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The Progressive Corporation 2016 Shareholders’ Report

Five-Year Financial Highlights

(billions — except per share amounts)

SIX Months
Ended June 30,
Years Ended December 31,
2016 2015 2015 2014 2013 2012
For the Year
Net premiums written $ 11.8 $ 10.3 $ 20.6 $ 18.7 $ 17.3 $ 16.4
Growth over prior period 14% 11% 10% 8% 6% 8%
Net premiums earned $ 10.9 $ 9.7 $ 19.9 $ 18.4 $ 17.1 $ 16.0
Growth over prior period 13% 8% 8% 8% 7% 7%
Total revenues $ 11.4 $ 10.2 $ 20.9 $ 19.4 $ 18.2 $ 17.1
Net income attributable to Progressive $ 0.45 $ 0.66 $ 1.27 $ 1.28 $ 1.17 $ 0.90
Per share $ 0.77 $ 1.12 $ 2.15 $ 2.15 $ 1.93 $ 1.48
Underwriting margin   4.3%   7.4%   7.5%   7.7%   6.5%   4.4%

(billions — except shares outstanding, per share amounts, and policies in force)

SIX Months
Ended June 30,
Years Ended December 31,
2016 2015 2015 2014 2013 2012
At PERIOD-End
Common shares outstanding (millions)   581.9   585.9   583.6   587.8   595.8   604.6
Book value per share $ 13.47 $ 12.56 $ 12.49 $ 11.79 $ 10.39 $ 9.94
Consolidated shareholders’ equity $ 7.8 $ 7.4 $ 7.3 $ 6.9 $ 6.2 $ 6.0
Market capitalization $ 19.5 $ 16.3 $ 18.6 $ 15.9 $ 16.2 $ 12.8
Return on average shareholders’ equity                        
Net income attributable to Progressive   14.1%   18.7%   17.2%   19.1%   17.7%   14.5%
Comprehensive income attributable to Progressive   14.8%   16.8%   14.2%   20.1%   19.0%   17.4%
                         
Policies in force (thousands)                        
Personal Lines                        
Agency – auto   4,937.6   4,753.6   4,737.1   4,725.5   4,841.9   4,790.4
Direct – auto   5,284.4   4,744.8   4,916.2   4,505.5   4,224.2   4,000.1
Special lines   4,257.3   4,127.8   4,111.4   4,030.9   3,990.3   3,944.8
Total Personal Lines   14,479.3   13,626.2   13,764.7   13,261.9   13,056.4   12,735.3
Growth over prior year   6%   2%   4%   2%   3%   4%
Commercial Lines   600.3   538.4   555.8   514.7   514.6   519.6
Growth over prior year   11%   4%   8%   0%   (1)%   2%
Property1   1,177.0   1,054.7   1,076.5   |||||||   |||||||   |||||||
Growth over prior year   12%   NM   NM   |||||||   |||||||   |||||||
                         
Private passenger auto insurance market2   NA   NA   NA $ 183.5 $ 174.9 $ 168.0
Market share3   NA   NA   NA   8.9%   8.7%   8.5%
SIX Months
Ended JUNE 30,
Years Ended December 31,
  2016   2015   2015   2014   2013   2012
Stock Price Appreciation4                                                                        
Progressive   8.3%   5.8%   20.9%   5.3%   30.9%   15.4%
S&P 500   3.8%   1.2%   1.4%   13.7%   32.4%   15.9%

NM = Not meaningful; Property business written by Progressive prior to April 2015 was negligible.

NA = Final comparable industry data will not be available until our third quarter report.

1Includes the addition of approximately 96,000 policies as a result of the exchange transaction that occurred in the second quarter 2016.

2Represents net premiums written as reported by A.M. Best Company, Inc.

3Represents Progressive’s private passenger auto business, including motorcycle insurance, as a percent of the private passenger auto insurance
market.

4Represents average annual compounded rate of increase and assumes dividend reinvestment.

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