In 2006, Progressive Corporation has announced a change in its dividend policy. Now, dividends are paid annually instead of quarterly and, more importantly, would be set on a formula that involves a lot more variability from year to year in the case in the past. Under the new policy, dividends are related to the technical performance of the company, its performance against predetermined objectives and target payment. The new progressive policy is designed to assist in the overall management of capital in the economic cycle and insurance property damage.
by
Timothy A. Luehrman,
Brenda Chia
Source: Harvard Business School
12 pages.
Release: Aug 21, 2008. Prod #: 209004-PDF-ENG
Variables dividends Case Solution: Progressive Corporation
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