Progressive--Auto Insurer for All People  

Progressive——为所有人提供汽车保险

In 1995, we continued to make great strides toward positioning Progressive to offer automobile insurance to all U.S. licensed operators through independent insurance agents and other distribution methods. This customer-driven approach is increasing our rate of growth and market share, which, in turn, lets us reduce the costs of doing business and become still more competitive.  

1995年，我们继续大步迈进，将Progressive定位为通过独立保险代理和其他分销渠道，为所有拥有美国驾驶执照的驾驶员提供汽车保险。这种以客户为导向的方法正在提升我们的增长速度和市场份额，从而使我们能够降低经营成本并进一步提高竞争力。

We are building intrinsic value in the form of a growing customer base, and a broad array of products and services delivered when and how customers most want them. Progressive's people are responding superbly to the challenge of managing growth, reaffirming how good they are, as well as the strength of Progressive's Vision, Values and Strategy.  

我们正在通过不断扩大的客户群，以及在客户最希望的时间和方式提供的多样化产品和服务来构建内在价值。Progressive的员工在应对增长管理的挑战方面表现卓越，不仅再次证明了他们的出色能力，也展现了Progressive的愿景、价值观和战略的力量。

We grew in 1995 by increasing our share of the approximately $20 billion nonstandard auto insurance market and by continuing to grow in the approximately $81 billion standard and preferred auto insurance market. We work hard and invest heavily in people and processes to reduce the human trauma and economic costs of auto accidents. Our results include the cost of these investments designed to make us more competitive for all auto insurance.  

通过在约200亿美元的非标准汽车保险市场扩大份额，并在约810亿美元的标准和优选汽车保险市场持续发展，我们在1995年实现了增长。我们努力工作并在人员和流程方面进行大量投资，以减少汽车事故带来的人员伤害和经济损失。我们的业绩包括了这些投资的成本，这些投资旨在提升我们在所有汽车保险领域的竞争力。

Progressive shareholders are best served by executing meaningful, long-term strategies. Success requires translating premium growth into commensurate earnings growth, so our stock price reflects the intrinsic value we are now creating.  

实施具有深远意义的长期战略，才能为Progressive的股东提供最佳服务。成功需要将保费的增长转化为相称的盈利增长，从而使我们的股价能够反映我们目前所创造的内在价值。

From its beginnings, Progressive's most important competitive advantage has been having superior people, measured by their intelligence, work ethic, ambition, creativity and demonstrated performance. Many companies pay lip service to this idea. At Progressive, it is a way of life. Our people's teamwork and esprit is high. Our performance-based Gainsharing compensation lets them enjoy the benefits of competitive and productivity improvements so long as they continue to meet or exceed the Company's ambitious objectives.  

自成立之初，Progressive最重要的竞争优势就在于拥有优秀的人才，他们的智力、职业道德、抱负、创造力和实际表现都极为出众。许多公司只是在口头上认同这一理念，而在Progressive，这是我们生活方式的一部分。我们的员工团队协作和士气都非常高涨。我们的绩效导向的Gainsharing薪酬制度使他们只要持续满足或超越公司雄心勃勃的目标，就能享受竞争力和生产力提升所带来的益处。

Spurred by consumer discontent with the insurance industry and increased competition in our nonstandard auto market niche, Progressive has evolved over the last seven years into a consumer-focused auto insurer offering all auto owners and operators better service at lower cost. But we cannot stop there. We must continue to identify opportunities to spend less  to run our operations while still working hard and creatively to enhance our customers' and agents' experience of doing business with Progressive.  

由于消费者对保险行业的不满以及非标准汽车保险细分市场中竞争的加剧，Progressive在过去七年中不断演变，成为一家以消费者为中心的汽车保险公司，为所有汽车车主和驾驶员提供更优质、成本更低的服务。但我们不能就此止步。我们必须继续寻找机会以更低成本运营，同时仍需全力以赴并发挥创造力，以提升客户和代理人与Progressive开展业务的体验。

Future growth will come from adding to the number of states where we seek to insure all auto risks, from working with the independent agents dedicated to regaining market share and from creating a consumer-focused, brand experience in ways that attract customers and support the forward-looking agents who will succeed in the 21st century.  

未来的增长将来自于在更多州开展全部汽车风险保险业务，与致力于重新获得市场份额的独立代理合作，并通过创造以消费者为中心的品牌体验来吸引客户并支持那些将在21世纪取得成功的前瞻性代理人。

With Progressive now seeking to write all auto insurance risks, we are no longer just a nonstandard auto insurance specialist. As the 7th largest U.S. private passenger auto insurer with a 2.6 percent market share, we are more appropriately compared to Allstate, GEICO, Safeco, State Farm Mutual, Farmers Group, USAA and Nationwide.  

