Flexpoint Ford has agreed to sell its minority stake in American Strategic Insurance Corp. to The Progressive Corp. No financial terms were disclosed. As a result of the transaction, Progressive will have a controlling stake in ASI. Headquartered in St. Petersburg, Florida, ASI provides insurance for homeowners. The deal is expected to be completed in the second quarter of 2015.
CHICAGO, Dec. 17, 2014 /PRNewswire/ — Flexpoint Ford, LLC (Flexpoint), a private equity firm focused on the financial services and healthcare sectors, today announced that it has agreed to sell its minority stake in ARX Holding Corp., the parent company of American Strategic Insurance Corp. (ASI) to The Progressive Corporation (NYSE: PGR) as part of a broader transaction in which Progressive will acquire a controlling interest in ASI.
ASI is one of the top 20 homeowners carriers in America, specializing in personal and commercial property insurance, personal umbrella insurance, and primary and excess flood insurance. The group, which is rated A (Excellent) by A.M. Best, is headquartered in St. Petersburg and offers coverage in 25 states plus the District of Columbia. The company currently writes more than $1 billion of premium and maintains over $550 million in surplus.
“Since 2006, Flexpoint has been a great partner for ASI and their insights and advice have been integral in the growth of company,” said John Auer, CEO of ASI. “This is a great opportunity for ASI, as our intention has long been to become the Progressive of home insurance. We’ve been working with Progressive for years, but this transaction will advance both companies and attract a market segment of bundled customers that remains underpenetrated by us both.”
Don Edwards, Chief Executive Officer of Flexpoint, said, “ASI’s unparalleled expertise in the property insurance market has allowed the company to achieve tremendous success. The management team and company have exceeded our high expectations, and have delivered an excellent return for our investors. We are confident that ASI is well positioned for the future, and with Progressive’s continued support the company will further strengthen its market position.”
The transaction is expected to close in the second quarter of 2015, subject to the receipt of insurance regulatory approvals and satisfaction of other closing conditions.
About Flexpoint Ford
Flexpoint Ford, LLC is a private equity firm dedicated to the financial services and healthcare sectors. Flexpoint Ford seeks to build relationships with executives and companies who look for Flexpoint Ford to be a value-added partner. Flexpoint Ford currently manages approximately $1 billion in committed capital on behalf of its limited partners. For more information about Flexpoint Ford, please visit www.flexpointford.com.
About American Strategic Insurance
ASI, one of the top 20 largest homeowners carriers in the United States, specializes in personal and commercial property insurance, personal umbrella insurance, and primary and excess flood insurance. The group, which is rated A (Excellent) by A.M. Best, is headquartered in St. Petersburg and offers career opportunities across the nation.
ASI offers coverage in 26 states plus the District of Columbia and plans to add up to ten states in 2015. The company currently writes more than $1 billion of premium and maintains over $550 million in surplus.
ASI has been named one of Florida’s Best Companies To Work For by Florida Trend magazine and holds the No. 1 spot in the Tampa Bay Times’ Top Workplaces list. For more information about ASI and its career opportunities, visit www.americanstrategic.com.
The Progressive Group of Insurance Companies makes it easy to understand, buy and use auto insurance. Progressive offers choices so consumers can reach it whenever, wherever and however it’s most convenient-online at progressive.com, by phone at 1-800-PROGRESSIVE, on a mobile device or in-person with a local agent.
Progressive also offers insurance for personal and commercial autos and trucks, motorcycles, boats, recreational vehicles, as well as home insurance through select carriers. It’s the fourth largest auto insurer in the country, the largest seller of motorcycle insurance and a leader in commercial auto insurance. Progressive also offers car insurance online in Australia at http://www.progressiveonline.com.au.