GEICO ends Q1 2023 with a profit

After reporting losses in six straight quarters, GEICO has achieved a $703 million underwriting profit in the first quarter of 2023 and a 92.7% combined ratio.

GEICO’s pre-tax underwriting earnings in the quarter reflected higher average premiums per auto policy, a reduction in advertising costs, as well as favorable prior accident year development.

Underwriting expenses in the quarter were $931 million, a decrease of $257 million (21.6%) compared to 2022. GEICO’s expense ratio in the first quarter of 2023 was 9.7% compared to 12.5% in 2022. These decreases were driven by the reduction in advertising expenses.

Premiums written in the first quarter decreased $205 million (2%) compared to the first quarter of 2022.

Since March 31, 2022, GEICO’s total number of policies decreased by 2.4 million (13%).