StockStory Favors Progressive as Insurer Growth Diverges

StockStory’s insurance analysis singles out Progressive for its recent growth, while raising concerns about MGIC Investment and Chubb. The publisher says the insurance industry gained 7.5% over the past six months, behind the S&P 500’s 16.6% rise.

Progressive’s revenue grew at an annual rate of 15.9% over the past two years, according to StockStory. Net premiums earned, the premiums recognized from policies, rose at a 14.9% annual rate over the same period. The report also points to the company’s return on equity, but gives no figure for it.

StockStory cites slower premium growth and weaker earnings growth at MGIC Investment. Its net premiums earned fell by 1.5% annually over the past five years, while earnings per share grew 8.4% annually over the past two years. The report also says its estimated sales for the next 12 months are flat.

For Chubb, the publisher notes that net premiums earned grew 6.8% annually over two years, below other financial institutions. It also says the company’s pre-tax profit margin fell by 1.7 percentage points over five years as costs rose faster than revenue.

The article listed Progressive at $207.13 a share and 3.4 times forward book value. It put MGIC Investment at $26.18 and 1.1 times forward book value, and Chubb at $328.81 and 1.6 times.