Businessweek

The Progressive Corporation, through its subsidiaries, provides personal and commercial automobile insurance, and other specialty property-casualty insurance and related services. The company’s property-casualty insurance products protect its customers against losses due to collision and physical damage to their motor vehicles, uninsured and underinsured bodily injury, and liability to others for personal injury or property damage arising out of the use of those vehicles. Its non-insurance subsidiaries and limited partnership investment affiliate support its insurance and investment operations. The company operates its businesses throughout the United States and sells personal auto insurance on an Internet-only basis in Australia. Businesses Personal Lines This business writes insurance for personal autos and recreational and other vehicles. This business consists of the company’s personal auto insurance products, as well as special lines products. Personal auto insurance business includes Snapshot, the company’s usage-based insurance product, which is available to consumers through both the Agency and Direct channels in 38 states and the District of Columbia and to consumers in 5 states in the company’s Direct channel. Special lines products include insurance for motorcycles, ATVs, RVs, mobile homes, watercraft, snowmobiles, and similar items. The company also offers a personal umbrella insurance product in 32 states through certain independent agents and to direct customers through telephone. This business’s products are sold through both the agency and direct channels: The Agency business includes business written by its network of approximately 35,000 independent insurance agencies located throughout the United States, including brokerages in New York and California. These independent insurance agents and brokers have the ability to place business with the company for specified insurance coverages within prescribed underwriting guidelines, subject to compliance with company-mandated procedures. The Agency business writes insurance through strategic alliance business relationships with other insurance companies, financial institutions, and national agencies. The Direct business includes business written directly by the company online, through mobile devices, and through the phone. Commercial Auto This business writes primary liability and physical damage insurance for automobiles and trucks owned by small businesses. The majority of this business’s customers insure two or fewer vehicles. This business, which is primarily distributed through the independent agency channel, operates in the following business market targets: Business Auto: Includes autos, vans, and pick-up trucks used by small businesses, such as retailing, farming, services, and private trucking. For-hire Transportation: Includes tractors, trailers, and straight trucks primarily used by regional general freight and expeditor-type businesses and non-fleet long-haul operators. Contractor: Includes vans, pick-up trucks, and dump trucks used by small businesses, such as artisans, heavy construction, and landscapers/snowplowers. For-hire Specialty: Includes dump trucks, log trucks, and garbage trucks used by dirt, sand and gravel, logging, and coal-type businesses. Tow: Includes tow trucks and wreckers used in towing services and gas/service station businesses. Other Indemnity This business consists of managing the company’s run-off businesses, including the run-off of its professional liability business. Pursuant to its agreement with the purchaser of this business, the company continued to write these policies, principally directors and officers liability insurance for community banks, which were 100% reinsured. Service Businesses Commercial Auto Insurance Procedures/Plans (CAIP) The company is a servicing carrier on a nationwide basis for CAIP, which are state-supervised plans servicing the involuntary market in 42 states and the District of Columbia. As a service provider, the company provides policy issuance and claims adjusting services. Commission-Based Businesses The company has two