The insurance industry is rather mature, and growth prospects aren't particularly impressive over the long term, but that doesn't mean that all insurance companies have the same profile. A great growth company in the industry is The Progressive
Progressive: Superior Fundamentals Seem To Be Priced In
Summary
- Progressive Corp. has shown remarkable growth, with revenues increasing from $48 billion in 2021 to $58 billion in 2023 and expected to reach $75 billion in 2024.
- The company’s technological capabilities and market share gains in auto and home insurance have driven its impressive performance, outperforming industry growth rates.
- Despite industry challenges, Progressive maintained profitability with a combined ratio below 100%, and its ROE is projected to be around 33% in 2024.
- Progressive’s premium valuation reflects its superior fundamentals, but with expected ROE declines, investors should wait for potential pullbacks to buy its shares.
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