LETTER TO SHAREHOLDERS  

致股东的信函

Think Broadly  

广泛思考

The theme for this year’s annual report, and the associated artwork, is “Think Broadly.” This two-word theme was chosen because it truly aligns with the concept of concurrently investing in our Three Horizons, or otherwise stated, the short-, mid-, and long-term success of Progressive. Success doesn’t happen unless we collectively modify and adjust how we view our ability to expand and win in new areas where we can leverage our skills and abilities.  For us, this has been an exhilarating paradigm shift and has allowed us to be more open in our ever-changing environment, which will enable us to grow and flourish. Because of this shift, we are considerably more open to opportunities and thinking more deeply about the needs of all our stakeholders (shareholders, employees, customers, communities, and suppliers). 

今年年度报告的主题及相关艺术设计为“广泛思考”。选择这一主题的原因是它真正契合了我们同时投资于“三个视野”的理念，换句话说，即 Progressive 公司短期、中期和长期的成功。成功的实现离不开我们共同调整和改变对自身能力的看法，以便在能够发挥我们技能和优势的新领域拓展并取得胜利。对我们而言，这是一次令人振奋的范式转变，使我们在不断变化的环境中更加开放，从而实现成长与繁荣。正是由于这种转变，我们对机会的态度更加开放，并更深入地思考所有利益相关方（股东、员工、客户、社区和供应商）的需求。

We are proud of where we stand and the progress we are making in our impact on the environment and society, our people, and in the governance of Progressive.  We drive social good through transparency, efficiency, innovation, and empowerment. Working with our business partners, communities, and customers, we strive to move forward to create a better future and improve social and environmental outcomes. We positively affect the communities in which we operate by creating careers that are well-paying and fulfilling and added more than 4,000 employees in 2019 alone. Progressive’s people and our charitable foundation continue to provide our time and our financial resources in communities across the country.  Our carbon emissions per policy in force continues to decline, down 7% in 2019 versus 2018 and down 57% over the past ten years. Accountability, integrity, and transparency form the cornerstone of Corporate Governance at Progressive. We are committed to increasing the Company's value and retaining the trust of investors.   Progressive’s Board of Directors is now comprised of 50% females and 50% males and our most recent additions to the Board bring exceptional perspectives in the technology arena, which is critical for our success.  These actions should come as no surprise since, to us, corporate responsibility is akin to living our Core Values, which guide our actions and behavior to operate in responsible ways, support others in our communities, and protect the environment. It is this mindset that will keep us focused on what is critical to achieving future success.

我们为自身所处的位置以及在环境、社会、员工和公司治理方面取得的进步感到自豪。我们通过透明、高效、创新和赋能推动社会公益。通过与业务伙伴、社区和客户合作，我们努力前进，创造更美好的未来，改善社会和环境成果。我们通过创造薪酬丰厚且富有成就感的职业机会，积极影响我们运营所在的社区，仅在 2019 年就新增了超过 4,000 名员工。Progressive 的员工及我们的慈善基金会继续在全国各地社区投入时间和财务资源。我们每份有效保单的碳排放量持续下降，2019 年较 2018 年下降了 7%，过去十年累计下降了 57%。问责制、诚信和透明度构成了 Progressive 公司治理的基石。我们致力于提升公司价值并保持投资者的信任。   Progressive 的董事会目前由 50%的女性和 50%的男性组成，我们最近加入董事会的成员在技术领域带来了卓越的视角，这对我们的成功至关重要。这些举措并不令人意外，因为对我们而言，企业责任就如同践行我们的核心价值观一样，这些价值观指导我们的行动和行为，使我们以负责任的方式运营，支持社区中的他人，并保护环境。正是这种思维方式将使我们专注于实现未来成功的关键所在。

 

Thinking broadly was added, several years ago, to my ever-growing set of leadership principles and was one of the reasons we formed the Strategy team. I believe this principle allows our leaders to step back and look at the world and business through a new lens and vantage point. In fact, I recently articulated a formula, albeit not mathematical, for our senior managers to use as we think about our future. The formula arose from our desire to take the time to step back and assess both successes and failures and challenge how we think about the business, while always keeping in mind our profitability objective. Change can, and should, be invigorating.

几年前，“广泛思考”被加入到我不断丰富的领导原则中，这也是我们成立战略团队的原因之一。我相信这一原则能让我们的领导者退一步，从新的视角和高度审视世界和业务。事实上，我最近为我们的高级管理人员阐明了一个公式，虽然不是数学公式，但可用于我们思考未来。这一公式源于我们希望花时间退一步，评估成功与失败，挑战我们对业务的思考方式，同时始终牢记我们的盈利目标。变革能够而且应该是充满活力的。

The formula may be simple. That said, the execution of it is not.  Question Everything + Always Grow Mindset = Enduring Business.  This equation fits nicely whether we are thinking about our current business or future opportunities. The wonderful part of having a highly tenured senior leadership team is that we have a depth of historic knowledge that helps to guide us about possible next steps and choices to make for a successful outcome.  Where that becomes difficult is when we don't challenge ourselves to think differently as the world around us evolves. It's imperative that we feel comfortable questioning ourselves and the way we approach the business. Even if the conclusion is the same, the exercise of questioning nearly always adds value.     

