What risk is there in a mostly-car-insurance company when car insurance is mandated by law in many places, and they can increase prices at will and blame inflation? Sure if they're taking all that money and throwing it all on black, there's some risk there, but Progressive has been and continues to kill it in the car insurance industry and there's not really a risk in that industry. That's probably why they keep going up like they do and with reliably going up, why puts a year out are cheap.
Sometimes that's where the opportunity is, but there'd need to be some type of catalyst to knock them down and I don't know what that'd be.
SunriseSurprise t1_j25lb47 wrote
Reply to Progressive: The Valuation Enigma by 2ndSifter
What risk is there in a mostly-car-insurance company when car insurance is mandated by law in many places, and they can increase prices at will and blame inflation? Sure if they're taking all that money and throwing it all on black, there's some risk there, but Progressive has been and continues to kill it in the car insurance industry and there's not really a risk in that industry. That's probably why they keep going up like they do and with reliably going up, why puts a year out are cheap.
Sometimes that's where the opportunity is, but there'd need to be some type of catalyst to knock them down and I don't know what that'd be.