The Progressive Corporation (PGR) Reported Robust Results in Q1

Madison Investments, an investment advisor, released its “Madison Sustainable Equity Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here.  In the first quarter, the S&P 500 had a total return of -4.3%, with a significant -5.6% drop in March. This decline was mainly due to the impact of tariffs, which hurt business and consumer confidence. Expectations for strong economic growth and deregulation have decreased as the new administration’s trade priorities have become clearer. The strategy returned -3.32% (Gross) in the quarter compared to -4.27% for the index. Both sector allocation and security selection were positive during the quarter. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its first-quarter 2025 investor letter, Madison Sustainable Equity Strategy highlighted stocks such as The Progressive Corporation (NYSE:PGR). The Progressive Corporation (NYSE:PGR) is a US-based insurance company. The one-month return of The Progressive Corporation (NYSE:PGR) was -4.56%, and its shares gained 31.15% of their value over the last 52 weeks. On June 10, 2025, The Progressive Corporation (NYSE:PGR) stock closed at $265.49 per share with a market capitalization of $155.637 billion.

Madison Sustainable Equity Strategy stated the following regarding The Progressive Corporation (NYSE:PGR) in its Q1 2025 investor letter:

“The Progressive Corporation (NYSE:PGR) continues to deliver industry-leading policy growth with better-than-expected underwriting margins. Total revenue growth of 22% in the month of December 2024 reflects ongoing market share gains for the company. Overall, 2024 was a solid year for Progressive with net premium revenue growth of 21% and strong profitability with a combined ratio of 88.8%. Progressive is gaining share versus its competitors with industry leading segmentation, claims accuracy, and competitive pricing. The company’s accurate claims handling is key to its competitive pricing. Balancing efficient and accurate claim outcomes with strong customer satisfaction have been the drivers of the company’s strong results.”

Is Progressive Corporation (PGR) the Best Low Volatility Stock to Buy Now?

A team of accountants in a boardroom, discussing strategic moves of an insurance company.

The Progressive Corporation (NYSE:PGR) is in 30th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 91 hedge fund portfolios held The Progressive Corporation (NYSE:PGR) at the end of the first quarter compared to 100 in the third quarter. While we acknowledge the potential of The Progressive Corporation (NYSE:PGR) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered The Progressive Corporation (NYSE:PGR) and shared Impax US Sustainable Economy Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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