Wednesday, December 29, 2010

Progressive (NYSE:PGR) Ratings Affirmed by A.M. Best

Saying Progressive Corporation (NYSE:PGR) has a sustainable competitive advantage, strong capitalization and a solid operating performance, A.M. Best Co. affirmed several ratings at the company.

A.M. Best Co. said they've affirmed the financial strength rating (FSR) of A+ (Superior) and issuer credit ratings (ICR) of “aa” of the Progressive Agency Pool, Progressive Direct Pool and Progressive Commercial Auto Group (collectively known as Progressive) and their respective members. A.M. Best also has affirmed the FSR of A (Excellent) and ICR of “a+” of subsidiary National Continental Insurance Company. Additionally, A.M. Best has affirmed the ICR of “a” and all debt ratings of the parent holding company, The Progressive Corporation. The outlook for all ratings is stable.

A.M. Best did note that Progressive was behind their peers in the area of underwriting leverage, which was higher than the average.

Progressive closed at $19.65, losing $0.12, or 0.61 percent.

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