10 Best Health Insurance Stocks to Buy

2. The Progressive Corporation (NYSE:PGR)

Number of Hedge Fund Holders: 85

The Progressive Corporation (NYSE:PGR) is a leading American insurance company, offering automobile and health insurance solutions. By the end of 2022, Progressive had become the largest motor insurance carrier in the United States. The company was founded in 1937 by Jack Green and Joseph M. Lewis.

BMO Capital Markets has reaffirmed its positive outlook on The Progressive Corporation (NYSE:PGR), maintaining an Outperform rating with a price target of $235.00. The firm highlighted an unexpected increase in Progressive’s Personal Auto organic policy count growth in May, which contrasts with the typical seasonal slowdown as summer approaches. This growth has led BMO Capital Markets to raise its forward earnings per share estimates for The Progressive Corporation (NYSE:PGR), despite a miss on May EPS due to high catastrophe losses.

As of the end of the first quarter of 2024, 85 hedge funds tracked by Insider Monkey had stakes in The Progressive Corporation (NYSE:PGR). The biggest stakeholder of The Progressive Corporation (NYSE:PGR) during this period was Andreas Halvorsen’s Viking Global which owns a $627.2 million stake in the company.

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.”