Progressive Direct Insurance To Sell Australian Operations To Hollard Insurance

(RTTNews) - Progressive Direct Insurance Company, a subsidiary of The Progressive Corp. (PGR), and The Hollard Insurance Company Pty Ltd announced they have entered into definitive agreements in which Hollard will acquire Progressive's portfolio of insurance policies in Australia.

The parties expect this transfer, subject to final negotiation of documents between the parties and regulatory and court approvals, will be effective in the fourth quarter of 2017.

The agreements also provide for PD Insurance Agency Pty Ltd (PDIA) ­— a new company created and partly owned by Hollard; the current manager of the Progressive Australia business, Simon Lindsay; and others — to be the authorized agent servicing Progressive's Australian policies until the transfer to Hollard.

Involvement of Mr. Lindsay with PDIA will provide continuity in Progressive's business during the transition to Hollard and beyond. The parties expect the agency appointment will be effective from 31 March 2017. The agency appointment is subject to satisfaction of conditions.