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NEWS
                                                                                                                 RELEASE
The Progressive Corporation                                                                                   Company Contact:
6300 Wilson Mills Road                                                                                          Thomas A. King
Mayfield Village, Ohio 44143                                                                                    (440) 395-2260
http://www.progressive.com

Progressive is scheduled to hold a one-hour conference call to address questions on Friday, August 4, 2006, at 9:00 a.m. eastern time,
subsequent to the posting of our Shareholders’ Report online and the filing of our Quarterly Report on Form 10-Q with the SEC.
Registration for the teleconference and webcast is scheduled to be available on Progressive’s Web site at
http://investors.progressive.com/events.asp on or after July 19, 2006.

                                                         FOR IMMEDIATE RELEASE

MAYFIELD VILLAGE, OHIO -- July 13, 2006 -- The Progressive Corporation today reported the following results for June 2006:


                                                              Month                                        Quarter
    (millions, except per share amounts and
                                                 2006          2005          Change           2006           2005         Change
    ratios)

    Net premiums written                      $1,089.6      $1,092.8          0%          $3,679.6        $3,594.1           2%
    Net premiums earned                        1,096.9       1,069.6          3%           3,564.4         3,453.8           3%
    Net income                                  115.0         120.6           (5)%           400.4           394.3           2%
         Per share                                 .15           .15          (3)%              .51            .49           3%
    Pre-tax net realized gains (losses)         (24.4)          (.7)         3386%           (27.1)          (3.8)         613%
      on securities

    Combined ratio                                87.4          87.3         .1 pts.          86.6            86.1          .5 pts.
    Average diluted equivalent shares           781.0         797.5           (2)%           785.9           800.1          (2)%




See the “Income Statements” for further month and year-to-date information and additional comments.


       Progressive offers insurance to personal and commercial auto drivers throughout the United States. Our Personal Lines business
units write insurance for private passenger automobiles and recreational vehicles. Our Commercial Auto business unit writes primary
liability, physical damage and other auto-related insurance for automobiles and trucks owned by small businesses. See “Supplemental
Information” for month and year-to-date results.




                                                                       -1-
THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
                                                       INCOME STATEMENT
                                                               June 2006
                                                 (millions – except per share amounts)
                                                              (unaudited)

                                                  Current
                                                                   Comments on Monthly Results1
                                                  Month


Direct premiums written                            $1,109.2

Net premiums written                               $1,089.6

Revenues:
Net premiums earned                                $1,096.9
Investment income                                      60.1
Net realized gains (losses) on securities            (24.4)        Includes $.8 million of write-downs on a security determined to have
                                                                   an other-than-temporary decline in market value.
Service revenues                                        2.2
   Total revenues                                   1,134.8
Expenses:
Losses and loss adjustment expenses                   743.5
                                                      111.6
Policy acquisition costs
Other underwriting expenses                           103.3
Investment expenses                                      .8
Service expenses                                        2.0
Interest expense                                        6.0        Retired $100 million, 7.30% Notes at maturity on June 1, 2006.
   Total expenses                                     967.2

Income before income taxes                            167.6
Provision for income taxes                             52.6
Net income                                           $115.0

COMPUTATION OF EARNINGS PER SHARE
Basic:
Average shares outstanding                            771.4
    Per share                                          $.15
Diluted:
Average shares outstanding                            771.4
Net effect of dilutive stock-based
  compensation                                          9.6
    Total equivalent shares                           781.0
    Per share                                          $.15



1
 For a description of our reporting and accounting policies, see Note 1 to our 2005 audited consolidated financial statements included in
our 2005 Shareholders’ Report, which can be found at www.progressive.com/annualreport.
________________________________________________________________________________
The following table sets forth the investment results for the month:
    Fully taxable equivalent total return:
     Fixed-income securities                            .2%
     Common stocks                                      .4%
     Total portfolio                                    .2%

    Pretax recurring investment book yield             5.1%




                                                                   -2-
THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
                                                             INCOME STATEMENTS
                                                              June 2006 Year-to-Date
                                                        (millions – except per share amounts)
                                                                     (unaudited)


                                                         Year-to-Date
                                                                                           %
                                                    2006              2005               Change
 Direct premiums written                           $7,499.3          $7,356.6              2
 Net premiums written                              $7,356.3          $7,198.9              2

