Printer Friendly

GEICO CORPORATION REPORTS 1993 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, 1993. The corporation's interim report to shareholders will be mailed on or about Aug. 13, 1993.
 Net income for the six months was $147.4 million compared to $109.0 million for the same period in 1992. On a per share basis, net income this year was $2.06, up 37.3 percent from $1.50 in the first half of last year.
 Net income included net after-tax realized gains of $49.6 million (69 cents per share) in 1993 and $34.7 million (48 cents per share) in the first half of 1992. Last year included a $14.0 million loss on the sale of Garden State Life Insurance Company. Net income was reduced $12.7 million (18 cents per share) as a result of the one-time cumulative effect of adopting two new Financial Accounting Standards Board Statements related to deferred income taxes and post-retirement benefits as of Jan. 1, 1993.
 Operating income, which excludes realized gains and losses and the cumulative effect of changes in accounting, was $110.5 million ($1.55 per share) in the first six months of 1993 compared to $74.2 million ($1.02 per share) in 1992.
 The statutory consolidated underwriting ratio was 97.7 percent after accruing a $21.0 million premium refund for certain California policyholders compared to 95.5 percent at this point in 1992. Excluding the California refund which had previously been reflected in GAAP results, the second quarter year-to-date consolidated underwriting ratio was 95.8 percent. Weather-related incurred losses continued at a high level. In the first half of 1993 they exceeded $26 million compared to over $29 million in the corresponding 1992 period. Claims frequently increased slightly except for auto bodily injury (BI) frequency which is increasing more rapidly and is a cause for concern. Claims severity is increasing but at a rate that GEICO considers normal.
 Property and casualty earned premiums were up 9.7 percent over the corresponding period last year, reflecting the continued growth in policy counts in the primary product lines and modest rate increases. The number of voluntary policies in force grew 7.5 percent over the 12 month period ending June 30.
 Consolidated pretax net investment income for the first six months was $100.9 million, up only .3 percent, reflecting in part the low yields available on new fixed-income investments.
 Book value per share was $19.44 at June 30, 1993, representing an increase of 13.5 percent in the last 12 months.
 Please see the following for a comparison of 1993 and 1992 second quarter and six months results.
 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,
 1993 1992 1993 1992
 Operating Results
 Premiums $563.6 $517.0 $1,104.3 $1,017.2
 Net investment income 51.4 50.0 100.9 100.6
 Realized gains on investments,
 pretax 36.9 40.7 71.4 59.5
 Other revenue 7.8 9.7 17.2 18.4
 Total revenue $659.7 $617.4 $1,293.8 $1,195.7
 Realized gains on investments,
 aftertax $ 25.5 $ 26.5 $ 49.6 $ 34.7
 Net income before accounting
 changes 84.5 66.7 160.1 109.0
 Net income after accounting
 changes 84.5 66.7 147.4 109.0
 Net income per share
 before accounting changes 1.18 0.92 2.24 1.50
 Net income per share
 after accounting changes 1.18 0.92 2.06 1.50
 Aftertax realized gains
 per share 0.35 0.37 0.69 0.48
 Dividends paid per common share $ 0.17 $ 0.15 $ 0.34 $ 0.30
 Weighted average shares
 assumed outstanding 71.5 72.4 71.5 72.5
 Property and Casualty Ratios
 Including the effect of California
 Proposition 103 premium refunds
 in 1993 (In percent)
 Loss ratio 82.8 79.4 81.8 80.5
 Expense ratio 16.3 15.2 15.9 15.0
 Underwriting ratio 99.1 94.6 97.7 95.5
 Excluding the effect of California
 Proposition 103 premium refunds
 in 1993 (In percent)
 Loss ratio 79.7 79.4 80.2 80.5
 Expense ratio 15.7 15.2 15.6 15.0
 Underwriting ratio 95.4 94.6 95.8 95.5
 June 30, Dec. 31,
 Financial Condition 1993 1992
 Assets $4,793.0 $4,525.1
 Shareholders' equity $1,381.9 $1,292.5
 Common shares outstanding 71.1 71.2
 Book value per share $ 19.44 $ 18.16
 Return on equity (three-year rolling) 19.6 pct. 19.4 pct.
 Surplus for protection of policyholders $ 918.3 $ 968.3
 Ratio of 12 months written premiums
 to surplus 2.4:1 2.2:1
 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 Corporation, insures standard risk individuals.
 -0- 8/6/93
 /CONTACT: David L. Anderson, director, investor relations, GEICO, 301-986-2055/
 (GEC)


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

IH-MH -- DC003 -- 0222 08/06/93 09:43 EDT
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:Aug 6, 1993
Words:926
Previous Article:CPAC REPORTS FIRST QUARTER RESULTS
Next Article:MID-STATE FEDERAL ANNOUNCES SPECIAL SHAREHOLDEV'SqqjING !hPP # Y
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters