2006-02-28 Glenn M. Renwick’s Letters to PGR Shareholders
Refer To：《PGR-Form 10-K - Annual report-2005》。
LETTER TO SHAREHOLDERS
致股东信
MEASUREMENT IS CENTRAL TO PROGRESSIVE’S BUSINESS DISCIPLINE. We find ways to measure just about everything. Crafting an accurate measure to summarize overall company performance is perhaps hardest of all, but we have such a measure.
衡量是Progressive业务纪律的核心。我们总能找到衡量几乎所有事物的方法。虽然制定一个能准确总结公司整体业绩的衡量标准也许是最困难的，但我们确实拥有这样一个标准。
“Gainshare” is our way to calibrate the business gain made in any calendar year. Expressed as a score between 0 and 2 with calculation details that belie the simplistic scale, Gainshare has for over 12 years provided an internal barometer of performance, as well as variable compensation for all Progressive people. In the bleak year of 2000, the score was 0 and no Gainsharing compensation was paid. In 2003, when things could not have gone much better, the score was the first ever 2.
“收益共享”是我们衡量任一日历年度业务收益的方法。它以0到2之间的分数表示，尽管计算细节远比这一简单刻度复杂，但12年来，“收益共享”一直为内部业绩提供晴雨表，并作为Progressive全体员工的可变薪酬。在2000年那暗淡的一年里，得分为0，且没有支付任何收益共享奖金；而在2003年，当一切表现极佳时，得分则首次达到2。
While neither of these results was anticipated as likely in the distribution of outcomes, both served to validate the possibilities. Over the last 12 years, the average score has been 1.4, exceeding the expected outcome of achieving our stated objectives which by design would produce a 1.0.
虽然这两个结果都未曾被预期为可能的分布结果，但它们均验证了这种可能性。在过去12年中，平均得分为1.4，超出了我们按设计目标应达到1.0的预期结果。
Although 2005 was not a year of record setting growth rates or earnings per share, by our Gainshare score of 1.54, or by any other measure, it was a very solid all-around performance. We ended the year with just over $14 billion in net premiums written, an increase of about $630 million, or 5% over 2004. This is the smallest gain of the last five years in both absolute and percentage terms, but not out of sync with our expectations or our forecast of industry-wide auto premiums for 2005.
尽管2005年并非创纪录的增长率或每股收益之年，但无论是依据我们的收益共享得分1.54，还是其他任何衡量标准，其整体表现都非常稳健。我们以略高于140亿美元的净保费收入结束了这一年，相较于2004年增加了约6.3亿美元，即增长5%。这既是过去五年中绝对值和百分比上增长最小的一年，但这并不与我们的预期或对2005年全行业汽车保费的预测不符。
Our calendar-year underwriting profit margin remained exceptionally strong at 11.9%, considerably above our target of 4%, but down from prior-year levels by about 3 points. Combined with investment returns for the year, net income for 2005 was $1.39 billion, yielding a return on average shareholders’ equity of 25%.
我们的年度承保利润率依然异常强劲，达到11.9%，远超我们4%的目标，但较前一年的水平下降了大约3个百分点。加上当年的投资收益，2005年的净收入为13.9亿美元，平均股东权益回报率达到25%。
[Private Passenger Auto Combined Ratios 1976-2005 graphic intentionally omitted]
【私人乘用车综合比率 1976-2005图表（故意省略）】
汽车保险很可能受益于经济放缓，经济放缓可能减少驾驶里程，降低汽车险索赔，改善损失比率。
Market Conditions
市场状况
With some good reason, the cyclical nature of insurance is often cited when describing market conditions and industry performance. The inset graph provides a visual reference to the surprisingly consistent nature of the private passenger auto cycle. Over the past 30 years, we have seen enormous political and economic changes, along with dramatic swings in interest rates and equity-market returns. Despite these changes, the cycle shows a consistent pattern.
有充分理由，当描述市场状况和行业表现时，经常会提到保险业的周期性。嵌入图表为我们直观展示了私人乘用车周期出人意料的一致性。在过去30年中，我们见证了巨大的政治与经济变革，以及利率和股票市场回报率的剧烈波动。尽管发生了这些变化，这一周期仍表现出一致的模式。
It would appear that over the past few years, we have been observing the ascent, peak and now the potential decline in underwriting margins of the current cycle.
