Advanced shares grow after July gains; some insurance stocks are rising

Progressive Corp. beat many of its rivals this week after the company posted better-than-expected results in July.

The company reported revenue of $688.8 million in July, up 170% from $255.4 million a year earlier.

The increase in prices in the past and they acted faster than their peers, perhaps helping them to deal with the problems quickly. harassing competitorsaccording to CFRA analyst Cathy Seifert.

“What the July numbers tell me is that the company seems to be doing business,” Seifert said.

Although one month’s results don’t form a trend, Seifert said it looks like the price hike is coming to an end.

Auto insurers may continue to be challenged by rising rates and a resurgence of the pandemic, Seifert said, but some, including The Allstate Corp., may be starting to turn around.

“I think from an investment perspective, investors are starting to take stock of the companies’ ability to manage these strategies and it shouldn’t be a surprise to anyone that auto inflation has remained high,” Seifert said.

Piper Sandler analyst Paul Newsome said in a research note that Allstate could be at risk because it sees the company’s efforts to change its distribution to independent and independent people and away from its only means of support, combined with efficiency and cost reduction, such as. possible to be successful.

Progressive and Allstate posted gains of 4.69% and 0.59%, respectively.

All US stocks lost the week ending August 19 as the S&P 500 fell 1.21% to 4,228.48. Insurance companies performed better as the S&P 500 Insurance index rose 0.26% to 573.98.

GoHealth proceeds with caution

Medicare-focused digital health company GoHealth Inc. saw its shares fall after revealing second-quarter results that showed a 19% year-over-year decline and a net loss of $113.8 million.

GoHealth CEO Vijay Kotte said in a release that the investment aims to strengthen the company’s ability to meet the cash flow deficit in the next 12 months to show results by mid-2023.

The company announced in early August that it was laying off 835 workers, about a quarter of its total workforce.

In a study, William Blair analyst Adam Klauber rated the company as “successful” and said that GoHealth’s long-term efforts, such as increasing post-enrollment agreements with carriers, should improve cash flow.

“Over time, we believe that GoHealth can transition to continued growth because of its scale and revenue streams,” Klauber said.

On the other hand, Credit Suisse has a “non-performing” view, acknowledging the company’s efforts to reposition the business in a difficult environment but expressing concern about the impact of fewer agents signing up new members. Although GoHealth should get better rates during the upcoming annual enrollment period, and the company is on track, it faces a “difficult path,” Credit Suisse said.

GoHealth stock ended the week down 43.26%.

Retirement recovery

Equitable Holdings Inc. gained interest of 1.13% following the announcement that Global Atlantic Financial Group Ltd. Under the agreement, Equitable will transfer approximately $3 billion in total accounts managed by First Allmerica Financial Life Insurance Co.’s Global Atlantic subsidiary.

Wells Fargo analyst Elyse Greenspan wrote in a research note that the deal removes some of the uncertainty while only reducing slightly through 2023 EPS.