Should You Consider Investing in Progressive Corp. (PGR)?

RiverPark Funds, an investment management firm, published its “RiverPark Wedgewood Fund” second quarter 2022 investor letter – a copy of which can be downloaded here. For the second quarter of 2022, the Fund declined by -17.4%. The S&P 500 Index declined by -16.1%. The Russell 1000 Growth Index declined by -20.9% while the Russell 1000 Value Index declined by -12.2%. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, RiverPark Wedgewood Fund mentioned The Progressive Corporation (NYSE:PGR) and explained its insights for the company. Founded in 1937, The Progressive Corporation (NYSE:PGR) is a Mayfield, Ohio-based insurance company with a $69.6 billion market capitalization. The Progressive Corporation (NYSE:PGR) delivered a 15.98% return since the beginning of the year, while its 12-month returns are up by 30.62%. The stock closed at $119.05 per share on September 29, 2022.

Here is what RiverPark Wedgewood Fund has to say about The Progressive Corporation (NYSE:PGR) in its Q2 2022 investor letter:

“Progressive Corp had a positive contribution to performance during the quarter. Net Premiums Written (NPW) grew +12% as the Company grew both policies in force and took the rate to offset higher loss cost trends that are being driven by inflation. For example, we estimate accident severity for personal auto is up +35% since the beginning of the pandemic.

However, this is partially offset by a 20% decline in frequency, due to people driving fewer miles. Progressive is making up for this net rise in cost by raising policy rates in the mid-teens percentage range. Progressive has been relatively early to take rate compared to industry peers, so the Company should be able to aggressively compete for share as competitors play catchup.”

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Our calculations show that The Progressive Corporation (NYSE:PGR) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. The Progressive Corporation (NYSE:PGR) was in 54 hedge fund portfolios at the end of the second quarter of 2022, compared to 52 funds in the previous quarter. The Progressive Corporation (NYSE:PGR) delivered a 4.76% return in the past 3 months.

In September 2022, we also shared another hedge fund’s views on The Progressive Corporation (NYSE:PGR) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

Disclosure: None. This article is originally published at Insider Monkey.