Progressive Corp (NYSE:PGR) shares are trading lower by 4.4% to $244.06 Monday afternoon. Shares of insurance companies are trading lower while Floridians experience evacuation orders as Category 5 Hurricane Milton approaches the state. The region is still recovering from damage due to Hurricane Helene.

What To Know: The potential for back-to-back hurricanes in such a short time span has raised concerns over escalating insurance claims, which could significantly impact Progressive's financial performance in the upcoming quarter.

As one of the largest auto insurers in the U.S., Progressive has exposure to weather conditinos in Florida. The company offers a range of policies, including automobile, homeowner, and commercial insurance.

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With Hurricane Milton forecasted to make landfall as a Category 4 or 5 storm, the potential for widespread damage—including flooding, wind damage and storm surge—has investors worried about the number of claims that could emerge.

Milton's size and trajectory suggest it could cause even more destruction than Helene, threatening property, infrastructure, and vehicles across a large portion of Florida.

What Else: Progressive, which has been a strong performer in the property and casualty insurance sector, faces the risk of a surge in auto claims. Florida is a key market for the company, and major hurricanes typically result in substantial damage to vehicles due to flooding and flying debris.

In the wake of Milton, Progressive may see a significant uptick in claims related to auto damage and wrecked vehicles, as well as property claims from homeowners affected by the storm.

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When Hurricane Helene hit less than two weeks ago, initial assessments suggested that insurance losses would be manageable. However, with Milton now expected to hit harder and affect a broader area, Progressive could be bracing for much higher claim volumes than originally anticipated.

The combination of claims from both storms could place significant pressure on the company's underwriting profitability for the remainder of the year.

How To Buy PGR Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Progressive's case, it is in the Financials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, PGR has a 52-week high of $260.46 and a 52-week low of $141.84.