随着Progressive现在力求承保所有汽车保险风险，我们已不再仅仅是非标准汽车保险的专业公司。作为美国第七大私人乘用车保险公司，拥有2.6%的市场份额，我们更适合与Allstate、GEICO、Safeco、State Farm Mutual、Farmers Group、USAA和Nationwide等公司进行比较。

signals  

信号

We use a combination of television commercials, direct mail and other media to urge consumers to test our smart new way to shop for auto insurance by calling 1 800 AUTO PRO(R).  

我们通过电视广告、直邮以及其他媒介相结合的方式，鼓励消费者拨打1 800 AUTO PRO(R)电话，体验我们购买汽车保险的全新智能方式。

step  ping  

迈  进

up to the  mark  

达到  标志

Consumer advertising and brand awareness require higher performance standards. We continually consider consumers' demands and appreciate their ability to make wise choices. In response, we are always looking for new and innovative ways to improve service at a lower cost, continuing to set new standards and endeavoring to meet or exceed our customers' expectations  

消费者广告和品牌认知度需要更高的绩效标准。我们不断考量消费者的需求，并重视他们做出明智选择的能力。作为回应，我们始终在寻找新的创新方式，以更低的成本提升服务，持续设定更高标准并努力满足或超越客户的期望

PROGRESSIVE'S DIVERSIFIED BUSINESSES  

PROGRESSIVE的多元化业务

The United Financial Casualty Company, Professional Liability Group and Motor Carrier business units provide combinations of service and indemnity to businesses. Their primary products are collateral protection coverage for automobile lenders and loan tracking for financial institutions, directors and officers liability and fidelity coverage for American Bankers Association member community banks, and underwriting and claim servicing for state involuntary residual market commercial and personal auto programs and other commercial enterprises. Each unit is the largest provider of its specialty in the country, though the market size for each declined in 1995. Net premiums written and underwriting profit margins were $83.9 million and 23.3 percent, respectively, in 1995 compared to $114.9 million and 20.9 percent in 1994. The Diversified businesses produced service revenues and pretax profits of $38.9 million and $8.7 million, respectively, in 1995, compared to $41.9 million and $10.0 million in 1994.  

合众金融意外公司、职业责任事业部以及公路承运事业部为企业提供服务与保险理赔的多重组合。它们的主要产品包括为汽车贷款机构提供抵押品保护和为金融机构提供贷款追踪服务，为美国银行家协会成员社区银行提供董事和高管责任险及忠诚担保险，以及为州政府强制残余市场下的商用与个人汽车保险项目和其他商业企业提供承保与理赔服务。虽然每个业务单元在各自专业领域均为全美规模最大的供应商，但它们的市场规模在1995年有所下降。1995年，多元化业务的已承保净保费和承保利润率分别为8,390万美元和23.3%，而1994年则分别为1.149亿美元和20.9%。多元化业务在1995年的服务收入和税前利润分别为3,890万美元和870万美元，而1994年分别为4,190万美元和1,000万美元。

INVESTMENTS AND CAPITAL MANAGEMENT  

投资与资本管理

Progressive employs a conservative approach to investment and capital management intended to ensure that there is enough capital to support all the insurance premium that can be profitably written. Progressive's investment function remains in New York under the direction of David Young, who managed our fixed-income investments for seven years and was appointed Chief Investment Officer in July 1995.  

Progressive在投资与资本管理方面采取保守策略，旨在确保拥有足够的资本来支持所有有盈利潜力的保险保费。Progressive的投资部门仍设在纽约，由David Young负责管理。David Young曾在过去七年中管理我们的固定收益投资，并于1995年7月被任命为首席投资官。

During the first half of 1995, we conducted a review of our investment policies and organization and reaffirmed our commitment to risk-averse investment practices. Although new benchmarks were adopted for measuring the performance of our investment professionals, the objectives continue to discourage the assumption of large amounts of interest rate risk. The quality of our portfolio remained exceptional, with high-grade, fixed-income debt and equity investments averaging about 91 percent of our portfolio with 64 percent invested in treasuries and other AAA securities. In addition, we reduced our non-investment-grade securities to .2 percent at December 31, 1995 from 4.4 percent in 1994. The duration of the fixed-income portfolio was 2.2 years at year-end, slightly higher than the duration of a two-year note. The investment review also included an examination of the historical behavior of several classes of fixed-income and common equity investments and simulations of the potential effects of different combinations of bonds and common stocks on Progressive's shareholders' equity. Our objective was to increase Progressive's exposure to the equity markets but, at the same time, avoid excessive market volatility which could reduce surplus and thus curtail growth. Based on the analysis, a higher limit, at about 15 percent of the portfolio, was established for common stock investments.  

