Financial Sector Ideas

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>>> Progressive is a cash-generating machine


https://www.fool.com/investing/2023/04/29/got-1500-you-can-confidently-add-these-3-stocks-to/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


Insurance stocks can be solid investments because they have steady demand and can consistently generate cash flow. Don't just take my word for it. Berkshire Hathaway Chief Executive Officer Warren Buffett has said his company's insurance investments are a key component of its long-term success. Progressive is one of the best insurers, consistently churning profits and cash flow for its investors while delivering excellent stock returns.

What makes the business solid is its resilience in different economic conditions. The company has navigated the inflationary environment quite well, raising its premiums and achieving industry-beating profitability once again.

Its net written premiums grew 22% in the first quarter to $16.1 billion. While it saw an uptick in loss expenses in the quarter, the effect will likely be temporary -- presenting investors with an excellent opportunity to buy the dip on this solid insurer.

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