看来在过去几年中，我们一直在观察当前周期中承保利润率的上升、顶峰以及现在潜在的下降。
Last year I reported that consistently falling claims frequency made 2003 and 2004 two of only three profitable years in the last 25 for the auto insurance industry and that 2004 produced what was at that time perhaps the lowest industry-wide combined ratio in history.
去年我曾报告指出，索赔频率持续下降使得2003年和2004年成为过去25年中汽车保险行业仅有的三个盈利年份中的两个，并且2004年的综合比率在当时可能是历史上最低的。
As most would have assumed, 2005 was to be another year of underwriting profitability and, while significant, even the losses from the storm season are unlikely to dramatically change the macro cycle.
正如大多数人所预期的那样，2005年本应是又一个承保盈利的年份，虽然形势严峻，但即使暴风雨季节带来的损失也不太可能对宏观周期产生戏剧性的改变。
For Progressive, understanding this cycle translates into playing the right hand at the right time.
对于Progressive来说，了解这一周期意味着能在恰当的时机采取正确的策略。
About one full cycle ago, the industry was reporting peak underwriting profitability. In 1998, Progressive reported a healthy underwriting profit of 8.4%, but our growth was slowing. Our culture thrives on profitable growth, and slowing growth does not sit well at any level in the organization — now or then.
大约一个完整周期之前，整个行业报告了承保盈利的顶峰。1998年，Progressive报告了8.4%的健康承保利润，但我们的增长开始放缓。我们的企业文化依赖于盈利性增长，而增长放缓在任何层面上都是不可接受的——无论过去还是现在。
We responded with price reductions in the hope of additional profitable growth. These reductions, combined with an unanticipated increase in claim frequency and severity and a host of other contributing factors, decreased our underwriting profit to 1.7% in 1999 and led to an underwriting loss of 4.4% in 2000.
我们采取了降价措施，希望获得额外的盈利性增长。这些降价，加上索赔频率和严重程度意外上升及其他一系列因素，使我们的承保利润在1999年降至1.7%，并导致2000年出现4.4%的承保亏损。
In our own small way we contributed to the cycle. As we review today’s market conditions there are reasons to respect the parallels to that time. We are more experienced, but imperfect, in valuing the benefit of rate reductions during market conditions in which consumers experience rate stability or decreases. As such, we have chosen to be more deliberate in using rate reductions in search of profitable growth.
在我们自身的操作中，我们也在一定程度上促成了这一周期。回顾当今的市场状况，有理由对那时的情况表示敬意。我们在衡量在消费者经历费率稳定或下降的市场条件下降价所带来的好处时更为成熟，尽管并不完美。因此，我们选择在寻求盈利性增长的过程中更加慎重地使用降价策略。
Drive Insurance, which operates in an environment where rates are continuously compared to competitive options, reduced rates modestly during the year and found it very hard to get growth in new applications. Progressive Direct kept rates relatively stable for the year and was able to grow new applications, albeit at a pace far less than we could have handled and would have preferred.
作为在一个费率不断与竞争对手选项比较的环境中运营的品牌，Drive Insurance在这一年中适度降价，但在获取新业务申请方面却极为困难。而Progressive Direct则保持了相对稳定的费率，并成功增加了新申请，尽管其增速远低于我们能够处理和所期望的水平。
Change in market pricing is reflected in year-over-year growth in net premiums written for the auto insurance industry. In 2004, the year-over-year growth in net premiums written fell to 4.2% from the prior three-year average of 8%. For 2005, we estimate the year-over-year increase in net premiums written for the auto insurance industry will be about 1%.
市场定价的变化反映在汽车保险行业净保费收入的同比增长上。2004年，净保费收入的同比增长率从前三年的平均8%下降至4.2%。我们估计，2005年汽车保险行业净保费收入的同比增长率将约为1%。
Our knowledge of the calculus combining price, growth and profit, while increasing, remains a challenge and something we want to be smart about.
我们对价格、增长与利润三者之间关系的认识虽在不断提高，但仍是一项挑战，也是我们希望聪明应对的问题。
Reviewing Progressive’s and the industry’s results through 2005 and noting the possible analogue to past cycles, we would make a few important observations. Operating margins, while historically strong, are starting to deteriorate. Modestly increasing severity, notably in physical damage coverages, combined with price reductions, will likely reduce current margins.
