It is no accident that the rapid rise in living standards over the past century has coincided with tremendous technological progress throughout the economy. At a fundamental level, rising living standards require the economy to generate an ever-increasing supply of
The Progressive Corporation has offered insurance products to consumers since 1937 and is currently estimated to be the fourth largest private passenger automobile insurer in the United States. Progressive trails State Farm, GEICO, and Allstate and has overall market share
In this article, we will take a look at comments made in Warren Buffett’s 2010 annual letter regarding GEICO’s valuation and examine potential implications for the intrinsic value of Progressive, GEICO’s most fierce competitor. Read this article for more details.
Progressive has introduced a new discount program designed to offer lower auto insurance premiums to drivers who have favorable risk profiles. The idea of offering discounts to drivers who do not use their cars for commuting or drive very rarely is nothing new. Auto insurers have been surveying customers for years regarding such habits. However, Progressive’s new program is not based on subjective self reporting. The company will monitor driver behavior using an electronic device.
P&C National Underwriter has published its annual report listing data for the top 100 individual insurance companies as well as the top 100 insurance groups. Due to improvements in investing results, total policyholder surplus for the companies in the survey increased to $521.7 billion at the end of 2009 which is still 2 percent below the $529.8 billion level at the end of 2007 but greater than 13 percent above the $462.1 billion level posted at the end of 2008. However, the insurers posted underwriting losses as a group and experienced a drop in net written premiums of 3.8 percent in 2009.