MAYFIELD VILLAGE, Ohio and
CHATSWOOD, Australia, March 21, 2017 /PRNewswire/ -- 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 it whenever, wherever and however it's most
convenient — online at 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), majority
owned subsidiaries of Progressive.
Progressive is the fourth largest auto insurer in the United States; 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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/progressive-direct-insurance-company-enters-into-agreement-to-sell-australian-operations-to-hollard-insurance-company-300427280.html
SOURCE Progressive Insurance