 Revenues:
 Net premiums earned                               $7,064.9          $6,803.8                 4
 Investment income                                    314.2             250.2                26
 Net realized gains (losses) on securities           (26.6)               6.4               NM
 Service revenues                                      16.3              21.5               (24)
    Total revenues                                  7,368.8           7,081.9                 4
 Expenses:
 Losses and loss adjustment expenses                4,667.0             4,433.2              5
 Policy acquisition costs                             727.0               722.3              1
 Other underwriting expenses                          676.5               665.6              2
 Investment expenses                                    5.9                 5.9              0
 Service expenses                                      13.1                12.0              9
 Interest expense                                      39.9                41.5             (4)
    Total expenses                                  6,129.4             5,880.5              4

 Income before income taxes                         1,239.4           1,201.4                3
 Provision for income taxes                           402.4             394.4                2
 Net income                                          $837.0            $807.0                4

 COMPUTATION OF EARNINGS PER SHARE
 Basic:
 Average shares outstanding                           783.2              792.2              (1)
     Per share                                        $1.07              $1.02               5
 Diluted:
 Average shares outstanding                           783.2              792.2              (1)
 Net effect of dilutive stock-based
   compensation                                        10.2               11.7              (13)
     Total equivalent shares                          793.4              803.9               (1)
     Per share                                        $1.05              $1.00                5


 NM = Not Meaningful




The following table sets forth the investment results for the year-to-date period:
                                                       2006                       2005
   Fully taxable equivalent total return:
      Fixed-income securities                              1.2%                      2.2%
      Common stocks                                        3.4%                       .4%
      Total portfolio                                      1.5%                      1.9%


   Pretax recurring investment book yield                  4.5%                      3.9%




                                                                      -3-
THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
                                       SUPPLEMENTAL INFORMATION
                                                  June 2006
                                                ($ in millions)
                                                 (unaudited)

                                                       Current Month
                                                                               Commercial
                                                   Personal Lines                Auto             Other        Companywide
                                                                                                Businesses1
                                             Drive     Direct     Total         Business                          Total

Net Premiums Written                         $612.0      $323.3      $935.3          $152.5             $1.8           $1,089.6
% Growth in NPW                               (3)%          3%        (1)%              2%              NM                  0%
Net Premiums Earned                          $613.8      $336.6      $950.4          $144.7             $1.8           $1,096.9
% Growth in NPE                               (1)%          6%          1%             12%              NM                  3%

GAAP Ratios
Loss/LAE ratio                                  70.0       66.8        68.9             60.7             NM                 67.8
Expense ratio                                   19.5       19.9        19.6             19.1             NM                 19.6
Combined ratio                                  89.5       86.7        88.5             79.8             NM                 87.4

Actuarial Adjustments2
Reserve Decrease/(Increase)
 Prior accident years                                                                                                       $9.4
 Current accident year                                                                                                       5.4
 Calendar year actuarial adjustment             $6.8       $3.1        $9.9             $4.9            $0.0               $14.8

Prior Accident Years Development
Favorable/(Unfavorable)
  Actuarial adjustment                                                                                                      $9.4
  All other development                                                                                                      7.7
  Total development                                                                                                        $17.1

Calendar year loss/LAE ratio                                                                                                67.8
Accident year loss/LAE ratio                                                                                                69.4

Statutory Ratios
Loss/LAE ratio                                                                                                              67.8
Expense ratio                                                                                                               20.0
Combined ratio                                                                                                              87.8

NM = Not Meaningful


1
 Primarily includes professional liability insurance for community banks and Progressive’s run-off businesses. The other
businesses generated an underwriting profit of $.2 million for the month.
2
 Represents adjustments solely based on our corporate actuarial reviews.




                                                               -4-
THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
                                       SUPPLEMENTAL INFORMATION
                                            June 2006 Year-to-Date
                                                 ($ in millions)
                                                  (unaudited)

                                                          Year-to-Date
                                                                                 Commercial
                                                      Personal Lines               Auto             Other        Companywide
                                                                                                  Businesses1
                                            Drive        Direct      Total        Business                          Total

Net Premiums Written                       $4,085.6      $2,234.4     $6,320.0        $1,022.6           $13.7          $7,356.3
% Growth in NPW                               (2)%            5%           1%             11%             NM                 2%
Net Premiums Earned                        $3,983.9      $2,159.2     $6,143.1         $909.4            $12.4          $7,064.9
% Growth in NPE                                 0%            8%           3%             13%             NM                 4%

