GEICO ends Q2 with $1.8 billion profit

GEICO ended the second quarter of 2025 with a $1.8 billion underwriting profit, a slight increase compared to the same period last year.

Premiums written increased $545 million (5.2%) in the second quarter and $1.3 billion (5.9%) in the first six months of 2025 compared to 2024, reflecting an increase in policies-in-force and higher average premiums per policy.

Losses and loss adjustment expenses increased $190 million (2.5%) in the second quarter and $200 million (1.3%) in the first six months of 2025 compared to 2024. GEICO’s loss ratio (losses and loss adjustment expenses to premiums earned) was 71.8% in the second quarter and 70.4% in the first six months of 2025, decreases of 2.3 percentage points and 2.9 percentage points, respectively, compared to 2024. The loss ratio declines reflected the impact of higher average earned premiums per auto policy and lower claims frequencies, partially offset by increases in average claims severities and less favorable development of prior accident years’ claims estimates.

Underwriting expenses increased $370 million (39.9%) in the second quarter and $633 million (34.8%) in the first six months of 2025 compared to 2024. GEICO’s expense ratio (underwriting expense to premiums earned) was 11.3% in the first six months of 2025, an increase of 2.5 percentage points compared to 2024. The increases were attributable to increased policy acquisition related expenses.