PGR's Property Insurance Fuels Growth: Can it Sustain the Momentum?

The Progressive Corporation PGR offers personal property insurance to homeowners, renters, and other property owners. Progressive has been consistently putting in efforts to further penetrate customer households through cross-selling auto policies and Progressive Home Advantage (PHA). This strategy enhances revenue diversification, reduces its dependence on auto insurance and strengthens customer retention and lifetime value by bundling policies.

Bundling enables Progressive to deepen customer engagement and reduce acquisition costs, thus providing a competitive advantage by leveraging its extensive auto insurance customer base for cross-selling opportunities. The buyout of American Strategic Insurance and investments in multi-product capabilities further support PGR’s expansion into personal lines insurance.

Progressive’s disciplined underwriting approach, conservative reserving, and strong reinsurance protection help manage property loss volatility. Geographic diversification helps mitigate exposure to high-catastrophe regions. The insurer is extending its data-driven underwriting and advanced telematics—initially developed for auto insurance—into the property segment to refine risk assessment and streamline claims processing.

With rising consumer demand for integrated insurance solutions, Progressive is well-positioned as a one-stop provider for personal insurance needs. Its ability to bundle property and auto coverage reinforces its market positioning. Supported by a strong brand reputation, scalable infrastructure and innovative pricing technologies, Progressive is poised to capture a greater share in the expanding personal property market. While the property segment remains smaller than auto, it holds significant potential to drive future earnings growth and valuation upside.

How are PGR’s Competitors Faring?

The personal property insurance businesses of The Allstate Corporation ALL and The Travelers Companies Inc. TRV have been instrumental in driving the long-term growth of these auto insurers. 

Allstate’s growth is being driven by its personal property insurance business, supported by strategic pricing actions, broader distribution reach and stronger customer retention through bundling. Increased demand for homeowners and renters insurance, coupled with disciplined underwriting, is leading to higher premium growth and improved profitability at Allstate.

Travelers is experiencing growth in its personal property insurance business on solid renewal premium increases, prudent risk selection and strategic pricing. Its focus on customer retention and digital innovation is reinforcing its market position, leading to higher premium income and improved underwriting performance for Travelers.

PGR’s Price Performance

Shares of PGR have gained 10.9% year to date, outperforming the industry.

PGR’s Expensive Valuation

PGR trades at a price-to-book value ratio of 5.39, above the industry average of 1.56. But it carries a Value Score of C.

Estimates for PGR Witness Northward Movement

The Zacks Consensus Estimate for PGR’s second-quarter and third-quarter 2025 EPS has moved up 11.6% and 1.4%, respectively, over the past 30 days. The same for full-year 2025 and 2026 has increased 2.3% and 0.7%, respectively.
 

The consensus estimates for PGR’s 2025 and 2026 revenues and EPS indicate year-over-year increases. 

PGR stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research