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GEICO posts $994M underwriting profit but loss ratio rises in 2026
GEICO’s loss ratio climbed to 76.6% in the second quarter, reflecting higher claims frequencies and average severities.
GEICO ended the second half of 2026 with a $994 million underwriting profit, roughly 45% lower than the same period a year earlier, according to Coverager.
Written premiums rose in both the second quarter and the first six months of 2026, with increases tied to growth in commercial auto business, partially offset by lower average premiums for private passenger auto insurance. Earned premiums also increased, but losses and loss adjustment expenses climbed faster.
In the second quarter, losses and LAE increased 8.8%, while they rose 10.1% across the first six months of 2026 versus 2025. GEICO’s loss ratio reached 76.6% in the second quarter and 75.3% for the first six months, each up about 4.8 to 4.9 percentage points year over year, with the increase linked to higher claims frequencies and average severities.
Underwriting expenses grew 27.3% in the second quarter and 28.3% for the first six months of 2026, pushing the expense ratio to 14% for the first half, up 2.7 percentage points. Coverager also noted that Foy will help shape GEICO’s financial strategy, oversee planning and capital management.