Progressive Announces Election of Stuart B. Burgdoerfer to Board of Directors and Annual Dividend Information

The Progressive Corporation today announced that on December 11, 2009, its Board of Directors elected Stuart B. Burgdoerfer, 46, to fill a vacancy on the Company's Board for a term ending on the date of the Annual Meeting of Shareholders in April 2010. Mr. Burgdoerfer is an Executive Vice President, the Chief Financial Officer and a member of the Executive Committee of Limited Brands, Inc. He also currently serves as a member of the Board of Trustees of Spelman College, where he is Chairman of the Audit Committee.

The Company also announced that the Board declared an annual dividend to be paid on February 5, 2010, to shareholders of record at the close of business on January 27, 2010. The amount of the dividend will be determined based on the Company’s 2009 financial results and the formula discussed below, and announced in the Company’s year-end earnings release, which is currently scheduled for January 20, 2010.

The dividend amount will be calculated using the Company’s operating results for the full year of 2009, as follows:

For a more detailed discussion of the Company’s annual variable dividend policy, the components of the formula set forth above, and the limitations included in the policy, please go to http://investors.progressive.com/dividend.aspx. Under the Board’s action, in accordance with the Company’s previously announced policy, no dividend will be paid if the Company experiences an after-tax underwriting loss for 2009 or if the Company’s after-tax comprehensive income is less than its after-tax underwriting income for the year.

The Gainshare Factor and the components of underwriting income and comprehensive income are disclosed by the Company throughout the year in its monthly earnings releases, and the final amounts will be included in the full-year results to be published in January 2010. Year-to-date through November, the Company’s after-tax underwriting income was $685.6 million, after-tax comprehensive income was $1,648.0 million, and the Gainshare Factor was .75.

Consistent with the Company’s policy of not providing projections of its financial results, the Company is not providing an estimate of the 2009 dividend at this time. Investors who choose to calculate or project a dividend amount based on the November 2009 year-to-date results are cautioned, however, that any such estimates may vary from the dividend that may ultimately be paid on the basis of the Company’s full-year results and the final Gainshare Factor.

In addition, the Board decided that the dividend for 2010 will be calculated using the formula described above, except that the target percentage for 2010 will be increased to 25% of after-tax underwriting income. Consistent with the Company’s past practice, the 2010 dividend will be subject to the Board’s discretion and a declaration by the Board at the end of 2010 or beginning of 2011.

About Progressive

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

Progressive is committed to becoming consumers’ #1 choice for auto insurance by providing competitive rates and innovative products and services that meet drivers’ needs throughout their lifetimes, including superior online and in-person customer service, and best-in-class, 24-hour claims service, such as 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. Private passenger auto products and prices are different when purchased directly from Progressive or through independent agencies. To find an agent or to get a quote, go to http://www.progressive.com.

The Common Shares of The Progressive Corporation, the Mayfield Village, Ohio-based holding company, are publicly traded at (NYSE:PGR). For more information, visit http://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 financial condition of, and other issues relating to the strength of and liquidity available to, issuers of securities held in our investment portfolios and other companies with which we have ongoing business relationships, including counterparties to certain financial transactions; the accuracy and adequacy of our pricing and loss reserving methodologies; the competitiveness of our pricing and the effectiveness of our initiatives to retain more customers; initiatives by competitors and the effectiveness of our response; our ability to obtain regulatory approval for requested rate changes and the timing thereof; the effectiveness of our brand strategy and advertising campaigns relative to those of competitors; legislative and regulatory developments; disputes relating to intellectual property rights; the outcome of litigation pending or that may be filed against us; 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; our ability to maintain the uninterrupted operation of our 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 in our releases and publications, and in our 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. Also, our regular reserve reviews may result in adjustments of varying magnitude as additional information regarding pending loss and loss adjustment expense reserves becomes known. Reported results, therefore, may be volatile in certain accounting periods.