The acquisition allows Progressive to add products for larger fleets and brings expertise in workers comp coverage for the transportation industry, which are new areas of business for Progressive.
In a deal announced this week, Progressive Corp. (PGR), the largest provider of commercial auto insurance in the U.S., has agreed to acquire Indiana-based trucking industry insurer Protective Insurance Corp. in a $338 million cash deal. The move will increase Progressive's stake in the commercial lines insurance market.
Protective Insurance Corp. is a publicly traded holding company for several property-casualty insurance subsidiaries, including Protective Insurance Co., Sagamore Insurance Co. and Protective Specialty Insurance Co. The subsidiaries write liability and workers compensation coverage for trucking and public transportation fleets of all sizes, along with trucking industry independent contractors.
Discussing the sale, Jeremy Johnson, Protective's CEO, stated the group had been adversely impacted by the pandemic resulting in net premiums written of $320 million and a net loss of $7.4 million at the end of the third quarter of 2020. For the full year 2019, Protective reported premium growth of only 1.8% compared with 26% in 2018.
The move allows Progressive to add products for larger fleets and brings expertise in workers comp coverage for the transportation industry, which are new areas of business for Progressive.
“As a leader in commercial auto insurance, we're excited to expand our capabilities with the expertise Protective offers in larger fleet and affinity programs and by providing additional product lines for us to add to our portfolio," said Karen Bailo, commercial lines president for Progressive.
Progressive said it plans to maintain Protective's offices in Carmel, Indiana, as well as retain Protective's employees. The acquisition is expected to close by the end of the third quarter of 2021.
In April 2020, Progressive donated $2 Million to the Big "I" to establish the Trusted Choice® COVID-19 Relief Fund.
Olivia Overman is IA content editor.