Tyler Crowe

Our two requests are one, keep it foolish.

And two, after reading lots of these, try to keep them short so we can read them on air.

So again, that email is podcasts at fool.com, podcasts at fool.com.

So today's question comes from Matt Koziak.

I apologize if I misspelled your name, but he wants to know a little bit more about the insurance industry.

And the question is Progressive, company ticker is PGR, has fallen quite a bit from its highs and it's currently yielding 7%.

What are your guys' thoughts?

We're going to go around the room.

So John, what did you see first?

What a nice response there.

I don't know much about industry, but I'm going to go through 10 years of its cyclical earnings to give you an idea of what you're talking about here.

So John speaking modestly here, but I want to actually kind of like interject with a point about the cyclicality here, too, because I was looking at some analyst projections, you know, industry analysts basically thinking like what the earnings and stuff like that for Progressive and several other companies in the industry are looking like over the next couple of years.

And for example, for fiscal year 2026, analysts are projecting 10% reduction in earnings per share.

And basically all the analyst projections I've seen for earnings and revenue across the insurance industry, not just progressive, we're talking about travelers and all state company, very similar companies in the property and casualty sort of lines.

All of them are more or less projecting either slightly down or flat earnings all the way out until 2028.

So, yeah, it does look like we're in a very cyclical moment.

Now, of course, analyst projections can change.

These are all just kind of looking into the crystal ball of what has happened in the industry before.

It could change.

And so take those numbers with a grain of salt.