GEICO Receives Strong Financial Ratings from AM Best
AM Best has confirmed the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "aaa" (Exceptional) for members of Government Employees Insurance Company (GEICO), based in Chevy Chase, Maryland. The outlook for these ratings remains stable. These ratings reinforce GEICO's robust balance sheet, which AM Best considers the strongest, and also highlight its solid operational performance, favorable business profile, and suitable enterprise risk management (ERM).
GEICO's ratings are further supported by its sturdy capitalization and consistent strength in balance sheet metrics, with the highest level of risk-adjusted capital as determined by Best's Capital Adequacy Ratio (BCAR). The policyholders' surplus has generally increased, achieving double-digit growth in the past three years, excluding a dip in 2022. GEICO has maintained a record of operational profitability, regularly surpassing the five- and ten-year averages for the private passenger auto industry composite. The company's combined ratio was 85.5% in 2025, resulting in nearly $4.2 billion in underwriting gains, mainly due to better rate adequacy. The direct business model GEICO uses also contributes to its competitive underwriting expense advantage.
Additionally, the ratings take into account GEICO's strong brand recognition and market leadership in the personal automobile insurance sector. The company benefits from significant scale, geographic reach, market share, and technological advancements, providing it with a competitive edge. AM Best assesses GEICO's ERM as suitable, with risk management capabilities that align with its risk profile. Support from National Indemnity Company, GEICO's indirect parent company, and Berkshire Hathaway Inc., its ultimate parent company, further bolsters the ratings. As of December 31, 2025, Berkshire Hathaway reported stockholders' equity approaching $720 billion, enhancing GEICO's financial flexibility.
The FSR of A++ (Superior) and the Long-Term ICRs of "aaa" (Exceptional) have been reaffirmed with stable outlooks for the associated members of the Government Employees Insurance Company. This announcement relates to credit ratings available on AM Best’s website, and more detailed information about specific ratings and related disclosures can be found on AM Best’s Recent Rating Activity page. For guidance on utilizing Best’s Credit Ratings and related assessments, visit the Guide to Best's Credit Ratings and the Guide to Proper Use of Best’s Ratings & Assessments.
AM Best, a renowned credit rating entity, news publisher, and data analytics provider in the insurance sector, is based in the United States and operates in over 100 countries, with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore, and Mexico City.