1995年上半年，我们对投资政策和组织架构进行了审查，并重申了我们对风险规避型投资实践的承诺。尽管我们采用了新的基准来衡量投资专业人员的绩效，但目标依然是避免承担过高的利率风险。我们的投资组合质量保持在卓越水平，高评级固定收益债券和股票投资约占投资组合的91%，其中64%投向国债和其他AAA级证券。此外，我们将非投资级证券在1995年12月31日时的比例从1994年的4.4%降至0.2%。截至年底，固定收益投资组合的存续期为2.2年，略高于两年期国债的存续期。本次投资审查还包括对多个类别的固定收益和普通股投资历史表现的研究，并对不同债券和普通股组合对Progressive股东权益的潜在影响进行了模拟。我们的目标是在适度扩大Progressive对股票市场的敞口的同时，避免过度的市场波动，这种波动可能导致盈余下降，从而抑制公司增长。根据分析结果，我们将普通股投资的上限设定为投资组合的约15%。

On December 31, 1995, common stocks comprised 8.2 percent of the portfolio, up from 3.4 percent as of the prior year-end. This percentage will increase as investment opportunities are identified. Progressive generally pursues a "value" rather than a "growth" style of equity investing.  

From this perspective, the domestic stock markets look over-valued relative to some foreign markets. Consequently, we retained Sanford C. Bernstein & Co., a value-oriented firm, to manage a limited global equity portfolio.  

从这一角度来看，相较于一些海外市场，美国国内股市似乎估值偏高。因此，我们聘用了专注于价值投资的Sanford C. Bernstein & Co.来管理一部分全球股权投资组合。

The 1995 taxable equivalent total return for the portfolio was 12.4 percent, compared to 3.7 percent last  year. As in prior years, the average maturity of our fixed-income portfolio remained near the low end of our normal range. In addition, the limited average maturity of Progressive's bond portfolio reflects the 1.75 years average life of our insurance liabilities.  

我们的投资组合在1995年的应税等效总回报率为12.4%，而上一年为3.7%。与往年一样，我们的固定收益投资组合的平均到期期限依然接近正常范围的低端。此外，Progressive债券组合的较短平均期限，也反映了我们保险负债平均1.75年的存续期。

The total portfolio increased to $3,768.0 million at December 31, 1995, from $3,180.0 million at December 31, 1994. Investment income (interest, dividends and realized gains and losses) was $245.8 million before taxes and $186.6 million after taxes, compared to $182.3 million before taxes and $146.7 million after taxes in 1994. On December 31, 1995, our portfolio had $78.7 million in unrealized capital gains, compared to the $41.1 million in unrealized losses at the end of 1994. This increase in value was the result of falling interest rates and rising prices in the bond market and the extraordinary advance in stock prices that characterized most of the year. The three-year Treasury note yield dropped from 7.8 percent to 5.2 percent and the S&P 500 index rose from 459.3 to 615.9 from the beginning to the end of 1995.  

截至1995年12月31日，我们的投资组合规模从1994年12月31日的31.80亿美元增加至37.68亿美元。投资收益（包括利息、股息以及已实现的盈亏）税前为2.458亿美元，税后为1.866亿美元，而1994年分别为1.823亿美元和1.467亿美元。1995年末，我们的投资组合未实现资本收益为7,870万美元，而1994年末则有4,110万美元的未实现亏损。价值的提升来自于利率下行、债券市场价格上涨以及贯穿全年股票价格的显著上涨。三年期国债收益率从年初的7.8%降至年末的5.2%，而标普500指数则从459.3上升至615.9。

In December 1995, in conjunction with guidance issued by the Financial Accounting Standards Board, Progressive reassessed the classification of its investment portfolio. As a result, we elected to change accounting designation of all remaining "held-to-maturity" fixed-income investments and reclassified them to "available-for-sale." Thus, all of our investments are marked-to-market on the year-end balance sheet.  

1995年12月，结合美国财务会计准则委员会发布的指导意见，Progressive重新评估了其投资组合的分类。结果，我们决定将所有剩余的“持有至到期”固定收益投资改为“可供出售”类别。如此一来，我们所有的投资都在年终资产负债表上按照市值计价。

Progressive's net premiums written grew 19 percent in 1995 without the need for additional debt or equity financing. Our net premiums written to statutory surplus ratio was 2.8 to 1 on December 31, 1995. The Company has sufficient funds to support anticipated growth in the operating companies. Progressive's debt to total capital ratio was 31 percent at year-end 1995, compared to 37 percent last year and a range of 24 percent to 61 percent over the past 20 years. During 1995, we repurchased 89,800 shares of our 9 3/8 % Serial Preferred Shares, Series A, at an average cost of $25.65 per share.  

