Progressive Reduces IT and Personal Lines Work Force; Move Follows Company’s Reorganization Announced in September

In early September, The Progressive Group of Insurance Companies announced a reorganization designed to increase the Company’s ability to execute on key strategies, lower its non-claims expense ratio and foster growth through more competitive pricing, improved customer retention and an increased focus on brand development. The reorganization included combining its Agency and Direct Businesses into a single Personal Lines organization.

Since then, business areas have reviewed organization and staffing. As a result, the Company today announced a reduction-in-force in its Information Technology group and its Personal Lines group of 263 people and 78 people, respectively. This represents about 7 percent of its IT work force countrywide, and 1 percent of its Personal Lines group countrywide; those affected in Personal Lines are primarily supervisors and managers in the Company’s sales and customer service call center operations. Everyone affected will be employed through November 30th; most of the affected people are based in Cleveland. The Company employs more than 26,000 people throughout the country and nearly 10,000 in Northeast Ohio.

“Letting people go is never a desired outcome. The contributions of people affected by these changes helped us to get to where we are today. To every affected person, thank you,” said Progressive President and Chief Executive Officer Glenn Renwick. “We have met with each individual affected, are trying to help them with the transition and will continue to work to help them find other jobs.”

Renwick said: “This is undesirable and difficult, but necessary. This industry, like many, is extremely competitive. We are constantly challenged to streamline our operations to compete effectively. This is a critical step we need to take now to remain competitive and to help ensure our future success in the industry.”

About Progressive

The Progressive Group of Insurance Companies, in business since 1937, is the country’s third largest auto insurance group and largest seller of motorcycle and personal watercraft policies based on premiums written, and is a market leader in commercial auto insurance.

Progressive is committed to becoming consumers’ #1 choice for auto insurance by providing competitive rates and products that meet drivers’ needs throughout their lifetimes, superior online and in-person customer service, and best-in-class, 24-hour claims service, including its concierge level of claims service available at service centers located in major metropolitan areas throughout the United States.

Progressive companies offer consumers choices in how to shop for, buy and manage their auto insurance policies. Progressive offers its products, including personal and commercial auto, motorcycle, boat and recreational vehicle insurance, through more than 30,000 independent insurance agencies throughout the U.S. and online and by phone directly from the Company. To find an agent or to get a quote, go to www.progressive.com.

The Common Shares of The Progressive Corporation, the Mayfield Village, Ohio-based holding company, are publicly traded at (NYSE:PGR).