AM Best has affirmed the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aaa” (Exceptional) of the members of Government Employees Group (GEICO) (Chevy Chase, MD). The outlook of these Credit Ratings (ratings) is stable. These companies are collectively referred to as GEICO. (See below for a detailed list of the companies and ratings.)

Concurrently, AM Best has affirmed the Long-Term ICR of “aaa” (Exceptional) of the intermediate holding company, GEICO Corporation (Wilmington, DE). The outlook of this rating is stable. In addition, AM Best has withdrawn this rating as GEICO Corporation has requested to no longer carry a rating for the intermediate holding company.

The ratings of GEICO reflect the group’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, very favorable business profile and appropriate enterprise risk management.

The ratings also reflect GEICO’s robust capitalization, historical track record of operating profitability, brand name recognition and preeminent national market position in the personal automobile insurance segment. Following a decline in 2022, the group’s capital position rebounded during 2023 and through the third quarter of 2024 on a year-to-date basis, largely driven by capital appreciation and operating earnings. The favorable trend is expected to continue going forward. Management has taken steps to improve the group’s underwriting results by implementing multiple initiatives, namely rate increases. GEICO’s operating results reflect a considerable underwriting expense advantage, driven by its direct business model. In addition, the group continues to produce a generally favorable loss experience while benefiting from a steady stream of investment income and historical capital gains in its investment portfolio. The group’s investment portfolio is managed actively in conjunction with its ultimate parent, Berkshire Hathaway Inc. (Berkshire) [NYSE: BRKa and BRKb].

Furthermore, these ratings continue to benefit from explicit support provided by GEICO Corporation’s parent company, National Indemnity Company, as well as implicit support from Berkshire. Berkshire’s financial profile included approximately $632 billion of stockholders’ equity as of Sept. 30, 2024, and the organization has a long history of strong profitability.

The FSR of A++ (Superior) and the Long-Term ICRs of “aaa” (Exceptional) have been affirmed with stable outlooks for the following members of Government Employees Group:

• Government Employees Insurance Company
• GEICO Indemnity Company
• GEICO Casualty Company
• GEICO General Insurance Company
• GEICO Advantage Insurance Company
• GEICO Choice Insurance Company
• GEICO Secure Insurance Company
• GEICO Marine Insurance Company
• GEICO Texas County Mutual Insurance Company
• GEICO County Mutual Insurance Company

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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