公式可能很简单，但执行起来却并非如此。“质疑一切”加上“始终保持成长心态”等于“持久的业务”。无论我们考虑的是当前业务还是未来机遇，这个公式都非常适用。拥有一支资历深厚的高级领导团队的美妙之处在于，我们拥有丰富的历史知识，能够帮助我们指导下一步可能的行动和选择，以取得成功的结果。然而，当我们未能在周围世界不断变化时挑战自己以不同方式思考时，这一点就变得困难了。我们必须敢于质疑自己以及我们处理业务的方式。即使结论相同，质疑的过程几乎总能带来价值。

Think of the always grow mindset as a double entendre where personal growth draws a parallel to company growth. I’ve asked our senior leadership team to take time to expand their thinking, as individuals, whether it be through books, podcasts, TED Talks, or the like, believing that taking the time to grow will spawn ideas that will proactively influence Progressive’s growth. Personally, I’ve joined a few outside groups in order to listen to alternative perspectives, get to know other leaders who face similar struggles, and rethink how to solve problems in this ever-changing environment.

将“始终成长”的思维方式视为一种双关语，其中个人成长与公司成长相互呼应。我已要求我们的高级领导团队抽出时间，通过书籍、播客、TED 演讲或类似方式拓展个人思维，因为我相信花时间进行个人成长将激发出积极影响 Progressive 公司成长的想法。就我个人而言，我加入了一些外部团体，以倾听不同的观点，结识面临类似挑战的其他领导者，并重新思考如何在这个不断变化的环境中解决问题。

If we ask questions and grow personally and professionally, our business will be enduring, which is the legacy we all want to leave for those who follow us.

如果我们提出问题并在个人和职业上不断成长，我们的业务将长久持续，这正是我们所有人希望为后人留下的遗产。

From Broad to Narrow  

从广泛到具体

We concluded 2019 with a combined ratio (CR) of 90.9, compared to a 90.6 CR at year-end 2018. Our net premiums written (NPW) growth was up 15%, compared to 20% in 2018. These results are extraordinary by themselves, but remarkable when you add in our prior years of success. We added nearly $5 billion in NPW in 2019, bringing our total NPW to $37.6 billion. It feels like yesterday we celebrated achieving $30 billion. Our ability to post these ongoing results is a tribute to our over 40,000 Progressive people who, every day, strive to create an enduring business.

我们 2019 年末的综合比率（CR）为 90.9，而 2018 年末为 90.6。我们的净保费收入（NPW）增长了 15%，相比之下，2018 年为 20%。这些业绩本身已非常出色，而考虑到我们此前多年的成功，更显非凡。2019 年，我们的净保费收入增加了近 50 亿美元，总额达到 376 亿美元。感觉就像昨天，我们还在庆祝达到 300 亿美元的里程碑。我们能够持续取得这些成绩，归功于超过 40,000 名 Progressive 员工，他们每天都在努力打造一家长久发展的企业。

Our Personal Lines CR was 90.5, with NPW growth of 15% and auto policies in force (PIF) growth of 11%. Both the Agency and Direct channels contributed to these stellar results. Special Lines PIF growth was stronger in 2019 at 4% than it was in 2018 when policy growth was relatively flat.  

我们的个人险综合赔付率为 90.5%，净承保保费增长 15%，汽车有效保单（PIF）增长 11%。代理渠道和直销渠道均对这些出色的业绩做出了贡献。特殊险种的有效保单增长在 2019 年达到 4%，高于 2018 年相对持平的增长水平。

Commercial Lines, as in years past, continues to be a significant part of our tremendous growth and profit story. NPW grew 20% adding nearly $800 million in NPW from an already solid base of $4 billion. We ended 2019 with an astounding CR of 89.6. The products and programs we have put in place for future growth are beginning to gain momentum and in some cases are substantial, as with our transportation network company (TNC) customer relationships, and in others just beginning, as with our business owners policy/general liability (BOP/GL) programs. Our ability to segment and price rate to risk, as well as invest in people, processes, and technology, we believe, will pay dividends as we look to the future.

与往年一样，商业保险业务继续成为我们卓越增长和盈利的重要组成部分。净保费（NPW）增长了 20%，在原本稳固的 40 亿美元基础上增加了近 8 亿美元。我们在 2019 年结束时取得了令人瞩目的 89.6%的综合比率（CR）。我们为未来增长而推出的产品和项目正开始积聚动力，其中一些已颇具规模，例如我们与运输网络公司（TNC）客户的合作关系；另一些则刚刚起步，例如我们的企业主保单/一般责任险（BOP/GL）项目。我们相信，我们在风险细分和定价能力，以及对人员、流程和技术的投资，将在未来带来回报。

I recently had the pleasure of sitting side-by-side with a multi-product specialist (thank you, Brian) in Commercial Lines and more specifically in our BusinessQuote Explorer® team. The training, expertise, and service provided to our small business customers that I was able to observe was exceptional. Witnessing these detailed conversations, where we educate and put the customer at ease, is another reason I’m so bullish on the runway we have in Commercial Lines.