回顾Progressive及整个行业至2005年的业绩，并注意到可能与过去周期相似之处，我们有几点重要观察。尽管历史上运营利润率一直很强，但目前正开始恶化。物理损失保险中损失严重程度的适度上升，加上降价，可能会降低当前的利润率。
Prior period bodily injury severities, which have the highest sensitivity to carried reserves, have generally been overestimated resulting in favorable calendar-period adjustments. In Progressive’s case, the overall favorable calendar-year adjustment was 2.6 points for 2005.
之前的身体伤害严重程度（对储备金最为敏感）通常被高估，从而导致日历期间的有利调整。在Progressive的案例中，2005年的整体有利日历年调整为2.6个百分点。
Calendar-period reporting has a way of disguising the run rate and perhaps delaying appropriate reactions. We have for some time forecast that Progressive would slowly return to more normal operating margins by allowing expected increases in severity, and potentially frequency, to absorb the margin in excess of our target rather than immediately price it away. We continue to believe this is the right way for us to address these market conditions.
日历期间的报告方式往往会掩盖实际运行率，可能会延迟适当的反应。我们早已预测，通过允许预期中的损失严重程度（以及可能的频率）上升来消化超出目标的利润率，而不是立即通过定价消除，这将使Progressive逐步恢复到更为正常的运营利润率。我们依然认为这是应对当前市场状况的正确方法。
We see 2006 as a year when accident-year results both for Progressive and the industry may begin producing smaller margins and trending toward more historical norms. As with any outlook there are unknowns. The level of price activity and the degree of severity and frequency change will be critical as we play our hand during this phase of the cycle.
我们预见2006年将是Progressive及整个行业的事故年度业绩开始产生更小利润率，并趋向于更符合历史常态的一年。与任何前景预测一样，其中存在不确定性。在这一周期阶段，我们采取行动时，价格活动的水平以及损失严重程度和频率变化的幅度将是关键因素。
For Progressive, understanding this cycle translates into playing the right hand at the right time.
对于Progressive来说，了解这一周期意味着在恰当的时机采取正确的策略。
Maximum Preparedness
最大准备
Underwriting cycle aside, our future will largely be determined by how we craft it, and we have many important initiatives that continue to excite me. A slightly less glamorous way to describe ourselves and our ability to compete would be to suggest we do three things well that really matter. We allocate costs between consumers in ways that best match their expected costs, we manage the claims and administrative costs that must ultimately be allocated, and we provide superior consumer experiences.
撇开承保周期不谈，我们的未来主要取决于我们如何塑造它，我们有许多重要举措让我持续感到激动。描述我们自己及其竞争能力的一个稍显朴实的方法是：我们擅长做好三件真正重要的事——以最符合消费者预期成本的方式在消费者之间分摊成本；管理最终必须分摊的理赔及行政成本；并提供卓越的消费者体验。
Our maximum preparedness agenda is designed to encompass the many things we know matter in our business and to optimize our performance on a few very strategic initiatives that create meaningful and, in some cases, distinctive competitive advantages.
我们的“最大准备”计划旨在涵盖我们业务中所有关键要素，并优化我们在几个极具战略意义的举措上的表现，这些举措能够创造出有意义的，甚至在某些情况下独特的竞争优势。
Claims
理赔
Our single largest cost and one of our most visible consumer experiences has continued to demonstrate steady and consistent improvement. Our emphasis on claims handling quality and critical review has again established a new high-water mark. While the rate of improvement, by definition, will slow, this is likely the single most important and sustained operational improvement of the last several years.
我们最大的单项成本以及最直观的消费者体验之一——理赔服务，持续显示出稳定而一致的改进。我们对理赔处理质量和严格审核的重视，再次确立了新的高标准。虽然按定义改进速度会放缓，但这很可能是过去几年中最重要且持续的运营改进。
Even more important perhaps is that our claims quality improved in growth periods suggesting, as we believe, claims quality is largely a function of system-wide process design and effective implementation. We expect when margins thin the competitive benefits will be more apparent.
更重要的是，我们在增长期间的理赔质量有所提升，这表明（正如我们所认为的）理赔质量在很大程度上取决于整个系统流程设计和有效实施。我们预期当利润率变薄时，竞争优势将更加明显。
Last year, I reported that we used the year to fully evaluate every aspect of our concierge-level claims service and concluded by year end that our evaluation discipline and planning had positioned us well for expansion throughout 2005 and 2006. We opened six new facilities in 2005 and ended the year with 18 under construction. 2006 will be a big year with about 30 planned openings.
