American giant Progressive has announced that they have agreed a deal to offload their portfolio to Hollard.
Progressive Direct Insurance Company, the Australian subsidiary of The Progressive Corporation, announced that they had entered into a definitive agreement with Hollard with the transfer expected to be completed by the fourth quarter of 2017.
The deal will see the launch of PD Insurance Agency (PDIA), a new company part-owned by Hollard, in addition to the current manager of Progressive Australia, Simon Lindsay, and others who will be the authorised agent servicing policies until they are transferred to Hollard.
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The agreement will allow Hollard and PDIA certain rights to use the Progressive brand in the car insurance market for two and a half years.
Lindsay described Hollard as “the perfect fit” for the Progressive business as the US giant will be able to focus on operations in its home country.
“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,” Lindsay continued.
Richard Enthoven, CEO and executive director of Hollard, said that the business will look to continue the growth of the Progressive brand in the crowded car insurance market.
“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,” Enthoven said.
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