Fitch: Progressive unaffected

Fitch Ratings said it has reviewed Progressive Corp.'s exposure to the common and preferred equity of Fannie Mae and Freddie Mac, following the U.S. government's decision to assume control of the companies' operations.

Progressive has AA- issuer default rating, A+ senior debt ratings and A junior subordinate debenture ratings.

The agency said it anticipates the entire exposure of these investments to be written off in the near future.

Ratings are based on excellent operating performance, pricing and underwriting expertise, personal auto insurance franchise, modest catastrophe risk and strong capital position, the agency said.

Ratings also reflect Progressive's declining growth rate, limited product diversification and modest reserve position, Fitch noted.

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