A.M. Best Affirms Credit Ratings of the Members of GEICO and GEICO Corporation
The ratings reflect GEICO’s superior risk-adjusted capitalization, favorable operating performance, brand name recognition and preeminent national market position in the personal automobile insurance segment. GEICO’s solid operating results reflect a considerable underwriting expense advantage, driven by its direct distribution business model. In addition, the group continues to produce favorable loss experience while benefiting from a steady stream of investment income. As a result, GEICO’s substantial capital growth over the most recent five-year period has comfortably supported the steady growth in premiums.
All ratings also recognize the considerable resources and financial strength of GEICO Corporation’s parent company,
Partially offsetting rating factors include GEICO’s high investment leverage derived from its significant allocation of invested assets to unaffiliated equities, which could lead to fluctuations in its risk-adjusted capitalization due to market swings or potential stock market downturns. In addition, GEICO maintains a modest geographic concentration that exposes it to legislative changes and judicial decisions, as its top five states account for slightly more than half of its direct premiums written. However, this risk is largely mitigated by GEICO’s geographic spread throughout
The ratings of GEICO Marine reflect its supportive risk-adjusted capitalization, historical ocean marine specialty niche expertise and the implicit financial support currently provided by
The ratings of GEICO Marine may come under pressure if capitalization weakens; if its operating performance trends do not improve; or if the company’s role/importance within the GEICO organization changes. The ratings could see positive movement from an improved earnings trend that leads to further capital appreciation without excessive growth.
The FSR of A++ (Superior) and the Long-Term ICRs of “aaa” have been affirmed for the following members of
-
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 County Mutual Insurance Company
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and
Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170728005591/en/
Senior Financial Analyst
[email protected]
or
Associate Director
[email protected]
or
Manager, Public Relations
[email protected]
or
Director, Public Relations
[email protected]
Source:
Combine Solicitation – Cardiology Services
Medicare, Medicaid, and Children’s Health Insurance Programs: Announcement of the Extension of Temporary Moratoria on Enrollment of Part B…
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News