最近，我有幸与商业保险部门，特别是我们 BusinessQuote Explorer®团队的一位多产品专家（感谢 Brian）并肩工作。我所观察到的为小型企业客户提供的培训、专业知识和服务都非常出色。亲眼目睹这些细致的对话，我们在其中为客户提供教育并使他们感到安心，这也是我对商业保险部门未来发展前景如此乐观的另一个原因。

The story on Property isn't much different than last year.  Growth remained strong, with NPW up 16% to $1.7 billion and PIFs up 14% to more than 2.2 million.  Our Property CR improved from 106.9 to 101.7, but this is still higher than our target for the Property business. Higher-than-expected wind and hail losses were once again the primary issue.  The $214.5 million of retained catastrophic wind and hail losses accounted for 13.8 points on our 2019 Property loss ratio.  The good news is that our actions to improve profitability are starting to pay off. We increased rates in the "hail alley" states in the middle of the country and implemented minimum deductible requirements for new customers.  These changes have slowed our growth in areas with significant hail exposure, while we continue to grow faster in other areas of the country.  We expect that trend to continue in 2020 as we adjust prices to reflect expected future loss costs.

财产险业务的情况与去年相比变化不大。增长依然强劲，净承保保费（NPW）增长 16%，达到 17 亿美元，保单数量（PIFs）增长 14%，超过 220 万份。我们的财产险综合赔付率（CR）从 106.9 改善至 101.7，但仍高于我们对财产险业务的目标。高于预期的风灾和冰雹损失再次成为主要问题。2019 年我们承担的灾难性风灾和冰雹损失达 2.145 亿美元，占财产险损失率的 13.8 个百分点。好消息是，我们为提高盈利能力所采取的措施已开始见效。我们在中部地区的“冰雹走廊”州提高了费率，并对新客户实施了最低免赔额要求。这些变化减缓了我们在冰雹风险较高地区的增长速度，而我们在其他地区的增长速度则更快。随着我们调整价格以反映未来预期损失成本，我们预计这一趋势将在 2020 年继续下去。

Consistent with thinking broadly, in January 2020, our Property product and team started reporting into the Personal Lines organization, and in February 2020, we reached agreement to buy out the minority ARX stockholders and bring our ownership of ARX to 100%, a year earlier than originally planned. The synergies, shared data on segmentation variables, and ongoing R&D expertise, we believe, will be instrumental as we continue to grow our bundled customers, the Robinsons.

During a recent Investor Webcast, we were asked if we would consider reporting on how catastrophes effect our monthly CR results, particularly in Property. You will be pleased to know that effective with our January 2020 monthly results, we added the percentage of earned premium affected by catastrophes within the supplemental information section of the release.

在最近的一次投资者网络直播中，有人询问我们是否会考虑报告灾害事件如何影响我们每月的综合比率（CR）结果，尤其是在财产险方面。您会高兴地了解到，从 2020 年 1 月的月度业绩开始，我们已在发布的补充信息部分增加了受灾害事件影响的已赚保费百分比。

In 2019, our investment portfolio achieved a fully taxable equivalent total return of 7.9%. As opposed to the significant volatility witnessed in 2018, the easing of monetary policy drove strong gains throughout 2019. Our fixed-income portfolio earned a 6.0% total return due to both lower interest rates and tighter credit spreads.

2019 年，我们的投资组合实现了 7.9%的完全应税等值总回报。与 2018 年出现的显著波动不同，货币政策的放松推动了 2019 年全年强劲的收益表现。由于利率下降和信贷利差收窄，我们的固定收益投资组合实现了 6.0%的总回报。

Following last year’s negative return, our equity portfolio gained 30.5% as earnings multiples saw significant expansion.

 

The combination of strong operating growth and our positive investment performance drove the size of our portfolio to just over $39 billion by the end of 2019. While our invested assets are greater than at any time in our history, the opportunity set is narrow. Valuations across the financial markets remain full and, therefore, we begin 2020 with a conservative allocation to risk assets. We continue to focus on the long term and believe that we will see better opportunities in the future. The one thing that is constant is our focus on protecting Progressive’s balance sheet to support our growing operating business.    