去年，我曾报告我们利用全年全面评估了我们礼宾式理赔服务的各个方面，并在年底得出结论：我们的评估纪律和规划已为2005年和2006年的扩展奠定了良好基础。我们在2005年新开设了6个设施，并以18个在建设施结束了当年。2006年将是一个大年，计划开设约30个新设施。
As passionate and involved as I have been with this initiative, I continue to be surprised and impressed by the level of detail and science our people have built around the concept, and just how critical that detail is to ensure success.
尽管我对这一倡议充满热情并深度参与其中，但我依然对我们的团队围绕这一概念构建的细节和科学水准感到惊讶与赞叹，同时也认识到这些细节对确保成功的重要性。
My confidence in more than doubling the number of sites in just one year reflects that we are now observing that each opening builds on the success of those before it and has a much abbreviated learning curve.
我对在一年内将网点数量翻倍以上的信心，反映出我们观察到每个新网点的开设都建立在前期成功的基础上，且学习曲线大大缩短。
Several years ago I suggested that this initiative would change our business in profound ways, improving the customer and employee experience, reducing the friction costs associated with claims handling, improving the interaction with body shops and leveraging scale advantages in meaningful ways. I am now more confident than ever and we have started to think more in terms of how not to deprive our customers of this level of service where we can offer it economically.
几年前，我曾表示这一举措将以深远的方式改变我们的业务，提升客户和员工体验，降低与理赔处理相关的摩擦成本，改善与修理厂的互动，并以有意义的方式利用规模优势。如今，我比以往任何时候都更有信心，我们已经开始更多地考虑如何在经济上提供这种服务而不让客户失去它。
A theme highlighted by this report is the significance and value of time in a service economy. More than anything else the concierge level of service respects our customers’ and claimants’ time and works effectively to minimize the cycle time of repairs, resulting in cost-management opportunities at every step of the process.
本报告强调的一个主题是，在服务型经济中时间的重要性和价值。礼宾式服务最为重视我们的客户和索赔人的时间，并有效地缩短修理周期，从而在每个环节都创造出成本管理的机会。
Speaking of time, our claims responsiveness was once again put to the test in what appeared to be the never-ending storm season of 2005. We have reported at length on the storms and their economic toll, but the real story is that, when tested, our claims organization’s ability to produce excellent closure rates and great customer service was, we believe, second to none.
说到时间，2005年那似乎永无止境的暴风雨季再次考验了我们的理赔响应能力。我们已经详细报告了暴风雨及其带来的经济损失，但真正的故事是，当面临考验时，我们认为我们的理赔团队在实现卓越结案率和出色客户服务方面无出其右。
A by-product of a storm season of this year’s magnitude is that it is likely that more people than ever, in a concentrated period of time, have experienced an insurance claim of one type or another. We intend to confirm our understanding of our performance by conducting an independent survey of Gulf States claims handling. Determining where we have room for improvement will be the only assessment of long-term value.
今年如此规模的暴风雨季的一个副产品是，可能比以往任何时候在短时间内有更多人经历过各种类型的保险索赔。我们计划通过对墨西哥湾各州理赔处理进行独立调查，来确认我们对自身表现的理解。确定我们改进的空间将是评估长期价值的唯一标准。
Timely response in this case is not just great customer service, it’s good business. Responding to customers quickly adds certainty to our external financial disclosures as well as to the internal data we use for pricing.
在这种情况下，及时响应不仅仅意味着出色的客户服务，更是一种良好的商业实践。快速响应客户不仅提高了我们对外财务披露的确定性，也增加了我们用于定价的内部数据的可靠性。
[Storm Tracking — 2005 Season graphic intentionally omitted]
【暴风雨跟踪——2005年季节图表（故意省略）】
Marketing
营销
2005 was the first full year operating with two distinct brand offerings. Providing consumers the choice of both an agent-distributed product, now sold as Drive® Insurance from Progressive, and a direct-to-consumer product, Progressive DirectSM, is both exciting and important positioning for us.
