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Press release from Business Wire

A.M. Best Assigns Debt Rating to The Progressive Corporation's Senior Debt Offering

Thursday, August 18, 2011

A.M. Best Assigns Debt Rating to The Progressive Corporation's Senior Debt Offering15:00 EDT Thursday, August 18, 2011 OLDWICK, N.J. (Business Wire) -- A.M. Best Co. has assigned a debt rating of “a” to the $500 million aggregate principal amount of 3.75% senior unsecured notes, due 2021 recently issued by TheProgressive Corporation (Progressive) (Mayfield Village, OH) [NYSE: PGR]. The assigned outlook is stable, and the notes were priced at 99.892% of par. All other existing ratings for Progressive and its subsidiaries are unchanged. The proceeds will be used for general corporate purposes. Based on the new debt offering, Progressive's debt-to-total capital ratio is approximately 28%. The company's financial leverage and coverage ratios are within A.M. Best's guidelines for its current rating level, and are expected to remain so over the near to mid-term. The principal methodology used in determining these ratings is Best's Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best's rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; “Equity Credit for Hybrid Securities”; and “A.M. Best Ratings & the Treatment of Debt.” Methodologies can be found at www.ambest.com/ratings/methodology. Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2011 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.A.M. Best Co.Frederick DeLeonSenior Financial Analyst908-439-2200, ext. 5715frederick.deleon@ambest.comorGary DavisAssistant Vice President908-439-2200, ext. 5665gary.davis@ambest.comorCarole LovellPublic Relations Associate908-439-2200, ext. 5445carole.lovell@ambest.comorJim PeavyAssistant Vice President, Public Relations908-439-2200, ext. 5644james.peavy@ambest.com