In 2006, Progressive Corporation, has announced a change in its dividend policy. Henceforth dividends annually rather than quarterly and are paid even more important, would result would historically by a formula that was significantly greater year-to-year variability than the case. Under the new policy, the company would Dividends underwriting results, its performance against predetermined objectives and a dividend payout ratio will be bound. Progressive new policy was intended t … Read more »

In 2006, Progressive Corporation, has announced a change in its dividend policy. Henceforth dividends annually rather than quarterly and are paid even more important, would result would historically by a formula that was significantly greater year-to-year variability than the case. Under the new policy, the company would Dividends underwriting results, its performance against predetermined objectives and a dividend payout ratio will be bound. Progressive new policy should help with overall capital management in the cyclical property and casualty insurance business.
To maximize their effectiveness, color cases should be printed in color.
«Hide

from
Timothy A. Luehrman,
Brenda Chia
Source: Harvard Business School
12 pages.
Release Date: 21 August 2008. Prod #: 209004-PDF-ENG
Progressive Corporation: The variable dividends HBR case solution

[related_post themes="flat"]