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PGR vs. WRB: Which P&C Insurance Stock is a Smarter Investment?
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Key Takeaways
PGR leads WRB in return on equity, signaling greater efficiency and profitability.
Progressive benefits from growth in auto, home, and bundled insurance offerings.
WRB shows solid international expansion, steady premiums and strong capital discipline.
The property and casualty insurance market is a dynamic space that witnesses consistent growth, driven by increasing urbanization, rising disposable incomes and greater awareness of risk mitigation strategies. Per Grand View Research, the global P&C insurance market size was estimated at $3,674.46 billion in 2023 and is projected to reach $6,180.14 billion by 2030, witnessing a compound annual growth rate (CAGR) of 7.9% from 2024 to 2030.
The P&C insurance market is poised to grow on several factors, including rising awareness of risk management, a growing number of natural disasters, and heightened property and auto values, which are driving demand for comprehensive insurance coverage. Despite rate softening, The Progressive Corporation (PGR - Free Report) and W. R. Berkley Corporation (WRB - Free Report) — both notable insurers — are expected to grow, banking on these positives.
Yet, as an investment option, which stock is more attractive? Let’s closely look at the fundamentals of these stocks.
Factors to Consider for PGR
Progressive ranks among the largest auto insurers in the United States, holding dominant positions across several segments. It is the nation’s leading writer of motorcycle and boat insurance, the market leader in commercial auto coverage, and one of the top 15 homeowners' insurers based on premiums written. Although the majority of its premiums stems from auto insurance, Progressive is strategically broadening its reach in homeowners and commercial lines. Its growth strategy focuses on expanding bundled auto and property offerings, lowering exposure to high-risk properties and improving segmentation through targeted product introductions.
The company’s operations remain heavily concentrated in personal auto insurance, distributed through both direct and agency channels. This segment contributes around 90% of Personal Lines net premiums written and nearly 75% of total company premiums, underscoring its pivotal role in driving profitability. Personal auto growth is supported by rate hikes, higher new policy applications, greater advertising investment, and strategic non-rate actions designed to capture market share. Progressive’s strong network of independent agents further enhances distribution. Profitability in this core segment benefits from rising average premiums per policy, declining loss frequency and favorable prior-year reserve development.
The company’s Snapshot telematics program continues to strengthen its pricing precision by leveraging driver behavior data to offer personalized rates, thus enhancing competitiveness and retention. A broader product mix has also improved customer stickiness, reflected in steady gains in policy life expectancy (PLE) across all business segments. Over the last decade, Progressive’s average combined ratio has remained below 93%, consistently outperforming the industry average above 100%, a testament to its disciplined underwriting and prudent reserving.
Aligned with industry modernization trends, Progressive continues to advance digitalization and artificial intelligence adoption to refine pricing, streamline claims processing and boost operational efficiency. Its comprehensive reinsurance program provides protection against catastrophe-related volatility, supporting financial resilience.
Progressive’s profitability has strengthened significantly, with net margins expanding 950 basis points in the past two years, fueled by increased demand for personal auto insurance and sound risk management. Strong cash flows enable ongoing investments in technology and innovation, while disciplined capital management has improved book value and lowered leverage—reinforcing Progressive’s solid financial foundation and long-term competitive strength.
Its return on equity of 33.9% betters the industry average of 7.7%.
PGR shares have lost 12.5% year to date.
Factors to Consider for WRB
W.R. Berkley ranks among the largest commercial lines property and casualty insurers in the United States. The company continues to benefit from steady growth in direct premiums written, reflecting sustained strength in its core insurance operations. Since 2006, W.R. Berkley has been strategically investing in startups to pursue new market opportunities and expand its geographic footprint, significantly broadening and diversifying its business portfolio. Alongside its in-house underwriting capabilities, the insurer leverages Managing General Agents (MGAs) to effectively access niche markets and specialized customer segments.
The company’s diversified business model provides resilience against cyclical market pressure, ensuring stable cash flows even during periods of industry volatility. Its broad product mix enables strength in certain segments to offset softness in others, while more stable lines such as personal, professional and monoline excess insurance contribute to consistent performance. Geographic diversification across the Asia-Pacific, South America and Mexico has further enhanced its earnings stability and growth potential.
W.R. Berkley’s international operations have delivered sustained premium growth for many years, driven primarily by strong performances in emerging markets such as the United Kingdom, Continental Europe, South America, Canada, Scandinavia, Asia and Australia. This global presence not only broadens its revenue base but also supports innovation, competitiveness and long-term financial strength.