强劲的运营增长与积极的投资表现相结合，使我们的投资组合规模在 2019 年底达到略高于 390 亿美元。尽管我们的投资资产规模达到历史最高水平，但当前的投资机会范围有限。金融市场整体估值仍然偏高，因此我们在进入 2020 年时对风险资产采取了保守的配置策略。我们将继续专注于长期发展，并相信未来会出现更好的投资机会。唯一不变的是，我们始终致力于保护 Progressive 的资产负债表，以支持我们不断增长的运营业务。

As we outlined extensively in last year’s annual letter to shareholders, a substantive change was made to our dividend policy. In December 2018, the Board of Directors terminated the formulaic Gainshare-based annual variable dividend policy and replaced it with a policy under which the Board expects to declare regular quarterly dividends and, on least an annual basis, to consider declaring an additional common share dividend. The new plan, which was effective for 2019, gives us more flexibility in managing capital than we had in the past.

正如我们在去年的致股东年度信函中详细说明的那样，我们对股息政策进行了实质性调整。2018 年 12 月，董事会终止了基于 Gainshare 公式计算的年度浮动股息政策，并以新的政策取而代之。根据新政策，董事会预计将宣布定期季度股息，并至少每年一次考虑宣布额外的普通股股息。这项新计划自 2019 年起生效，使我们在资本管理方面比过去拥有更大的灵活性。

During each quarter of 2019, the regular quarterly dividend was 10 cents per share. In December 2019, the Board of Directors declared an additional dividend of $2.25 per share, or $1.3 billion. Both the fourth quarter and annual 2019 dividends were paid on January 15, 2020.

在 2019 年的每个季度，常规季度股息为每股 10 美分。2019 年 12 月，董事会宣布额外派发每股 2.25 美元的股息，总额为 13 亿美元。2019 年第四季度和全年股息均于 2020 年 1 月 15 日支付。

We compared our return on equity (ROE) results to the S&P 500 Property and Casualty Index and the S&P 500 on a 5-, 10-, and 20-year basis during a recent Investor Webcast, with the punch line being that we have outpaced both indices by very wide margins. While we don’t have the industry data to compare full year 2019, our ROE for last year was a whopping 31.3%.

我们在最近的一次投资者网络直播中，将我们的股本回报率（ROE）与标准普尔 500 财产与意外险指数以及标准普尔 500 指数进行了 5 年、10 年和 20 年的比较，结果表明我们以非常大的优势超过了这两个指数。虽然我们尚未获得行业数据以比较 2019 年全年情况，但我们去年的股本回报率高达 31.3%。

All-encompassing Strategic Pillars

全面战略支柱

We’ve frequently shared our four cornerstones: who we are (Core Values); why we are here (Purpose); where we are headed (Vision); and how we will get there (Strategy). These concepts help guide us and also feed off of each other to equate to success.

我们经常分享我们的四个基石：我们是谁（核心价值观）；我们为何存在（目标）；我们前进的方向（愿景）；以及我们如何实现目标（战略）。这些理念指导着我们，并相互促进，共同实现成功。

As an example, you can’t fully meet the broad needs of our customers if you don’t have the right people and culture. You have to invest in the future while caring about keeping prices competitive for consumers. I think you get it. The four strategic pillars are part of our intertwined construct that has served us well for some time. It may appear simple in theory, but in reality, it’s a delicate balance that we vigorously attempt to attain every day.

例如，如果没有合适的人才和文化，就无法充分满足客户的广泛需求。你必须在投资未来的同时，关注为消费者保持价格竞争力。我想你们明白这一点。这四个战略支柱是我们相互交织的架构的一部分，这一架构长期以来对我们非常有效。从理论上看可能很简单，但实际上，这是我们每天都在努力实现的一种微妙平衡。

People and Culture: We continue to believe that our people and culture are Progressive’s greatest competitive advantage and that idiom remains true now more than ever. While our trophy case is full of accolades that acknowledge that we have a great thing going, what is truly meaningful is what happens daily when no one is watching. 

人员与文化：我们始终相信，我们的员工和文化是 Progressive 最大的竞争优势，这一理念如今比以往任何时候都更加真实。尽管我们的荣誉柜中摆满了认可我们卓越表现的奖项，但真正有意义的是那些每天发生在无人关注时的事情。

To that end, I have a short, but very sweet story that I want to share.

为此，我想分享一个简短却非常温馨的故事。

During the planning for this year’s Keys to Progress® campaign that gives cars to deserving veterans, our Claims team learned that one of our 100+ recipients has a twin sister, Christy, who works in Progressive’s Customer Relationship Management (CRM) organization in Phoenix. We learned that Christy hadn’t seen her brother in quite some time, so we put the wheels in motion to fly her across the country for the November 7th vehicle giveaway ceremony in Altamonte Springs, Florida. Our goal was to surprise her brother with more than just a new car.  During the event, when it was time for her brother to receive the keys to his car, he was delighted to see his sister run from the back of the crowd and jump into his arms, with the keys dangling in her hand.

