The Progressive Corporation, 2019

By: Benjamin Weinstock and John R. Wells

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Synopsis: This case addresses the rise of The Progressive Corporation (Progressive) as a top player in the property and casualty and auto insurance industries. In July 2018, Progressive, the USA's third largest auto insurance writer, reported half-year earned premiums up 21% on the same period the previous year and net income up 95%. For CEO Tricia Griffith, appointed on July 1, 2016, this was a clear indicator that her commitment to accelerating growth was bearing fruit. In the ten years from 2005-2015, Progressive's earned premiums had grown at 4% per year. They then grew 13% in 2016 and 15% in 2017; 2018 promised to be an even better year. In 2017 Griffith commented that Progressive was in 10% of US homes and would double that "in short order." This would make it larger than 2018 industry leader State Farm. But the auto insurance business was plagued with hundreds of competitors and had historically been very cyclical. In 2018 Progressive was enjoying an unusual period of rising prices and growth. Would Griffith's strategy be enough to sustain double digit growth? The markets seemed convinced; In July 2018 Progressive's stock price had almost doubled in two years.