GEICO ends Q2 2026 with $994 million profit

GEICO ended the second half of 2026 with a $994 million underwriting profit, a ~45% decrease ($827M) compared to the same period last year.

Premiums written increased $121 million (1.1%) in the second quarter and $289 million (1.3%) in the first six months of 2026 compared to 2025, reflecting an increase in commercial auto business, partially offset by lower average premiums per policy for private passenger auto insurance. Premiums earned increased $227 million (2.1%) in the second quarter and $661 million (3.0%) in the first six months of 2026 compared to 2025.

Losses and loss adjustment expenses increased $699 million (8.8%) in the second quarter and $1.6 billion (10.1%) in the first six months of 2026 compared to 2025. GEICO’s loss ratio (losses and LAE to premiums earned) was 76.6% in the second quarter and 75.3% in the first six months of 2026, increases of 4.8 percentage points and 4.9 percentage points, respectively, compared to 2025. The loss ratio increases reflected the impact of higher claims frequencies and average severities.

Underwriting expenses increased $355 million (27.3%) in the second quarter and $693 million (28.3%) in the first six months of 2026 compared to 2025. The expense ratio (underwriting expense to premiums earned) was 14% in the first six months of 2026, an increase of 2.7 percentage points compared to 2025. These increases were primarily driven by increases in commissions and advertising expenses.