10 Most Undervalued Insurance Stocks to Buy Now

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1. The Progressive Corporation (NYSE:PGR)

Forward P/E: 19.57

No. of Hedge Fund Holders: 100

The Progressive Corporation (NYSE:PGR) is the second-largest auto insurer in the U.S., providing a range of specialty property-casualty insurance products. PGR is recognized for its consumer and business car and home insurance products. In addition to that, Progressive Health by eHealth provides health insurance options for individuals and families.

The Progressive Corporation (NYSE:PGR) delivered strong results in 2024, with net premiums written growing nearly 21% year-over-year to $74.4 billion. This increase in net premiums written represents approximately $13 billion in premium growth. PGR achieved record policy growth, adding over 5 million policies in 2024. This is more than twice the previous highest annual rate of policy growth in the firm’s history. The company reported a combined ratio of 88.8% in 2024, indicating strong profitability.

The London Company Large Cap Strategy stated the following regarding The Progressive Corporation (NYSE:PGR) in its Q4 2024 investor letter:

“The Progressive Corporation (NYSE:PGR) – PGR was a weaker performer in 4Q after a strong start to the year. Policy growth continued to be strong, but expectations were high and growth decelerated slightly throughout the quarter. That said, retention has remained high, and share, gains continue. PGR’S best-in-class market segmentation gives preferred drivers lower rates, leaving competitors with worse drivers and more erratic pricing strategies. We remain attracted to its best-in-class operations, conservative underwriting, and shareholder-friendly capital allocation philosophy.”

While we acknowledge the potential of PGR to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PGR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Invest In According to Billionaires.

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