GEICO ends Q1 with $2.1 billion profit

GEICO ended the first quarter of 2025 with a $2.1 billion underwriting profit, a ~13% increase compared to the same period last year.

Premiums written increased $710 million (6.6%) in the first quarter of 2025 compared to 2024, reflecting an increase in policies in-force and higher average premiums per policy.

Losses and loss adjustment expenses increased $10 million (0.1%) in the quarter compared to 2024. GEICO’s loss ratio (losses and loss adjustment expenses to premiums earned) was 69% in the quarter, a decrease of 3.5 percentage points compared to 2024. The loss ratio decline reflected the impact of higher average 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 $263 million in the first quarter of 2025 compared to 2024. GEICO’s expense ratio (underwriting expense to premiums earned) was 10.8% in the quarter, an increase of 2.1 percentage points compared to 2024, attributable to increased policy acquisition related expenses, partially offset by increased operating leverage.