Car Insurance Rates Skyrocketing: 10 Best Stocks to Buy

2. The Progressive Corporation (NYSE:PGR)

Number of Hedge Fund Investors  in Q1 2024: 85

The Progressive Corporation (NYSE:PGR) offers commercial and personal auto insurance products, along with others such as homeowners insurance. Like other firms of its kind, this means that the firm benefits from being able to offer auto insurance products to its homeowner customers. Over the past couple of years, The Progressive Corporation (NYSE:PGR) has focused quite a bit on this strategy, after it rebranded American Strategic Insurance (ASI) to Progressive Home in 2017 after acquiring ASI in 2015. Through the rebranding, The Progressive Corporation (NYSE:PGR) aims to expand its auto coverage to its homeowner base. The firm has also been increasing its visibility by allowing auto insurance customers to buy products from other carriers by visiting its website.

Artisan Partners mentioned The Progressive Corporation (NYSE:PGR) in its Q1 2024 investor letter. Here is what the firm said:

“Progressive Insurance 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.”