Printer Friendly

GEICO CORPORATION REPORTS 1992 AUDITED RESULTS

 WASHINGTON, Feb. 18 /PRNewswire/ -- GEICO Corporation (NYSE: GEC) today reported its results for the three months and year ended Dec. 31, 1992. The corporation's 1992 annual report to shareholders will be mailed on or about March 16, 1993.
 Commenting on the corporation's results, Chairman Bill Snyder said: "Net income in 1992 was $172.8 million, down from $196.4 million in 1991. Record weather-related losses last year were a major factor affecting the decline in income. On a per share basis, net income in the past year was $2.39, down from $2.70 (adjusted for the 1992 stock split) in 1991. Net income included aftertax realized gains of 84 cents per share in 1992 and 27 cents per share in 1991.
 "Operating income, which excludes realized gains and losses, was $112.1 million ($1.55 per share), down substantially from $177.0 million ($2.43 per share) in the prior year, largely because of the weather-related losses just mentioned. Gross incurred losses from numerous weather storms in 1992 totaled $198 million including $150 million from Hurricane Andrew. On an aftertax basis and net of catastrophe reinsurance, these storm losses reduced 1992 earnings by $84.6 million ($1.17 per share) while in 1991, storm losses reduced earnings $13.2 million (18 cents per share).
 "Consolidated pretax net investment income for the year was up 5.4 percent over 1991, constrained in part by the low yields available on new fixed income investments. After tax realized gains (excluding the loss on the sale of our life insurance subsidiary reported earlier) were $74.4 million, compared to $19.4 million in 1991.
 "Book value per share was $18.16 at Dec. 31, 1992, compared to $16.67 at the end of 1991.
 "The consolidated underwriting ratio of 100.1 percent for 1992 compares unfavorably to the 96.4 percent ratio in 1991 because weather losses added approximately 6.3 points to the 1992 ratio and only 1.1 points in 1991.
 "Property and casualty earned premiums were up 11.0 percent over 1991, reflecting satisfactory growth in policy counts and relatively small average rate increases. The number of voluntary policies in force increased 8.5 percent during 1992; new business sales and policy renewal rates continued to be satisfactory for our major product lines," Snyder said.
 GEICO Corporation
 Fourth Quarter and Twelve Months Results
 (In millions, except ratios and per share results)
 3 Months Ended Year Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Operating Results
 Premiums $542.8 $500.1 $2,084.5 $1,888.4
 Net investment income 49.9 49.9 201.5 191.2
 Realized gains on
 investments, pretax 9.9 6.8 98.5 29.3
 Other revenue 8.0 9.1 35.5 38.1
 Total revenue $610.6 $565.9 $2,420.0 $2,147.0
 Realized gains on
 investments, aftertax $ 6.6 $ 4.5 $ 60.7 $ 19.4
 Net income 22.2 49.0 172.8 196.4
 Net income per share(A) .31 .68 2.39 2.70
 Aftertax realized gains
 per share(A) .09 .06 .84 .27
 Dividends paid per
 common share(A) $ .15 $ .114 $ .60 $ .456
 Weighted average shares
 assumed outstanding(A) 72.2 72.3 72.4 72.9
 Property and Casualty
 Ratios
 Loss ratio 86.1 pct. 76.9 pct. 84.8 pct. 79.0 pct.
 Expense ratio 16.1 pct. 17.0 pct. 15.3 pct. 15.9 pct.
 Underwriting ratio 102.2 pct. 93.9 pct. 100.1 pct. 94.9 pct.
 Underwriting ratio
 after policyholder
 dividends 102.2 pct. 97.6 pct. 100.1 pct. 96.4 pct.
 Dec. 31, Dec. 31,
 1992 1991
 Financial Condition
 Assets $4,377.6 $4,085.8
 Shareholders' equity $1,292.5 $1,184.3
 Common shares outstanding(A) 71.2 71.0
 Book value per share(A) $ 18.16 $ 16.67
 Return on equity (three-year rolling) 19.4 pct. 24.6 pct.
 Surplus for protection of policyholders $ 968.3 $1,104.6
 Ratio of 12 months written premiums
 to surplus 2.2:1 1.7:1
 (A) 1991 results have been restated to reflect a 5-for-1 stock split on May 20, 1992.
 GEICO Corporation is the parent company of Government Employees Insurance Company, which is referred to as GEICO. GEICO insures private passenger automobiles of preferred risk individuals employed by the federal government or the military. It also provides homeowner coverage and other types of insurance for qualified applicants. GEICO General Insurance Company, a subsidiary of GEICO, insures private passenger automobiles for preferred risks other than federal or military employees. GEICO Indemnity Company, also a subsidiary of GEICO, insures standard risk individuals.
 -0- 2/18/93
 /CONTACT: Carroll R. Franklin, director, investor relations, GEICO Corporation, 301-986-2055/
 (GEC)


CO: GEICO Corporation ST: District of Columbia IN: INS SU: ERN

DS -- DC044 -- 7994 02/18/93 14:48 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 18, 1993
Words:810
Previous Article:DATA BROADCASTING CORPORATION NAMES BLOCH TO BOARD OF DIRECTORS
Next Article:UPPER PENINSULA ENERGY CORPORATION REPORTS RESULTS
Topics:


Related Articles
GEICO CORPORATION REPORTS 1991 THIRD QUARTER RESULTS
GEICO CORPORATION REPORTS 1991 AUDITED RESULTS
GEICO CORPORATION REPORTS 1992 FIRST QUARTER RESULTS
GEICO CORPORATION REPORTS 1992 SECOND QUARTER RESULTS
GEICO CORPORATION REPORTS 1992 THIRD QUARTER RESULTS
GEICO CORPORATION REPORTS 1993 FIRST QUARTER RESULTS
GEICO CORPORATION REPORTS 1993 SECOND QUARTER RESULTS
GEICO CORPORATION REPORTS 1993 THIRD QUARTER RESULTS
GEICO CORPORATION REPORTS 1993 THIRD QUARTER RESULTS
GEICO CORPORATION REPORTS 1995 SECOND QUARTER RESULTS

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters