GEICO ends Q3 with $1 billion profit (2024)

Berkshire Hathaway released its third quarter results and GEICO now counts three straight profitable quarters.

The insurer reported a ~$1 billion gain in the quarter compared to a $759 million loss for the same period last year. GEICO ended the first nine months of 2023 with a $2.3 billion profit, compared to a $1.4 billion loss for the same period in 2022.

Premiums written in the third quarter and the first nine months of 2023 were $10.4 billion and $29.9 billion, respectively. Premiums written increased $283 million (2.8%) in the third quarter and were substantially unchanged in the first nine months of 2023 compared to 2022. Premiums written in 2023 reflected rate increases during the past 12 months that produced higher average premiums per auto policy (16.8%) and a 2.3 million decrease (12.7%) in policies-in-force over that period.

GEICO significantly reduced advertising in 2023 and 2022 which contributed to the reduction in policies-in-force. The company reported a 54% reduction in year-to-date advertising expenses.

GEICO’s loss ratio was 80% in the third quarter and 82.5% in the first nine months of 2023, decreases of 17 percentage points and 10.6 percentage points, respectively, compared to 2022.

Combined ratio was 89.3% in the third quarter and 92.2% in the first nine months of 2023, decreases of 18.4 percentage points and 12.7 percentage points, respectively, compared to 2022.