The Hollard Insurance Company Pty Ltd has announced that they have entered into definitive agreements to acquire Progressive Direct Insurance Company’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.
Hollard CEO and Executive Director, Richard Enthoven said: “Progressive and Hollard have a history of embracing innovation and entrepreneurship and I am excited that Progressive’s Australian insurance portfolio will be joining the Hollard family. 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.”
Progressive is the fourth largest auto insurer in the United States; a leading seller of motorcycle and commercial auto insurance and through ASI, one of the top 20 homeowners carriers.
Progressive Chief Financial Officer, John Sauerland said: “This transaction allows Progressive to focus on our Destination Era strategy of growing our U.S. 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.”
“Hollard is the perfect fit for our business,” said Lindsay. “We’ll benefit from a shared vision and local scale advantages to reinforce our core value proposition for our customers with quality, online and materially lower-cost car insurance.”
During its time in Australia, Progressive introduced a number of firsts to the local car insurance market such as a multi-car policy offering and an online, self-service proposition.
The terms of the agreement allow Hollard and PDIA certain rights to use the Progressive brand in connection with car insurance in Australia for a period of two and a half years.