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GEICO CORPORATION REPORTS 1993 THIRD QUARTER RESULTS

 WASHINGTON, Nov. 8 /PRNewswire/ -- GEICO Corporation (NYSE: GEC) today reported its results for the third quarter and nine months ended Sept. 30, 1993. The corporation's interim report to shareholders will be mailed on or about Nov. 15, 1993.
 Net income for the first nine months was $223.5 million, up from $150.6 million for the same period in 1992. On a per share basis, net income this year was $3.13, up 50.5 percent from $2.08 for the first nine months last year. The increase this year is primarily a result of much better underwriting experience as last year included Hurricane Andrew's impact.
 Net income included net after-tax realized gains of $67.5 million (95 cents per share) in 1993 compared to $54.1 million (75 cents per share) in the same 1992 period. Net income in 1993 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. Last year's results included a $14.0 million loss on the sale of Garden State Life Insurance Company.
 Operating income, which excludes realized gains and losses and the cumulative effect of changes in accounting, was $168.7 million ($2.36 per share), up from $96.5 million ($1.33 per share) at this point in 1992.
 The statutory consolidated underwriting ratio was 96.6 percent after paying a $21.0 million premium refund for California Proposition 103. This compares to 99.3 percent at this point in 1992. Excluding the California refund, the 1993 third-quarter year-to-date consolidated underwriting ratio was 95.5 percent. The increase in bodily injury (BI) claims frequency appears to have slowed somewhat from earlier quarters. Claims severity continues to increase at a rate that GEICO considers normal.
 Property and casualty earned premiums through nine months were up 10.1 percent over the same 1992 period, reflecting continued growth in policy counts modest rate increases. The number of voluntary policies in force increased 7.4 percent in the 12 months period ending Sept. 30.
 Consolidated pretax net investment income for the first nine months was $151.5 million. This is essentially flat with 1992's nine-month results and continues to reflect the low yields available on new fixed income investments.
 Book value per share was $19.53 at Sept. 30, 1993, representing an increase of 10.9 percent in the past 12 months.
 Please see the following for a comparison of 1993 and 1992 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,
 1993 1992 1993 1992
 Operating Results
 Premiums $581.1 $524.5 $1,685.5 $1,541.7
 Net investment income 50.6 51.1 151.5 151.6
 Realized gains on investments,
 pretax 29.5 29.0 100.8 88.6
 Other revenue 8.5 9.1 25.7 27.5
 Total revenue $669.7 $613.7 $1,963.5 $1,809.4
 Realized gains on investments,
 aftertax $ 17.9 $ 19.4 $ 67.5 $ 54.1
 Net income before accounting
 changes 76.2 41.6 236.2 150.6
 Net income after accounting
 changes 76.2 41.6 223.5 150.6
 Net income per share
 before accounting changes 1.07 0.58 3.31 2.08
 Net income per share
 after accounting changes 1.07 0.58 3.13 2.08
 Aftertax realized gains
 per share 0.25 0.27 0.95 0.75
 Dividends paid per common share $ 0.17 $ 0.15 $ 0.51 $ 0.45
 Weighted average shares
 assumed outstanding 71.4 72.2 71.5 72.4
 Property and Casualty
 Statutory Ratios
 Including the effect of California
 Proposition 103 premium refunds
 in 1993 (In percent)
 Loss ratio 79.8 91.6 81.1 84.3
 Expense ratio 15.0 15.0 15.5 15.0
 Underwriting ratio 94.8 106.6 96.6 99.3
 Excluding the effect of California
 Proposition 103 premium refunds
 in 1993 (In percent)
 Loss ratio 79.8 91.6 80.1 84.3
 Expense ratio 15.0 15.0 15.4 15.0
 Underwriting ratio 94.8 106.6 95.5 99.3
 Sept. 30, Dec. 31,
 Financial Condition 1993 1992
 Assets $4,913.0 $4,525.1
 Shareholders' equity $1,385.8 $1,292.5
 Common shares outstanding 70.9 71.2
 Book value per share $ 19.53 $ 18.16
 Return on equity (three-year rolling) 20.0 pct. 19.4 pct.
 Surplus for protection of policyholders $ 901.1 $ 968.3
 Ratio of 12 months written premiums
 to surplus 2.5:1 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- 11/8/93
 /CONTACT: David L. Anderson, director, investor relations, of GEICO, 301-986-2055/
 (GEC)


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

IH-DT -- DC011 -- 1677 11/08/93 10:20 EST
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Date:Nov 8, 1993
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