GAAP Ratios
Loss/LAE ratio                                 67.5          66.4         67.0             59.8            NM               66.0
Expense ratio                                  20.0          19.9         20.0             19.0            NM               19.9
Combined ratio                                 87.5          86.3         87.0             78.8            NM               85.9

Actuarial Adjustments2
Reserve Decrease/(Increase)
 Prior accident years                                                                                                     $94.7
 Current accident year                                                                                                     21.6
 Calendar year actuarial adjustment           $60.6        $28.9         $89.5           $26.6             $.2           $116.3

Prior Accident Years Development
Favorable/(Unfavorable)
 Actuarial adjustment                                                                                                     $94.7
 All other development                                                                                                     77.7
 Total development                                                                                                       $172.4

Calendar year loss/LAE ratio                                                                                                66.0
Accident year loss/LAE ratio                                                                                                68.4

Statutory Ratios
Loss/LAE ratio                                                                                                              66.1
Expense ratio                                                                                                               19.5
Combined ratio                                                                                                              85.6

                                                                                                                        $5,534.2
Statutory Surplus

NM = Not Meaningful

                                                            June         June
                                                            2006         2005          Change
Policies in Force
   (in thousands)
         Drive – Auto                                      4,554         4,492             1%
         Direct – Auto                                     2,409         2,271             6%
         Special Lines3                                    2,871         2,612            10%
    Total Personal Lines                                   9,834         9,375             5%
    Commercial Auto Business                                 502           455            10%

1
  The other businesses generated an underwriting profit of $6.0 million.
2
  Represents adjustments solely based on our corporate actuarial reviews.
3
  Includes insurance for motorcycles, recreational vehicles, mobile homes, watercraft, snowmobiles and similar items.


                                                                -5-
THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
                                   BALANCE SHEET AND OTHER INFORMATION
                                                 (millions– except per share amounts)
                                                              (unaudited)


                                                                                             June
                                                                                             2006
CONDENSED GAAP BALANCE SHEET:1
 Investments – Available-for-sale, at market:
   Fixed maturities (amortized cost: $10,574.9)                                          $10,386.9
   Equity securities:
        Preferred stocks (cost: $1,462.0)                                                  1,450.8
        Common equities (cost: $1,441.4)                                                   2,109.8
   Short-term investments (amortized cost: $720.1)                                           720.3
            Total investments2                                                            14,667.8
 Net premiums receivable                                                                   2,662.9
 Deferred acquisition costs                                                                  478.0
 Other assets                                                                              1,793.9
                Total assets                                                             $19,602.6

     Unearned premiums                                                                    $4,626.6
     Loss and loss adjustment expense reserves                                             5,694.6
     Other liabilities2                                                                    1,680.5
     Debt3                                                                                 1,185.2
     Shareholders’ equity                                                                  6,415.7
                     Total liabilities and shareholders’ equity                          $19,602.6




    Common Shares outstanding                                                                775.2
    Shares repurchased – June                                                                  4.1
        Average cost per share                                                              $26.01
    Book value per share                                                                     $8.28
    Trailing 12-month return on average shareholders’ equity                                23.5%
    Net unrealized pre-tax gains on investments                                             $469.4
        Increase (decrease) from May 2006                                                  $(14.4)
        Increase (decrease) from December 2005                                            $(130.7)
    Debt to total capital ratio3                                                            15.6%
    Fixed-income portfolio duration                                                      3.3 Years
    Weighted average credit quality                                                            AA
    Year-to-date Gainshare factor                                                             1.33



1
 Pursuant to SFAS 113, “Accounting and Reporting for Reinsurance of Short-Duration and Long-
Duration Contracts,” loss and loss adjustment expense reserves are stated gross of reinsurance
recoverables on unpaid losses of $336.2 million.
2
    Amounts include net unsettled security acquisitions of $231.2 million.

3
    Retired $100 million, 7.30% Notes at maturity on June 1, 2006.




                                                                    -6-
Monthly Commentary

    •   The Company has no additional commentary regarding June results.




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 DirectSM 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® 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, including a guide to interpreting the
monthly reporting package, can be found at www.progressive.com.


Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in this release that are not historical fact
are forward-looking statements that are subject to certain risks and uncertainties that could cause actual events and results to differ
materially from those discussed herein. These risks and uncertainties include, without limitation, uncertainties related to estimates,
assumptions and projections generally; inflation and changes in economic conditions (including changes in interest rates and financial
markets); the accuracy and adequacy of the Company’s pricing and loss reserving methodologies; pricing competition and other
initiatives by competitors; the Company’s ability to obtain regulatory approval for requested rate changes and the timing thereof; the
effectiveness of the Company’s advertising campaigns; legislative and regulatory developments; disputes relating to intellectual property
rights; the outcome of litigation pending or that may be filed against the Company; weather conditions (including the severity and
frequency of storms, hurricanes, snowfalls, hail and winter conditions); changes in driving patterns and loss trends; acts of war and
terrorist activities; the Company’s ability to maintain the uninterrupted operation of its facilities, systems (including information
technology systems) and business functions; court decisions and trends in litigation and health care and auto repair costs; and other
matters described from time to time by the Company in releases and publications, and in periodic reports and other documents filed with
the United States Securities and Exchange Commission. In addition, investors should be aware that generally accepted accounting
principles prescribe when a company may reserve for particular risks, including litigation exposures. Accordingly, results for a given
reporting period could be significantly affected if and when a reserve is established for one or more contingencies. Reported results,
therefore, may appear to be volatile in certain accounting periods.




