GEICO Q3 underwriting profit drops to $982 million

GEICO’s pre-tax underwriting earnings fell 45% in the third quarter of 2026 to $982 million, from $1.77 billion a year earlier, according to Berkshire Hathaway’s Q3 report published November 7, 2026.

The combined ratio rose to 91.4% from 84.3%. The loss ratio climbed 5.1 points to 76.6%, which Berkshire attributed to higher claims frequencies and severities alongside lower average earned premiums per policy. Over the first nine months, bodily injury frequency rose 4% to 6% and severity 9% to 11%.

The expense ratio rose to 14.8% from 12.8%, driven primarily by higher commissions and advertising. Underwriting expenses rose 17% in the quarter.

Growth remains muted. Premiums written slipped 0.3% to $11.7 billion. Berkshire said policies-in-force continued to grow, offset by lower average premiums per policy.

As a side note, GEICO ended 2025 with 29,541 employees, up from 28,247 in 2024 but down 30% from a peak of 42,156 in 2020. Policies in force stood at about 16 million in 2025, below roughly 18 million in 2022.