Progressive Direct Insurance Company Enters into Agreement to Sell Australian Operations to Hollard Insurance Company
March 21 2017 - 5:03PM
Mayfield Village, Ohio and Chatswood, Australia -
21 March 2017 - Progressive Direct Insurance Company, a subsidiary
of The Progressive Corporation (NYSE: PGR), and The Hollard
Insurance Company Pty Ltd today announced they have entered into
definitive agreements in which Hollard will acquire Progressive's
portfolio of insurance policies in Australia.
The parties expect this transfer, subject to final negotiation of
documents between the parties and regulatory and court approvals,
will be effective in the fourth quarter of 2017.
The agreements also provide for PD Insurance Agency Pty Ltd (PDIA)
- a new company created and partly owned by Hollard; the current
manager of the Progressive Australia business, Simon Lindsay; and
others - to be the authorized agent servicing Progressive's
Australian policies until the transfer to Hollard.
Involvement of Mr. Lindsay with PDIA will provide continuity in
Progressive's business during the transition to Hollard and beyond.
The parties expect the agency appointment will be effective from 31
March 2017. The agency appointment is subject to satisfaction
of conditions.
Said Hollard CEO and Executive Director, Richard Enthoven:
"Progressive and Hollard have a history of embracing innovation and
entrepreneurship and I am excited that Progressive's Australian
insurance portfolio will be joining the Hollard family. Hollard's
business philosophy is founded on investing in and partnering with
brands, brand partners and underwriting agencies for the
long-term. In just seven years, Progressive has grown a
successful online car insurance business and we look forward to
working with Simon and PDIA to grow the business
further."
"Hollard is the perfect fit for our business," said Mr. Lindsay.
"We'll benefit from a shared vision and local scale advantages to
reinforce our core value proposition for our customers with
quality, online and materially lower-cost car insurance."
Said Progressive Chief Financial Officer, John Sauerland: "This
transaction allows Progressive to focus on our Destination Era
strategy of growing our U.S. business to become the number one
choice and destination for auto and other insurance. We were
pleased to find a suitable insurance company to continue providing
quality service to our existing policy holders and to continue to
invest in growing the business."
During its time in Australia, Progressive introduced a number of
firsts to the local car insurance market such as a multi-car policy
offering and an online, self-service proposition.
The terms of the agreement allow Hollard and PDIA certain rights to
use the Progressive brand in connection with car insurance in
Australia for a period of two and a half years.
###
About Hollard:
The Hollard Insurance Company Pty Ltd in Australia secures the
lifestyles for assets of over 1,000,000 Australians offering
solutions from Pet Insurance, Home and Contents Insurance, Travel
Insurance, Mobile phone Insurance to Car Insurance. Hollard also
provides commercial insurance solutions for small and medium size
enterprises, commercial motor vehicles and landlords. Additionally,
The Hollard Insurance Company Pty Ltd is a licensed insurer in New
Zealand and has an A.M. Best issued financial strength rating of A-
(Excellent).
Hollard is part of a global financial services business with
operations in Australia, New Zealand, Africa, Europe, India, China
and the United States. It has over 2,700 people across 20
countries, protecting over 7 million policy holders
worldwide.
About Progressive:
The Progressive Group of Insurance Companies makes it easy to
understand, buy and use auto insurance. Progressive offers choices
so consumers can reach us whenever, wherever and however it's most
convenient-online at http://www.progressive.com, by phone at
1-800-PROGRESSIVE, on a mobile device or in-person with a local
agent.
Progressive provides insurance for personal and commercial autos
and trucks, motorcycles, boats, recreational vehicles, and homes.
Home insurance is underwritten by select carriers, including
American Strategic Insurance Corp. and subsidiaries (ASI), our
majority owned subsidiaries.
Progressive is the fourth largest auto insurer in the country; a
leading seller of motorcycle and commercial auto insurance; and
through ASI, one of the top 20 homeowners carriers. Progressive
also offers car insurance online in Australia at
http://www.progressiveonline.com.au.
Founded in 1937, Progressive continues its long history of offering
shopping tools and services that save customers time and money,
like Name Your Price®,
Snapshot® and Service
Centers.
The Common Shares of The Progressive Corporation, the Mayfield
Village, Ohio-based holding company, trade publicly at
NYSE:PGR.
Media inquiries:
For Hollard:
Craig Badings
02 9256 9700 / 0413 946 703
For Progressive:
Jeff Sibel
01 440 395 0803
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: The Progressive Corporation via Globenewswire
Progressive (NYSE:PGR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Progressive (NYSE:PGR)
Historical Stock Chart
From Apr 2023 to Apr 2024