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The Progressive Corporation 2016 Shareholders’ Report

Five-Year Financial Highlights

(billions — except per share amounts)

Nine Months
Ended September 30,
Years Ended December 31,
2016 2015 2015 2014 2013 2012
For the Year
Net premiums written $ 17.8 $ 15.7 $ 20.6 $ 18.7 $ 17.3 $ 16.4
Growth over prior period 13% 12% 10% 8% 6% 8%
Net premiums earned $ 16.6 $ 14.7 $ 19.9 $ 18.4 $ 17.1 $ 16.0
Growth over prior period 13% 9% 8% 8% 7% 7%
Total revenues $ 17.3 $ 15.5 $ 20.9 $ 19.4 $ 18.2 $ 17.1
Net income attributable to Progressive $ 0.65 $ 0.94 $ 1.27 $ 1.28 $ 1.17 $ 0.90
Per share $ 1.11 $ 1.59 $ 2.15 $ 2.15 $ 1.93 $ 1.48
Underwriting margin   4.0%   7.3%   7.5%   7.7%   6.5%   4.4%

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

Nine Months
Ended September 30,
Years Ended December 31,
2016 2015 2015 2014 2013 2012
At PERIOD-End
Common shares outstanding (millions)   580.8   584.6   583.6   587.8   595.8   604.6
Book value per share $ 13.94 $ 12.76 $ 12.49 $ 11.79 $ 10.39 $ 9.94
Consolidated shareholders’ equity $ 8.1 $ 7.5 $ 7.3 $ 6.9 $ 6.2 $ 6.0
Market capitalization $ 18.3 $ 17.9 $ 18.6 $ 15.9 $ 16.2 $ 12.8
Return on average shareholders’ equity                        
Net income attributable to Progressive   12.8%   18.1%   17.2%   19.1%   17.7%   14.5%
Comprehensive income attributable to Progressive   16.4%   15.3%   14.2%   20.1%   19.0%   17.4%
                         
Policies in force (thousands)                        
Personal Lines                        
Agency – auto   4,980.1   4,739.9   4,737.1   4,725.5   4,841.9   4,790.4
Direct – auto   5,324.0   4,830.8   4,916.2   4,505.5   4,224.2   4,000.1
Special lines   4,291.1   4,150.0   4,111.4   4,030.9   3,990.3   3,944.8
Total Personal Lines   14,595.2   13,720.7   13,764.7   13,261.9   13,056.4   12,735.3
Growth over prior year   6%   3%   4%   2%   3%   4%
Commercial Lines   612.7   549.5   555.8   514.7   514.6   519.6
Growth over prior year   12%   6%   8%   0%   (1)%   2%
Property   1,184.7   1,070.2   1,076.5   |||||||   |||||||   |||||||
Growth over prior year   11%   NM   NM   |||||||   |||||||   |||||||
                         
Private passenger auto insurance market1   NA   NA $ 192.5 $ 183.5 $ 174.9 $ 168.0
Market share2   NA   NA   9.0%   8.9%   8.7%   8.5%
Nine Months
Ended September 30,
Years Ended December 31,
  2016   2015   2015   2014   2013   2012
Stock Price Appreciation (Depreciation)3                                                                        
Progressive   1.8%   16.4%   20.9%   5.3%   30.9%   15.4%
S&P 500   7.8%   (5.3)%   1.4%   13.7%   32.4%   15.9%

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

NA = Not available.

1Represents net premiums written as reported by A.M. Best Company, Inc.

2Represents Progressive’s private passenger auto business, including motorcycle insurance, as a percent of the private passenger auto insurance
market.

3Represents average annual compounded rate of increase and assumes dividend reinvestment.

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