Item 1. Business (GEICO Corporation and Subsidiaries).
GEICO Corporation (the "Corporation") was organized as a Delaware corporation in 1978. In 1979 the Corporation became the parent of Government Employees Insurance Company ("GEICO" or the "Company"), its principal subsidiary, and is also the parent corporation of various additional subsidiaries which are in the business of providing insurance and financial services (collectively, the "GEICO Companies").
GEICO was founded in 1936 and has been continuously engaged in the insurance business. GEICO is a multiple line property and casualty insurer, the principal business of which is writing private passenger automobile insurance primarily for preferred-risk government employees and military personnel. To a lesser extent, it also writes homeowners insurance, personal umbrella liability, and boat owners and fire insurance for all qualified applicants. GEICO General Insurance Company ("GEICO General") is a subsidiary of GEICO which, in 1987, began writing private passenger automobile insurance for preferred-risk drivers not associated with the government or the military. GEICO Indemnity Company ("GI"), a subsidiary of the Corporation, writes standard-risk private passenger automobile and motorcycle insurance. GEICO Casualty Company (the name of which was changed from Criterion Casualty Company effective January 6, 1994), a subsidiary of GI, writes nonstandard-risk private passenger automobile insurance. The insurance companies market their policies primarily through direct response methods. Currently, GEICO, GEICO General, GI and GEICO Casualty have an A. M. Best rating of A++ (Superior) and a Standard & Poor's claims paying ability rating of AAA (Superior).
Criterion Life Insurance Company ("Criterion Life") was formed by GEICO in 1991 to offer structured settlement single premium annuities to claimants of its property/casualty company affiliates. On December 31, 1991 Criterion Life assumed all the structured settlement annuity business in force from Garden State Life Insurance Company, which was also wholly-owned by GEICO until it was sold in June 1992. Criterion Life has an A. M. Best rating of A++ (Superior).
Other active subsidiaries of the Corporation and the Company involved in the sale of insurance and insurance related products include: International Insurance Underwriters, Inc., which provides various insurance services to military personnel as they are transferred overseas or back to the United States; The Top Five Club, Inc., which offers travel-related benefits to military personnel in the top five military enlisted pay grades; GEICO Financial Services, GmbH, which sells automobile policies to American military personnel through offices in Germany and through agents in England, Germany, Italy, Portugal and Turkey; Insurance Counselors, Inc. and Insurance Counselors of Texas, Inc., formed primarily to facilitate the marketing of insurance products; and Safe Driver Motor Club, Inc., which offers motor club services to customers of subsidiaries of the Corporation and sponsors of motor clubs.
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The Corporation offers additional financial services through its subsidiary, Government Employees Financial Corporation ("GEFCO") which, directly or through one or more of its own subsidiaries, is in the business of consumer and business lending and loan servicing. The Corporation is in the process of winding down the business of GEFCO.
Other subsidiaries of the Corporation include Plaza Resources Company, which is engaged in various investment ventures; and several other companies which serve various corporate purposes including real estate/property companies, Maryland Ventures, Inc., and GEICO Facilities Corporation.
Resolute Reinsurance Company, a subsidiary of Resolute Group, Inc., in turn a subsidiary of the Corporation, wrote property and casualty reinsurance in the domestic and international markets until late 1987 when it suspended writing new and renewal reinsurance. Resolute is in the process of running off its claims obligations. Effective December 31, 1993 the Corporation sold Merastar Insurance Company and Southern Heritage Insurance Company, two small property casualty insurance companies which had been purchased in 1991.
Seasonal variations in the business of the Corporation historically are not material. However, extraordinary weather conditions or other factors may have an impact on the frequency or severity of automobile or homeowners claims. Weather related catastrophes severely affected the Corporation's financial results in 1992 due to Hurricane Andrew and had a lesser impact in 1993 and 1994. See "Management's Discussion and Analysis of Financial Condition and Results of Operations" at Item 7 for more information concerning the effect of, and the Corporation's response to, such catastrophes.
Additional information concerning the insurance regulatory environment, the settlement of the insurance subsidiaries' California Proposition 103 premium refund obligation in 1993, proposed modification or repeal of the McCarran-Ferguson Act, proposals to integrate the medical portion of automobile insurance into the general health care insurance system, and similar initiatives elsewhere intended to affect insurance premium rates generally without addressing the underlying factors upon which those rates are based, is presented in "Management's Discussion and Analysis of Financial Condition and Results of Operations" at Item 7 and such information is incorporated herein by reference.
The insurance industry is highly competitive. GEICO currently competes most directly with other companies, including mutual companies, that concentrate on preferred risk private passenger automobile insurance and, to a lesser extent, for standard and nonstandard risks. Because personal lines property and casualty insurance is so stringently regulated by each state in which the Companies do business, it is difficult for companies to differentiate their products. Additionally, some companies exacerbate price competition by selling their products at inadequate rates for a period of time, because long delays in reporting and settling certain claims result in underestimating ultimate loss costs, or the products are sold in anticipation of profits from their investment portfolios. Consequently, GEICO's business is very sensitive both to the price of the product and the perceived level of customer service it provides. Competition for preferred risks, which is substantial, tends to focus on issues of price and service, while price is a more significant factor to other risks. The GEICO Companies place great emphasis on customer
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satisfaction and write their auto business predominantly with six-month policies, allowing them to manage rate changes more effectively. GEICO also believes its reputation is a material asset and protects its name and other service marks through appropriate registrations.
Although most insurance companies are stock companies like GEICO, in 1993 mutual companies wrote approximately one-third of all property and liability insurance in the United States. Mutual companies may have a competitive advantage in that certain earnings inure to the benefit of policyholders rather than to shareholders; in certain circumstances, however, stock companies do pay dividends to their policyholders.
