Progressive: Superior Fundamentals Seem To Be Priced In

Labutes IR profile picture
Labutes IR
3.85K Followers
(14min)

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.

Photographing Car After A Traffic Accident

sefa ozel

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

This article was written by

Labutes IR profile picture
3.85K Followers
Labutes IR is a Fund Manager/Analyst specialized in the financial sector, with more than 18 years of experience in the financial markets. I have worked at several type of institutions in the industry, always at the buy side and related to portfolio management. Associated with the existing author The Outsider.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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