05. The Progressive Corporation (NYSE:PGR)
Number of Hedge Fund Holders: 85
The Progressive Corporation (NYSE:PGR), a leading insurance provider, reported its financial results for May 2024, showing consistent growth in premiums and policies in force, along with a slight increase in its combined ratio compared to the previous year. For the month ending May 31, 2024, The Progressive Corporation (NYSE:PGR) reported net premiums written of $5.975 billion and net premiums earned of $5.857 billion. The company’s net income was $235.7 million, or $0.40 per share available to common shareholders. Additionally, The Progressive Corporation (NYSE:PGR) recorded a total pretax net realized gain on securities of $117.6 million. The insurer’s combined ratio, a crucial performance metric in the insurance industry, was 100.4 for the current year, slightly up from 99.0 in the same month last year. BMO Capital Markets reiterated its “Outperform” rating for The Progressive Corporation (NYSE:PGR), maintaining a $235.00 price target. The firm highlighted an unexpected acceleration in Progressive’s Personal Auto organic policy count growth in May, which typically slows down as summer approaches.
In the first quarter of 2024, the number of hedge funds with stakes in The Progressive Corporation (NYSE:PGR) increased to 85 from 79 in the previous quarter, according to Insider Monkey’s database of 920 hedge funds. The combined value of these stakes is approximately $4.99 billion. Andreas Halvorsen’s Viking Global emerged as the largest stakeholder among these hedge funds during this period.
Artisan Select Equity Fund stated the following regarding The Progressive Corporation (NYSE:PGR) in its first quarter 2024 investor letter:
“The Progressive Corporation (NYSE:PGR) shares rose 30% during the quarter. After a difficult start to 2023, the company quickly adapted and finished the year with impressive growth in premiums and underwriting profits. In Q4 2023, it managed to grow its customer base even as it raised rates and improved its underwriting ratios—a trifecta that isn’t often seen in the insurance industry. This performance has continued, which should set the stage for another year of good results in 2024. Perhaps most importantly, it has been able to navigate the environment far better than its peers, many of whom are still reporting sub-par underwriting performance. Progressive has consistently gained market share in the personal auto market over our ownership period and now commands close to 15% of the total market. Its shares are no longer a bargain, but we continue to hold them due to the high quality of this business and the advantaged nature of its low-cost insurance franchise.”
