Mayfield Village, Ohio-based vehicle insurer Progressive Corp. announced today that its board chairman, Peter B. Lewis, has established a pre-arranged trading plan to sell common shares of the company in the open market over a designated period in accordance with Rule 10b5-1 of the Securities and Exchange Commission.
Under the plan, during a two-year period starting this month, Lewis or an entity that he owns may sell up to a total of 2.3 million shares, which represents about 12 percent of the shares he beneficially owns. The plan is part of Lewis’s ongoing program of tax planning and asset diversification.
Rule 10b5-1 allows corporate officers and directors to adopt written, pre-arranged stock trading plans when they are not in possession of material, non-public information about their company. Under these plans, insiders can gradually diversify their investment portfolios, spread stock trades over an extended period of time to reduce market impact costs and avoid concerns about whether they had material, non-public information when they sold their stock.
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