The BusinessWeek 50 Ranking
21
Progressive
Auto insurers had a smooth ride last year, thanks in part to rising rates and fewer accident claims. But with its low-cost advantage and high-touch service, Progressive zoomed ahead — fattening underwriting margins from 12.7% to 14.9% and boosting net income by 31%. Revenue growth at the Mayfield Village (Ohio) company is likely to slow this year as cash-flush competitors chase new business and drive down prices. But with innovations such as Progressive's "concierge" service, which handles nearly every aspect of a customer's car repairs, the potholes should be minor.
Company Info
| 2004 Rank | 1 |
| STOCK INFO | PGR |
| Market Value | $18.9 BILLION |
| Total Return | (1-yr.) 5.5%
(3-yr.) 68.5% |
| 2004 sales | $13.8 BILLION |
| Sales Growth | (1-yr.) 16%
(3-yr.) 23.1% |
| Net income | $1.6 BILLION |
| Net Income Growth | (1-yr.) 31%
(3-yr.) 61.6% |
| Net Margin* | 12.0% |
| Return on Equity* | 32.0% |
| Industry | INSURANCE |
| CORPORATE WEB SITE | |
More in S&P 500 Companies Scoreboard >
*Trailing 12 months
Company data as of 2/28/05 provided by Standard & Poor's Compustat
Can Progressive Stay In Gear?
Has Progressive Gotten Ahead of Itself?
Insurance: Now Come The Real Storms
Company Snapshot
Progressive Corporation serves as an insurance holding company in the United States. The company operates through three segments: Personal Lines, Commercial Auto, and Other. Personal Lines segment writes insurance for private passenger automobiles, recreation, and other vehicles through both an independent agency channel and a direct channel. The Personal Lines agency channel includes business written by the company’s network of approximately 30,000 independent insurance agencies, brokers, and strategic alliance business relationships. The Commercial Auto segment writes primary liability, physical damage, and other auto-related insurance for automobiles and trucks owned by businesses, primarily through the independent agency channel. Other segment includes the Professional Liability Group (PLG) and the Motor Carrier units. PLG’s principal products are liability insurance for directors and officers, and financial institution bonds. Its main product is employee dishonesty insurance. PLG’s principal customers are community banks. The Motor Carrier unit provides insurance-related services, such as policy issuance and claims adjusting services for the commercial auto insurance procedures/plans in 25 states. The company was formed in 1965 and is headquartered in Mayfield Village, Ohio.
No. of Employees
27,085
Data provided by 
