FEBRUARY 16, 2021 06:03 PM (EST)
AM Best Places Credit Ratings of Protective Insurance Corporation and Subs Under Review Following Acquisition Announcement
|Jieqiu Fan |
Senior Financial Analyst
+1 908 439 2200, ext. 5372
+1 908 439 2200, ext. 5829
Manager, Public Relations
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FOR IMMEDIATE RELEASE
OLDWICK - FEBRUARY 16, 2021 06:03 PM (EST)
AM Best has placed under review with positive implications the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of Protective Insurance Company and its wholly owned subsidiaries, Sagamore Insurance Company and Protective Specialty Insurance Company, collectively referred to as Protective Insurance Corporation Group. AM Best also has placed under review with positive implications the Long-Term ICR of “bbb” of Protective Insurance Corporation [NASDAQ: PTVCA, PTVCB], the organization’s publicly traded ultimate parent. All companies are domiciled in Carmel, IN.
This rating action follows Protective Insurance Corporation’s announcement on Feb. 16, 2021 that the group has entered into a definitive agreement to be acquired by The Progressive Corporation for a total transaction value of approximately $338 million. This acquisition includes all outstanding Class A and Class B common shares of Protective is expected to close prior to the end of the third quarter of 2021. The acquisition is subject to customary closing conditions, including regulatory approvals and the approval of Protective’s Class A shareholders.
As part of this transaction, Protective will become part of a larger organization with a strong market reputation and expanded geographic footprint. AM Best will monitor this transaction closely and resolve the under review status after the close of the transaction.
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.