10 Best Low Risk Stocks To Buy in 2025

7. The Progressive Corporation (NYSE:PGR)

Number of Hedge Fund Holders: 100

Equity Beta: 0.39x

The Progressive Corporation (NYSE:PGR) is an insurance company specializing in auto, home, and commercial property coverage. It is one of the largest auto insurers in the US, offering policies for personal and commercial vehicles, motorcycles, boats, and RVs. PGR operates through direct-to-consumer sales, independent agents, and online platforms, leveraging data analytics and telematics for pricing and risk assessment. The company also provides homeowners insurance through affiliates and partners, and has a strategy focused on competitive pricing, digital innovation, customer acquisition, and expanding its market share in both personal and commercial insurance segments.

The Progressive Corporation (NYSE:PGR) delivered exceptional performance in 2024, with net premiums written growing approximately 21% YoY to $74.4 billion, representing nearly $13 billion in premium growth. The company achieved record policy growth, adding more than 5 million policies in 2024, which was more than twice the previous highest annual rate of policy growth in its history. PGR demonstrated strong profitability with a combined ratio of 88.8%, well below their target of 96% and approximately 6 points lower than 2023. In claims management, PGR maintains a competitive advantage through efficient operations, with the combination of loss costs and loss adjustment expenses typically representing between 70% and 75% of total company expenditures.

Looking ahead, The Progressive Corporation (NYSE:PGR) is actively monitoring potential impacts from new tariffs and has developed models to assess their implications on loss costs. The company is well-positioned to handle these challenges, maintaining margins below their 96% target combined ratio, and continues to invest in technology and efficiency improvements, particularly in claims processing, where they’ve achieved significant gains through innovations like photo estimating and machine vision technology. With an equity beta of 0.39x, PGR is one of the best low risk stocks to buy in 2025.