St. Pete insurer sells majority share for $875M

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.”