The Board of Directors of The Progressive Corporation (NYSE:PGR), on February 4, 2006:
— fixed the close of business on February 22, 2006 as the record date for the determination of shareholders entitled to notice of, and to vote at, the Annual Meeting of Shareholders scheduled to be held on April 21, 2006;
— declared a quarterly dividend of $.03 per Common Share payable March 31, 2006 to shareholders of record at the close of business on March 10, 2006; and
— approved a revision to the Company’s Corporate Governance Guidelines to include a “Majority Withheld Votes” policy. This policy provides that if a director receives less than a majority of the votes cast in an uncontested election, the director is expected to tender his or her resignation to the Board which will consider the resignation based on all of the facts and circumstances then presented. The revised Corporate Governance Guidelines, including the Majority Withheld Votes policy, has been posted to the Company’s Web site at www.progressive.com/governance.
Also, on February 4, 2006, W. Thomas Forrester, the Company’s Chief Financial Officer, announced his intention to retire during the first quarter of 2007. Mr. Forrester will serve as the Company’s Chief Financial Officer until that time, and participate in the certifications of the Company’s 2006 financial statements. CEO and President Glenn Renwick said: “Although Tom’s decision to retire next year is not unexpected, we accept the news with mixed feelings. Tom and I will have worked together for more than 20 years and while his retirement will close our professional relationship, I’m very happy for Tom, his retirement plans and our continuing friendship. Tom will continue with all of his responsibilities into 2007 and work with me in the selection of a new CFO. We have a deep talent pool within the organization therefore we do not expect to be conducting an external search for this position.”
The Progressive Group of Insurance Companies, in business since 1937, ranks third in the nation for auto insurance based on premiums written and provides drivers with competitive rates and 24/7, in-person and online service. The products and services of the Progressive Direct Group of Insurance Companies are marketed directly to consumers by phone at 1-800-PROGRESSIVE and online at www.progressivedirect.com through the Progressive Direct(SM) brand. The Drive Group of Progressive Insurance Companies offers insurance through more than 30,000 independent insurance agencies that market their products and services through the Drive(R) Insurance from Progressive brand. For more information about Drive Insurance, go to www.driveinsurance.com. The Common Shares of The Progressive Corporation, the Mayfield Village, Ohio-based holding company, are publicly traded at NYSE:PGR. More information can be found at www.progressive.com.