Progressive Stock’s Slide May Have Gone Too Far. It’s a Chance to Buy.

Wall Street may have overreacted to bad news at Progressive, slamming the stock and sending shares lower across the auto insurance industry. The problem was that Progressive, tops among U.S. property and casualty insurers with a market value of $130 billion, reported a profit of 52 cents a share for September, down 48% from the year-earlier period. Its combined ratio—the sum of expenses and claims as a percentage of premiums—came in 86.5% for September, excluding a $950 million so-called policyholder-credit expense for Florida customers, according to the company.

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