Progressive Cos. Affirmed, Paloverde Lowered

The “AApi” FSR on Progressive Paloverde Insurance Co. was lowered to “BBBpi” by S&P. Key rating factors include the company’s termination of a 90-percent quota-share reinsurance agreement with affiliate Progressive Casualty Insurance Co., as well as high leverage and weak liquidity. Headquartered in Ohio and licensed in Arizona and West Virginia, the company, which is wholly owned by The Progressive Corp., writes mainly private passenger auto.

In a separate rating action, the “AApi” FSR on another wholly owned company of The Progressive Corp., Progressive Casualty Insurance Co., was affirmed by S&P. The rating action also applies to the company’s affiliated pool members: Progressive Northern Ins. Co.; Progressive Northwestern Ins. Co.; Progressive Preferred Ins. Co.; Progressive Specialty Ins. Co.; Progressive Classic Ins. Co.; Progressive American Ins. Co.; Progressive Gulf Ins. Co.; Progressive Southeastern Ins. Co.; Progressive Bayside Ins. Co.; and Progressive Mountain Ins. Co.