MAYFIELD VILLAGE, OHIO - December 2, 2016 - The Progressive Corporation today announced that its Board of Directors declared an annual dividend to be paid on February 10, 2017, to shareholders of record at the close of business on February 3, 2017 (ex-dividend date of February 1, 2017). The amount of the dividend will be determined based on the Company's 2016 financial results and the following formula:
Dividend Amount Per Share
| Annual After-Tax Underwriting Income || X || |
33 1/3% Target
| X || Gainshare Factor |
Common Shares Outstanding on 12/31/16
For a detailed discussion of the Company's annual variable dividend policy, please go to http://investors.progressive.com/phoenix.zhtml?c=81824&p=irol-dividends. In accordance with the policy, no dividend will be paid if the Company experiences an after-tax underwriting loss for 2016 or if the Company's after-tax comprehensive income is less than its after-tax underwriting income for the year. The amount of the dividend will be announced in the Company's year-end earnings release, which is currently scheduled for January 25, 2017.
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 2016 full-year amounts will be included in the Company's year-end earnings release. Year-to-date through October 2016, the Company's after-tax underwriting income was $470.0 million, after-tax comprehensive income was $892.1 million, and the Gainshare Factor was 1.56.
Consistent with the Company's policy of not providing projections of its financial results, the Company is not providing an estimate of the 2016 dividend at this time. Investors who choose to calculate or project a dividend amount based on interim 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.
The Board also decided that the dividend for 2017 will be calculated using the same formula described above, including keeping the target percentage for 2017 at 33 1/3% of annual after-tax underwriting income. In addition to the limitations included in our dividend policy (discussed above), the 2017 dividend will be subject to the Board's discretion and a declaration by the Board at the end of 2017 or beginning of 2018.
The Progressive Group of Insurance Companies makes it easy to understand, buy and use auto insurance. Progressive offers choices so consumers can reach us whenever, wherever and however it's most convenient-online at http://www.progressive.com, by phone at 1-800-PROGRESSIVE, on a mobile device or in-person with a local agent.
Progressive provides insurance for personal and commercial autos and trucks, motorcycles, boats, recreational vehicles, and homes. Home insurance is underwritten by select carriers, including American Strategic Insurance Corp. and subsidiaries (ASI), our majority owned subsidiaries.
Progressive is the fourth largest auto insurer in the country; a leading seller of motorcycle and commercial auto insurance; and through ASI, one of the top 20 homeowners carriers. Progressive also offers car insurance online in Australia at http://www.progressiveonline.com.au.
Founded in 1937, Progressive continues its long history of offering shopping tools and services that save customers time and money, like Name Your Price®, Snapshot® and Service Centers.
The Common Shares of The Progressive Corporation, the Mayfield Village, Ohio-based holding company, trade publicly at NYSE:PGR.
The Progressive Corporation
6300 Wilson Mills Road
Mayfield Village, Ohio 44143