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FOR IMMEDIATE RELEASE
OLDWICK - JUNE 01, 2023 09:27 AM (EDT)
AM Best has assigned a Financial Strength Rating of A++ (Superior) and a Long-Term Issuer Credit Rating of “aaa” (Exceptional) to GEICO Texas County Mutual Insurance Company (GTCMIC) (Richardson, TX). The outlook assigned to these Credit Ratings (ratings) is stable. GTCMIC is a newly added member of the Government Employees Group (GEICO).
The ratings reflect GTCMIC’s inclusion as a member of GEICO, with a consolidated balance sheet strength that AM Best assesses as strongest, as well as its strong operating performance, very favorable business profile and appropriate enterprise risk management.
GTCMIC’s inclusion as a member of GEICO is based on its full integration into Government Employees Insurance Company, a wholly owned subsidiary of GEICO Corporation, which is a wholly owned subsidiary of Berkshire Hathaway, Inc [NYSE: BRKa and BRKb]. In addition, GTCMIC is managed and receives explicit and implicit support from GEICO. The company was purchased by GEICO in 2021 with the goal to start writing its own business through managing general agents (MGAs). Effective Jan. 1, 2023, the company entered into a quota share agreement with Government Employees Insurance Company. Management’s plan is to continue underwriting through affiliated MGAs and then cede the business to GEICO. GTCMIC writes a portion of GEICO’s auto business but all direct business in this company will be written through MGAs. Texas is the only state where GEICO employs the use of MGAs.
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.