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GEICO CORPORATION REPORTS 1992 THIRD QUARTER RESULTS

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


today reported its results for the third quarter and nine months ended Sept. 30, 1992. The corporation's interim report to shareholders will be mailed on or about Nov. 13, 1992.
 Commenting on the corporation's results, Chairman Bill Snyder said: "Net income for the period was $150.6 million, up from $147.4 million for the same period in 1991, reflecting a much higher level of realized gains in 1992. On a per share basis, net income this year was $2.08, up from $2.02 (adjusted for the 1992 stock split) for the first nine months last year. Net income included aftertax realized gains of 75 cents per share in 1992 and 20 cents per share in the same 1991 period.
 "Operating income, which excludes realized gains and losses, was $96.5 million ($1.33 per share), down substantially from $132.5 million ($1.82 per share) at this point in 1991, primarily because of weather-related catastrophes. Gross incurred losses from catastrophic events in the first nine months of 1992 totaled $167 million including $135 million from Hurricane Andrew. On an aftertax basis and net of catastrophe reinsurance, these storm losses reduced 1992 earnings by $65.2 million (90 cents per share) while in the first nine months of 1991, storm losses reduced earnings $9.0 million (12 cents per share).
 "Consolidated pretax net investment income for the first nine months was up 7.3 percent over the same 1991 period, constrained in part by the low yields available on new fixed income investments. Realized gains (after tax and excluding the loss on the sale of our life insurance subsidiary reported last quarter) were $67.9 million, compared to $14.9 million at this point in 1991.
 "Book value per share was $17.61 at Sept. 30, 1992, representing an increase of 14.1 percent in the past 12 months.
 "The consolidated underwriting ratio of 99.3 percent at the end of three quarters of 1992 compares unfavorably to the 95.9 percent ratio at this point in 1991. Catastrophic losses added approximately 6.4 points to the 1992 underwriting ratio. Auto claims frequency (excluding the hurricanes) for property damage coverages was essentially unchanged when compared to the first nine months of 1991 but bodily injury (BI) claims frequency continued to increase. BI claims' average severity was also up.
 "Property and casualty earned premiums through nine months were up 11.5 percent over the same 1991 period, reflecting continued growth in policy counts but quite modest rate increases. The number of voluntary policies in force increased 8.3 percent in the 12 month period ending Sept. 30; new business sales and policy renewal rates continued to be satisfactory for our major product lines," Snyder said.
 Following is a comparison of 1992 and 1991 third quarter and nine months results:
 GEICO CORPORATION
 Third Quarter and Nine Months Results
 (In millions, except ratios and per share results)
 Three Months Nine Months
 Ended Ended
 Sept. 30, Sept. 30,
 1992 1991 1992 1991
 Operating Results
 Premiums $524.5 $487.4 $1,541.7 $1,388.3
 Net investment income 51.1 47.6 151.6 141.3
 Realized gains on investments,
 pretax 29.0 14.2 88.6 22.5
 Other revenue 9.1 8.5 27.5 29.0
 Total revenue $613.7 $557.7 $1,809.4 $1,581.1
 Realized gains on investments,
 aftertax $ 19.4 $ 9.4 $ 54.1 $ 14.9
 Net income 41.6 55.7 150.6 147.4
 Net income per share(A) 0.58 0.77 2.08 2.02
 Aftertax realized gains
 per share(A) 0.27 0.13 0.75 0.20
 Dividends paid
 per common share(A) $0.15 $0.114 $0.45 $0.342
 Weighted average shares
 assumed outstanding(A) 72.2 72.7 72.4 73.0
 Property and Casualty Ratios
 (in percent)
 Loss ratio 91.6 78.8 84.3 79.8
 Expense ratio 15.0 15.2 15.0 15.5
 Underwriting ratio 106.6 94.0 99.3 95.3
 Underwriting ratio after
 policyholder dividends 106.6 95.9 99.3 95.9
 Sept. 30, Dec. 31,
 Financial Condition 1992 1991
 Assets $4,385.6 $4,085.8
 Shareholders' equity $1,244.6 $1,184.3
 Common shares outstanding(A) 70.7 71.0
 Book value per share(A) $ 17.61 $ 16.67
 Return on equity (three-year rolling) 22.1 pct. 24.6 pct.
 Surplus for protection of policyholders $ 927.0 $1,104.6
 Ratio of 12 months written premiums
 to surplus 2.3:1 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- 11/6/92
 /CONTACT: Carroll R. Franklin, director, investor relations, GEICO, 301-986-2055/
 (GEC) CO: GEICO Corporation ST: District of Columbia IN: INS SU: ERN


TW -- DC007 -- 8160 11/06/92 11:57 EST
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