What Happened?
Shares of insurance company Progressive (NYSE: PGR) fell 6.1% in the afternoon session after the company reported third-quarter results that fell short of Wall Street's expectations.
The insurer's GAAP earnings per share of $4.45 missed analysts' forecasts of $5.30. Several other key metrics also disappointed investors. Net premiums earned, a core measure of insurance revenue, grew 13.9% year-over-year to $20.85 billion but fell short of the $21.1 billion consensus estimate. Profitability was also weaker than anticipated, as the company's combined ratio was 89.5%, missing the forecast of 86.1%. A higher combined ratio indicates lower underwriting profitability. Furthermore, book value per share, a crucial metric for insurers, was $60.45, slightly below expectations of $61.57.
The shares closed the day at $226.50, down 5.8% from previous close.
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What Is The Market Telling Us
Progressive’s shares are not very volatile and have only had 1 move greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Progressive is down 5.9% since the beginning of the year, and at $226.50 per share, it is trading 22.2% below its 52-week high of $291.22 from March 2025. Investors who bought $1,000 worth of Progressive’s shares 5 years ago would now be looking at an investment worth $2,323.
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