Chicago, IL – 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.