Progressive reaches maximum 250 million share cap for 6.7% floaters

By Toni Weeks

San Diego, June 30 - Progressive Corp. announced that the share cap amount for its 6.7% fixed-to-floating-rate junior subordinated debentures due 2067 has increased to 250 million common shares.

The share cap amount is applicable only if the company elects to defer interest on the debentures and then events occur that trigger the company's obligation to issue common shares in order to generate proceeds that must be used to pay off the deferred interest, according to an 8-K filing with the Securities and Exchange Commission.

The share cap amount had initially been set at 150 million common shares and has been increasing as the company has repurchased its common shares. The share cap amount exceeded 200 million common shares in the first quarter of 2008 and has now reached the maximum amount allowed under the indenture.

Progressive is a Mayfield Village, Ohio-based holding company that, through its subsidiaries, provides automobile and specialty property-casualty insurance and related services.

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