Ahead ofthe Bell: Progressive

NEW YORK --A Goldman Sachs analyst cut his earnings estimates for Progressive Corp. late Thursday after the car insurer posted results implying it is selling insurance policies at cheaper prices.

On Wednesday, Progressive said premiums written declined 3 percent in May to $1.06 billion even though the Mayfield Village, Ohio-based insurer sold more policies. That suggests each policy is selling for less.

Further, Progressive said it spent 93.3 cents per premium dollar paying and administering claims, an increase of 6.6 cents on the dollar from May 2006.

Profit in May declined 35 percent to $81.6 million.

Goldman Sachs analyst Thomas. V. Cholnoky said the decline in insurance premiums may be accelerating. He cut his earnings estimate for 2007 to $1.83 per share from $1.90.

Analysts polled by Thomson Financial forecast profit of $1.86 for the year.