2005年是首次以两个不同的品牌产品全年度运营。为消费者提供选择：既有代理分销的产品（现以Drive® Insurance from Progressive销售），又有直销产品Progressive DirectSM，这对我们来说既令人振奋又具有重要的市场定位意义。
Each brand presents distinct challenges in product design, pricing and competitive focus. The power of this choice and positioning was highlighted for me when we entered New Jersey in September and were able to announce the availability of two top-ten national brands, providing consumers with different and valid choices in how to buy their auto insurance.
每个品牌在产品设计、定价和竞争重点上都有各自的挑战。对我来说，这种选择和定位的力量在我们9月进入新泽西州时得到了凸显，当时我们宣布两大全国前十品牌的推出，为消费者提供了不同且合理的汽车保险购买选择。
Significant opportunities exist for both brands to develop and improve but, with a year behind us, the opportunities are starting to be realized and we are encouraged by the potential.
两个品牌都有显著的发展和改进机会，但经过一年的运营，这些机会开始显现，我们对未来的潜力深感鼓舞。
A notable and welcomed development for Progressive Direct during the year was the continued strong growth from customers initiating and buying policies on the Internet. Our Web-based activities celebrated their ten-year anniversary in 2005 with some remarkable accomplishments, and as we look toward the next decade, we expect the changes to be equally profound.
Progressive Direct在当年一个显著且受欢迎的发展是，通过互联网主动购买保单的客户持续实现了强劲增长。我们的基于网络的业务在2005年庆祝了十周年，并取得了显著成就；展望下一个十年，我们预期变化同样将是深远的。
We are pleased with, and very committed to, our positioning of Progressive relative to Internet consumers and see tremendous potential in everything we do to leverage our leadership further. The continuous enhancement of Internet features and capabilities in Agent and Direct quoting, customer service and claims management are all central to our preparedness plans.
我们对Progressive在互联网消费者中的定位感到满意并深表承诺，并认为我们在进一步发挥领导力的各项工作中蕴含着巨大潜力。不断提升代理及直销报价、客户服务和理赔管理中的互联网功能和能力，均是我们准备计划的核心内容。
Retention and Customer Service
客户留存与客户服务
Last year in this letter, I wrote that we are at our best when challenged and that improving retention is a challenge we have accepted. During a period in which price pressure appears to be a less significant reason for consumers to switch, our overall retention measures have not extended at a rate we might have expected.
在去年的这封信中，我写道，当面临挑战时我们表现最佳，而提高客户留存率是我们已经接受的一项挑战。在一个消费者因价格压力而转投的原因似乎不那么显著的时期，我们的整体留存率增长速度并未达到预期。
This has forced us to examine the customer experiences we provide at ever-increasing levels of granularity. We have not always liked what we’ve seen.
这迫使我们必须以越来越细致的层面审视我们所提供的客户体验。我们并不总是对所见感到满意。
Self diagnosis seems easy upon first blush, but to understand effectively the countless combinations of customer experiences makes the effort a significant commitment. In more cases than we would like, the cause of a less than perfect customer experience is what we have called “friendly fire.”
自我诊断乍看之下似乎很简单，但要有效理解无数种客户体验的组合，这项工作就成为了一项重大承诺。在比我们希望的更多的情况下，导致客户体验不尽完美的原因就是我们所称的“内耗”。
While we are proud of our overall service and experience delivery, we can do better. Friendly fire, as we have seen, can result from process breakdowns, poor quality control, actions that are generally applied that should be more targeted, failure to communicate as effectively as the situation deserves, and the like.
尽管我们对整体服务和体验交付感到自豪，但我们仍可做得更好。正如我们所见，“内耗”可能源自流程中断、质量控制不佳、普遍适用但应更具针对性的措施、沟通未能达到情境所需的效果等等。
We are using more finely tuned statistical process control tools, numerous cause analysis methods and a heightened attention to customer feedback in our efforts to take our customer care focus to a level consistent with our expectations.
我们正在采用更精细的统计过程控制工具、各种因果分析方法，并更加重视客户反馈，以将我们的客户关怀提升到符合预期的水平。
To increase the speed, completeness and intensity of our self analysis of customer experiences we have created a participation benefit for our employees to be both customers and critics.
为了加快、完善并增强我们对客户体验的自我分析，我们为员工创建了一项参与福利，使其既能作为客户也能作为批评者参与其中。
Eating our own cooking, combined with the Progressive culture to be “Virtually Perfect” in all we do, will unquestionably create some healthy tension, but I have little doubt having more Progressive people as Progressive customers will be an effective catalyst as we continue to improve our product offerings and consumer experiences.
