(Bloomberg) — Progressive Corp., the fourth-largest U.S. car insurer, said second-quarter profit fell 9.6% as investment gains narrowed.
Net income dropped to $293.4 million, or 49 cents a share, from $324.6 million, or 54 cents, a year earlier, the Mayfield Village, Ohio-based company said today in a statement. Operating profit, which excludes some investment results, was 45 cents a share, missing the average 49-cent estimate of 17 analysts surveyed by Bloomberg.
Innovations that helped Progressive in the past, such as allowing clients to do more business through smartphones, are no longer drawing as many policyholders, according to Paul Newsome, an analyst at Sandler O'Neill & Partners. Chief Executive Officer Glenn Renwick also faced resistance from potential customers to technology that allows the company to track driving behavior and offer better rates to the safest motorists.
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