AM Best Assigns Issue Credit Ratings to The Progressive Corporation’s Senior Unsecured Notes

Rhea-AI Summary

AM Best has assigned a Long-Term Issue Credit Rating of “a” (Excellent) to Progressive's newly issued $500 million in senior unsecured notes, with different maturities in 2027, 2032, and 2052. The credit rating indicates a stable outlook based on Progressive’s financial leverage and debt servicing abilities. Proceeds from these issuances will be used for general corporate purposes. Existing ratings for Progressive remain unchanged, reflecting confidence in its principal insurance units and overall financial profile.

Positive

• Long-Term Issue Credit Rating of 'a' (Excellent) assigned to new senior unsecured notes.
• Stable outlook based on Progressive's financial leverage and debt servicing.
• Proceeds from issuances to support general corporate purposes.

Negative

• None.

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has assigned Long-Term Issue Credit Ratings (Long-Term IR) of “a” (Excellent) to the recently announced $500 million of 2.50% senior unsecured notes, due 2027; $500 million of 3.00% senior unsecured notes, due 2032; and $500 million of 3.70% senior unsecured notes, due 2052, issued by The Progressive Corporation (Progressive) (Mayfield Village, OH) [NYSE: PGR]. The outlook assigned to these Credit Ratings (ratings) is stable.

The Long-Term IR assignments consider the rating profile of Progressive’s principal insurance subsidiary units, as well as the parent company’s financial leverage, coverage and overall debt servicing profiles. Following this issuance, AM Best expects that financial leverage and coverage metrics for Progressive to remain within guidelines for the assigned ratings. Progressive intends to use the proceeds of these issuances for general corporate purposes.

Progressive’s Long-Term Issuer Credit Rating of “a” (Excellent) and outlook of stable, along with the ratings and outlooks on its other debt issuances and operating subsidiaries, remain unchanged.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220304005474/en/

Christopher Draghi

Associate Director

+1 908 439 2200, ext. 5043

chris.draghi@ambest.com



Richard Attanasio

Senior Director

+1 908 439 2200, ext. 5432

richard.attanasio@ambest.com



Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com



Jim Peavy

Director, Communications

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

Source: AM Best

FAQ

What is the Long-Term Issue Credit Rating assigned to Progressive by AM Best?

AM Best assigned a Long-Term Issue Credit Rating of 'a' (Excellent) to Progressive's senior unsecured notes.

How much did Progressive raise through the senior unsecured notes issuance?

Progressive raised $1.5 billion through the issuance of senior unsecured notes.

What is the outlook for Progressive's credit rating?

The outlook for Progressive's credit rating is stable.

What corporate purposes will the proceeds from Progressive's notes be used for?

The proceeds from Progressive's notes will be used for general corporate purposes.

What are the maturities of Progressive's recently issued senior unsecured notes?

The maturities of Progressive's senior unsecured notes are in 2027, 2032, and 2052.