自我体验我们的产品，加上Progressive追求“几近完美”的企业文化，毫无疑问会带来一些良性紧张，但我深信，越来越多的Progressive员工成为Progressive的客户，将成为我们不断改进产品和消费者体验的有效催化剂。
Technology
技术
Advancing our technology interface with agents and consumers and increasing internal functionality is a routine part of our individual business operations and is funded and managed as such.
提升我们与代理人及消费者的技术界面，并增强内部功能，是我们各项业务运营的常规部分，并按照这一模式获得资金支持和管理。
Our plans in each area are directed at long-term cost management and providing superior customer experiences. 2006 promises to be another productive year.
我们在各领域的计划都旨在实现长期成本管理和提供卓越客户体验。2006年有望成为又一个富有成效的一年。
To add to our ongoing preparedness, we have two companywide initiatives under way for which the next 18 months will be crucial. The first is replacing the customer and policy management system that has served us well but is not consistent with our views of future needs. The second is adding a data center that will ensure that not only is capacity not constrained but that a very high level of system availability and disaster preparedness is assured.
为了进一步增强我们的准备工作，我们正全公司范围内推进两项计划，在接下来的18个月中至关重要。第一项是更换那套虽然曾为我们带来良好表现但与我们对未来需求看法不符的客户和保单管理系统；第二项是增设一个数据中心，以确保不仅容量不受限制，而且能确保极高的系统可用性和灾难应对能力。
Investments and Capital Management
投资与资本管理
Solid growth in the economy and improving profits supported the equity markets in 2005 while “measured” interest rate increases from the Federal Reserve pushed short-term rates higher to essentially flat with steady longer maturity yields.
2005年，稳健的经济增长和不断改善的利润支撑了股票市场，同时美联储“有节制”的加息使短期利率上升到与长期收益率基本持平的水平。
We took advantage of interest rate volatility during the year to shorten our portfolio’s average maturity when rates were low and extend it when rates increased.
我们利用当年利率波动的机会，在利率低时缩短了投资组合的平均期限，而在利率上升时延长了期限。
We decreased our exposure to corporate and other non-government issued bonds early in the year, believing the incremental yield premium relative to U.S. treasury bonds was insufficient for the risk taken.
年初，我们减少了对企业债及其他非政府发行债券的敞口，因为我们认为相对于美国国债的额外收益不足以弥补所承担的风险。
Our portfolio produced a 4% total return in 2005 with equities tracking their benchmark and fixed-income securities performing better than the general bond market.
我们的投资组合在2005年实现了4%的总回报，股票与基准保持一致，而固定收益证券的表现则优于一般债券市场。
Our long-standing and continuing position on capital management is to repurchase shares when our capital position, view of the future, and the stock’s price make it attractive to do so.
我们长期以来在资本管理方面的立场是：当我们的资本状况、对未来的预期以及股票价格使回购具有吸引力时，我们就进行股票回购。
Growth rates and profitability levels during 2005 happily led to an assessment that we were accumulating capital in excess of that which we believed was needed and prudent to run the business.
2005年的增长率和盈利水平令人满意，使我们评估认为正积累超过经营业务所需且谨慎的资本。
Committed to executing against our capital management strategy, we entered 2005 with regular monthly share repurchases.
我们致力于执行我们的资本管理策略，因此在2005年开始实行定期每月股票回购。
The average repurchase price per share in January was $83.46, below the $88 of the “Dutch auction” we had completed just three months earlier. By September our repurchase price was just under $100.
1月份每股平均回购价格为83.46美元，低于三个月前完成的“荷兰拍卖”价格88美元。到了9月份，我们的回购价格接近100美元。
October and November saw rapid escalation in the stock price peaking near $125; while delighted for shareholders, this level of volatility suggested we should pause for a while, which we did before repurchasing again in December at $118.92.
10月和11月股价迅速攀升，达到接近125美元的高点；虽然这让股东欣喜，但如此剧烈的波动表明我们应当暂停一段时间，我们在12月再次回购时的价格为118.92美元。
Use of Gainshare to Align Shareholder and Employee Interests
利用收益共享协调股东与员工利益
Progressive’s business model is designed to produce profitable growth over any reasonable period and support that growth from underwriting results. Based on our current market share and competitive positioning, we see no significant constraints to this outlook.
