PROGRESSIVE RATINGS LOWERED

A.M. Best has lowered the financial strength rating of the Progressive Casualty Pool to A+ from A++, reflecting the group’s downturn in its operating earnings, intense price competition in its predominant personal automobile line, increased loss reserve risk and the expectation of modest operating returns. Progressive continues to operate with above-average operating leverage and capital strength that falls below A.M. Best’s capitalization standards for a Superior rating.