                                                                  -7-

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.progressive mreport-06/06

  • 1. NEWS RELEASE The Progressive Corporation Company Contact: 6300 Wilson Mills Road Thomas A. King Mayfield Village, Ohio 44143 (440) 395-2260 http://www.progressive.com Progressive is scheduled to hold a one-hour conference call to address questions on Friday, August 4, 2006, at 9:00 a.m. eastern time, subsequent to the posting of our Shareholders’ Report online and the filing of our Quarterly Report on Form 10-Q with the SEC. Registration for the teleconference and webcast is scheduled to be available on Progressive’s Web site at http://investors.progressive.com/events.asp on or after July 19, 2006. FOR IMMEDIATE RELEASE MAYFIELD VILLAGE, OHIO -- July 13, 2006 -- The Progressive Corporation today reported the following results for June 2006: Month Quarter (millions, except per share amounts and 2006 2005 Change 2006 2005 Change ratios) Net premiums written $1,089.6 $1,092.8 0% $3,679.6 $3,594.1 2% Net premiums earned 1,096.9 1,069.6 3% 3,564.4 3,453.8 3% Net income 115.0 120.6 (5)% 400.4 394.3 2% Per share .15 .15 (3)% .51 .49 3% Pre-tax net realized gains (losses) (24.4) (.7) 3386% (27.1) (3.8) 613% on securities Combined ratio 87.4 87.3 .1 pts. 86.6 86.1 .5 pts. Average diluted equivalent shares 781.0 797.5 (2)% 785.9 800.1 (2)% See the “Income Statements” for further month and year-to-date information and additional comments. Progressive offers insurance to personal and commercial auto drivers throughout the United States. Our Personal Lines business units write insurance for private passenger automobiles and recreational vehicles. Our Commercial Auto business unit writes primary liability, physical damage and other auto-related insurance for automobiles and trucks owned by small businesses. See “Supplemental Information” for month and year-to-date results. -1-
  • 2. THE PROGRESSIVE CORPORATION AND SUBSIDIARIES INCOME STATEMENT June 2006 (millions – except per share amounts) (unaudited) Current Comments on Monthly Results1 Month Direct premiums written $1,109.2 Net premiums written $1,089.6 Revenues: Net premiums earned $1,096.9 Investment income 60.1 Net realized gains (losses) on securities (24.4) Includes $.8 million of write-downs on a security determined to have an other-than-temporary decline in market value. Service revenues 2.2 Total revenues 1,134.8 Expenses: Losses and loss adjustment expenses 743.5 111.6 Policy acquisition costs Other underwriting expenses 103.3 Investment expenses .8 Service expenses 2.0 Interest expense 6.0 Retired $100 million, 7.30% Notes at maturity on June 1, 2006. Total expenses 967.2 Income before income taxes 167.6 Provision for income taxes 52.6 Net income $115.0 COMPUTATION OF EARNINGS PER SHARE Basic: Average shares outstanding 771.4 Per share $.15 Diluted: Average shares outstanding 771.4 Net effect of dilutive stock-based compensation 9.6 Total equivalent shares 781.0 Per share $.15 1 For a description of our reporting and accounting policies, see Note 1 to our 2005 audited consolidated financial statements included in our 2005 Shareholders’ Report, which can be found at www.progressive.com/annualreport. ________________________________________________________________________________ The following table sets forth the investment results for the month: Fully taxable equivalent total return: Fixed-income securities .2% Common stocks .4% Total portfolio .2% Pretax recurring investment book yield 5.1% -2-
  • 3. THE PROGRESSIVE CORPORATION AND SUBSIDIARIES INCOME STATEMENTS June 2006 Year-to-Date (millions – except per share amounts) (unaudited) Year-to-Date % 2006 2005 Change Direct premiums written $7,499.3 $7,356.6 2 Net premiums written $7,356.3 $7,198.9 2 Revenues: Net premiums earned $7,064.9 $6,803.8 4 Investment income 314.2 250.2 26 Net realized gains (losses) on securities (26.6) 6.4 NM Service revenues 16.3 21.5 (24) Total revenues 7,368.8 7,081.9 4 Expenses: Losses and loss adjustment expenses 4,667.0 4,433.2 5 Policy acquisition costs 727.0 722.3 1 Other underwriting expenses 676.5 665.6 2 Investment expenses 5.9 5.9 0 Service expenses 13.1 12.0 9 Interest expense 39.9 41.5 (4) Total expenses 6,129.4 5,880.5 4 Income before income taxes 1,239.4 1,201.4 3 Provision for income taxes 402.4 394.4 2 Net income $837.0 $807.0 4 COMPUTATION OF EARNINGS PER SHARE Basic: Average shares outstanding 783.2 792.2 (1) Per share $1.07 $1.02 5 Diluted: Average shares outstanding 783.2 792.2 (1) Net effect of dilutive stock-based compensation 10.2 11.7 (13) Total equivalent shares 793.4 803.9 (1) Per share $1.05 $1.00 5 NM = Not Meaningful The following table sets forth the investment results for the year-to-date period: 2006 2005 Fully taxable equivalent total return: Fixed-income securities 1.2% 2.2% Common stocks 3.4% .4% Total portfolio 1.5% 1.9% Pretax recurring investment book yield 4.5% 3.9% -3-
  • 4. THE PROGRESSIVE CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION June 2006 ($ in millions) (unaudited) Current Month Commercial Personal Lines Auto Other Companywide Businesses1 Drive Direct Total Business Total Net Premiums Written $612.0 $323.3 $935.3 $152.5 $1.8 $1,089.6 % Growth in NPW (3)% 3% (1)% 2% NM 0% Net Premiums Earned $613.8 $336.6 $950.4 $144.7 $1.8 $1,096.9 % Growth in NPE (1)% 6% 1% 12% NM 3% GAAP Ratios Loss/LAE ratio 70.0 66.8 68.9 60.7 NM 67.8 Expense ratio 19.5 19.9 19.6 19.1 NM 19.6 Combined ratio 89.5 86.7 88.5 79.8 NM 87.4 Actuarial Adjustments2 Reserve Decrease/(Increase) Prior accident years $9.4 Current accident year 5.4 Calendar year actuarial adjustment $6.8 $3.1 $9.9 $4.9 $0.0 $14.8 Prior Accident Years Development Favorable/(Unfavorable) Actuarial adjustment $9.4 All other development 7.7 Total development $17.1 Calendar year loss/LAE ratio 67.8 Accident year loss/LAE ratio 69.4 Statutory Ratios Loss/LAE ratio 67.8 Expense ratio 20.0 Combined ratio 87.8 NM = Not Meaningful 1 Primarily includes professional liability insurance for community banks and Progressive’s run-off businesses. The other businesses generated an underwriting profit of $.2 million for the month. 2 Represents adjustments solely based on our corporate actuarial reviews. -4-
