The Progressive Corporation (a property and casualty insurance company) reported the following in its 2016 annual report:
*For purposes of this exercise, assume the entire debt amount is long-term.
Required:
a. Explain in layman's terms the liabilities labeled "Unearned premiums" and "Loss reserves."
b. What percentage of Progressive's total liabilities relates to current operating liabilities for 2016? Do you believe that this number is higher than most companies or lower? Why?
c. Which current liability reported by Progressive is the least reliably measured - that is, the most subjective? Explain.

Question

The Progressive Corporation (a property and casualty insurance company) reported the following in its 2016 annual report:
  *For purposes of this exercise, assume the entire debt amount is long-term.
Required: 
a. Explain in layman's terms the liabilities labeled "Unearned premiums" and "Loss reserves."
b. What percentage of Progressive's total liabilities relates to current operating liabilities for 2016? Do you believe that this number is higher than most companies or lower? Why?
c. Which current liability reported by Progressive is the least reliably measured - that is, the most subjective? Explain.

Quizplus · Accepted Answer

The Answer of The Progressive Corporation (a property and casualty insurance company) reported the following in its 2016 annual report:
  *For purposes of this exercise, assume the entire debt amount is long-term.
Required: 
a. Explain in layman's terms the liabilities labeled "Unearned premiums" and "Loss reserves."
b. What percentage of Progressive's total liabilities relates to current operating liabilities for 2016? Do you believe that this number is higher than most companies or lower? Why?
c. Which current liability reported by Progressive is the least reliably measured - that is, the most subjective? Explain.

The Progressive Corporation (A Property and Casualty Insurance Company) Reported