It's been a challenging year in the stock market, but you wouldn't know it by looking at Progressive's (NYSE: PGR) stock performance. Since the beginning of 2022, its stock has gained 30%, far outperforming the S&P 500, which is down 12.3% in that same period.

Progressive's outperformance comes down to a couple of factors. For one, insurers did quite well this past year because they can hedge against inflation. Second, it's one of the best in the industry at churning a profit and producing strong cash flows.

The insurer has a long history of outperforming the stock market. Here's the secret to its success in this bear market.

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Source Fool.com