Everyone knows Flo but few appreciate her parent, Progressive, as the best-in-breed P&C insurer, growing sales and earnings double digits, featuring increasing cost, data and technological advantages and steered by skilled management and ownership (1/13) 
Since 1965, when he began writing his yearly letters to BRK shareholders, WEB has explained the virtues and perils of the insurance business. While his insurance operations have always been profitable, the industry generally operates with underwriting losses (2/13)
17 of the 44 P&C and re-insurers listed on U.S. exchanges sold insurance profitably over the last decade. All but 1, $TPRE, were profitable overall. Next to each insurer below is the percentage of their EBIT derived from insurance operations (3/13)
Arch Capital Group, $AGCL, shows that among their peer group of 25 P&C insurers, they optimized low volatility and growth in BVPS + dividends from 2002-2019 with $PGR a close second. Over the last five years, PGR has overtaken AGCL as the leader (4/13)
Progressive’s personal lines contributed 83.4% of net revenues in 2019, of which 94% of policies were for standard automobile insurance. Since 2015, sales have compounded at 14.3% pa with an average CR of 92.5% as loss costs continue their descent (5/13)
Commercial lines contributed 12.2% of 2019 net revenues and since 2015 have compounded sales at 19.3% pa with an average CR of 89.3%. Growth initiatives for the segment include ride-sharing providers, truckers and a fledgling business owner’s policy just launched in Ohio (6/13)
Progessive entered the homeowners ins. market by purchasing 67% of ARX in 04/15 and the remainder in 02/20. The segment is PGR's least profitable, with a median CR of 97.4% from 2015-2019, but is expanding nationally and central to their efforts to sell bundled policies (7/13)
Progressive manages their investments conservatively; <25% in equities which are indexed to the R1000 and the remainder actively managed fixed income with a duration between 1.0%-2.5%. Their fixed income portfolio generated ~150bps of ann. alpha over the last 10 years (8/13)
Tricia Griffith, Progressive’s CEO since 2016, was promoted after leading their HR function, evidencing The Company’s emphasis on homegrown talent. 7/10 non-investment executives joined as individual contributors and the other three at the Director level (9/13)
Remaining profitable in competitive insurance markets such as auto and home requires pricing discipline at the expense of growth. From 2015-2019, PGR compounded net revenues by 15.2% p.a. at a WA CR of 92.2%. But forced to choose, they would grow less and stay profitable (10/13)
Fully autonomous vehicles would dramatically change the auto insurance landscape, but experts forecast its adoption in >10 years. PGR is well positioned presently, with growing shares of both the personal and ride-share auto. insurance markets (11/13)
Investment income contributes ~30% of PGR's EBIT and within a portfolio of long stocks acts as a hedge against interest rate increases and shocks to the upside (12/13)
Progressive reports financial and operating results monthly. The Company simplified their dividend policy recently and now projects paying a large annual dividend on top of tiny quarterly payouts. And their latest annual report is gorgeous (13/13)
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