Progressive had ‘solid’ August despite industry backdrop, says Morgan Stanley

Morgan Stanley tells investors in a research note that the 197,000 personal auto PIF additions for the month of August for Progressive (PGR) to be “quite solid” despite the intense competition in the personal auto space and “unrealistic” expectations from broader consensus expectations. The firm, which has an Equal Weight rating on the shares and a $267 price target expects Progressive’s total company combined ratio to remain strong for the remainder of the year given the current underwriting environment in personal auto and believes margins will start normalizing exiting 2025.