Auto insurer Progressive (NYSE:PGR) was the Parnassus Fund’s best performer, adding 192 basis points to the Fund’s return, as its shares soared 58.6% from $35.50 to $56.32. Progressive’s earnings growth shifted into high gear due to the impressive combination of accelerating revenue growth and lower policy loss rates. The company is the industry leader in predictive analytics, which allows it to identify safe drivers and reward them with lower prices, while avoiding unsafe drivers who are unprofitable. A new home insurance product drove Progressive’s revenue growth, as customers bundled their home and auto policies together to save money and time.
From Jerome Dodson (Trades, Portfolio)'s fourth-quarter 2017 Parnassus Fund shareholder letter.
