PGR - Progressive: Innovation Prioritization And Continued Steady Growth Make It A Buy
2024-06-29 07:24:09 ET
Summary
- The insurance industry is largely insulated from economic downturns and inflation due to their price flexibility, steady demand, and supportive subsidies.
- Progressive’s profitability has been consistently higher than the industry due to their prioritization of innovation and growth.
- Severe weather conditions in the past few years have resulted in large catastrophe losses for Progressive. In response, they are steadily renegotiating reinsurance contracts, with recoveries rising since.
- A combination of excellent leadership, forward-thinking strategies, successful marketing campaigns, and the above reasons are why we deem Progressive a strong investment opportunity.
Co-Authored by Matthew Shen