OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has placed under review with positive implications the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of Protective Insurance Company and its wholly owned subsidiaries, Sagamore Insurance Company and Protective Specialty Insurance Company, collectively referred to as Protective Insurance Corporation Group. AM Best also has placed under review with positive implications the Long-Term ICR of “bbb” of Protective Insurance Corporation [NASDAQ: PTVCA, PTVCB], the organization’s publicly traded ultimate parent. All companies are domiciled in Carmel, IN.
This rating action follows Protective Insurance Corporation’s announcement on Feb. 16, 2021 that the group has entered into a definitive agreement to be acquired by The Progressive Corporation for a total transaction value of approximately $338 million. This acquisition includes all outstanding Class A and Class B common shares of Protective is expected to close prior to the end of the third quarter of 2021. The acquisition is subject to customary closing conditions, including regulatory approvals and the approval of Protective’s Class A shareholders.
As part of this transaction, Protective will become part of a larger organization with a strong market reputation and expanded geographic footprint. AM Best will monitor this transaction closely and resolve the under review status after the close of the transaction.
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