Progressive Announces Management Changes

The Progressive Corporation announced the appointment of John A. Barbagallo as the President of the Company's Drive® Group of Insurance Companies. Mr. Barbagallo, 46, who joined the Company more than 20 years ago as a claims representative, currently serves as the Drive Atlantic Region General Manager.

CEO and President Glenn Renwick said: "I am thrilled to announce the selection of John as Drive Group President. I have great confidence in his ability to lead the Drive organization in meeting its goal of achieving consistently higher levels of profitable growth. John has a wealth of experience in our agency business as well as in claims, marketing and operations, which makes him the perfect choice to lead this important part of our business."

The Company also announced two other changes as part of a reorganization of the Company's Executive Team:

Brian A. Silva, 53, currently General Manager of the Company's Commercial Auto Group, reporting to the Drive Group President, has been promoted to Commercial Group President and will now report directly to Mr. Renwick.

Mr. Renwick said: "Under Brian's leadership, the Commercial Auto business has grown from $250 million in written premium in 1998 to more than $1.8 billion in 2005. He has made terrific contributions to the Commercial Auto Group and I look forward to the contributions he will make to all aspects of our business."

Alan R. Bauer, President of the Company's Direct Group of Insurance Companies since 2002, will step down from his responsibilities and leave the Company effective immediately. Mr. Bauer joined Progressive in 1979. Mr. Renwick announced the commencement of an internal search for the next Direct Group President.

Mr. Renwick also reaffirmed his intent to name a new CFO by the end of the third quarter to succeed Tom Forrester who will retire in early 2007, noting that the selection process for that position has already begun among a pool of highly qualified internal candidates.

Source: Progressive Insurance (www.progressive.com)

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