The Progressive Corporation Shareholders’ Report

(billions — except per share amounts)

Three Months
Ended March 31,

Years Ended December 31,
> 2013 2012 2012 2011 2010 2009
Net premiums written $ 4.4 $ 4.2 $ 16.4 $ 15.1 $ 14.5 $ 14.0
Growth over prior period   7% 7% 8% 5% 3% 3%
Net premiums earned $ 4.2 $ 3.9 $ 16.0 $ 14.9 $ 14.3 $ 14.0
Growth over prior period   8% 5% 7% 4% 2% 3%
Total revenues $ 4.4 $ 4.1 $ 17.1 $ 15.8 $ 15.2 $ 14.8
Net income $ .31 $ .26 $ .90 $ 1.02 $ 1.07 $ 1.06
Per share $ .51 $ .42 $ 1.48 $ 1.59 $ 1.61 $ 1.57
Underwriting margin   7.6%   5.9%   4.4%   7.0%   7.6%   8.4%

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

Three Months
Ended March 31,

Years Ended December 31,
> 2013 2012 2012 2011 2010 2009
At Period-End
Common Shares outstanding (millions)   603.2   611.2   604.6   613.0   662.4   672.6
Book value per share $ 10.59 $ 10.23 $ 9.94 $ 9.47 $ 9.13 $ 8.55
Consolidated shareholders’ equity $ 6.4 $ 6.3 $ 6.0 $ 5.8 $ 6.0 $ 5.7
Market capitalization $ 15.2 $ 14.2 $ 12.8 $ 12.0 $ 13.2 $ 12.1
Return on average shareholders’ equity                        
Net income   15.2%   14.8%   14.5%   16.5%   17.1%   21.4%
Comprehensive income   16.4%   16.2%   17.4%   15.0%   22.3%   35.5%
                         
Policies in Force (thousands)                        
Personal Lines                        
Agency – auto   4,839.4   4,816.6   4,790.4   4,648.5   4,480.1   4,299.2
Direct – auto   4,094.7   3,987.5   4,000.1   3,844.5   3,610.4   3,201.1
Special lines   3,935.8   3,852.3   3,944.8   3,790.8   3,612.2   3,440.3
Total Personal Lines   12,869.9   12,656.4   12,735.3   12,283.8   11,702.7   10,940.6
Growth over prior year   2%   6%   4%   5%   7%   5%
Commercial Auto   519.6   513.8   519.6   509.1   510.4   512.8
Growth over prior year   1%   1%   2%   0%   0%   (5)%
                         
Industry net premiums written1   NA   NA   NA $ 163.0 $ 160.1 $ 157.2
Market share2   NA   NA   NA   8.2%   7.9%   7.7%
Three Months
Ended March 31,

Years Ended December 31,
> 2013 2012 2012 2011 2010 2009
Stock Price Appreciation (Depreciation)3                        
Progressive 21.3%   21.2%   15.4%   .2%   16.9%   21.5%
S&P 500   10.6%   12.6%   15.9%   2.1%   15.0%   26.4%

1 Represents private passenger auto insurance market net premiums written as reported by A.M. Best Company, Inc.

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

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

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