This Insurance Stock Has Quietly Crushed the S&P 500 Over 10 Years
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Progressive, a US insurance company, has outperformed the S&P 500 over the last decade due to its strong underwriting and profitability. The company's incorporation of technology, including AI, has contributed to its success, making it a stable long-term investment option.
Progressive is one of the largest insurance companies in the US, offering a range of policy types. Its strength lies in its underwriting, which matches rates to risk and drives profitability. The company has a stated goal of keeping its combined ratio below 96%, and it achieved a ratio below 90% in 2025. Progressive's profits soared last year, with earnings per share rising from $14.40 to $19.23. The company has a flexible business structure, including a variable dividend that fluctuates with earnings. Progressive's stock has trounced the S&P 500 over the past 10 years, dividends included. The company is using its decades of data to price policies accordingly, incorporating technology such as AI and machine learning systems.
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