AM Best Comments on Credit Ratings of The Progressive Corporation and Its Members Following Acquisition Announcement of Protective Insurance Corporation and Its Subsidiaries

AM Best has commented that the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa” for members of The Progressive Corporation (Progressive) (Mayfield Village, OH), along with the Long-Term ICR of “a” for Progressive, the parent holding company, and all Long-Term Issue Credit Ratings (Long-Term IR) on Progressive’s senior and preferred stock issuances remain unchanged following the company’s Feb. 16, 2021, announcement that it has entered into a definitive agreement to acquire Protective Insurance Corporation (Protective), with a total transaction value of approximately $338 million. The acquisition includes all outstanding Class A and Class B common shares of Protective and is expected to close prior to the end of the third quarter of 2021. The outlook of these Credit Ratings (ratings) is stable.

The acquisition, if consummated, will further expand Progressive’s commercial lines products by expanding its footprint to support larger fleets and bring expertise in workers’ compensation coverage for the transportation industry. Upon the completion of the transaction, Protective shareholders will receive $23.30 per share in cash from Progressive. Progressive will fund the purchase through liquid investments on hand. The acquisition is subject to customary closing conditions, including regulatory approvals. AM Best will continue to monitor the transaction through discussions with management and conduct further analysis as the transaction finalizes.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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