Progressive的商业模式旨在在任何合理的时期内实现盈利性增长，并通过承保业绩支撑这种增长。基于我们当前的市场份额和竞争定位，我们认为这一前景没有重大限制。
Internally, our Gainsharing measure, focused exclusively on underwriting performance, provides a significant degree of self regulation to this objective. With this as a backdrop, we have challenged ourselves to develop a more comprehensive view of capital husbandry that is more aligned with our business model.
在内部，我们专注于承保业绩的收益共享指标为这一目标提供了显著的自我调节作用。在此基础上，我们挑战自己，开发出一种更全面的资本管理视角，使其更符合我们的商业模式。
The most significant change we plan to implement is to our dividend policy. In 2007, we will replace modest quarterly dividends with an annual variable dividend payable after the close of the year.
我们计划实施的最重大变革是调整股息政策。2007年，我们将用年度可变股息替代适中的季度股息，该股息将在年末支付。
The special dividend will, absent extraordinary circumstances, be declared by the Board based on a Board-selected target percentage of after-tax underwriting profit, multiplied by the companywide Gainshare factor. The target percentage will be declared prior to the start of the year and the Gainshare score, between 0 and 2, will be reported each month as it develops.
在没有特殊情况的前提下，该特别股息将由董事会根据董事会选定的税后承保利润目标百分比乘以全公司的收益共享系数来宣布。目标百分比将在年初前宣布，而收益共享得分（介于0和2之间）将随月变化而公布。
This adds a significant dimension to our ability to return capital to shareholders in balance with performance and our expected future capital needs. In addition, it provides for an ownership proposition well aligned with companywide performance management incentives.
这为我们在与业绩和预期未来资本需求保持平衡的前提下向股东返还资本增添了重要维度。此外，它还为股权提案提供了与全公司绩效管理激励机制高度一致的基础。
We have stress tested this concept using a 20% target and actual Gainshare scores for the last decade and are convinced it produces the desired outcomes of returning capital to owners in periods in which we do not require additional capital and retaining capital when we can effectively deploy it in the business.
我们已经用过去十年的实际收益共享得分和20%的目标对这一概念进行了压力测试，并深信其能够在我们不需要额外资本的时期向所有者返还资本，而在能够有效运用资本于业务时留存资本，从而产生理想效果。
Using 2005 performance as an example, the dividend payable in early 2006 would have been $1.66 per share versus $0.12 under the current dividend policy.
以2005年的业绩为例，如果按照这一新政策，2006年初支付的股息将为每股1.66美元，而按照当前股息政策则仅为0.12美元。
While this change provides a means for a more consistent capital distribution when appropriate to do so, we are still committed to our repurchase activity as an important part of our immediate and long-term capital management.
尽管这一变革为在适当时机实现更稳定的资本分配提供了途径，我们仍然致力于股票回购，将其视为短期和长期资本管理的重要组成部分。
At a minimum, we will continue to neutralize dilution from equity-based compensation, in the year of issuance, through share repurchases.
至少，我们将继续通过股票回购来中和发行当年因股权激励所带来的稀释效应。
With this addition to our capital management tool set, we believe we will be much better suited to deal with the range of outcomes from our business model and create suitable flexibility for owners under varying tax environments.
借助这一资本管理工具的补充，我们相信将更有能力应对我们商业模式可能出现的各种结果，并为股东在不同税收环境下创造出合适的灵活性。
We have for some time included in our Financial Policies that we will split the stock when the share price exceeds $100 for a reasonable period of time. We last split the stock 3:1 in April 2002.
我们早已在财务政策中规定，当股价在合理时期内超过100美元时，我们将进行股票拆分。我们上一次于2002年4月以3:1的比例进行股票拆分。
As I write this letter, we are approaching a time when both conditions have been met, and I expect our Board of Directors will vote on such an action during their meeting immediately following the Annual Meeting of Shareholders in April.
在我撰写这封信时，我们正接近满足这两个条件的时刻，我预计董事会将在四月份股东大会后的会议上就此事进行投票。
We currently do not have enough authorized shares to provide significant flexibility in considering a range of split scenarios and have placed a request for increased authorization before the shareholders.
