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Progressive Shares Fall on Soft 2Q Earnings

By Will Feuer

 

Shares of Progressive fell more than 12% after the insurance company reported second-quarter earnings that were below Wall Street analysts' expectations.

The stock dropped 12.3% to $115.85 in morning trading, on pace for its largest one-day percent decline since Oct. 7, 2008. Over the past 12 months, the stock is down more than 1%.

The Mayfield Village, Ohio-based insurance company reported second-quarter earnings of $345.4 million, or 57 cents a share, compared with a loss of $542.9 million, or 94 cents a share, in the same quarter a year ago. Analysts surveyed by FactSet were expecting earnings of 83 cents a share.

Net premiums written rose 18% to $14.72 billion, while net premiums earned climbed 19% to $14.46 billion.

The company said it experienced unfavorable prior accident years reserve development of $137.8 million tied mostly to increases from actuarial reserve reviews in its personal auto products.

The company is scheduled to hold its quarterly conference call on Aug. 2.

 

Write to Will Feuer at Will.Feuer@wsj.com

 

(END) Dow Jones Newswires

July 13, 2023 12:10 ET (16:10 GMT)

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