Fitch gives A to Progressive notes

Fitch Ratings said it assigned an A(EXP) rating to Progressive Corp.'s $500 million issuance of senior notes maturing in 2027.

Fitch said the ratings are based on the company’s excellent operating performance, pricing and underwriting expertise, personal auto insurance franchise, conservative investment allocation and very strong risk-based capital position.

Progressive's financial leverage, as measured by total debt to total capital adjusted for the impact of FAS 115 unrealized gains on fixed income investments as of July 31, was 25.3%. Pro forma leverage as of July 31, including the additional debt, will increase to 28.7%, within Fitch's expectations, the agency said.

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