Summary of PROGRESSIVE CORP/OH/

Results of Operations and Financial Condition, Material Impairments, Financi

Item 2.02 Results of Operations and Financial Condition.

On October 10, 2008, The Progressive Corporation issued a news release containing financial results for the Company and its subsidiaries for the month of, and year-to-date period ended, September 2008 and selected quarterly financial results. A copy of the news release is attached hereto as Exhibit 99.

Item 2.06 Material Impairments.

On October 7, 2008, the Company decided to write down $1,100.9 million in securities that were determined to have had an "other-than-temporary" decline in market value as of September 30, 2008. These determinations primarily reflect the market-related issues associated with the disruption in the mortgage and other credit markets, which created a significant deterioration in both the valuation of the securities as well as our view of near term recoverability of the valuation decline. This write-down included: (i) $1,033.9 million of preferred stocks, or 35% of the total preferred stock at cost; (ii) $43.8 million of corporate debt on American General and American General Finance, which are wholly-owned subsidiaries of American International Group; (iii) $14.5 million of structured debt securities; and (iv) $8.7 million of common stocks. The Company does not anticipate that these impairment charges will result in future cash expenditures by the Company.

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 additional information, see the comments on pages 8 through 10 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.