By Colin Kellaher

Progressive Corp. on Tuesday said it agreed to buy fellow insurer Protective Insurance Corp. for $23.30 a share in cash in a deal valued at about $338 million.

The transaction represents a roughly 55% premium to Friday's closing price of $15.01 for class B shares of Carmel, Ind.-based Protective.

Progressive, a Mayfield Village, Ohio, insurance holding company, said the acquisition will expand its commercial capabilities in larger fleet and affinity programs.

Progressive said it expects to complete the acquisition prior to the end of the third quarter.

Protective class B shares surged 48% in premarket trading Tuesday.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

02-16-21 0758ET