The Progressive Corporation Shareholders’ Report

(billions — except per share amounts)

Six Months Ended
June 30,

Years Ended December 31,
> 2013 2012 2012 2011 2010 2009
Net premiums written $ 8.8 $ 8.3 $ 16.4 $ 15.1 $ 14.5 $ 14.0
Growth over prior period   7% 7% 8% 5% 3% 3%
Net premiums earned $ 8.5 $ 7.9 $ 16.0 $ 14.9 $ 14.3 $ 14.0
Growth over prior period   8% 6% 7% 4% 2% 3%
Total revenues $ 9.0 $ 8.3 $ 17.1 $ 15.8 $ 15.2 $ 14.8
Net income $ .63 $ .38 $ .90 $ 1.02 $ 1.07 $ 1.06
Per share $ 1.05 $ .62 $ 1.48 $ 1.59 $ 1.61 $ 1.57
Underwriting margin   7.1%   4.1%   4.4%   7.0%   7.6%   8.4%

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

Six Months Ended
June 30,

Years Ended December 31,
> 2013 2012 2012 2011 2010 2009
At Period-End
Common Shares outstanding (millions)   600.4   609.2   604.6   613.0   662.4   672.6
Book value per share $ 10.87 $ 10.32 $ 9.94 $ 9.47 $ 9.13 $ 8.55
Consolidated shareholders’ equity $ 6.5 $ 6.3 $ 6.0 $ 5.8 $ 6.0 $ 5.7
Market capitalization $ 15.3 $ 12.7 $ 12.8 $ 12.0 $ 13.2 $ 12.1
Return on average shareholders’ equity                        
Net income   18.3%   12.9%   14.5%   16.5%   17.1%   21.4%
Comprehensive income   17.9%   12.5%   17.4%   15.0%   22.3%   35.5%
                         
Policies in Force (thousands)                        
Personal Lines                        
Agency – auto   4,849.3   4,884.2   4,790.4   4,648.5   4,480.1   4,299.2
Direct – auto   4,134.6   4,036.5   4,000.1   3,844.5   3,610.4   3,201.1
Special lines   4,023.9   3,972.0   3,944.8   3,790.8   3,612.2   3,440.3
Total Personal Lines   13,007.8   12,892.7   12,735.3   12,283.8   11,702.7   10,940.6
Growth over prior year   1%   6%   4%   5%   7%   5%
Commercial Auto   526.6   525.0   519.6   509.1   510.4   512.8
Growth over prior year   0%   3%   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%
Six Months Ended
June 30,

Years Ended December 31,
> 2013 2012 2012 2011 2010 2009
Stock Price Appreciation3                        
Progressive 22.0%   8.9%   15.4%   .2%   16.9%   21.5%
S&P 500   13.8%   9.5%   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.