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Research Alert: CFRA Keeps Buy Opinion On Shares Of The Progressive Corporation
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Research Alert: CFRA Keeps Buy Opinion On Shares Of The Progressive Corporation
Mar 19, 2025 8:22 AM

11:10 AM EDT, 03/19/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Progressive reported strong February 2025 metrics, with net written premiums rising 17% and policies in force increasing 18%, both well above industry averages. The company's combined ratio improved to 82.6% from 86.8% Y/Y, while positive calendar year ($47M) and prior year ($121M) loss development trends reinforced strong underwriting performance. Year-to-date operating revenue grew 21% on earned premium growth of 20% and net investment income growth of 31%, tracking ahead of our 2025 forecast range of 15%-22%. We believe PGR's shares, trading at 20x our 2025 EPS estimate of $13.60 and 18x our 2026 estimate of $15.15, remain undervalued versus their 3-year average forward multiple of 21x. In our view, several catalysts support further upside, including above-peer growth, superior profitability metrics, and limited exposure to California wildfires, while the company's business model remains largely defensive against economic cycles.

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