Demotech Comments on American Strategic and Progressive Deal
Columbus, Ohio, December 24, 2014: In a recently announced transaction, Progressive has agreed to purchase a 67% share of ARX, the parent of privately held American Strategic Insurance Company. The deal is valued at $875 million.
Demotech notes that it was the first insurer rating service to identify American Strategic Insurance Company and their management team as a financially stable insurer. According to Joseph L. Petrelli, “In 1997 John Auer and the team at American Strategic secured a Financial Stability Rating® of A, Exceptional. The company’s total writings in 1998 were less than $10 million, with surplus of about $6 million. Seventeen years later, insurers in the ARX family of companies have earned our highest Financial Stability Rating® of A″, A Double Prime.”
“Demotech was pleased to be their first rating service and give them the opportunity to compete that they so obviously deserved. Each of our quarterly reviews from 1997 to date has revealed growth in important measurable criteria. Congratulations to Progressive, ARX, John Auer and their teams. Two solid companies have entered a relationship that leverages their distinctive competencies.”
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 Progressive Group of Insurance Companies offers insurance for personal and commercial autos and trucks, motorcycles, boats, recreational vehicles, as well as home insurance through select carriers. It’s the fourth largest auto insurer in the country, the largest seller of motorcycle insurance and a leader in commercial auto insurance.
ARX Holding Corp., through its subsidiaries, offers property and liability coverage services. The company also offers underwriting services. ARX Holding Corp. was incorporated in 1997 and is based in St. Petersburg, Florida. Visit https://www.americanstrategic.com/ for more information.
About Demotech, Inc.
Demotech, Inc. is a financial analysis firm located in Columbus, Ohio. Since 1985, Demotech, Inc. has been serving the insurance industry by providing actuarial consulting as well as accurate and proven Financial Stability Ratings® (FSRs) for Property & Casualty insurance companies and Title underwriters. FSRs are a leading indicator of the financial stability of an insurer. Our rating process provides an objective baseline as well as insight as to the financial stability of an insurer. Demotech levels the playing field by offering FSRs to insurers of all sizes. Visit https://www.demotech.com for more information.