Progressive snaps up commercial auto insurer Protective for $338m
US commercial auto insurer Progressive has signed a $338 million all-cash deal to acquire Indiana-based Protective Insurance Corporation as it seeks to expand its product capabilities and further grow its market presence.
The definitive agreement will see Progressive purchase all of the outstanding Class A and Class B common shares of Protective. It will fund the purchase through liquid investments on hand.
The deal has been unanimously approved by its board of directors, and is expected to close prior to the end of the third quarter of 2021.
Progressive plans to maintain Protective’s offices in Carmel, Indiana and retain its employees.
Protective provides liabilities and workers’ compensation coverage for trucking and public transportation fleets, along with trucking industry independent contractors.
“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, Progressive's commercial lines president.
She added: “Our Commercial Lines business provides one of our greatest opportunities to expand our addressable market and grow. This move allows us to add products that will help us support larger fleets and brings expertise in workers’ compensation coverage for the transportation industry, which are new areas of business for us and can help us to meet the needs of our commercial customers. We look forward to working with the employees of Protective and appreciate the knowledge they bring.”
Jeremy Johnson, Protective’s chief executive officer, said: “We are excited to announce this agreement with Progressive, which is a milestone in Protective’s history. With Progressive’s scale and resources, we expect to deliver greater value to our policyholders, while continuing to provide the exceptional service they have come to expect from us. Progressive shares our commitment to excellence in serving customers, and we are confident they are the ideal owner for Protective. Together, we will be able to deliver innovative offerings and superior customer service to even more customers across the country.”
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