在筹划今年的“Keys to Progress®”公益活动（该活动旨在向值得尊敬的退伍军人赠送汽车）期间，我们的理赔团队了解到 100 多名受赠者中有一位的双胞胎姐姐 Christy 在 Progressive 位于凤凰城的客户关系管理（CRM）部门工作。我们得知 Christy 已有相当长一段时间未见到她的弟弟，因此我们安排她飞越全国，参加 11 月 7 日在佛罗里达州阿尔塔蒙特斯普林斯举行的汽车赠送仪式。我们的目标不仅仅是给她的弟弟一辆新车，更希望给他一个惊喜。在活动现场，当轮到她弟弟领取车钥匙时，他惊喜地看到姐姐从人群后方跑出来，手里拿着车钥匙，一下子扑进了他的怀抱。

Christy said she’s forever grateful for the efforts and huge hearts of her coworkers who made this special day possible for her family.  “My brother told me that he never thought things like this actually happened, especially to regular people like us - this event was proof that it DOES!”

克里斯蒂表示，她将永远感激同事们的努力和善心，是他们让她的家人拥有了这个特别的日子。“我哥哥告诉我，他从未想过这样的事情真的会发生，尤其是对我们这样普通的人来说——这次活动证明，这确实会发生！”

This is just one example of the way we treat each other at Progressive and that’s what makes us who we are.

这只是我们在 Progressive 对待彼此方式的一个例子，而这正塑造了我们的身份。

Meeting the broader needs of our customers: It’s critical that our customers know we care about them and recognize that we want to build a trusting, long-term relationship. Like any relationship, you must “be there” for someone to build trust. For us, that means being there as their insurance needs change or grow. Building this trusting relationship also means addressing broader customer needs for their unique situations. It might mean recognizing that a parent at a child’s after-school event may need us to communicate with them differently versus when they are at home and have more time to talk. Either way, we are there for them and will flex based on our customers’ wishes.

满足客户更广泛的需求：让客户知道我们关心他们，并希望与他们建立长期信任关系，这一点至关重要。与任何关系一样，要建立信任，你必须“陪伴在侧”。对我们而言，这意味着在客户的保险需求发生变化或增长时，我们始终陪伴左右。建立这种信任关系还意味着针对客户独特的情况，满足他们更广泛的需求。这可能意味着我们需要意识到，一位家长在参加孩子课外活动时，可能需要我们以不同于他们在家中有更多时间交谈时的方式进行沟通。无论哪种情况，我们都会陪伴客户左右，并根据客户的意愿灵活调整。

One way we meet the broader needs of our customers is through our service experiences. We strive to be available where, when, and how people want to interact with us. In 2019, we continued to make purposeful and significant investments in our phone, agency, and digital channel experiences.

我们满足客户更广泛需求的一个途径是通过我们的服务体验。我们努力在客户希望与我们互动的地点、时间和方式上提供服务。2019 年，我们继续在电话、代理和数字渠道体验方面进行有针对性且重大的投资。

‘Where’ references that people may look to address their insurance needs in a variety of settings in their life. And the context of where they are, what’s on their mind, the time they have… all play into how we must be prepared to meet their needs in different ways.

“何处”指的是人们可能在生活中的各种情境下寻求满足保险需求的地方。他们所处的环境、心中所想、所拥有的时间……所有这些因素都会影响我们如何以不同方式做好准备来满足他们的需求。

‘When’ references not only time of day, but important aspects of our service like being flexible with payments based on when our insureds get paid. We offer 24/7 service, and also ensure that service throughout that spectrum is all held to our same service standards.

“When”不仅指一天中的时间，也指我们服务的重要方面，比如根据被保险人的发薪时间灵活安排付款。我们提供全天候 24/7 服务，并确保在整个服务过程中始终保持相同的服务标准。

‘How’ references the contact methods by which our customers indicate to us are preferred.

“如何”指的是客户向我们表明的首选联系方式。

We’re making use of new technologies, developing new customer experiences, and addressing core insurance needs across all of these dimensions. We’re rebalancing our investments as we look at where our customers are going. As an example, since my first annual letter for 2016, mobile app customer engagement has increased about 4x, which is why we’ve heavily invested in using artificial intelligence, offering more personalization, and utilizing device-specific capabilities (such as a mobile phone's camera) to improve customer experiences in the mobile app.

我们正在利用新技术，开发新的客户体验，并在所有这些方面满足核心保险需求。我们正在重新平衡投资，以适应客户的发展方向。例如，自我 2016 年首次年度信函以来，移动应用程序的客户参与度增加了约 4 倍，因此我们大力投资于人工智能，提供更多个性化服务，并利用设备特定功能（如手机摄像头）来改善移动应用程序的客户体验。

An important part of our strategy is making good decisions on where we invest our time, talent, and resources. While we follow test-and-learn methodologies, we make decisions quickly and drive to conclusions. With clear and transparent strategies that broadly encompass the organization and cut across silos, we are able to ensure we are broadly utilizing our customer feedback and data in decisions and prioritization.

