We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
PGR's Property Insurance Fuels Growth: Can it Sustain the Momentum?
Read MoreHide Full Article
Key Takeaways
Progressive is expanding in property insurance by bundling policies and leveraging its auto customer base.
PGR's underwriting discipline, telematics use, and geographic spread help manage property risk effectively.
EPS estimates for 2025 and 2026 have risen, signaling expected growth despite a relatively high valuation.
The Progressive Corporation (PGR - Free Report) offers personal property insurance to homeowners, renters, and other property owners. Progressive has been consistently putting in efforts to further penetrate customer households through cross-selling auto policies and Progressive Home Advantage (PHA). This strategy enhances revenue diversification, reduces its dependence on auto insurance and strengthens customer retention and lifetime value by bundling policies.
Bundling enables Progressive to deepen customer engagement and reduce acquisition costs, thus providing a competitive advantage by leveraging its extensive auto insurance customer base for cross-selling opportunities. The buyout of American Strategic Insurance and investments in multi-product capabilities further support PGR’s expansion into personal lines insurance.
Progressive’s disciplined underwriting approach, conservative reserving, and strong reinsurance protection help manage property loss volatility. Geographic diversification helps mitigate exposure to high-catastrophe regions. The insurer is extending its data-driven underwriting and advanced telematics—initially developed for auto insurance—into the property segment to refine risk assessment and streamline claims processing.
With rising consumer demand for integrated insurance solutions, Progressive is well-positioned as a one-stop provider for personal insurance needs. Its ability to bundle property and auto coverage reinforces its market positioning. Supported by a strong brand reputation, scalable infrastructure and innovative pricing technologies, Progressive is poised to capture a greater share in the expanding personal property market. While the property segment remains smaller than auto, it holds significant potential to drive future earnings growth and valuation upside.
How are PGR’s Competitors Faring?
The personal property insurance businesses of The Allstate Corporation (ALL - Free Report) and The Travelers Companies Inc. (TRV - Free Report) have been instrumental in driving the long-term growth of these auto insurers.
Allstate’s growth is being driven by its personal property insurance business, supported by strategic pricing actions, broader distribution reach and stronger customer retention through bundling. Increased demand for homeowners and renters insurance, coupled with disciplined underwriting, is leading to higher premium growth and improved profitability at Allstate.
Travelers is experiencing growth in its personal property insurance business on solid renewal premium increases, prudent risk selection and strategic pricing. Its focus on customer retention and digital innovation is reinforcing its market position, leading to higher premium income and improved underwriting performance for Travelers.
PGR’s Price Performance
Shares of PGR have gained 10.9% year to date, outperforming the industry.
Image Source: Zacks Investment Research
PGR’s Expensive Valuation
PGR trades at a price-to-book value ratio of 5.39, above the industry average of 1.56. But it carries a Value Score of C.
Image Source: Zacks Investment Research
Estimates for PGR Witness Northward Movement
The Zacks Consensus Estimate for PGR’s second-quarter and third-quarter 2025 EPS has moved up 11.6% and 1.4%, respectively, over the past 30 days. The same for full-year 2025 and 2026 has increased 2.3% and 0.7%, respectively.
Image Source: Zacks Investment Research
The consensus estimates for PGR’s 2025 and 2026 revenues and EPS indicate year-over-year increases.
Image: Shutterstock
PGR's Property Insurance Fuels Growth: Can it Sustain the Momentum?
Key Takeaways
The Progressive Corporation (PGR - Free Report) offers personal property insurance to homeowners, renters, and other property owners. Progressive has been consistently putting in efforts to further penetrate customer households through cross-selling auto policies and Progressive Home Advantage (PHA). This strategy enhances revenue diversification, reduces its dependence on auto insurance and strengthens customer retention and lifetime value by bundling policies.
Bundling enables Progressive to deepen customer engagement and reduce acquisition costs, thus providing a competitive advantage by leveraging its extensive auto insurance customer base for cross-selling opportunities. The buyout of American Strategic Insurance and investments in multi-product capabilities further support PGR’s expansion into personal lines insurance.
Progressive’s disciplined underwriting approach, conservative reserving, and strong reinsurance protection help manage property loss volatility. Geographic diversification helps mitigate exposure to high-catastrophe regions. The insurer is extending its data-driven underwriting and advanced telematics—initially developed for auto insurance—into the property segment to refine risk assessment and streamline claims processing.
With rising consumer demand for integrated insurance solutions, Progressive is well-positioned as a one-stop provider for personal insurance needs. Its ability to bundle property and auto coverage reinforces its market positioning. Supported by a strong brand reputation, scalable infrastructure and innovative pricing technologies, Progressive is poised to capture a greater share in the expanding personal property market. While the property segment remains smaller than auto, it holds significant potential to drive future earnings growth and valuation upside.
How are PGR’s Competitors Faring?
The personal property insurance businesses of The Allstate Corporation (ALL - Free Report) and The Travelers Companies Inc. (TRV - Free Report) have been instrumental in driving the long-term growth of these auto insurers.
Allstate’s growth is being driven by its personal property insurance business, supported by strategic pricing actions, broader distribution reach and stronger customer retention through bundling. Increased demand for homeowners and renters insurance, coupled with disciplined underwriting, is leading to higher premium growth and improved profitability at Allstate.
Travelers is experiencing growth in its personal property insurance business on solid renewal premium increases, prudent risk selection and strategic pricing. Its focus on customer retention and digital innovation is reinforcing its market position, leading to higher premium income and improved underwriting performance for Travelers.
PGR’s Price Performance
Shares of PGR have gained 10.9% year to date, outperforming the industry.
Image Source: Zacks Investment Research
PGR’s Expensive Valuation
PGR trades at a price-to-book value ratio of 5.39, above the industry average of 1.56. But it carries a Value Score of C.
Image Source: Zacks Investment Research
Estimates for PGR Witness Northward Movement
The Zacks Consensus Estimate for PGR’s second-quarter and third-quarter 2025 EPS has moved up 11.6% and 1.4%, respectively, over the past 30 days. The same for full-year 2025 and 2026 has increased 2.3% and 0.7%, respectively.
Image Source: Zacks Investment Research
The consensus estimates for PGR’s 2025 and 2026 revenues and EPS indicate year-over-year increases.
PGR stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.