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About Progressive Casualty Insurance Company

The Progressive Corporation offers personal lines insurance as well as commercial lines and property insurance. Personal auto insurance is Progressive's largest business; it also offers personal-use vehicle policies for motorcycles, RVs, snowmobiles, and other specialty vehicles. The company's commercial policies cover vans and light to heavy trucks. Most of its commercial lines policies are sold to small business owners. The property insurance business writes residential property insurance for homeowners and offers renters insurance. Progressive markets directly to consumers online and by phone and through more than 35,000 independent agents.

Operations

Progressive earns revenue through three segments: Personal Lines (the largest segment, accounting for some 85% of total revenue), Commercial Lines (10%), Property (5%). 

The company primarily offers coverage to auto insurance customers, underwritten by third-party insurance carriers. Personal auto insurance accounts for some 95% of its Personal Lines net premiums. Progressive also offers personal umbrella insurance that provides coverage for the extras in life, such as personal injury and legal defense. 

Geographic Reach

In addition to its Mayfield Village, Ohio headquarters, Progressive has offices in Colorado Springs, Colorado; Tampa and St. Petersburg, Florida; and Tempe, Arizona.

Sales and Marketing

Progressive sells its personal lines insurance through more than 35,000 independent agencies and through partnerships with other insurance companies and financial institutions. It also sells directly to customers online and by telephone. Commercial lines are distributed directly and through independent agencies.

The company's popular television ads featuring perky spokesperson "Flo" have been a boon for the company's brand recognition. 

 

Financial Performance

Organic growth across its Personal Lines, Commercial Lines, and Property business segment has boosted Progressive's revenue every year since 2008.

Revenue jumped 19% to $31.9 billion in 2018 as net premiums increased across Progressive's business segments.

Net income rose 64% to $2.6 billion, a healthy increase driven mostly by the jump in revenue. 

Total cash on hand at the end of 2018 sat at a low $75 million, ending about $200 million lower than in the previous period. Cash from operations provided $6.2 billion, while investing activities used $7.2 billion (purchases of fixed maturities accounted for the largest investment) and financing provided $846 million. 

Strategy

Unlike some insurers who, in healthy markets, earn more from their investments than their premiums, more than 90% of Progressive's revenues have historically come from policy premiums.

The company's insurance operations have remained profitable and have grown as the company has entered into new geographic markets and expanded the online distribution of its personal auto products. Already among the leading US auto insurers based on premiums (just behind State Farm and Allstate), Progressive is aiming to be on top.

The auto insurance industry is highly competitive, with large carriers and regional carriers competing for market share. Because it is easy for customers to switch auto insurers, Progressive competes on price and accessibility. The company also find success through advertising to attract and retain customers. Its television ads featuring its perky spokesperson "Flo" have boosted company's brand recognition. 

Progressive is looking to reduce its exposure to the competitive auto insurance industry by growing its property insurance business. It promotes its residential products through bundled packages with lower auto rates and has rebranded its majority-owned homeowners insurance carrier, American Strategic Insurance, to the Progressive name to make it easier to sell auto and home bundles. This cross-selling strategy comes with a retention benefit as well; once a customer has bought a bundled package of home/auto/umbrella coverage, they are less likely to switch insurance providers.

 

Company Background

Attorneys Jack Green and Joseph Lewis founded Progressive Mutual Insurance in Cleveland in 1937. Initially offering standard auto insurance, the company attracted customers through such innovations as installment plans for premiums (a payment method popularized during the Depression) and drive-in claims services headquartered in a garage. Progressive's early years were uncertain -- at one point the founders were even advised to go out of business -- but the advent of WWII bolstered business. Car and insurance purchases went up, but accidents declined as gas rationing limited driving.

Progressive Casualty Insurance Company

6300 WILSON MILLS RD
Mayfield Village, OH 44143-2109
Phone: 1 (440) 461-5000

Stats

Employer Type: Privately Owned
Chief Security Officer: Paul Beckwith
Vice President, Real Estate: Ron Marotto
Managing Director Supervisor: Hernan Morales
Employees (This Location): 3,300
Employees (All Locations): 11,724

Major Office Locations

Mayfield Village, OH

Other Locations

Tempe, AZ
Glendale, CA
Torrance, CA
Colorado Springs, CO
Dover, DE
Doral, FL
Pensacola, FL
Sarasota, FL
Acworth, GA
Decatur, GA
Metairie, LA
Hagerstown, MD
Silver Spring, MD
Vestal, NY
Cleveland, OH
Columbus, OH
Pittsburgh, PA
Houston, TX
Springfield, VA
North York, Canada