Progressive Distributes December Results

    Business Editors

    MAYFIELD VILLAGE, Ohio--(BUSINESS WIRE)--Jan. 20, 2005--The Progressive Corporation (NYSE:PGR) today reported the following results for December and fourth quarter 2004, each of which includes an additional week of operating (underwriting and service) results as compared to the corresponding periods of the prior year:

---------------------------------------------------------------------- Month Quarter --------------------------------------- ------------------------------ (millions, except per share amounts) 2004 2003 Change(A) 2004 2003 Change(A) --------- ------- ---------- --------- --------- ---------- Net premiums written $1,135.5 $861.3 32% $3,352.3 $2,906.4 15% Net premiums earned 1,270.2 935.4 36% 3,564.7 3,040.0 17% Net income 179.5 112.6 59% 413.5 357.8 16% Per share .89 .51 73% 2.01 1.63 23% Combined ratio 80.6 86.6 6.0 pts. 85.5 85.9 .4 pts. Pre-tax net realized gains (losses) (10.6) (2.6) 308% (.7) (3.0) (77)% Diluted equivalent shares 202.3 219.6 (8)% 206.2 219.5 (6)%

(A) Excluding the additional week of activity, net premiums written growth would have been approximately 5% for the month and 7% for the quarter, respectively, and net premiums earned growth would have been approximately 9% for both periods. See "Monthly Commentary" for a further discussion.

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    See the complete monthly release at http://investors.progressive.com/releases/2004/pdf/mreport_1204.pdf for further month and year information and commentary.
    The Company is scheduled to hold a one-hour conference call to address questions on Thursday, March 3, 2005, at 9:00 a.m. eastern time, subsequent to the posting of the Company's Annual Report to Shareholders online and the filing of its Annual Report on Form 10-K with the SEC. Registration for the teleconference or webcast is scheduled to be available on the Company's Web site at http://investors.progressive.com/events.asp on or after February 17, 2005.
    The Progressive group of insurance companies ranks third in the nation for auto insurance based on premiums written. The companies that offer insurance directly (by phone at 1-800-PROGRESSIVE and online at progressive.com) market their products and services through the Progressive Direct(SM) brand, while the companies that offer insurance through more than 30,000 independent agencies in the U.S. market their products and services through the Drive Insurance from Progressive(SM) brand. The Common Shares of The Progressive Corporation, the holding company, are publicly traded at NYSE:PGR. More information can be found at progressive.com.

--30--SLB/cl*

CONTACT: The Progressive Corporation Jeffrey W. Basch, 440-446-7903

KEYWORD: OHIO INDUSTRY KEYWORD: INSURANCE AUTOMOTIVE EARNINGS SOURCE: The Progressive Corporation

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