  • 5. THE PROGRESSIVE CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION June 2006 Year-to-Date ($ in millions) (unaudited) Year-to-Date Commercial Personal Lines Auto Other Companywide Businesses1 Drive Direct Total Business Total Net Premiums Written $4,085.6 $2,234.4 $6,320.0 $1,022.6 $13.7 $7,356.3 % Growth in NPW (2)% 5% 1% 11% NM 2% Net Premiums Earned $3,983.9 $2,159.2 $6,143.1 $909.4 $12.4 $7,064.9 % Growth in NPE 0% 8% 3% 13% NM 4% GAAP Ratios Loss/LAE ratio 67.5 66.4 67.0 59.8 NM 66.0 Expense ratio 20.0 19.9 20.0 19.0 NM 19.9 Combined ratio 87.5 86.3 87.0 78.8 NM 85.9 Actuarial Adjustments2 Reserve Decrease/(Increase) Prior accident years $94.7 Current accident year 21.6 Calendar year actuarial adjustment $60.6 $28.9 $89.5 $26.6 $.2 $116.3 Prior Accident Years Development Favorable/(Unfavorable) Actuarial adjustment $94.7 All other development 77.7 Total development $172.4 Calendar year loss/LAE ratio 66.0 Accident year loss/LAE ratio 68.4 Statutory Ratios Loss/LAE ratio 66.1 Expense ratio 19.5 Combined ratio 85.6 $5,534.2 Statutory Surplus NM = Not Meaningful June June 2006 2005 Change Policies in Force (in thousands) Drive – Auto 4,554 4,492 1% Direct – Auto 2,409 2,271 6% Special Lines3 2,871 2,612 10% Total Personal Lines 9,834 9,375 5% Commercial Auto Business 502 455 10% 1 The other businesses generated an underwriting profit of $6.0 million. 2 Represents adjustments solely based on our corporate actuarial reviews. 3 Includes insurance for motorcycles, recreational vehicles, mobile homes, watercraft, snowmobiles and similar items. -5-
  • 6. THE PROGRESSIVE CORPORATION AND SUBSIDIARIES BALANCE SHEET AND OTHER INFORMATION (millions– except per share amounts) (unaudited) June 2006 CONDENSED GAAP BALANCE SHEET:1 Investments – Available-for-sale, at market: Fixed maturities (amortized cost: $10,574.9) $10,386.9 Equity securities: Preferred stocks (cost: $1,462.0) 1,450.8 Common equities (cost: $1,441.4) 2,109.8 Short-term investments (amortized cost: $720.1) 720.3 Total investments2 14,667.8 Net premiums receivable 2,662.9 Deferred acquisition costs 478.0 Other assets 1,793.9 Total assets $19,602.6 Unearned premiums $4,626.6 Loss and loss adjustment expense reserves 5,694.6 Other liabilities2 1,680.5 Debt3 1,185.2 Shareholders’ equity 6,415.7 Total liabilities and shareholders’ equity $19,602.6 Common Shares outstanding 775.2 Shares repurchased – June 4.1 Average cost per share $26.01 Book value per share $8.28 Trailing 12-month return on average shareholders’ equity 23.5% Net unrealized pre-tax gains on investments $469.4 Increase (decrease) from May 2006 $(14.4) Increase (decrease) from December 2005 $(130.7) Debt to total capital ratio3 15.6% Fixed-income portfolio duration 3.3 Years Weighted average credit quality AA Year-to-date Gainshare factor 1.33 1 Pursuant to SFAS 113, “Accounting and Reporting for Reinsurance of Short-Duration and Long- Duration Contracts,” loss and loss adjustment expense reserves are stated gross of reinsurance recoverables on unpaid losses of $336.2 million. 2 Amounts include net unsettled security acquisitions of $231.2 million. 3 Retired $100 million, 7.30% Notes at maturity on June 1, 2006. -6-
  • 7. Monthly Commentary • The Company has no additional commentary regarding June results. 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 DirectSM 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® 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, including a guide to interpreting the monthly reporting package, can be found at www.progressive.com. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in this release that are not historical fact are forward-looking statements that are subject to certain risks and uncertainties that could cause actual events and results to differ materially from those discussed herein. These risks and uncertainties include, without limitation, uncertainties related to estimates, assumptions and projections generally; inflation and changes in economic conditions (including changes in interest rates and financial markets); the accuracy and adequacy of the Company’s pricing and loss reserving methodologies; pricing competition and other initiatives by competitors; the Company’s ability to obtain regulatory approval for requested rate changes and the timing thereof; the effectiveness of the Company’s advertising campaigns; legislative and regulatory developments; disputes relating to intellectual property rights; the outcome of litigation pending or that may be filed against the Company; weather conditions (including the severity and frequency of storms, hurricanes, snowfalls, hail and winter conditions); changes in driving patterns and loss trends; acts of war and terrorist activities; the Company’s ability to maintain the uninterrupted operation of its facilities, systems (including information technology systems) and business functions; court decisions and trends in litigation and health care and auto repair costs; and other matters described from time to time by the Company in releases and publications, and in periodic reports and other documents filed with the United States Securities and Exchange Commission. In addition, investors should be aware that generally accepted accounting principles prescribe when a company may reserve for particular risks, including litigation exposures. Accordingly, results for a given reporting period could be significantly affected if and when a reserve is established for one or more contingencies. Reported results, therefore, may appear to be volatile in certain accounting periods. -7-