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GEICO CORPORATION REPORTS 1992 FIRST QUARTER RESULTS

 GEICO CORPORATION REPORTS 1992 FIRST QUARTER RESULTS
 WASHINGTON, May 6 /PRNewswire/ - GEICO Corporation (NYSE: GEC)


today reported its results for the three months ended March 31, 1992. The corporation's interim report to shareholders will be mailed out on or about May 15, 1992.
 Commenting on the corporation's results, Chairman Bill Snyder said: "Financial results for the first quarter of 1992 were satisfactory. Net income for the quarter was $42.3 million ($2.93 per share), up from $40.9 million ($2.79 per share) in the first three months of 1991.
 "First quarter net aftertax realized gains of $8.2 million consisted of aftertax realized gains on investments of $21.3 million and an accrued aftertax realized loss of $13.1 million on the expected sale of our life insurance subsidiary. This compares to an aftertax realized loss of $0.7 million in the first three months of 1991.
 "Operating income, which excludes realized gains and losses, was $34.1 million ($2.36 per share) in the first three months of 1992 compared to $41.6 million ($2.84 per share) in the prior year.
 "Underwriting results in the quarter were satisfactory. The consolidated underwriting ratio was 96.4 percent compared with an unusually favorable 94.5 percent in the corresponding quarter last year. Weather-related catastrophe losses in the quarter were substantial, meaning that 1992 will be the fourth consecutive year in which weather-related and natural event losses have been higher than anticipated. GEICO's auto and homeowner claims losses from a severe hailstorm in the Orlando, Fla., area on March 25 exceeded $11 million. In addition to weather events, we experienced an increase in auto claims frequency in the quarter, perhaps a reflection of increased driving. Average severity for auto claims continued to increase at a 5-6 percent annual rate.
 "Property and casualty earned premiums were up 14.0 percent over the same quarter in 1991. The number of voluntary policies in force (excluding the policies of the two subsidiaries acquired in the second quarter of 1991) at the end of March was 9.1 percent above the number in force 12 months earlier. New sales continue to be strong and ahead of last year and the rate of policy renewal is also quite satisfactory.
 "In GEICO, our principal subsidiary, earned premiums were up 11.8 percent over the first quarter of 1991. Voluntary auto and homeowners new policy sales also were up when compared with the corresponding 1991 period. GEICO's underwriting ratio was 96.1 percent compared to a ratio of 94.2 percent in the prior year's first quarter," Snyder said.
 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.
 GEICO CORPORATION
 First Quarter Results
 (In millions, except ratios and per share results)
 Three Months Ended
 March 31,
 1992 1991
 Operating Results
 Premiums $ 500.2 $ 439.8
 Net investment income 50.6 45.9
 Realized gains (losses) on investments,
 pretax 18.9 (1.1)
 Other revenue 8.6 11.0
 Total revenue $ 578.3 $ 495.6
 Realized gains (losses) on investments,
 aftertax $ 8.2 $ (0.7)
 Net income 42.3 40.9
 Fresh start tax benefit 0.5 0.7
 Net income per share 2.93 2.79
 Aftertax realized gains (losses) per share 0.57 (0.05)
 Fresh start tax benefit per share 0.03 0.05
 Dividends paid per common share $ 0.75 $ 0.57
 Weighted average shares assumed outstanding 14.5 14.7
 Property and Casualty Ratios (in percent)
 Loss ratio 81.7 79.2
 Expense ratio 14.7 15.3
 Underwriting ratio 96.4 94.5
 March 31, Dec. 31,
 1992 1991
 Assets $4,275.7 $4,085.8
 Shareholders' equity $1,212.9 $1,184.3
 Common shares outstanding 14.2 14.2
 Book value per share $ 85.42 $ 83.34
 Return on equity (three-year rolling) 23.0 pct. 24.6 pct.
 Surplus for protection of policyholders $1,154.7 $1.104.6
 Ratio of 12 months written premiums
 to surplus 1.7:1 1.7:1
 -0- 5/6/92
 /CONTACT: Carroll R. Franklin, director, investor relations, GEICO Corporation, 301-986-2055/
 (GEC) CO: GEICO Corporation ST: District of Columbia IN: INS SU: ERN


TW -- DC019 -- 7038 05/06/92 11:27 EDT
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Date:May 6, 1992
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