1995年，Progressive的已承保净保费增长了19%，且无需额外的债务或股权融资。至1995年12月31日，我们的已承保净保费与法定盈余的比率为2.8:1。公司拥有充足的资金来支持运营公司预期的增长。1995年底，Progressive的债务与总资本比率为31%，而上一年为37%，过去20年的范围则在24%至61%之间。1995年，我们回购了89,800股9 3/8% A系列优先股，平均回购成本为每股25.65美元。

Progressive supports risk-based capital monitoring by regulators and endorses the trend toward more demanding standards than those currently in use. This effort to improve the early detection of financial weakness before it leads to insolvency should benefit Progressive over time by reducing state insolvency fund assessments. The risk-based capital calculation reflects favorably on companies with historically high profitability, short-tailed liabilities, conservative reserves and investments.  

Progressive支持监管机构进行基于风险的资本监控，并赞同采用比当前更严格的标准。通过在破产发生前改善对财务脆弱性的早期检测，该举措将会随着时间的推移对Progressive有利，因为它可减少州破产基金的征缴。对拥有高盈利记录、短期负债以及保守储备和投资的公司而言，基于风险的资本计算将带来积极影响。

1995 INITIATIVES  

1995年举措

Progressive's total concentration on auto insurance means that every initiative is designed to improve customer product, price and service.  

Progressive专注于汽车保险，这意味着每一项举措都旨在改进客户的产品、价格和服务。

DIVERSITY Our growth plans suggest that most new hires will be either claim or customer service representatives. Our objective is to have the demographics of the people we hire for these positions reflect the demograph- ics of the communities where our offices are located, and ultimately the demographics of our customers. Our goal is not just to hire a more diverse population but, more importantly, to ensure an inclusive work environment that values each person regardless of his or her background and experiences.  

多元化 我们的增长计划表明，大多数新员工将会是理赔或客户服务代表。我们的目标是让这些岗位所雇用人员的背景能够反映出我们办公室所在地社区的人口结构，并最终与我们客户的人口结构相一致。我们的目标不仅仅是雇用更具多样性的人才，更重要的是确保一个包容性的工作环境，无论背景和经历如何，都能重视每个人。

COMMUNITY ORGANIZATION We continued to experiment with moving profit and growth responsibility for high potential communities from state-focused division presidents to community managers which put us closer to customers to manage growth better. During the year, after two years of testing, we concluded that community management countrywide will best support our goals of delighting the customer, providing immediate response, giving consumers choice in how they purchase insurance and reinforcing a positive work environment.  

社区组织 我们继续尝试将具有高潜力社区的利润和增长责任，从关注州层面的事业部总裁转移给社区经理，以便更贴近客户，更好地管理增长。在经过两年的测试之后，我们在本年度得出结论：在全国范围内实行社区管理最能支持我们的目标，即取悦客户、提供即时响应、让消费者可以选择购买保险的方式，以及巩固积极的工作环境。

INTERNET SITE On April 7, 1995, we established a presence on the World Wide Web with our Home Page. Progressive was the first major insurer to have such a presence. Through our Site, anyone can obtain financial information, product and safety information, comparative auto rates from four insurers, as well as test his or her knowledge of the insurance industry through an interactive game, and much more. You can find Progressive's Home Page at http://www.auto-insurance.com.  

互联网站点 1995年4月7日，我们在万维网上建立了主页。Progressive是第一家拥有此类网上平台的大型保险公司。通过我们的网站，任何人都可以获取财务信息、产品和安全信息，以及来自四家保险公司的汽车保险费率对比，还可以通过互动游戏测试自己对保险行业的了解等等。您可以通过http://www.auto-insurance.com访问Progressive的主页。

NEW FACILITIES During the year, Progressive expanded its disaster recovery capabilities through the creation of a separate print facility located in Tampa, Florida. In addition, we opened a training center in Tampa to perpetuate Progressive's learning environment and compliment the facility in Cleveland, which is operating at maximum capacity.  

新设施 在这一年里，Progressive通过在佛罗里达州坦帕建立一个独立的印刷设施来扩展其灾难恢复能力。此外，我们还在坦帕开设了一个培训中心，以延续Progressive的学习氛围，并为位于克利夫兰、运转已达最大负荷的培训设施提供补充。

Consumers prefer different ways to buy, so we offer choices--with an independent agent, over the telephone, at a Progressive location or by mail.  

消费者倾向于用不同的方式购买，因此我们提供多种选择——通过独立代理、电话、Progressive网点或邮寄方式进行购买。

meeting the challenge   

shaping the  future  

迎接挑战  

塑造未来

At Progressive, it is always as if we are just beginning our business and so we look at a future that is brighter than ever.  

在Progressive，我们始终以新起步的姿态经营业务，因此我们对未来的展望比以往任何时候都更加光明。

Joy Love and Peace  

/s/ Peter Lewis 

 

Peter B. Lewis 

Chairman, President and Chief Excutive Officer