gravel, logging, garbage/debris removal, and coal-type businesses; and Tow – tow trucks and wreckers used in towing services and gas/service station businesses. Similar to Snapshot in the personal auto business, the Commercial Lines business offers its customers UBI options. Smart Haul® is the UBI program that uses driving data from a motor carrier’s existing electronic logging device. Smart Haul offers owner operators and small fleets the ability to receive discounts on their insurance by sharing their electronic logging device generated data with us. Snapshot ProView® is the UBI program for commercial auto customers without their own electronic logging device. Snapshot ProView allows customers to earn upfront discounts and provides value-added services, like fleet management and personalized tips to encourage safe driving. Both programs are available in almost all states. In addition, the company provides commercial auto coverage in the TNC business to Uber Technologies subsidiaries in 13 states and to Lyft’s rideshare operations in 4 states. The company also offers business-related general liability and property insurance through its business owners policy (BOP) insurance. These products are geared specifically to small businesses and are available to agents in a majority of states, excluding the District of Columbia, with plans to expand to additional states during 2023. The company also continues to act as an agent for business customers to place BOP, general liability, professional liability, and workers’ compensation coverage through unaffiliated insurance carriers and are compensated through commissions, which are reported as service revenues. To further help its direct customers, the company offers BusinessQuote Explorer (BQX), a digital application that allows small business owners to obtain quotes for its BOP product and the products offered from a select group of unaffiliated carriers. Property The company’s Property segment writes residential property and renters insurance in virtually all states, primarily in the independent agency channel and through select agents under its Platinum program. The company also acts as a participant in the Write Your Own program for the National Flood Insurance Program under which it writes flood insurance in virtually all states; 100% of this business is reinsured. As one of the 15 largest homeowners carriers in the U.S. based on 2021 premiums written, the company specializes in residential property insurance for homeowners, other property owners, and renters, as well as insurance for manufactured homes, personal umbrella insurance, and primary and excess flood insurance. Reinsurance The company’s reinsurance activity includes both transactions which are regulated and those that are non-regulated (e.g., voluntary). The regulated programs include several mandatory state pools, such as the Michigan Catastrophic Claims Association, Florida Hurricane Catastrophe Fund, and North Carolina Reinsurance Facility, as well as other reinsurance facilities required by specific states for various lines of business. The company is also a participant in the Write Your Own program for federally regulated plans for flood (National Flood Insurance Program). In 2022, the company’s service contract to act as a servicing agent for Commercial Automobile Insurance Procedures/Plans (CAIP) expired. The CAIP business will be in runoff for a year from its expiration. In addition, the company has elected to participate in the Florida Reinsurance to Assist Policyholders Program for 2023. All of these programs are governed by the individual state's insurance regulations. The company’s non-regulated arrangements reinsure activities in its Property business and its Commercial Lines business. Property Programs The Property program includes contracts that cover multi-year periods. The company also maintains an excess of loss reinsurance treaty covering its personal umbrella business. Commercial Lines Programs The reinsurance program in the company’s Commercial Lines business is designed to help manage certain exposures in its commercial auto, TNC, BOP, and workers’ compensation products. The company’s Commercial Lines business uses quota-share reinsurance agreements for transportation network company (TNC), and certain workers’ compensation and BOP coverages. Under each agreement, it cedes a portion of premiums, losses, and, in most cases, loss adjustment expenses (LAE). As part of the Commercial Lines program, the company also has excess of loss reinsurance agreements for higher-limit commercial auto liability, and certain BOP and workers’ compensation coverages, which reinsures a portion of loss above a retention threshold. For its TNC product, the amounts ceded vary by state. A portion of the quota-share reinsurance contract is written through reinsurers that are owned by the TNC company. Reinsurance recoverables under this arrangement are required by the company’s contracts to be collateralized (i.e., secured by assets held by an independent third party or a letter of credit issued by a commercial bank) at a target of over 100% of the recoverable balance. Claims For its Property business, the company manages claims through a network of independent claim field adjusters and internal claim representatives managing the overall claims process. Insurance Licenses The company’s insurance subsidiaries operate under licenses issued by various insurance regulatory authorities. These licenses may be of perpetual duration or renewable periodically, provided the holder continues to meet applicable regulatory requirements. The company’s licenses govern the kinds of insurance coverages that may be written by its insurance subsidiaries in the issuing jurisdiction. Such licenses are normally issued only after the filing of an appropriate application and the satisfaction of prescribed criteria. Service Businesses The company’s service businesses, which represent less than 1% of its total revenues and do not have a material effect on its overall operations, primarily include its commission- or fee-based businesses, where it often acts as an agent for other insurance companies. The company offers home, condominium, and renters insurance, among other products, written by unaffiliated insurance companies in the continental United States in the direct channel. The company also offers its customers the ability to package their commercial auto coverage with other commercial coverages that are written by unaffiliated insurance companies. Seasonality Due to the seasonal nature of the company’s products, it experiences higher losses during the warmer weather months. Patents The company holds include a usage-based insurance patent (expiring in 2024 or after), two patents on the Name Your Price functionality on its website (expiring in 2028 or after), three multi-product quoting patents (expiring in 2032 or after), three patents for its implementation of a mobile insurance platform and architecture (expiring in 2032 or after), a patent on its system of providing customized insurance quotes based on a user’s price and/or coverage preferences (expiring in 2033 or after), two patents for its loyalty call routing system (expiring in 2033 or after), a patent for a multivariate predictive system that processes usage-based data (expiring in 2035 or after), three patents for the implementation of chatbots in online quoting and servicing (expiring in 2038 or after), two patents for its Commercial Lines business classification system (expiring in 2039 or after), and two patents for its automated document classification system (expiring 2040 or after). The company has a substantial amount of know-how developed from years of experience with usage-based insurance, and from analyzing the data from over 48 billion driving miles derived from its usage-based devices and its mobile app. History The Progressive Corporation was founded in 1937.

Country
Industry:
Fire, marine, and casualty insurance
Founded:
1937
IPO Date:
10/12/1972
ISIN Number:
I_US7433151039
Address:
6300 Wilson Mills Road, Mayfield, Ohio, 44143, United States
Phone Number
440 461 5000

Key Executives

CEO:
Griffith, Susan
CFO
Sauerland, John
COO:
Data Unavailable