Progressive Corporation (PGR) Traded Down Despite Reporting Strong Earnings

Impax Asset Management, an investment management company, released its “Impax US Sustainable Economy Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q3 2025, the portfolio lagged behind the Russell 1000. Similar to the second quarter, the US equity markets favored a risk-on approach, benefiting high-risk, high-momentum, and lower-quality factors. Although the portfolio’s focus on relatively modest, lower-risk, and high-quality factors contributed to the underperformance, the fund (Institutional Class) returned 7.33% in Q3 compared to 7.99% for the Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Impax US Sustainable Economy Fund highlighted stocks such as The Progressive Corporation (NYSE:PGR). The Progressive Corporation (NYSE:PGR) is a US-based insurance company. The one-month return of The Progressive Corporation (NYSE:PGR) was -9.26%, and its shares lost 14.16% of their value over the last 52 weeks. On January 7, 2026, The Progressive Corporation (NYSE:PGR) stock closed at $209.10 per share, with a market capitalization of $122.574 billion.

Impax US Sustainable Economy Fund stated the following regarding The Progressive Corporation (NYSE:PGR) in its third quarter 2025 investor letter:

"The Progressive Corporation (NYSE:PGR) (Financials, Property & Casualty Insurance) has a high Corporate Resilience Score and has a role to play in calculating the genuine cost of climate change and diversifying climate risk, as well as providing access to affordable insurance. Despite strong earnings growth the company suffered from changing sentiment with analysts showing concern around policy growth, rising competition and margin compression in auto insurance."

The Progressive Corporation (NYSE:PGR) is in the 30th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 84 hedge fund portfolios held The Progressive Corporation (NYSE:PGR) at the end of the third quarter, which was 99 in the previous quarter. While we acknowledge the potential of The Progressive Corporation (NYSE:PGR) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered The Progressive Corporation (NYSE:PGR) and shared the list of affordable stocks with good earnings growth for 2026. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.