GEICO ends Q1 with $1.4 billion profit

GEICO ended the first quarter of 2026 with a $1.4 billion underwriting profit, a ~34% decrease ($757M) compared to the same period last year.

Premiums written increased $168 million (1.5%) in the first quarter to $11.7 billion, reflecting an increase in commercial auto business, partially offset by lower average premiums per policy for private passenger auto insurance. Premiums earned increased $434 million (4%) in the first quarter compared to 2025.

Losses and loss adjustment expenses increased $853 million (11.5%) in the first quarter compared to 2025. GEICO’s loss ratio (losses and loss adjustment expenses to premiums earned) was 73.9% in the first quarter of 2026, an increase of 4.9 percentage points compared to 2025. The loss ratio increase reflected the impact of higher claims frequencies and average severities.

Underwriting expenses increased $338 million (29.3%) in the first quarter compared to 2025. The expense ratio (underwriting expense to premiums earned) was 13.4% in the first quarter, an increase of 2.6 percentage points compared to 2025. The increases were primarily driven by increased policy acquisition-related expenses.