Progressive Corp

PGR: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$644.00	Xjnywg	Lycvgrvyj

Progressive Sacrifices Growth to Maintain Profitability in Second Quarter

Brett Horn

Jul 15, 2022

Progressive continues to hold up relatively well in terms of underwriting profitability as the personal auto industry works through a difficult period, but results also continue to show that the narrow-moat company is not completely immune to cyclical impacts. The trailing 12-month ROE of 5% is well below the company’s historical level, due to lower-than-normal underwriting profits and investment losses. We will maintain our $86 fair value estimate.

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