Financial Objectives & Policies Scorecard

Financial Results		Target	2008	2007	2006	5 Years¹	10 Years¹
Underwriting margin	Progressive	4%	5.4%	7.4%	13.3%	10.6%	8.8%
	Industry²	na	1.5%	2.5%	4.5%	3.6%	--%
Net premiums written growth		(a)	(1)%	(3)%	1%	3%	10%
Policies in force growth	Personal Auto	(a)	2%	2%	1%	4%	9%
	Special Lines	(a)	7%	8%	8%	11%	14%
	Commercial Auto	(a)	--%	7%	7%	8%	18%
Companywide premiums-to-surplus ratio		(b)	3.0	3.0	2.8	na	na
Investment allocation — fixed:equity		(c)	94%:6%	83%:17%	84%:16%	na	na
Debt-to-total capital ratio		<30%	34.0%	30.6%	14.8%	na	na
Return on average shareholders' equity (ROE) ³		(d)	(1.5)%	19.5%	25.3%	20.5%	19.0%
Comprehensive ROE ⁴		(d)	(13.3)%	17.7%	28.4%	18.8%	18.7%


(a)		Grow as fast as possible, constrained only by our profitability objective and our ability to provide high-quality customer service.

(b)		Determined separately for each insurance subsidiary.

(c)		Allocate 75% to 100% in fixed-income securities with the balance in common equities.

(d)		Progressive does not have a predetermined target for ROE.

na		not applicable

1		Represents results over the respective time period; growth represents average annual compounded rate of increase.

2		Represents the personal auto insurance industry; 2008 is estimated.

3		Based on net income (loss).

4		Based on comprehensive income (loss). Comprehensive ROE is consistent with Progressive's policy to manage on a total return basis and better reflects growth in shareholder value. For a reconciliation of net income (loss) to comprehensive income (loss) and for the components of comprehensive income (loss), see Progressive's Consolidated Statements of Changes in Shareholders' Equity and Note 11 — Other Comprehensive Income (Loss), respectively, which can be found in the complete Consolidated Financial Statements and Notes included in Progressive's 2008 Annual Report to Shareholders, which is attached as an Appendix to Progressive's 2009 Proxy Statement.