Progressive: A Priced-For-Perfection Industry Outperformer

The CrickAnt
928 Followers
(14min)

Summary

  • Progressive Corporation excels in the U.S. auto insurance market with superior underwriting performance, driven by a low expense ratio and consistent profitability.
  • The company has achieved remarkable growth, with a 1,000% gain over the past decade and a 50% total return in 2024.
  • Despite its premium valuation, Progressive remains a compelling long-term investment due to its operational efficiency, financial strength, and high growth rates.
  • Risks include underwriting and market risks, but Progressive's conservative investment approach and steady performance mitigate these concerns.

Immeuble de bureaux progressif à West Chester, OH, États-Unis

JHVEPhoto/iStock Editorial via Getty Images

Executive Summary

The Progressive Corporation (NYSE:PGR) is a leading U.S. auto insurer with an impressive track record of consistent growth and wealth creation. With over 20 million policies in force and a diversified portfolio that

This article was written by

928 Followers
The CrickAnt is an actuary for an insurance company utilizing his work experience to do analysis on insurance and reinsurance companies. He is a contributing author to the investing group Cash Flow Club where along with Darren McCammon and Jonathan Weber, they focus on company cash flows and their access to capital. Core features of the Cash Flow Club include: access to the leader’s personal income portfolio targeting 6%+ yield, community chat, the “Best Opportunities” List, performance transparency and coverage of energy midstream, commercial mREITs, BDCs, and shipping sectors. Learn more.

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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