GEICO Insurance Financial Performance From Time to Time
Geico Insurance Financial
Performance From 2000 into 2024– According to Berkshire Hathaway’s Annual Report for the
years 2002 to 2024, GEIO Insurance has grown to be one of the leading companies
in the insurance sector with prodiving vehicle insurance, property insurance,
business insurance, and the other insurance products (Pet, life, travel,
overseas). In some instances, Government Employees Insurance
Company or commonly known as GEICO Insurance has performed well. From
2000 to 2024, this company can show positive performance with gaining most of
pre-tax underwriting earnings and just suffered losses in 3 times (2000, 2017,
and 2022).
GEICO, also known as the
Government Employees Insurance Company, has a central office based in Chevy
Chase, Maryland. Historically, the journey of GEICO begins after Leo Goodwin
Sr. and his wife, Lillian Goodwin, founded this business in 1936 at San Antonio,
Texas, United States. Geographically, with the good progress of its
insurance business, GEICO also has some regional offices in Buffalo (New York),
Dallas (Texas), Fredericksburg (Virginia) Indianapolis (IN), Lakeland
(Florida), Macon (Georgia), San Diego (California) Tucson (Arizona), Virginia
Beach (Virginia), Woodbury (New York).
To Date, GEICO now employs
more than 30,000 associates with more than 18 million auto policies in force
and growth. Furthermore, GEICO’s marketing is commonly through direct response
methods in which applications for insurance are submitted directly to the
companies via the Internet or by telephone.
Until in 1996, Warren
Buffett through Berkshire Hathaway acquires the outstanding GEICO’ s shares,
making GEICO into the part of a subsidiary company of Berkshire Hathaway, Inc.
Structurally, Warren Buffet and Charlie Munger are the two men behind of Berkshire
Hathaway. This duo has developed Berkshire Hathaway and Geico to be better dan
bigger companies. Until now, Geico is still Berkshire Hathaway’s subsidiary
company. GEIO was mostly recognized as a vehicle insurance product. In
the USA, there are five biggest auto insurers had a combined market share of
roughly 61 % based on written premiums in 2021, according to data from A.M.
Best (one of the biggest credit rating agencies in the world that specializes
in the insurance industry). Geico still has become one of the biggest five auto
insurers in USA. As one of five largest automobile insurers, GEICO has the
second largest market share at approximately 14.4%.
Premium Written, Premium Earned, and Pre-tax Underwriting Earnings (loss) of GEICO Insurance From 2000 to 2024
Years |
Premiun Written |
Premium Earned |
Pre-tax underwriting earnings
(loss) |
million US Dollar |
million US Dollar |
million US Dollar |
|
|
(in million USD) |
(in million USD) |
(in million USD) |
2000 |
$5,778 |
$5,610 |
$ -224 |
2001 |
$6,176 |
$6,060 |
$ 221 |
2002 |
$6,963 |
$6,670 |
$ 416 |
2003 |
$8,081 |
$ 7,784 |
$ 452 |
2004 |
$9,212 |
$ 8,915 |
$ 970 |
2005 |
$10,285 |
$10,101 |
$ 1,221 |
2006 |
$11,303 |
$11,055 |
$1,314 |
2007 |
$11,931 |
$ 11,806 |
$1,113 |
2008 |
$12,741 |
$ 12,479 |
$ 916 |
2009 |
$13,576 |
$13,758 |
$ 649 |
2010 |
$14,283 |
$14,494 |
$1,117 |
2011 |
$15,363 |
$15,664 |
$ 576 |
2012 |
$17,129 |
$16,740 |
$ 680 |
2013 |
$19,083 |
$18,572 |
$1,127 |
2014 |
$20,962 |
$20,496 |
$1,159 |
2015 |
$ 23,378 |
$ 22,718 |
$ 460 |
2016 |
$ 26,309 |
$ 25,483 |
$ 462 |
2017 |
$ 30,547 |
$ 29,441 |
$ -310 |
2018 |
$ 34,123 |
$ 33,363 |
$ 2,449 |
2019 |
$ 36,016 |
$ 35,572 |
$ 1,506 |
2020 |
$ 34,928 |
$ 35,093 |
$ 3,428 |
2021 |
$ 38,395 |
$ 37,706 |
$ 1,259 |
2022 |
$ 39,107 |
$ 38,984 |
$ -1,880 |
2023 |
$ 39,837 |
$ 39,264 |
$ 3,635 |
2024 |
$ 42,916 |
$ 42,252 |
$ 7,813 |
Source: Berkshire Hathaway Inc Annual Report,
2002-2024 |
As an insurance provider,
GEICO has affiliates that offer a variety of insurance products to its clients.
Some of the products include Government Employees Insurance Company, GEICO
General Insurance Company, GEICO Indemnity Company, GEICO Casualty Company,
GEICO Advantage Insurance Company, GEICO Choice Insurance Company, GEICO Secure
Insurance Company, GEICO County Mutual Insurance Company, GEICO Texas County
Mutual Insurance Company, and GEICO Marine Insurance Company.
From 2021 to 2024, GEICO Insurance Financial Performance is quite good. The Premium Written of GEICO primarily displayed rising positive performance. The premium written of GEICO has increased from $ 5.7 billion US dollars in 2000 and become $ 42.9 billion US dollars in 2024. Meanwhile, the premium earned has increased from $ 5.6 billion in 2000 and turned into $ 42.2 billion in 2024. According to Berkshire Hathaway’s Annual Report, the premium written and earned have increased by about 6 times from 2000 to 2024. Furthermore, based on the financial ratings, GEICO also has strong financial conditions from some rating companies with an AA+ rating from Standard and Poor’s, Aa1 from Moody’s, and A++ from A. M. Best.
In 2024, GEIO has
demonstrated quite impressive in terms of financial performance after severed
net loss in 2022. In the year 2022, this company suffered $ -1,880 million.
Furthermore, in 2024, the company turned out to be gaining pre-tax underwriting
earnings of $ 7,813 million. Besides in 2022, this company experienced pre-tax
underwriting losses in 2000 and 2017 with value of losses $ -224 million and $
-310 million, respectively.
Bibliography of Geico Insurance Financial Performance From 2000 Into 2024
Berkshire Hathaway. 2025.
Annual Report 2024. Accessed via https://www.berkshirehathaway.com/reports.html on
March 13th, 2025.
GEICO. 2023. GEICO at a
Glance. Accessed via https://www.geico.com/about/corporate/at-a-glance/ on
March 13th, 2025.