Progressive Corp (PGR) shares are down 4.4% to $244.06 Monday afternoon. This drop comes as insurance companies face mounting concerns over Hurricane Milton, a Category 5 storm bearing down on Florida. The state is still reeling from the impact of Hurricane Helene, which hit just weeks ago.
The prospect of consecutive hurricanes in such a short timeframe is raising alarm bells about potential insurance claim surges, potentially impacting Progressive’s financial performance in the upcoming quarter. As one of the leading auto insurers in the U.S., Progressive has significant exposure to weather conditions in Florida. The company offers a wide range of policies, including auto, homeowner, and commercial insurance.
Hurricane Milton, forecast to make landfall as a Category 4 or 5 storm, poses a serious threat of widespread damage, including flooding, wind damage, and storm surge. This has investors worried about the number of claims that could arise. The sheer size and trajectory of Milton suggest it could cause even more destruction than Helene, potentially impacting property, infrastructure, and vehicles across a large portion of Florida.
Progressive, a strong performer in the property and casualty insurance sector, faces the risk of a surge in auto claims. Florida is a crucial market for the company, and major hurricanes typically result in substantial vehicle damage due to flooding and flying debris. In the aftermath of Milton, Progressive could witness a significant increase in claims related to damaged and wrecked vehicles, as well as property claims from homeowners affected by the storm.
When Hurricane Helene struck less than two weeks ago, initial assessments indicated that insurance losses would be manageable. However, with Milton now expected to hit harder and affect a wider area, Progressive may be bracing for significantly higher claim volumes than initially anticipated. The combined impact of both storms could place substantial pressure on the company’s underwriting profitability for the remainder of the year.
How to Buy PGR Stock
Besides purchasing shares – or fractional shares – through a brokerage platform, you can also gain access to Progressive shares through other means:
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Exchange-Traded Funds (ETFs):
Invest in an ETF that holds Progressive stock, providing exposure to the company.*
401(k) Strategies:
Allocate your 401(k) to a strategy that seeks to acquire shares in a mutual fund or other instrument that includes Progressive. Since Progressive operates in the Financials sector, ETFs often hold shares in large, liquid companies within this sector, offering investors exposure to trends within that segment.According to Benzinga Pro, PGR has a 52-week high of $260.46 and a 52-week low of $141.84.
