A.M. Best Assigns Ratings to Progressive's New Jersey Companies.

OLDWICK, N.J. -- A.M. Best Co. has assigned the financial strength ratings (FSR) of A+ (Superior) and issuer credit ratings (ICR) of "aa" to Progressive Garden State Insurance Company, Progressive Freedom Insurance Company and Drive New Jersey Insurance Company. All companies are headquartered in Mayfield Village, OH. The companies' ultimate parent is The Progressive Corporation (NYSE:PGR). All ratings have a stable outlook. E[acute accent]The rating assignments for Progressive Garden State Insurance Company and Progressive Freedom Insurance Company reflect the protection provided by their 90% quota share reinsurance agreements with Progressive Halcyon Insurance Company, the lead company of Progressive Direct Pool. Further, the rating assignment for Drive New Jersey Insurance Company reflects the protection provided by its 90% quota share reinsurance agreement with Progressive Casualty Insurance Company, the lead company of Progressive Agency Pool. E[acute accent]The A+ ratings reflect Progressive's solid capitalization, strong operating performance and sustainable competitive advantages, which have enabled it to become a market leader in the private passenger automobile insurance sector. These positive rating factors are partially offset by Progressive's high underwriting leverage relative to industry composite norms.

E[acute accent]For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

E[acute accent]A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com.