我们战略的重要组成部分是对我们投入时间、人才和资源的领域做出明智决策。尽管我们遵循测试与学习的方法论，但我们决策迅速并推动得出结论。通过清晰透明的战略，广泛涵盖整个组织并跨越部门壁垒，我们能够确保在决策和优先排序中广泛利用客户反馈和数据。

Another important facet of meeting the needs of our customers is recognizing our responsibility to be smart and disciplined with our resources to keep rates competitive. We utilize our data and customer-first discipline in our experience design and have established “Lean” processes that allow us to continue to deliver and innovate in meaningful ways for our customers, while managing costs. We reward our people for trying things, being open and honest about results, both good and bad, and making decisions that propel us forward.

满足客户需求的另一个重要方面是认识到我们有责任明智且严谨地使用资源，以保持费率的竞争力。我们在体验设计中运用数据和以客户为先的原则，并建立了“精益”流程，使我们能够持续以有意义的方式为客户提供服务和创新，同时控制成本。我们鼓励员工积极尝试，对结果（无论好坏）保持坦诚，并做出推动我们前进的决策。

For many, our phone consultants are the most direct connection they have with us. They are Progressive. While we may not see this with every phone interaction, I find this story a compelling one illustrating how our people care for our customers, gain trust, and, in return, develop long-lasting relationships.

对许多人而言，我们的电话顾问是他们与我们最直接的联系。他们代表着 Progressive。虽然我们可能无法在每一次电话交流中都看到这一点，但我认为这个故事生动地说明了我们的员工如何关心客户、赢得信任，并因此建立起长久的关系。

A great example of this was in 2017, when Andrew (a member of our Progressive Advantage Agency) received a call from Shirley. She was unnerved because another insurance carrier was canceling her policy because of a homeowners claim she had made. She didn’t know what to do because her late husband used to handle all of the insurance details. Andrew walked her through both auto and home quotes and explained the process to her making it clear and easy for her to understand.  She was grateful and the price was good, so she became a Robinson (auto and home bundled).

2017 年发生的一件事就是一个很好的例子。当时，Andrew（我们 Progressive Advantage Agency 的一名成员）接到了 Shirley 的电话。Shirley 感到非常不安，因为另一家保险公司由于她之前提出的一项房屋保险索赔而取消了她的保单。她不知道该怎么办，因为过去一直是她已故的丈夫处理所有保险事务。Andrew 耐心地为她提供了汽车和房屋保险的报价，并详细解释了整个流程，让她清楚易懂。Shirley 对此非常感激，而且价格也很合适，于是她成为了一名 Robinson 客户（汽车和房屋保险捆绑）。

Andrew didn’t stop there. He checked on her periodically to make sure everything went smoothly on her end because he had built a strong rapport with her and empathized with her situation (Golden Rule is one of our Core Values).  He said, “I just wanted to make sure that I set it all up for her so she wouldn’t have to worry.” Later that year, Shirley sent Andrew a Christmas card wishing him well and thanking him for helping her. Shirley has continued to send her yearly Christmas card to Andrew. This past year, Andrew wrote her back and thanked her for the cards and for trusting Progressive. He keeps those cards close by as a reminder of how he can make a difference in someone's life during just one phone call.

Andrew 并未止步于此。他定期与她联系，确保她那边一切顺利，因为他与她建立了良好的关系，并对她的处境感同身受（黄金法则是我们的核心价值观之一）。他说：“我只是想确保为她安排妥当，这样她就不用担心了。” 那年晚些时候，Shirley 给 Andrew 寄了一张圣诞贺卡，祝福他并感谢他的帮助。从此以后，Shirley 每年都会继续给 Andrew 寄圣诞贺卡。去年，Andrew 给她回信，感谢她寄来的贺卡以及对 Progressive 的信任。他将这些贺卡放在身边，提醒自己只需一次电话沟通，就能对他人的生活产生积极影响。

Leading Brand: You can’t watch an hour of television without seeing an advertisement from an insurance company. Because of that, ads must be breakthrough while protecting the brand.

领先品牌：你看电视时，每小时都会看到保险公司的广告。因此，广告必须具有突破性，同时保护品牌形象。

What we call our brand “network” continues to grow and evolve, and 2019 was no exception. We produced countless quantities of creative from mass media, to digital, to sponsorships, and everything in between. 

我们所称的品牌“网络”持续增长和发展，2019 年也不例外。从大众媒体到数字媒体，再到赞助活动以及其他各种形式，我们创作了大量的创意内容。

In addition, we unveiled several new campaigns to better reach specific demographics. We introduced what we called “Motaur” (half-man and half-motorcycle) with the insights that people who ride feel so connected to their bikes as if they are one. 

此外，我们推出了几项新的宣传活动，以更好地触及特定人群。我们推出了名为“Motaur”（半人半摩托车）的形象，基于骑行者与摩托车紧密相连、仿佛融为一体的洞察。

We started a new small business campaign showing that small businesses can start like a fairy-tale dream, but things can go wrong, and we’ll help you get through it.

我们启动了一项新的小企业宣传活动，展示小企业可能像童话般美好地开始，但也可能遇到困难，而我们会帮助您渡过难关。

Lastly, we introduced “At Home with Baker and Emily Mayfield,” where the message was less about football and more about common occurrences that happen in both a home and within a relationship. In the ads they happen to live in a football stadium, which allowed us to create a massive amount of relatable life events. 

