Parkway Insurance Upgraded After Acquisition by Progressive

A.M. Best Co. has upgraded the financial strength rating (FSR) to A+ (Superior) from B++ (Good) and the issuer credit rating (ICR) to “aa” from “bbb+” of Parkway Insurance Co. of Bridgewater, N.J. The ratings have been removed from under review with positive implications and assigned a stable outlook.

The ratings firm said the upgrades reflect the Dec. 1, 2006 purchase of Parkway Insurance Co. by Drive Insurance Holdings, Inc., a wholly owned subsidiary of The Progressive Corp. of Mayfield Village, Ohio.

The upgrades also consider the Dec. 19, 2006 merger of Parkway Insurance Co. with Drive New Jersey Insurance Co., a Superior rated and reinsured affiliate of Progressive Casualty Insurance Co.

Concurrent with the merger, Parkway Insurance Co. was renamed Drive New Jersey Insurance Co. and will write Progressive’s new and renewal private passenger automobile agency business in New Jersey.

The merged company will continue to be reinsured by Progressive Casualty Insurance Co. via a 90 percent quota share contract.

Source: A.M. Best

Topics Mergers & Acquisitions New Jersey