the progressive corporation 2006 annual report

financial review

The Progressive Corporation and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2006, 2005 and 2004

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2

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4

5

6

7

Reporting and Accounting Policies

Investments

Income Taxes

Debt

Loss and Loss Adjustment Expense Reserves

Reinsurance

Statutory Financial Information

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9

10

11

12

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Employee Benefit Plans

Segment Information

Other Comprehensive Income

Litigation

Commitments and Contingencies

Fair Value of Financial Instruments

Related Party Transactions

14) Related Party Transactions

In October 2004, we purchased 1.1 million of our Common Shares, $1.00 par value, from Peter B. Lewis, Progressive’s Chairman of the Board, or through an entity owned and controlled, directly or indirectly, by Mr. Lewis, at a purchase price of $88.00 per share, on a pre-split basis. This transaction was part of our “Dutch auction” tender offer and the price per share was the same price paid to all shareholders who elected to participate in the tender offer. We did not make any repurchases from Mr. Lewis in 2005 or 2006.

 

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