Moody’s rates Progressive notes A2

Moody's Investors Service said it assigned an A2 rating to $500 million of senior unsecured notes due Jan. 15, 2027 being issued by the Progressive Corp. (senior debt A2, stable).

The company expects to use net proceeds for general corporate purposes.

The outlook is stable.

Moody’s said the A2 senior debt rating reflects the group's strong presence in the U.S. auto insurance market, superior underwriting and expense management, balanced distribution channels and sound balance sheet.

The company exhibits good risk-adjusted capitalization, with a high-quality, liquid investment portfolio and short-tail, granular insurance liabilities.

Progressive keeps ample liquidity within its insurance operations, and also holds liquid investments through a non-insurance investment subsidiary, Progressive Investment Co., Inc., which gives the parent company extra flexibility to manage its cash flows, the agency said.

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