目前我们没有足够的授权股份来为考虑多种拆分方案提供充分灵活性，因此已向股东提出增加授权股份的请求。
We have attempted to study many factors to determine whether splitting the stock and having it trade in a price range more consistent with the market as a whole is an appropriate thing to do.
我们曾尝试研究许多因素，以确定是否应拆分股票，使其交易价格更符合整体市场的价格区间。
Our work in this area is not definitive, but we are now less sure that forecasting parameters of any future split is important to our capital management philosophy. Therefore, we will remove that commitment from our Financial Policies going forward.
我们在这方面的工作尚未定论，但我们现在不再确信预测未来任何股票拆分的参数对我们的资本管理理念至关重要。因此，今后我们将从财务政策中取消这一承诺。
Constancy of Purpose
目标始终不变
Just as measurement is central to Progressive’s business discipline, our Core Values, aspirations and people are central to our business culture.
正如衡量是Progressive业务纪律的核心，我们的核心价值观、抱负和员工则是我们企业文化的核心。
We are continuously motivated by our aspiration of becoming Consumers’ #1 Choice for Auto Insurance and in 2005 moved another step closer, ending the year with close to 10 million policies and enormous potential.
我们始终受到“成为消费者首选汽车保险”的愿景激励，2005年我们又迈进了一步，以近1000万份保单和巨大潜力结束了这一年。
Nothing we have achieved has been without the efforts of so many and our single most important initiative continues to be making Progressive a Great Place to Work.
我们所取得的一切成就都离不开众多人的努力，而我们最重要的举措仍然是将Progressive建设成为一个绝佳的工作场所。
Creating an environment where our people enjoy working hard, are motivated to do their best, can grow constantly and one that others want to join is a never-ending focus and has a special permanency.
创造一个让员工乐于努力工作、激励他们发挥最佳水平、不断成长并吸引他人加入的环境，是我们永无止境的关注重点，并具有独特的持久性。
Our measures of the culture and work environment provide us both confidence and challenge in our efforts to ensure the Progressive culture continuously matches our aspirations.
我们对企业文化和工作环境的衡量，既为我们提供了信心，也提出了挑战，促使我们不断努力确保Progressive的文化始终与我们的抱负相匹配。
We greatly appreciate the customers we are privileged to serve, the more than 28,000 Progressive people who make it all possible, the agents and brokers who choose to represent us and shareholders who believe in what we are doing.
我们衷心感谢那些我们有幸服务的客户，感谢超过28,000名让这一切成为可能的Progressive员工，感谢选择代表我们的代理人和经纪人，以及信任我们所做之事的股东。
Glenn M. Renwick
President and Chief Executive Officer
热门主题
Related Articles
2010-03-01 Glenn M. Renwick’s Letters to PGR Shareholders
Refer To：《PGR-Form 10-K - Annual report-2009》。 Letter to Shareholders 致股东信 The widespread retrenchments and uncertainty that characterized 2008 faded as ‘09 developed and gave way to a largely “Go North” year for Progressive. What a difference – a ...2013-02-26 Glenn M. Renwick’s Letters to PGR Shareholders
Refer To：《PGR-Form 10-K - Annual report-2012》。 Letter to Shareholders 致股东信 When late-season, named storms start with letters deep into the alphabet, there’s a good chance it’s been an eventful year for the auto insurance industry; and it was, with ...2011-03-01 Glenn M. Renwick’s Letters to PGR Shareholders
Refer To：《2011-01-20 Glenn M. Renwick’s Letters to PGR Shareholders》。 Letter to Shareholders In naming Progressive, “Progressive,” those who went before this writer left an indelible message of expectations and the role to which we aspire in the ...2007-02-28 Glenn M. Renwick’s Letters to PGR Shareholders
Refer To：《PGR-Form 10-K - Annual report-2006》。 LETTER TO SHAREHOLDERS 致股东信 An Auto Insurance Commercial Every Fourteen Seconds! This was an interesting factoid gleaned recently during the course of evaluating advertising agencies. Without validating ...2008-02-27 Glenn M. Renwick’s Letters to PGR Shareholders
Refer To：《PGR-Form 10-K - Annual report-2007》。 LETTER TO SHAREHOLDERS 致股东信 2007, by Progressive growth standards, was slower going than any of us would like. 按照Progressive的增长标准，2007年的发展速度比我们任何人希望的都要缓慢。 While growth is appropriately the headline story ...