The Progressive Corporation today announced that its Board of Directors declared an annual dividend to be paid on February 1, 2013, to shareholders of record at the close of business on January 25, 2013 (ex-dividend date of January 23, 2013). The amount of the dividend will be determined based on the Company’s 2012 financial results and the formula discussed below, and announced in the Company’s year-end earnings release, which is currently scheduled for January 18, 2013.
The dividend amount will be calculated using the Company’s operating results for the full year of 2012, as follows:
|DividendAmount PerShare||=||After-TaxUnderwritingIncome||X||33 1/3%Target||X||GainshareFactor|
|Common Shares Outstanding on 12/31/12|
For a 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/phoenix.zhtml?c=81824&p=irol-dividends. 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 2012 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 2013. Year-to-date through October, the Company’s after-tax underwriting income was $354.1 million, after-tax comprehensive income was $914.9 million, and the Gainshare Factor was 1.14. Results for November will be released on December 12, 2012.
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