Progressive to sell Australian insurance business to Hollard
American auto insurer Progressive Direct Insurance has agreed to divest its Australian insurance operations to global insurer Hollard Insurance Company for an undisclosed price.
The sell is expected to enable Progressive Direct to focus on its operations in the US and become a leading provider of auto and other insurance in the country.
As part of the deal, a new company, PD Insurance Agency (PDIA) has been formed which is partly owned by Hollard.
PDIA and Hollard will be entitled to specific rights to use the Progressive brand related to car insurance in Australia for two and a half years as per the terms of the agreements.
Progressive chief financial officer, John Sauerland said: "This transaction allows Progressive to focus on our Destination Era strategy of growing our US business to become the number one choice and destination for auto and other insurance.
“We were pleased to find a suitable insurance company to continue providing quality service to our existing policy holders and to continue to invest in growing the business."
Progressive had launched multi-car policy product as well an online, self-service proposition among other offerings to the local car insurance market during its operations in Australia.
Hollard CEO and executive director Richard Enthoven: "Hollard's business philosophy is founded on investing in and partnering with brands, brand partners and underwriting agencies for the long-term.
“In just seven years, Progressive has grown a successful online car insurance business and we look forward to working with Simon and PDIA to grow the business further."
The sale is expected to be closed in the fourth quarter after the successful final negotiation of documents between the parties along with regulatory and court approvals.
Image: Progressive will sell its Australia insurance business to Hollard. Photo: courtesy of adamr/ FreeDigitalPhotos.net.