A recognized innovator in the insurance and reinsurance landscape, W.R. Berkley has been a frontrunner in adopting artificial intelligence across its operations. By integrating AI to enhance underwriting precision, claims handling and customer engagement, the company continues to improve efficiency and deliver differentiated value. This proactive approach to technological advancement underscores WRB’s commitment to maintaining its leadership position and future readiness in a rapidly changing industry.
Financially, W.R. Berkley remains robust, supported by a solid balance sheet, ample liquidity, and strong operating cash flows. The company has recorded more than 60 consecutive quarters of favorable reserve development, reflecting disciplined underwriting and prudent risk management. Its strong capital position enables consistent shareholder returns through share repurchases, special dividends, and regular dividend increases—reinforcing its reputation for sustainable value creation.
Its return on equity of 18.9% is better than the industry average.
WRB shares have gained 27.4% year to date.
Estimates for PGR and WRB
The Zacks Consensus Estimate for PGR’s 2025 revenues and EPS implies a year-over-year increase of 15.5% and 26.9%, respectively. EPS estimates have moved 3.9% southward over the past 30 days. PGR has a Growth Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for WRB’s 2025 revenues and EPS implies a year-over-year increase of 6.9% and 2.7%, respectively. EPS estimates have moved 0.7% northward over the past 30 days.
Image Source: Zacks Investment Research
Are PGR and WRB Shares Expensive?
Progressive is trading at a price-to-book multiple of 3.47, below its median of 4.8 over the last five years. Berkley’s price-to-book multiple sits at 3.04, above its median of 2.6 over the last five years.
Image Source: Zacks Investment Research
Conclusion
PGR remains focused on increasing the share of auto and home-bundled households, investing in mobile applications and rolling out products in a higher number of states to drive growth.
W.R. Berkley has an impressive growth profile. Rate increases, reserving discipline, solid balance sheet, prudent capital management policy and strong ratings are other positives.
Both these insurers have weathered cost challenges well, as evident from their continued net margin improvement.
Yet, on the basis of return on equity, which reflects a company’s efficiency in generating profit from shareholders' equity as well as gives a clear picture of the company's financial health, PGR scores higher than WRB.
Though Progressive shares are sliding year to date, WRB has appreciated. PGR has a VGM Score of B, better than W.R. Berkley’s VGM Score of C. Though both PGR and WRB carry a Zacks Rank #3 (Hold), PGR has an edge over WRB.
Image: Bigstock
PGR vs. WRB: Which P&C Insurance Stock is a Smarter Investment?
Key Takeaways
The property and casualty insurance market is a dynamic space that witnesses consistent growth, driven by increasing urbanization, rising disposable incomes and greater awareness of risk mitigation strategies. Per Grand View Research, the global P&C insurance market size was estimated at $3,674.46 billion in 2023 and is projected to reach $6,180.14 billion by 2030, witnessing a compound annual growth rate (CAGR) of 7.9% from 2024 to 2030.
The P&C insurance market is poised to grow on several factors, including rising awareness of risk management, a growing number of natural disasters, and heightened property and auto values, which are driving demand for comprehensive insurance coverage. Despite rate softening, The Progressive Corporation (PGR - Free Report) and W. R. Berkley Corporation (WRB - Free Report) — both notable insurers — are expected to grow, banking on these positives.
Yet, as an investment option, which stock is more attractive? Let’s closely look at the fundamentals of these stocks.
Factors to Consider for PGR
Progressive ranks among the largest auto insurers in the United States, holding dominant positions across several segments. It is the nation’s leading writer of motorcycle and boat insurance, the market leader in commercial auto coverage, and one of the top 15 homeowners' insurers based on premiums written. Although the majority of its premiums stems from auto insurance, Progressive is strategically broadening its reach in homeowners and commercial lines. Its growth strategy focuses on expanding bundled auto and property offerings, lowering exposure to high-risk properties and improving segmentation through targeted product introductions.
The company’s operations remain heavily concentrated in personal auto insurance, distributed through both direct and agency channels. This segment contributes around 90% of Personal Lines net premiums written and nearly 75% of total company premiums, underscoring its pivotal role in driving profitability. Personal auto growth is supported by rate hikes, higher new policy applications, greater advertising investment, and strategic non-rate actions designed to capture market share. Progressive’s strong network of independent agents further enhances distribution. Profitability in this core segment benefits from rising average premiums per policy, declining loss frequency and favorable prior-year reserve development.
