This Insurer Is the One of the Worst-Performing Stocks in the S&P 500 Today. Here’s Why.

Progressive’s net income fell 48% in September from the previous year. (Courtesy Progressive)

Key Points

• Progressive’s third-quarter earnings of $4.45 a share miss analysts’ consensus of $5.04.
• Net premiums written increase 10% to $21.38 billion but fall short of Wall Street’s $21.73 billion forecast.
• A 2023 Florida policy change capping auto insurance profits impacts results in September.

Progressive was the second worst-performing stock 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 6.7% to $224.40, putting it on pace for its lowest close since Aug. 12, 2024. Progressive shares have fallen 7.4% this year. The S&P 500 has risen about 14%.

Axon Enterprise, the maker of taser guns used by law enforcement officers, was the biggest laggard stock in the index on Wednesday, falling 8.3%. It wasn’t clear what caused the pullback.

Progressive’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. Progressive has around 2.7 million personal auto policyholders in Florida as of Sept. 30, 2025.

Other insurance stocks also declined Wednesday. Allstate dropped 4.8%, putting it on pace for its worst day since April, per Dow Jones Market Data. Chubb fell 2.8% and Travelers , which reports earnings Thursday morning, sank 2.8%.

Write to Nate Wolf at nate.wolf@barrons.com