最后，我们推出了“At Home with Baker and Emily Mayfield”，其传达的信息较少涉及橄榄球，而更多关注家庭和人际关系中的日常事件。在广告中，他们恰好住在一个橄榄球场内，这使我们能够创造出大量贴近日常生活的场景。

We hit the ground running in 2020 with a relationship we have established with a mobile entertainment company called Quibi (stands for quick bites) and a new character in our network we named Sign Spinner. More to come on both of these as the year transpires.

进入 2020 年，我们迅速启动了与一家名为 Quibi（意为快速小片段）的移动娱乐公司建立的合作关系，并在我们的网络中推出了一个名为 Sign Spinner 的新角色。随着今年的推进，将有更多相关消息公布。

Our Brand Promise: Campaigns are important to capture the attention of consumers and confirm for our current customers that they made the right choice when choosing Progressive. As we head into 2020, we will continue producing media that we believe stands out. In addition, we will focus on a newly articulated brand promise to guide us into the future.  Having a public promise becomes an organizing principle that guides every piece of marketing we create.

我们的品牌承诺：广告活动对于吸引消费者的注意力，并向现有客户确认他们选择 Progressive 是正确的决定至关重要。进入 2020 年，我们将继续制作我们认为与众不同的媒体内容。此外，我们将专注于一个新明确的品牌承诺，以引领我们迈向未来。拥有一个公开的承诺将成为指导我们创作每一项营销内容的组织原则。

A brand promise forces us to think about who we are creating for, not just what we need to message. This Promise puts the people we serve at the center of our marketing strategy, and it reminds us that we have a variety of audiences, that aren’t all served, or reached, in the same way.  For some of us, big milestones will mark our paths…getting married, buying a house, having a baby…but not necessarily in that order.  For others, major life events may be totally different…graduating from trade school, adopting a rescue pet from a shelter, or leaving corporate life to start fresh at age 50.  But for all of us, it’s the little things, the small moments, the everyday pursuits, and passions that make up a life.

品牌承诺促使我们思考我们为谁而创造，而不仅仅是我们需要传达什么信息。这一承诺将我们所服务的人群置于营销战略的核心，并提醒我们，我们拥有多样化的受众群体，他们并非都以相同的方式被服务或触及。对我们中的一些人来说，人生道路上会有重要的里程碑……结婚、买房、生孩子……但顺序未必如此。对另一些人而言，重要的人生事件可能完全不同……从职业学校毕业、从收容所领养宠物，或在 50 岁时离开企业生活重新开始。但对我们所有人来说，正是那些小事、细微的时刻、日常的追求和热爱，构成了生活的全部。

Whatever it is you’re passionate about, whatever it is you’re striving for, it is the people and things and pastimes that make waking up every day an adventure and a joy. We believe that’s valuable and worth protecting. Our Marketing Brand Promise is:

无论你热爱什么，无论你追求什么，正是那些人、事和爱好，让每天醒来都充满冒险和喜悦。我们相信这些都值得珍惜和守护。我们的营销品牌承诺是：

WHEN IT MATTERS TO YOU. IT MATTERS TO US. AND WE’LL HELP YOU PROTECT IT.

We love this Marketing Brand Promise for a few reasons. The most important part is “you”. This is not about us. This is about people, the customers and consumers that we endeavor to reach and connect with and ultimately form a long-term relationship.

我们喜欢这个营销品牌承诺有几个原因。其中最重要的部分是“你”。这不是关于我们，而是关于人，关于我们努力接触并建立联系，最终形成长期关系的客户和消费者。

The next part is “matters.” We care about what matters to you and that will be distinct for every customer and throughout their lives as their insurable needs evolve.  Our end goal is to have our customers (current and future) really know that Progressive cares about them and we are really there to help and make things better.

下一部分是“重要的事”。我们关心对您而言重要的事，这对每位客户都是不同的，并且会随着他们人生中保险需求的变化而变化。我们的最终目标是让客户（无论现在还是未来）真正感受到 Progressive 关心他们，我们始终在此提供帮助，让一切变得更好。

And the last piece is “help” - we are in the solutions business always trying to make things better and easier. Help is how we prove it and put our promise into action.

最后一点是“帮助”——我们始终致力于提供解决方案，努力让事情变得更好、更简单。“帮助”体现了我们的行动，是我们兑现承诺的方式。

When you combine these pieces, we believe that this is a powerful promise that takes us well beyond product and price, and that builds the emotional value. It is just one more reason for people to choose Progressive. Because the bottom line is - our product is a promise and a promise is only as good as who makes it. We believe our promise is different, and it’s now up to us to prove it.

