Homeowner’s 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) is another mega insurance provider, and also one that has successfully managed the headwinds the industry has been facing. Like other insurers, it was forced to raise its premiums in 2023, but unlike others, The Progressive Corporation (NYSE:PGR) chose to bite the bullet and reduce its costs at the same. This paid off when the claims dropped this year, as the sticky higher premiums coupled with lower costs boosted The Progressive Corporation (NYSE:PGR)’s margins. In fact, despite the lower market spending, The Progressive Corporation (NYSE:PGR)’s Q1 policy in force grew by 7.1% to $30.8 billion. The effectiveness of its management is also reflected in the share price, as PGR’s shares are among the top year to date performers in our list. They are up by 33% year to date. The Progressive Corporation (NYSE:PGR)’s premiums jumped by a strong 19% annually during Q2 and its combined ratio sat at 91.9%, which not only indicated profitability but was also higher than the previous reading of 100.4%.

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.”