Geico Insurance Financial Performance From 2000 Into 2022– According to Berkshire Hathaway’s Annual Report for the years 2002 to 2022, GEIO Insurance has grown to be one of the leading companies in the insurance sector. In some instances, Government Employees Insurance Company or commonly known as Geico Insurance has performed well . From 2000 to 2020, this company can show positive performance with gaining most of pre-tax underwriting earnings and just suffered losses in 3 times (2000, 2017, and 2022).
GEICO, also known as the Government Employees Insurance Company, has central office based in Chevy Chase, Maryland. Historically, the journey of GEICO begins after Leo Goodwin Sr. and his wife, Lillian Goodwin, founded this business in 1936 at San Antonio, Texas, United States. Geographically, with the good progress of its insurance business, GEICO also has some regional offices in Buffalo (New York), Dallas (Texas), Fredericksburg (Virginia) Indianapolis (IN), Lakeland (Florida), Macon (Georgia), San Diego (California) Tucson (Arizona), Virginia Beach (Virginia), Woodbury (New York).
To Date, GEICO now employs over 41,000 workers with more than 18 million auto policies in force and growing. Furthermore, GEICO’s marketing is commonly through direct response methods in which applications for insurance are submitted directly to the companies via the Internet or by telephone.
Until in 1996, Warren Buffett through Berkshire Hathaway acquires the outstanding GEICO’ s shares, making GEICO into the part of a subsidiary company of Berkshire Hathaway, Inc. Structurally, Warren Buffet and Charlie Munger are the two men behind of Berkshire Hathaway. This duo has developed Berkshire Hathaway and Geico to be better dan bigger company. Until now, Geico is still a Berkshire Hathaway’s subsidiary company. GEIO was mostly recognized as a vehicle insurance product. In the USA, there are five biggest auto insurers had a combined market share of roughly 61 % based on written premiums in 2021, according to data from A.M. Best (one of the biggest credit rating agencies in the world that specializes in the insurance industry). Geico still become one of the biggest five auto insurers in USA. As one of five largest automobile insurers, GEICO has the second largest market share at approximately 14.4%.
Premium Written, Premium Earned, and Pre-tax Underwriting Earnings (loss) of Geico Insurance From 2000 to 2022
| Years | Premiun Written | Premium Earned | Pre-tax underwriting earnings (loss) |
|---|---|---|---|
| million US Dollar | million US Dollar | million US Dollar | |
| 2000 | $5,778 | $5,610 | $ -224 |
| 2001 | $6,176 | $6,060 | $ 221 |
| 2002 | $6,963 | $6,670 | $ 416 |
| 2003 | $8,081 | $ 7,784 | $ 452 |
| 2004 | $9,212 | $ 8,915 | $ 970 |
| 2005 | $10,285 | $10,101 | $ 1,221 |
| 2006 | $11,303 | $11,055 | $1,314 |
| 2007 | $11,931 | $ 11,806 | $1,113 |
| 2008 | $12,741 | $ 12,479 | $ 916 |
| 2009 | $13,576 | $13,758 | $ 649 |
| 2010 | $14,283 | $14,494 | $1,117 |
| 2011 | $15,363 | $15,664 | $ 576 |
| 2012 | $17,129 | $16,740 | $ 680 |
| 2013 | $19,083 | $18,572 | $1,127 |
| 2014 | $20,962 | $20,496 | $1,159 |
| 2015 | $ 23,378 | $ 22,718 | $ 460 |
| 2016 | $ 26,309 | $ 25,483 | $ 462 |
| 2017 | $ 30,547 | $ 29,441 | $ -310 |
| 2018 | $ 34,123 | $ 33,363 | $ 2,449 |
| 2019 | $ 36,016 | $ 35,572 | $ 1,506 |
| 2020 | $ 34,928 | $ 35,093 | $ 3,428 |
| 2021 | $ 38,395 | $ 37,706 | $ 1,259 |
| 2022 | $ 39,107 | $ 38,984 | $ -1880 |
| Source: Berkshire Hathaway Inc Annual Report, 2002-2022 | |||
As an insurance provider, GEICO has affiliates that offer a variety of insurance products to its clients. Some of the products include Government Employees Insurance Company, GEICO General Insurance Company, GEICO Indemnity Company, GEICO Casualty Company, GEICO Advantage Insurance Company, GEICO Choice Insurance Company, GEICO Secure Insurance Company, GEICO County Mutual Insurance Company, GEICO Texas County Mutual Insurance Company, and GEICO Marine Insurance Company.
From 2021 to 2022, GEICO Insurance Financial Performance is quite good. The Premium Written of GEICO primarily displayed the rising positive performance. the premium written of GEICO has increased from $ 5.7 billion US dollars in 2000 and become $ 39.1 billion US dollars in 2022. Meanwhile, the premium earned has increased from $ 5.6 billion in 2000 and turned into $ 39.1 billion in 2022. According to Berkshire Hathaway’s Annual Report, the premium written and earned have increased by about 6 times from 2000 to 2022. Furthermore, based on the financial ratings, GEICO also has strong financial conditions from some rating companies with AA+ rating from Standard and Poor’s, Aa1 from Moody’s, and A++ from A. M. Best.
In 2022, GEIO has demonstrated the less impressive in terms of financial performance. This corporation has suffered losses after demonstrated steady underwriting profit from 2018 to 2021. In the Year of 2022, this company suffered $ -1,880 million. Besides in 2022, this company experienced pre-tax underwriting losses in 2000 and 2017 with value of losses $ -224 million and $ -310 million, respectively.
Bibliography of Geico Insurance Financial Performance From 2000 Into 2022
Berkshire Hathaway. Annual Report 2022. Accessed via https://www.berkshirehathaway.com/reports.html on June 13th, 2023.
GEICO. 2023. GEICO At A Glance. Accessed via https://www.geico.com/about/corporate/at-a-glance/ on June 13th, 2023.
