A.M. Best has affirmed the Financial Strength Rating
(FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings
(Long-Term ICR) of “aa” of the members of Progressive Agency
Pool, Progressive Direct Pool and Progressive
Commercial Auto Group (collectively known as Progressive). A.M.
Best also has affirmed the FSR of A (Excellent) and the Long-Term
ICR of “a+” of National Continental Insurance Company
(National Continental). Additionally, A.M. Best has affirmed the
Long-Term ICR of “a” and all Long-Term Issue Credit Ratings
(Long-Term IR) of all senior issuances and the preferred stock
issuance of the parent holding company, The Progressive
Corporation [NYSE: PGR]. Concurrently, A.M. Best has withdrawn
the Long-Term IR of “bbb+” of the $1 billion 6.7% junior
subordinated debentures due to redemption. The outlook of these
Credit Ratings (ratings) is stable. All companies are headquartered
in Mayfield Village, OH. (See below for a detailed listing of the
companies and ratings.)
The ratings of Progressive Agency Pool reflect its balance sheet
strength, which A.M. Best categorizes as strongest, as well as its
strong operating performance, very favorable business profile and
appropriate enterprise risk management (ERM).
The ratings of Progressive Direct Pool reflect its balance sheet
strength, which A.M. Best categorizes as very strong, as well as
its strong operating performance, very favorable business profile
and appropriate ERM.
The ratings of Progressive Commercial Auto Group reflect its
balance sheet strength, which A.M. Best categorizes as very strong,
as well as its strong operating performance, favorable business
profile and appropriate ERM. Additionally, the ratings recognize
the financial strength, infrastructure and technological
capabilities afforded as a subsidiary of The Progressive
Corporation.
The ratings of National Continental reflect its balance sheet
strength, which A.M. Best categorizes as very strong, as well as
its strong operating performance, neutral business profile and
appropriate ERM. Additionally, the ratings recognize the financial
strength, infrastructure and technological capabilities afforded as
a subsidiary of The Progressive Corporation.
Progressive’s risk-adjusted capitalization has benefited from
long-term, consistently favorable underwriting results, consistent
investment income and significant realized and unrealized capital
gains in its investment portfolio given the favorable performance
of equity markets in more recent years. Progressive continues to
benefit from a seasoned and stable management team, brand name
recognition, a multiple channel distribution platform, and
innovative underwriting and claims handling technology. In
addition, Progressive’s direct operations have continued to witness
favorable growth, reflective of its widespread and growing brand
recognition. Progressive’s auto results have outperformed
competitors in recent years despite the impacts of frequency and
severity throughout the automobile insurance industry, due mainly
to its sophisticated data mining and pricing techniques.
These positive rating factors are offset partially by
Progressive’s high underwriting leverage relative to industry
averages. However, Progressive has operated historically with
elevated underwriting leverage while consistently generating
favorable underwriting results.
Progressive’s debt-to-adjusted capitalization remains within
A.M. Best’s expectation consistent with the holding company’s
current rating level. As of Dec. 31, 2017, the most recently
available year-end data, The Progressive Corporation, along with
its subsidiaries, had $38.7 billion in total assets and
approximately $9.3 billion in total shareholder equity.
The FSR of A+ (Superior) and the Long-Term ICRs of “aa” have
been affirmed for the following members of Progressive Agency
Pool:
- Progressive Casualty Insurance
Company
- Progressive Northern Insurance
Company
- Progressive Northwestern Insurance
Company
- Progressive Specialty Insurance
Company
- Progressive Preferred Insurance
Company
- Progressive Classic Insurance
Company
- Progressive American Insurance
Company
- Progressive Gulf Insurance
Company
- Progressive Bayside Insurance
Company
- Progressive Mountain Insurance
Company
- Progressive Southeastern Insurance
Company
- Progressive Hawaii Insurance
Corp.
- Progressive Michigan Insurance
Company
- Progressive Security Insurance
Company
- Progressive West Insurance
Company
- Drive New Jersey Insurance
Company
- Progressive County Mutual Insurance
Company
The FSR of A+ (Superior) and the Long-Term ICRs of “aa” have
been affirmed for the following members of Progressive Direct
Pool:
- Progressive Direct Insurance
Company
- Progressive Marathon Insurance
Company
- Progressive Max Insurance
Company
- Progressive Advanced Insurance
Company
- Progressive Universal Insurance
Company
- Progressive Premier Insurance
Company of Illinois
- Progressive Paloverde Insurance
Company
- Mountain Laurel Assurance
Company
- Progressive Select Insurance
Company
- Progressive Garden State Insurance
Company
The FSR of A+ (Superior) and the Long-Term ICRs of “aa” have
been affirmed for the following members of Progressive
Commercial Auto Group:
- Artisan & Truckers Casualty
Company
- Progressive Express Insurance
Company
- United Financial Casualty
Company
The FSR of A (Excellent) and the Long-Term ICR of “a+” have been
affirmed for National Continental Insurance Company.
The Long-Term ICR of “a” and the following Long-Term IRs of
The Progressive Corporation have been affirmed:
The Progressive Corporation—
-- “a” on $500 million 3.75% senior unsecured
notes, due 2021
-- “a” on $500 million 2.45% senior unsecured
notes, due 2027
-- “a” on $300 million 6.625% senior
unsecured notes, due 2029
-- “a” on $400 million 6.250% senior
unsecured notes, due 2032
-- “a” on $350 million 4.35% senior unsecured
debentures, due 2044
-- “a” on $400 million 3.7% senior unsecured
notes, due 2045
-- “a” on $850 million 4.125% senior
unsecured notes, due 2047
-- “a” on $600 million 4.2% senior unsecured
notes, due 2048
-- “bbb+” on $500 million 5.375% cumulative
preferred stock
The Long-Term IR of “bbb+” has been withdrawn for the following
due to redemption:
-- “bbb+” on $1 billion 6.7% junior
subordinated debentures, due 2067
This press release relates to Credit Ratings that have been
published on A.M. Best’s website. For all rating information
relating to the release and pertinent disclosures, including
details of the office responsible for issuing each of the
individual ratings referenced in this release, please see A.M.
Best’s Recent Rating Activity web page. For
additional information regarding the use and limitations of Credit
Rating opinions, please view Understanding Best’s Credit
Ratings. For information on the proper media use of Best’s
Credit Ratings and A.M. Best press releases, please view
Guide for Media - Proper Use of Best’s Credit Ratings and A.M.
Best Rating Action Press Releases.
A.M. Best is the world’s oldest and most authoritative
insurance rating and information source. For more information,
visit www.ambest.com.
Copyright © 2018 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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version on businesswire.com: https://www.businesswire.com/news/home/20180620006015/en/
A.M. BestRaymond Thomson, CPCU, ARe, ARM, +1
908-439-2200, ext. 5621Associate
Directorraymond.thomson@ambest.comorGreg Williams, +1
908-439-2200, ext. 5815Senior
Directorgreg.williams@ambest.comorChristopher Sharkey, +1
908-439-2200, ext. 5159Manager, Public
Relationschristopher.sharkey@ambest.comorJim Peavy, +1
908-439-2200, ext. 5644Director, Public
Relationsjames.peavy@ambest.com
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