Progressive, Ace, Lincoln National show latest toll for insurers

SAN FRANCISCO (MarketWatch) -- Adding to a string of woes coming to light in the insurance industry, Progressive Corp., XL Capital and Ace Ltd., on Friday unveiled investment losses that partly stem from September's market meltdown. Shares of Progressive Corp. , a leading issuer of auto policies, dropped after the company detailed $1.04 billion of net realized losses in September, that reflected exposure to the preferred stock of fallen financial giants like Fannie Mae, Lehman Bros. and Washington Mutual. Progressive shares fell 11% to $11.52 at last check. The insurer also wrote down the fair value of preferred stock it holds in other financial-services companies including Bank of America . Progressive said there are... [read full story]