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GEICO CORPORATION REPORTS 1992 SECOND QUARTER RESULTS

 GEICO CORPORATION REPORTS 1992 SECOND QUARTER RESULTS
 WASHINGTON, Aug. 6 /PRNewswire/ -- GEICO Corporation (NYSE: GEC)


today reported its results for the second quarter and six months ended June 30, 1992. The corporation's interim report to shareholders will be mailed on or about Aug. 13, 1992.
 Commenting on the corporation's results, Chairman Bill Snyder said: "Net income for the period was $109.0 million compared to $91.8 million for the same period in 1991. On a per share basis, net income this year was $1.50, up 19.0 percent from $1.26 in the first half of last year. Note that all share data (including 1991 data) have been restated to reflect the 5 for 1 stock split of May 20, 1992.
 "Net income included net aftertax realized gains of $34.7 million (48 cents per share) in 1992 and $5.5 million (8 cents per share) in the same 1991 period. The 1992 result includes a $14.0 million loss on the sale of our life insurance subsidiary as reported in the first quarter with the sale being completed in the second quarter.
 "Operating income, which excludes realized gains and losses, was $74.2 million ($1.02 per share) in the first six months of 1992, down from $86.2 million ($1.18 per share) in 1991.
 "Consolidated pretax net investment income for the first two quarters was up a modest 7.2 percent, reflecting in part the low yields available on new fixed income investments. Realized gains (after tax) were $48.7 million compared to $5.5 million in the first half of 1991. The foregoing excludes the loss on the sale of Garden State Life Insurance Company in 1992. The largest net investment purchases in the first two quarters were $181 million of U.S. government securities and obligations of U.S. government corporations and agencies.
 "Book value per share was $17.13 at June 30, 1992, representing an increase of 16.5 percent in the last 12 months.
 "Underwriting results for the six-month period were satisfactory despite a continuation of significant weather-related losses. The consolidated underwriting ratio was 95.5 percent compared to 96.0 percent at this point in 1991. Weather-related incurred losses in the first half of 1992 totaled over $29 million, larger than any other prior full year. Auto claims frequency for property damage coverages was essentially unchanged when compared to the first six months of 1991 but bodily injury (BI) claims frequency increased, and this is a concern. BI claims average severity was also up.
 "Property and casualty earned premiums were up 13.0 percent over the corresponding period last year, reflecting the continued strong growth in policy counts in our primary product lines. Rate increases for the period were small, averaging less than 1 percent on an annual basis for voluntary auto. The number of voluntary policies in force increased 8.2 percent over the 12-month period ending June 30. New sales were ahead of last year and the policy renewal rate also continued to be satisfactory.
 "In GEICO, our principal subsidiary, earned premiums were up 11.3 percent over the first six months of 1991, and GEICO's underwriting ratio was 95.3 percent compared to a ratio of 95.6 percent for the corresponding 1991 period," Snyder said.
 A comparison of 1992 and 1991 second quarter and six months results follows.
 GEICO CORPORATION
 Second Quarter and Six Months Results
 (In millions, except ratios and per share results)
 Three Months Six Months
 Ended Ended
 June 30, June 30,
 1992 1991 1992 1991
 Operating Results
 Premiums $517.0 $461.1 $1,017.2 $900.8
 Net investment income 50.0 47.9 100.6 93.8
 Realized gains on investments,
 pretax 40.7 9.4 59.5 8.4
 Other revenue 9.7 9.4 18.4 20.5
 Total revenue $617.4 $527.8 $1,195.7 $1,023.5
 Realized gains on investments,
 aftertax $26.5 $6.2 $34.7 $5.5
 Net income 66.7 50.8 109.0 91.8
 Net income per share(A) 0.92 0.70 1.50 1.26
 Aftertax realized gains
 per share(A) 0.37 0.09 0.48 0.08
 Dividends paid per common share $0.15 $0.114 $0.30 $0.228
 Weighted average shares
 assumed outstanding(A) 72.4 72.9 72.5 73.1
 Property and Casualty Ratios (in percent)
 Loss ratio 79.4 81.3 80.5 80.3
 Expense ratio 15.2 16.1 15.0 15.7
 Underwriting ratio 94.6 97.4 95.5 96.0
 June 30, Dec. 31,
 Financial Condition 1992 1991
 Assets $4,242.0 $4,085.8
 Shareholders' equity $1,211.8 $1,184.3
 Common shares outstanding(A) 70.7 71.0
 Book value per share(A) $ 17.13 $ 16.67
 Return on equity (three-year rolling) 22.6 pct. 24.6 pct.
 Surplus for protection of policyholders $1,078.3 $1,104.6
 Ratio of 12 months written premiums
 to surplus 1.9:1 1.7:1
 (A) 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- 8/6/92
 /CONTACT: Carroll R. Franklin, director, investor relations, GEICO Corporation, 301-986-2055/
 (GEC) CO: GEICO Corporation ST: Maryland IN: INS SU: ERN


MH -- DC006 -- 7496 08/06/92 10:14 EDT
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