Auto insurer Progressive (NYSE:PGR) added 41 basis points to the Fund’s return, as its shares rose 10.4% from $35.50 to $39.18. Progressive’s stock climbed higher as its underwriting profits rose, in sharp contrast to many peers who are struggling with the increase in distracted driving. Progressive’s Snapshot, a device that users plug into their cars to monitor their driving, provides the company with the most precise and real-time data in the industry. This data allows Progressive to identify safe drivers and reward them with lower prices than other insurers can offer, while avoiding unsafe drivers who are unprofitable.
Jerome Dodson (Trades, Portfolio)'s first quarter 2017 Parnassus Funds commentary.
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