The company’s Snapshot telematics program continues to strengthen its pricing precision by leveraging driver behavior data to offer personalized rates, thus enhancing competitiveness and retention. A broader product mix has also improved customer stickiness, reflected in steady gains in policy life expectancy (PLE) across all business segments. Over the last decade, Progressive’s average combined ratio has remained below 93%, consistently outperforming the industry average above 100%, a testament to its disciplined underwriting and prudent reserving.
Aligned with industry modernization trends, Progressive continues to advance digitalization and artificial intelligence adoption to refine pricing, streamline claims processing and boost operational efficiency. Its comprehensive reinsurance program provides protection against catastrophe-related volatility, supporting financial resilience.
Progressive’s profitability has strengthened significantly, with net margins expanding 950 basis points in the past two years, fueled by increased demand for personal auto insurance and sound risk management. Strong cash flows enable ongoing investments in technology and innovation, while disciplined capital management has improved book value and lowered leverage—reinforcing Progressive’s solid financial foundation and long-term competitive strength.
Its return on equity of 33.9% betters the industry average of 7.7%.
PGR shares have lost 12.5% year to date.
Factors to Consider for WRB
W.R. Berkley ranks among the largest commercial lines property and casualty insurers in the United States. The company continues to benefit from steady growth in direct premiums written, reflecting sustained strength in its core insurance operations. Since 2006, W.R. Berkley has been strategically investing in startups to pursue new market opportunities and expand its geographic footprint, significantly broadening and diversifying its business portfolio. Alongside its in-house underwriting capabilities, the insurer leverages Managing General Agents (MGAs) to effectively access niche markets and specialized customer segments.
The company’s diversified business model provides resilience against cyclical market pressure, ensuring stable cash flows even during periods of industry volatility. Its broad product mix enables strength in certain segments to offset softness in others, while more stable lines such as personal, professional and monoline excess insurance contribute to consistent performance. Geographic diversification across the Asia-Pacific, South America and Mexico has further enhanced its earnings stability and growth potential.
W.R. Berkley’s international operations have delivered sustained premium growth for many years, driven primarily by strong performances in emerging markets such as the United Kingdom, Continental Europe, South America, Canada, Scandinavia, Asia and Australia. This global presence not only broadens its revenue base but also supports innovation, competitiveness and long-term financial strength.
A recognized innovator in the insurance and reinsurance landscape, W.R. Berkley has been a frontrunner in adopting artificial intelligence across its operations. By integrating AI to enhance underwriting precision, claims handling and customer engagement, the company continues to improve efficiency and deliver differentiated value. This proactive approach to technological advancement underscores WRB’s commitment to maintaining its leadership position and future readiness in a rapidly changing industry.
Financially, W.R. Berkley remains robust, supported by a solid balance sheet, ample liquidity, and strong operating cash flows. The company has recorded more than 60 consecutive quarters of favorable reserve development, reflecting disciplined underwriting and prudent risk management. Its strong capital position enables consistent shareholder returns through share repurchases, special dividends, and regular dividend increases—reinforcing its reputation for sustainable value creation.
Its return on equity of 18.9% is better than the industry average.
WRB shares have gained 27.4% year to date.
Estimates for PGR and WRB
The Zacks Consensus Estimate for PGR’s 2025 revenues and EPS implies a year-over-year increase of 15.5% and 26.9%, respectively. EPS estimates have moved 3.9% southward over the past 30 days. PGR has a Growth Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for WRB’s 2025 revenues and EPS implies a year-over-year increase of 6.9% and 2.7%, respectively. EPS estimates have moved 0.7% northward over the past 30 days.
Image Source: Zacks Investment Research
Are PGR and WRB Shares Expensive?
Progressive is trading at a price-to-book multiple of 3.47, below its median of 4.8 over the last five years. Berkley’s price-to-book multiple sits at 3.04, above its median of 2.6 over the last five years.
Image Source: Zacks Investment Research
Conclusion
PGR remains focused on increasing the share of auto and home-bundled households, investing in mobile applications and rolling out products in a higher number of states to drive growth.
W.R. Berkley has an impressive growth profile. Rate increases, reserving discipline, solid balance sheet, prudent capital management policy and strong ratings are other positives.
Both these insurers have weathered cost challenges well, as evident from their continued net margin improvement.
Yet, on the basis of return on equity, which reflects a company’s efficiency in generating profit from shareholders' equity as well as gives a clear picture of the company's financial health, PGR scores higher than WRB.
Though Progressive shares are sliding year to date, WRB has appreciated. PGR has a VGM Score of B, better than W.R. Berkley’s VGM Score of C.
Though both PGR and WRB carry a Zacks Rank #3 (Hold), PGR has an edge over WRB.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.