Progressive said it will not pay an annual dividend this year, stating that the payment made under a taxing formula did not reach its criterion.
The Mayfield Village, Ohio-based personal lines insurer said under its dividend policy formula, a payment is made based on the company's operating results for the full year, in this case 2008. The dividend would not be paid, however, if the company's after-tax comprehensive income is less than the after-tax underwriting income.
Progressive said that based on its results through Nov. 20, “it is apparent that the company's after-tax comprehensive loss (which amounted to $860.8 million for the year-to-date period) will be less than after-tax underwriting income for 2008.”
Under these conditions, the board of directors decided no dividend would be paid this year, the company said.
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