GEICO Insurance Financial
Performance From Time to Time
Geico Insurance Financial Performance From 2000 into 2023–
According to Berkshire Hathaway’s Annual Report for the years 2002 to 2022,
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 2023, 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 over 41,000 workers with more
than 18 million auto policies in force and growing. 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 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 2023
|
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 |
|
Source: Berkshire Hathaway Inc
Annual Report, 2002-2023 |
|||
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 2023, 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 $ 39.8 billion US dollars in 2023. Meanwhile, the
premium earned has increased from $ 5.6 billion in 2000 and turned into $ 39.2
billion in 2023. According to Berkshire Hathaway’s Annual Report, the
premium written and earned have increased by about 6 times from 2000 to 2023.
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 2023, 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 2023, the company turned out
to be gaining pre-tax underwriting earnings of $ 3,635 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 2023
Berkshire Hathaway. Annual Report 2023. Accessed via https://www.berkshirehathaway.com/reports.html on
June 13th, 2024.
GEICO. 2023. GEICO At A Glance. Accessed via https://www.geico.com/about/corporate/at-a-glance/ on
June 13th, 2023.