Summary of PROGRESSIVE CORP/OH/

Results of Operations and Financial Condition, Material Impairments, Financi

Item 2.02 Results of Operations and Financial Condition.

On January 21, 2009, The Progressive Corporation issued a news release containing financial results for the Company and its consolidated subsidiaries for the month of, and year-to-date period ended, December 2008 and selected quarterly financial results. A copy of the news release is attached hereto as Exhibit 99.

Item 2.06 Material Impairments.

On January 16, 2009, The Progressive Corporation wrote down $337.1 million in securities that were determined to have had an "other-than-temporary" decline in market value as of December 31, 2008. When a security has an unrealized loss in fair value that is deemed to be other than temporary, the Company reduces the book value of the security to its current market value, recognizing the decline as a realized loss in the income statement. For December, the preferred stock portfolio, which includes both redeemable and nonredeemable preferred stocks, was reduced $260.9 million, or 15% of the total preferred stock at their December 31, 2008 cost basis, while common equities were reduced $40.5 million, corporate debt securities were reduced $25.2 million and structured debt was reduced $10.5 million. These determinations were primarily the result of fundamental matters related to either specific issues or issuers and/or the significant decline in the credit and mortgage-related markets, and were taken because we were unable to objectively determine that these securities would substantially recover in the near term. The Company does not anticipate that these impairment charges will result in future cash expenditures by the Company.

For additional information, see the comments beginning on page 7 of the Company's Press Release attached hereto as Exhibit 99. An additional discussion of the Company's "Critical Accounting Policy: Other-than-Temporary Impairment" can be found in Management's Discussion and Analysis of Financial Condition and Results of Operations included in the Company's Annual Report on Form 10-K for the year ended December 31, 2007.