Top 10 Health Insurance Stocks To Buy

2. The Progressive Corporation (NYSE:PGR)

Number of Hedge Fund Holders: 100

The Progressive Corporation (NYSE:PGR) is a major U.S. insurer recognized for its consumer and business car and home insurance products. Additionally, Progressive Health by eHealth provides health insurance options for individuals and families.

On February 25, Morgan Stanley boosted its profit projections for The Progressive Corporation (NYSE:PGR), noting an improved underwriting environment and improving margins as new regulatory pressures relax. The firm retained its Overweight rating and raised its price target to $317 from $307. Morgan Stanley now anticipates Progressive to record earnings of $16.60 per share in 2025, up from $14.81 before, with a combined ratio of over 90%.

The Progressive Corporation (NYSE:PGR) reported a large 18% rise in net premiums issued for January 2025, up from $5.496 billion to $6.481 billion over the previous year. The company’s net income also increased 59% to $1.117 billion while its EPS jumped by 61%.

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.”