A.M. Best Co. has assigned the financial strength ratings of A+ (Superior) and issuer credit ratings of “aa” to Progressive Garden State Insurance Company, Progressive Freedom Insurance Company and Drive New Jersey Insurance Company. All companies are headquartered in Mayfield Village, Oh. The companies’ ultimate parent is The Progressive Corporation. All ratings have a stable outlook.
Best said that the rating assignments for Progressive Garden State Insurance Company and Progressive Freedom Insurance Company reflect the protection provided by their 90 percent quota share reinsurance agreements with Progressive Halcyon Insurance Company, the lead company of Progressive Direct Pool. Further, the rating assignment for Drive New Jersey Insurance Company reflects the protection provided by its 90 percent quota share reinsurance agreement with Progressive Casualty Insurance Company, the lead company of Progressive Agency Pool.
The A+ ratings reflect Progressive’s solid capitalization, strong operating performance and sustainable competitive advantages, which have enabled it to become a market leader in the private passenger automobile insurance sector, according to the rating organization. These positive rating factors are partially offset by Progressive’s high underwriting leverage relative to industry composite norms.
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