Progressive to return up to $3 billion to shareholders

By Lisa Kerner

Charlotte, N.C., June 14 - The board of directors of the Progressive Corp. approved a recapitalization plan that includes an extraordinary cash dividend of $2.00 per common share, or about $1.46 billion, payable on Sept. 14 to shareholders of record on Aug. 31.

In addition, the company is authorized to repurchase up to 100 million of its common shares over the next 24 months, in addition to the 8.3 million available under the board's April 2006 repurchase authorization.

Progressive said it expects to also offer for sale some $1 billion of hybrid debt securities in the near future.

"This plan is consistent with our stated policy to return capital to our shareholders when appropriate," president and chief executive officer Glenn Renwick said in a company news release. "While the timing and volume of share repurchases in large part will depend on market conditions and our stock price, we note that we have previously returned approximately $523 million to shareholders through share repurchases in 2007."

The Progressive Corp. is a Mayfield Village, Ohio-based holding company. The Progressive Group of Insurance Companies is one of the largest auto insurance groups and seller of motorcycle and personal watercraft policies.

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