We recently published an article titled Why These 15 Insurance Stocks Are Skyrocketing So Far In 2025. In this article, we are going to take a look at where The Progressive Corporation (NYSE:PGR) stands against the other insurance stocks.
Insurance stocks are back in the spotlight after Berkshire Hathaway’s annual shareholder report for 2024. These stocks are not only benefiting from stable cash flows, but they are also benefiting from higher investment yields and premium growth as inflation trends have benefited insurers.
Moreover, AI and tech innovations are starting to spill over into many other industries, which include insurance. It is also benefiting from a demographic tailwind as the growing “silver segment” requires more life and health insurance.
As such, it is worth looking into some of the top performers in this industry. There are good reasons behind each of the stocks’ uptrends.
Insurance house, car and family health live concept. The insurance agent presents the toys that symbolize the coverage.
Methodology
For this article, I screened the top-performing defense stocks year-to-date. Stocks that I have covered recently will be excluded from this list.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A team of accountants in a boardroom, discussing strategic moves of an insurance company.
The Progressive Corporation (NYSE:PGR)
Number of Hedge Fund Holders In Q4 2024: 100
The Progressive Corporation (NYSE:PGR) is the second-largest auto insurer in the United States that provides various types of specialty property-casualty insurance products.
The Progressive Corporation (NYSE:PGR) is up significantly so far in 2025 as it reported solid January 2025 financial results. The company reported net income of $1.117 billion, up 59% compared to January 2024. Net premiums written grew by 18% to $5.56 billion and net premiums earned 19% to $6.04 billion. As such, the combined ratio improved to 84.1 from 87.3.
Price targets have been raised after its financial results and institutional investors have shown a lot of interest in the stock. The insurance industry has been benefiting from favorable conditions such as rising premiums and better loss ratios due to improved risk management practices, so the broader market is also cooperating.
The consensus price target of $276.12 implies 3.81% upside.
The Progressive Corporation (NYSE:PGR) is up 13.23% year-to-date.
Overall PGR ranks 8th on our list of the insurance stocks that are skyrocketing so far in 2025. While we acknowledge the potential of PGR as an investment, our conviction lies in the belief that some 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.
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Disclosure: None. This article is originally published at Insider Monkey.
