GEICO reported an underwriting profit of $994 million for the first half of 2026, down approximately 45% from the same period a year earlier, as higher claims and underwriting expenses put pressure on results.
Premiums written increased 1.3% to $289 million more than the prior-year period during the first six months, supported by growth in commercial auto. This was partly offset by lower average premiums per policy in private passenger auto.
Premiums earned increased 3%, or $661 million, during the first half of the year.
The improvement in premium volume was more than offset by higher losses. Losses and loss adjustment expenses increased 10.1%, or $1.6 billion, compared with the first half of 2025.
GEICO’s loss ratio rose to 75.3%, up 4.9 percentage points year over year. The increase reflected higher claims frequency and average claim severity.
Underwriting expenses also increased sharply, rising 28.3%, or $693 million. The expense ratio reached 14%, an increase of 2.7 percentage points from the prior-year period.
GEICO attributed the increase primarily to higher commission and advertising expenses.
The insurer’s second-quarter results showed similar pressure. Premiums written increased 1.1%, while premiums earned rose 2.1%. Losses and loss adjustment expenses increased 8.8%, pushing the quarterly loss ratio to 76.6%, up 4.8 percentage points from Q2 2025.
