BRK-B · 10-Q · 2026Q1 · Full report
GEICO Underwriting Pressure
BERKSHIRE HATHAWAY INC · 2026-05-04 · Importance 66 · Surprise 40 · Contradicted
GEICO reported premiums written of $11.7 billion in Q1 2026 (up 1.5%) and premiums earned of $11.186 billion (up 4.0%). The loss ratio rose to 73.9% (an increase of 4.9 percentage points) driven by higher private passenger auto claim frequencies (bodily injury up ~5–7%, property damage and collision up ~2–4%) and higher average severities (bodily injury up ~12–14%). Underwriting expenses increased 29.3%, with the expense ratio rising to 13.4%, primarily from increased policy acquisition–related costs; average premiums per private passenger policy declined, partially offset by increased commercial auto business. GEICO continues to underwrite predominantly in the U.S. (all 50 states and D.C.) and includes a small commercial auto book (<5% of premiums written).
Key facts
- GEICO underwriting expenses: $1,493 million (13.4% of premiums earned) in Q1 2026 and $1,155 million (10.8%) in Q1 2025; underwriting expenses increased $338 million (29.3%). source
- GEICO losses and LAE: $8,277 million (73.9% of premiums earned) in Q1 2026 and $7,424 million (69.0%) in Q1 2025; losses and LAE increased $853 million (11.5%). source
- GEICO loss ratio was 73.9% in Q1 2026, an increase of 4.9 percentage points versus 2025. source
- GEICO pre-tax underwriting earnings in the First Quarter: $1,416 million in 2026 and $2,173 million in 2025. source
- GEICO premiums earned: $11,186 million in Q1 2026 and $10,752 million in Q1 2025; premiums earned increased $434 million (4.0%). source
- GEICO premiums written: $11,674 million in Q1 2026 and $11,506 million in Q1 2025; premiums written increased $168 million (1.5%). source
- Private passenger auto average claims severities in Q1 2026 increased 12% to 14% for bodily injury and 2% to 4% for property damage and collision versus 2025. source
- Private passenger auto claims frequencies increased in Q1 2026 in the range of 5% to 7% for bodily injury and 2% to 4% for property damage and collision compared to 2025. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| margin | positive | realized | +4.9% | GEICO loss ratio was 73.9% in Q1 2026, an increase of 4.9 percentage points versus 2025. |
| operating_income | negative | realized | -1.4% | GEICO losses and LAE: $8,277 million (73.9% of premiums earned) in Q1 2026 and $7,424 million (69.0%) in Q1 2025; losses and LAE increased… |
| operating_income | negative | realized | -1.2% | GEICO pre-tax underwriting earnings in the First Quarter: $1,416 million in 2026 and $2,173 million in 2025. |
| revenue | positive | realized | +0.7% | GEICO premiums earned: $11,186 million in Q1 2026 and $10,752 million in Q1 2025; premiums earned increased $434 million (4.0%). |
| operating_income | negative | realized | -0.5% | GEICO underwriting expenses: $1,493 million (13.4% of premiums earned) in Q1 2026 and $1,155 million (10.8%) in Q1 2025; underwriting… |
| assets | positive | realized | +0.0% | GEICO premiums written: $11,674 million in Q1 2026 and $11,506 million in Q1 2025; premiums written increased $168 million (1.5%). |
| operating_income | negative | realized | — | Private passenger auto average claims severities in Q1 2026 increased 12% to 14% for bodily injury and 2% to 4% for property damage and… |
| operating_income | negative | realized | — | Private passenger auto claims frequencies increased in Q1 2026 in the range of 5% to 7% for bodily injury and 2% to 4% for property damage… |