(Progressive story updated to reflect share price change)
NEW YORK (TheStreet) -- Shares of Progressive (PGR) stock have recovered from a tumble earlier this morning after the auto insurer reported lower second-quarter earnings, even as it remains a dominant player in a highly competitive industry.

Progressive stock has risen 1.1% to $20.05 late Wednesday morning, after falling 1.1% to $19.62 shortly after the market open.
Progressive Insurance

During the second quarter, Progressive's second-quarter net income fell 15% to $211.9 million, or 32 cents a share, from $250.1 million, or 37 cents a share the previous year.

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Net premiums written rose 5% to $3.71 billion, while net premiums increased 4% to $3.6 billion.

The Street consensus estimate for Progressive's second quarter was earnings of 36 cents a share on $3.7 billion of premiums written.

Excluding items, Progressive's earnings were 38 cents a share, topping estimates.

Last June, Standard & Poor's cut its ratings on Progressive's operating companies to "AA" from "AA+" with a stable outlook. The ratings reduction reflected a decline in Progressive's capital adequacy to strong from very strong.

The auto insurer is the fourth-largest player in its sector. Despite a highly competitive pricing landscape, auto sales weakness and a fragile economy, premium growth at the company is still expected to continue to be better than that of many of its peers.
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-- Reported by Andrea Tse in New York

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