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gucciflipflops337 t1_j25do8q wrote

PE is a useless way of evaluating insurance companies because they aren’t producing “earnings” the same way other companies are.

PGR gets a premium because their combined ratio and PIF growth are outpacing the entire industry by a lot.

The personal auto unit is no longer driving profitability, the commercial unit is (accounted for almost 50% of total profitability) and its growing like crazy.

This DD is great and all but it lacks the requisite understanding of the insurance industry as a whole.

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[deleted] t1_j28olpi wrote

[deleted]

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gucciflipflops337 t1_j28ovdc wrote

Ok sure but if you’re going to do all this DD and say it’s overvalued you might want to understand some of the basics of the industry.

Combined ratio and policy in force growth are like the basics of the basics

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