GEICO ends Q3 with $1.7 billion profit

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GEICO

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ended the third quarter of 2025 with a $1.7 billion underwriting profit, a ~13% decrease ($260M) compared to the same period last year.

Premiums written increased $563 million (5%) in the third quarter and $1.8 billion (5.6%) in the first nine months of 2025 compared to 2024, reflecting an increase in policies-in-force.

Losses and loss adjustment expenses increased $413 million (5.4%) in the third quarter and $613 million (2.7%) in the first nine months of 2025 compared to 2024. GEICO’s loss ratio (losses and loss adjustment expenses to premiums earned) was 71.5% in the third quarter and 70.8% in the first nine months of 2025, an increase of 0.1 percentage points and a decrease of 1.8 percentage points, respectively, compared to the corresponding periods in 2024. The loss ratio decline in the first nine months reflected higher average earned premiums per policy, lower claims frequencies, lower catastrophe losses and more favorable development of prior accident years’ claims estimates, partially offset by increases in average claims severities. Losses and loss adjustment expenses from Hurricane Helene were approximately $260 million in the third quarter and first nine months of 2024.

Underwriting expenses increased $412 million (39.9%) in the third quarter and $1 billion (36.6%) in the first nine months of 2025 compared to 2024. GEICO’s expense ratio (underwriting expense to premiums earned) was 11.8% in the first nine months of 2025, an increase of 2.7 percentage points compared to 2024. The increases were attributable to increased policy acquisition-related expenses.

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