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Tuesday, December 16, 2014

Progressive to take controlling stake in ARX Holding for $875 mln, (NYSE: PGR)

Progressive Corp, a provider of auto insurance products, said it would acquire a controlling stake in property insurer ARX Holding Corp for $875 million in cash. Progressive Corp said it would increase its share in the parent of American Strategic Insurance to 67 percent from 5 percent after it buys shares from non-management shareholders.American Strategic Insurance, which provides personal and commercial property insurance, will continue as a separate company.Progressive Corp said it expected to purchase the remaining shares of ARX over the next six years.

The Progressive Corporation is an insurance holding company. Shares of PGR remained unchanged at $26.24. In the past year, the shares have traded as low as $22.53 and as high as $27.52. On average, 3109510 shares of PGR exchange hands on a given day and today's volume is recorded at 0.