Progressive Insurance reports results monthly. Their July performance is impressive, in stark contrast to Geico’s recent struggles.
Combined ratio of 89.8 vs 96.7 a year ago.
Net premiums written up 8%.
https://seekingalpha.com/pr/18908086-progressive-reports-jul…
The CEO of GEICO is someone who prefers reading all day.
Seems like they’re going backwards.
'The CEO of GEICO is someone who prefers reading all day.
Seems like they’re going backwards."
To this untrained observer, GEICO’s several year climb seemed to track with its advertising. They were eating everyone else’s lunch. No more…
They were eating everyone else’s lunch. No more…
Do people think it’s because of the telematics program at Progressive?
After all, it is in most senses a business with very little in the way of differentiation.
If you see two very comparable head-to-head competitors with one really pulling ahead, then presumably something has changed.
Jim
Agree we need definitely to clean things up as PGR is found but I hear both GEICO and PGR will surpass State Farm in 2023. Amazing in 30 years when we were 2% market share and are now 14+%.
PGR has an impressive combination of 11.5% net premiums earned growth and 21% average ROE over 10 years. Ajit thinks we will close the gap, and both seem head and shoulders above other competitors.
Do people think it’s because of the telematics program at Progressive?
Ajit Jain admitted that Geico is lagging PGR in telematics and must reverse it in the next couple of years.
https://www.repairerdrivennews.com/2022/05/04/berkshire-chai…
This is purely anecdotal, but progressive just beat State Farm by cutting our auto premium in half without any agreement to allow in vehicle devices. Geico was above State Farm. We had and continue to have boat insurance with progressive.
Jk
Do people think it’s because of the telematics program at Progressive?
After all, it is in most senses a business with very little in the way of differentiation.
I failed in their telematics test and they lost me as a customer.