Progressive: July Results Show The Growth Mix Is Changing

The CrickAnt 1.1K Followers Follow Summary Progressive remains a buy at about 12x earnings, supported by strong underwriting, a low expense ratio, and continued mid-single-digit premium growth. Policies in force are growing faster than written premiums, suggesting customer growth is replacing some of the pricing tailwind seen earlier in the cycle. Investment income rose 12.3% to $2.23 billion as the portfolio approached $98 billion, adding another earnings engine to underwriting profits. Agency growth is increasingly policy-driven, while Direct shows more balanced premium and policy growth, with both channels remaining highly profitable. JHVEPhoto/iStock Editorial via Getty Images Progressive's ( PGR ) July results do not contain a dramatic change in the underwriting story. If anything, they confirm what we already saw during the first half of the year. Progressive continues to This article was written by The CrickAnt 1.1K Followers Follow The CrickAnt is an insurance and reinsurance analyst, focused on underwriting discipline, capital allocation and long-term value creation across the insurance sector.Drawing on professional experience in the industry, he primarily covers insurers, reinsurers and specialty companies through a fundamentally driven and risk-aware approach.He is also a contributing author to the Cash Flow Club investing group alongside Darren McCammon and Jonathan Weber. Core features of the Cash Flow Club include: access to the leader’s personal income portfolio targeting 7%+ yield, community chat, the “Best Opportunities” List, performance transparency and coverage of energy midstream, commercial mREITs, BDCs, and shipping sectors. Learn more Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.