By Nate Wolf
Progressive was the worst performer in the S&P 500 Wednesday after the auto and property insurance company posted weaker-than-expected quarterly earnings.
The company reported earnings of $4.45 a share for the third quarter, below analysts' consensus call for $5.04. Net premiums written totaled $21.38 billion, up 10% from the prior year but below the $21.73 billion forecast by Wall Street. Net premiums earned also came in below expectations.
Progressive stock fell 9.2% to $218.36, putting the stock on pace for its lowest close since Aug. 8, 2024, according to Dow Jones Market Data. Progressive shares have fallen down 8.8% this year. The S&P 500 has risen more than 14%.
The company's results in September were particularly disappointing, with net income falling 48% from the previous year. A 2023 policy change in Florida that caps personal auto insurance profits was a key reason for the steep drop.
Progressive said its auto profits from 2023 to 2025 likely will exceed Florida's three-calendar-year limit by about $950 million. As a result, the company reported a policyholder credit expense for that amount in September, which weighed on profit.
Other insurance stocks also declined Wednesday. Allstate dropped 3.7%, Travelers fell 2.2%, and Chubb fell 1.2%.
Write to Nate Wolf at nate.wolf@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
October 15, 2025 10:35 ET (14:35 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.