Operations Summary | Progressive Corporation 2016 Shareholders’ Report

We write personal auto and other specialty property-casualty insurance and provide related services throughout the United States. Our Personal Lines business writes insurance for personal autos and recreational vehicles. Our Commercial Lines business writes primary liability, physical damage, and other auto-related insurance for autos and trucks owned and/or operated predominantly by small businesses. Our Property business writes personal property insurance for homeowners, other property owners, and renters.

Personal Lines	Nine Months Ended September 30,
		2016		2015	Change
Net premiums written (billions)	$	15.03	$	13.57	11%
Net premiums earned (billions)	$	14.19	$	12.86	10%
Loss and loss adjustment expense ratio		76.2		73.7	2.5 pts.
Underwriting expense ratio		19.6		19.9	(0.3) pts.
Combined ratio		95.8		93.6	2.2 pts.
Policies in force (thousands)		14,595.2		13,720.7	6%

Commercial Lines	Nine Months Ended September 30,
		2016		2015	Change
Net premiums written (billions)	$	2.05	$	1.66	24%
Net premiums earned (billions)	$	1.77	$	1.47	21%
Loss and loss adjustment expense ratio		72.4		62.0	10.4 pts.
Underwriting expense ratio		22.1		21.7	0.4 pts.
Combined ratio		94.5		83.7	10.8 pts.
Policies in force (thousands)		612.7		549.5	12%

Property	Nine Months Ended September 30,
		2016		2015	Change
Net premiums written (billions)	$	0.72	$	0.50	NM
Net premiums earned (billions)	$	0.64	$	0.40	NM
Loss and loss adjustment expense ratio		70.7		63.4	7.3 pts.
Underwriting expense ratio		33.6		32.1	1.5 pts.
Combined ratio		104.3		95.5	8.8 pts.
Policies in force (thousands)		1,184.7		1,070.2	11%

NM = We began reporting our Property business as a segment on April 1, 2015, upon acquisition of a controlling interest in ARX; therefore, the nine months ended September 30, 2015 only include results for six months and are not comparable to results reported for the nine months ended September 30, 2016.