当你将这些因素结合起来时，我们相信这将是一个强有力的承诺，使我们远远超越产品和价格，并建立起情感价值。这只是人们选择 Progressive 的又一个理由。因为归根结底，我们的产品就是一种承诺，而承诺的价值取决于做出承诺的人。我们相信我们的承诺与众不同，现在就看我们如何去证明它。

Competitive Prices:  

有竞争力的价格：

I often talk to new hires about how the only thing worse than having to buy insurance is to use it. We are honest with ourselves that this is a category where people are rightly price sensitive. Because of that, it is a necessity that our prices are competitive as we continue to advance our “Always Grow Mindset” (and we do!).

我经常与新员工谈到，唯一比不得不购买保险更糟糕的事情，就是不得不使用保险。我们坦诚地认识到，在这个领域，人们对价格敏感是理所当然的。因此，在我们持续推进“始终成长的心态”（我们确实如此！）的同时，保持价格竞争力是必需的。

A key piece of keeping prices competitive, besides having industry leading segmentation through our proprietary product models, is running an efficient organization and, in the claims area, balancing that efficiency with quality on the indemnity side.

除了通过我们专有的产品模型实现业内领先的细分之外，保持价格竞争力的一个关键因素是运营高效的组织，并在理赔领域实现效率与赔偿质量之间的平衡。

Clearly, from the imbedded charts, we take being efficient seriously and that has allowed us this prolonged period of growth and giving customers a reason to join Progressive.

显然，从嵌入的图表中可以看出，我们认真对待效率，这使我们能够实现长期增长，并为客户提供了加入 Progressive 的理由。

Over the last ten years, we have trimmed 3 points off our CR in what we call NAER (Non-Acquisition Expense Ratio), which are the operating expenses less the cost of acquiring new customers.

在过去十年中，我们将我们称之为 NAER（非获客费用比率）的综合比率降低了 3 个百分点，该比率是指运营费用中扣除获取新客户成本后的部分。

In claims, our LAE (loss adjustment expenses) dropped over one point in the last 10 years and nearly 3 points since 2006. In more recent years, we have hired ahead of need in order to make sure that we have enough time to thoroughly train our claims associates, so they are able to serve our customers in the way they have become accustomed. That is a more expensive model, but we believe it is just the right thing to do.  In addition, we’ve had some tailwinds due to premium increases.

在理赔方面，我们的损失理算费用（LAE）在过去 10 年下降了超过一个百分点，自 2006 年以来下降了近 3 个百分点。近年来，我们提前招聘，以确保有足够的时间对理赔人员进行充分培训，使他们能够以客户所习惯的方式提供服务。这种模式成本更高，但我们相信这是正确的做法。此外，保费上涨也为我们带来了一些有利因素。

The truly amazing part about this graph is that the claim handling quality has stayed relatively flat (per our internal audit quality score), which is incredible with so many new people and a tribute to how much each person cares about settling each claim fairly.  It should be noted that the claims organization (the largest part of Progressive as far as employees) also had the highest Culture and Engagement scores in 2019. It’s all about balance.

这张图真正令人惊叹的是，理赔处理质量（根据我们的内部审计质量评分）保持了相对稳定，这在有如此多新员工加入的情况下是难以置信的，也体现了每个人对公平解决每项理赔的重视程度。值得一提的是，理赔部门（按员工人数计算是 Progressive 最大的部门）在 2019 年也获得了最高的文化和员工敬业度评分。一切都在于平衡。

Back to the “Broad” Future

回到“广阔”的未来

As we reflect on the investments that we have made in all Three Horizons this year, I am incredibly thankful that we have the foresight, courage, and determination to think broadly. It would have been easy to focus on just doing what we have done so well in the past, which of course we did, and is part and parcel of our enterprise growth strategy. We did more than that. We surgically focused on seizing additional market share with our core products, while honing in on new products and services that leverage our strengths. In parallel, our strategy team has been diligently researching possibilities for our future. All-in-all, a formula that we are confident will create an enduring business.

当我们回顾今年在三个发展阶段所做的投资时，我非常感激我们拥有远见、勇气和决心，能够进行广泛的思考。我们本可以轻松地只专注于过去我们所擅长的事情，当然我们也确实这样做了，这本身就是我们企业增长战略的重要组成部分。但我们做得更多。我们精准地专注于通过核心产品夺取更多市场份额，同时致力于开发能够发挥我们优势的新产品和服务。与此同时，我们的战略团队一直在积极探索未来的各种可能性。总而言之，我们相信，这种模式将打造一个持久发展的企业。

I’d like to give special thanks to our partners, independent agents, and the customers who trust us to protect them. You matter to us.

我特别感谢我们的合作伙伴、独立代理人以及信任我们为其提供保护的客户。你们对我们至关重要。

As always, a very special thank you to the 40,000+ Progressive people who work tirelessly to make this machine we call Progressive hum. You are why we are in the enviable position that we are in. I can’t thank you enough for all that you do.

一如既往，特别感谢四万多名 Progressive 员工，你们不懈努力，让我们称之为 Progressive 的这台机器顺畅运转。正是因为你们，我们才能处于如今令人羡慕的位置。你们所做的一切，我感激不尽。