The stubbornly high inflation readings to start 2024 are good news for one group of stocks — insurance companies. Motor vehicle insurance is up 22.2% over the past year, according to the Bureau of Labor Statistics , but some of the companies that sell insurance are doing just fine. Shares of Allstate are up nearly 21% year to date, and Progressive is up over 31% in 2024. Both have hit all-time highs this year. PGR YTD mountain Shares of Progressive are up more than 30% this year.
"HG trades at the cheapest valuation among our coverage, yet the shares have less reserve risk and is exposed to areas of the market seeing good increases," Greenspan said in a note. For investors looking for a broader play, there are not many pure insurance funds, but the iShares U.S. Insurance ETF is up nearly 11% year to date. Potential downsides To be sure, there are several factors that could derail the rally for insurance stocks.