Progressive Combines Agency, Direct Personal Lines Management

September 12, 2007

The Progressive Corp. in Mayfield, Ohio is consolidating management of its two distribution channels for personal lines.

Since 2000, Progressive’s personal lines segment has been organized into two businesses—the agency business and the direct business.The company said it will continue to price products based on how they are distributed to reflect the channel cost structure, but it is combining the operations of the two businesses into a single personal lines organization, consolidating the product research and development and product management functions.

The new personal lines organization will be led by John Sauerland, currently president of the direct business group.

John Barbagallo, currently the agency group president, will become commercial lines group president, assuming responsibility for the commercial auto business and professional liability business. He will continue to manage the company’s agent relationships and field sales organizations.

Earlier this year, Brian Silva, currently the commercial auto group president, advised CEO and President Glenn Renwick of his intention to retire in mid-2008. After helping with the transition, Silva will shift his focus to several of the company’s key projects until his retirement date.

Source: The Progressive Group of Insurance Companies

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