Is It Safe? Progressive Grows With the Flo

"Is It Safe?" looks at a company's risk-and-reward potential. Find out if your stocks are safe at 4 a.m. on Tuesdays and Thursdays.

MAYFIELD VILLAGE, Ohio (TheStreet) -- Since Progressive(PGR Quote) introduced "Flo" -- the geeky but friendly store assistant played by actress Stephanie Courtney -- in 2008, the percentage of quotes completed on its Web site has risen as much as 137%, according to the company.

The lovable sales clerk has her own following, complete with "I Love Flo" T-shirts. The hype is bringing more attention to Mayfield Village, Ohio-based Progressive, but does it deserve your investment? Even if you're not a fan of Flo, the company's cheap shares and growth potential merit a second look.

Progressive, previously considered the insurance choice for risky drivers, has gone mainstream, wooing customers with cleaner records by promising lower prices and better customer service. Its Web site has been a key part of its success, with a "name your price" feature that allows customers to design coverage that suits their wallets. Policyholders who go paperless get 5% discounts on their premiums.

Progressive, the 13th-largest insurance firm in the U.S., boasts a market cap that's over $10 billion. The company's second-quarter net income rose 16% from the year-earlier period. Its total assets grew 4.8% over the first quarter, with policies in force up 4% (12% for direct auto) since June 2008.

It's one of two major insurers whose price-to-book values exceed 150%; Aflac(AFL Quote) is the other. While smaller rival Principal Financial Group (PFG Quote) offers a price-to-book value of 290%, its price-to-earnings ratio is 14, the same as Aflac's.

In contrast, Progressive's price-to-earnings ratio stands at 10, helped by $5.1 billion in share repurchases during the past five years. The company has also paid $1.6 billion in dividends during that time.