A.M. Best Upgrades Ratings of Parkway Insurance Company.

Removes Ratings from Under Review

OLDWICK, N.J. -- A.M. Best Co. has upgraded the financial strength rating (FSR) to A+ (Superior) from B++ (Good) and the issuer credit rating (ICR) to "aa" from "bbb+" of Parkway Insurance Company (Bridgewater, NJ). The ratings have been removed from under review with positive implications and assigned a stable outlook.

The rating upgrades reflect the December 1, 2006 purchase of Parkway Insurance Company by Drive Insurance Holdings, Inc., a wholly owned subsidiary of The Progressive Corporation (Mayfield Village, OH) [NYSE: PGR]. The upgrades also consider the December 19, 2006 merger of Parkway Insurance Company with Drive New Jersey Insurance Company, a Superior rated and reinsured affiliate of Progressive Casualty Insurance Company. Concurrent with the merger, Parkway Insurance Company was renamed Drive New Jersey Insurance Company and will write Progressive's new and renewal private passenger automobile agency business in New Jersey. The merged company will continue to be reinsured by Progressive Casualty Insurance Company via a 90% quota share contract.

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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 www.ambest.com.