Loading
ST. PETERSBURG — Progressive Corp. is buying a controlling interest in St. Petersburg-based homeowners insurance firm American Strategic Insurance for $875 million in cash. The insurer agreed to acquire 67% of the shares of ARX Holding Corp., the parent company of American Strategic Insurance (ASI). Progressive has had a 5% stake in the company since 2012.
ASI will continue to operate as a separate company under its current management team.
“This is a great opportunity for ASI, as our intention has long been to become the Progressive of home insurance,” John Auer, CEO of ASI, says in a press release. “We've been working with Progressive for years and have achieved a great deal together. Now, this transaction will enhance our ability to design and distribute a product offering that will advance both companies and attract a market segment of bundled customers that remains underpenetrated by us both. It also creates a predictable and stable long-term outlook for ASI.”
The deal is expected to close by April 1. Progressive expects to purchase the remaining shares of the company over the next six years.
“Progressive is committed to becoming the insurance destination brand for consumers,” Progressive CEO Glenn Renwick said in a release. “As such, we need the reliable availability of many more products than we intend to manufacture. ASI provides a significant array of the most important products beyond auto.”
One of the top 20 largest homeowners carriers in the United States, ASI specializes in personal and commercial property insurance, personal umbrella insurance, and primary and excess flood insurance. It has roughly 450 employees in St. Petersburg and writes more than $1 billion in premiums.
Your free article limit has been reached this month.
Subscribe now for unlimited digital access to our award-winning business news.
Join thousands of executives who rely on us for insights spanning Tampa Bay to Naples.