As of December 31, 1994 the Corporation and its subsidiaries had 7,453 full-time employees and 698 part-time employees. A number of benefits are provided or made available for most full-time employees including profit sharing, pension and employee stock ownership plans and various insurance programs.
PRINCIPAL BUSINESS SEGMENTS
Property and casualty insurance is the Corporation's dominant business segment, although other insurance and financial service products are offered.
The information concerning the Corporation's personal lines property and casualty insurance business and its other business segments required by the remainder of this Item 1, which is contained in its 1994 Annual Report to Shareholders under the caption "Business Segments" on pages 14 through 16 and Note O of the "Notes to Consolidated Financial Statements" contained on Page 43, is incorporated herein by reference.
Item 2.
Item 2. Properties.
GEICO, the principal subsidiary of the Corporation, owns its GEICO Plaza headquarters building in Chevy Chase, Maryland, its Regional Office buildings in Woodbury, New York, Macon, Georgia, Dallas, Texas, and Stafford County near Fredericksburg, Virginia, certain of its claims drive- in facilities and certain additional properties. GEICO also leases its Regional Offices in San Diego, California and office space and drive-in claims facilities in various cities in the United States. These facilities will accommodate foreseeable space requirements.
GEICO also maintains and continually upgrades sophisticated electronic data processing equipment and software and telecommunications facilities to enable it to process applications and claims efficiently.
Item 3.
Item 3. Legal Proceedings.
There are no material legal proceedings to which the Corporation is a party or of which the property of the Corporation is the subject.
Item 4.
Item 4. Submission of Matters to a Vote of Security Holders.
Not Applicable.
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Executive Officers of the Registrant.
Information regarding executive officers of the Corporation is set forth below. Each officer holds such office until the next annual election of officers, which is held at the first meeting of the Board of Directors after the annual meeting of shareholders, which is scheduled to be held on May 10, 1995, and until his/her successor is elected or appointed. To the best knowledge of the Corporation, there are no family relationships among any of such officers or among any of such officers and any directors nor is there any arrangement or understanding between any such officer and any other person pursuant to which any such officer was elected.
Marion E. Byrd, 58, has been a director and Senior Vice President of GEICO since May 1989. He was a Vice President of GEICO from January 1980 to May 1989. He also is, or has served as, a director and/or an officer of several subsidiaries of the Corporation and GEICO.
Charles R. Davies, 54, was elected Vice President and General Counsel of the Corporation and GEICO and a director of GEICO in November 1992. He served as Vice President and Deputy General Counsel of both the Corporation and GEICO from March 1987 to November 1992 and Assistant Vice President and Deputy General Counsel from March 1982 to March 1987. Mr. Davies also is, or has served as, a director and/or an officer of several subsidiaries of the Corporation and GEICO.
James M. Hitt, 50, was elected a Vice President of GEICO in August 1986 and has been an officer of GEICO since 1979. He also is or has served as an officer and/or director of various subsidiaries of the Corporation and GEICO.
Donald R. Lyons, 48, was elected a Vice President of GEICO in May 1992 and has been an officer since September 1985. He is also an officer of certain subsidiaries of GEICO.
Robert M. Miller, 52, was elected a Vice President of GEICO in September 1987 and has been an officer since May 1980. He is also an officer of certain subsidiaries of GEICO.
Olza M. Nicely, 51, was elected President and Chief Executive Officer - Insurance Operations of the Corporation in May 1993 and was elected a director of the Corporation in May 1990. He was also elected Chairman of the Board, President and Chief Executive Officer of GEICO in May 1993, having served as President and Chief Executive Officer of GEICO from January 1992 to May 1993 and as President of GEICO from August 1989 to January 1992. He has been a director of GEICO since September 1985. He had served as Executive Vice President of GEICO from June 1987 to August 1989. He has been an officer of GEICO since March 1973. Mr. Nicely also is, or has served as, a director and/or an officer of several subsidiaries of the Corporation and GEICO.
Simone J. Pace, 52, was elected a Senior Vice President of the Corporation and GEICO and a director of GEICO in August 1993. Prior to joining the Corporation, he had been president of Blue Cross/Blue Shield of the National Capital Area from September 1992 to April 1993, Executive Vice President from October 1988 to August 1992 and Senior Vice President from January 1985 to October 1988, having first joined that Company in June 1971.
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David H. Pushman, 46, was elected a Vice President of GEICO in May 1989. He has been an officer of GEICO since June 1986.
David Schindler, 49, was elected a Vice President of GEICO in May 1988 and has been an officer of GEICO since August 1983. He is also, or has served as, an officer of several subsidiaries of GEICO.
Louis A. Simpson, 58, was elected President and Chief Executive Officer - Capital Operations of the Corporation in May 1993, having served as Vice Chairman of the Board of Directors of the Corporation from July 1985 to May 1993. He has been a director of the Corporation since May 1983. Mr. Simpson is, or has served as, Chairman of the Board, a director and/or an officer of several subsidiaries of the Corporation and GEICO. He has been a director of Potomac Electric Power Company since December 1990, of Salomon Inc since May 1993 and of Pacific American Income Shares Inc. since November 1994.
W. Alvon Sparks, Jr., 59, was elected a director of the Corporation in November 1993 and has served as an Executive Vice President and Chief Financial Officer of the Corporation since August 1992. He was a Senior Vice President of the Corporation from September 1982 to August 1992. He was elected Executive Vice President of GEICO in February 1995, having served as a Senior Vice President since September 1982 and a director since May 1982. Mr. Sparks also is, or has served as, Chairman of the Board, a director and/or an officer of several subsidiaries of the Corporation and GEICO.
Richard C. VanEssendelft, 54, was elected a Vice President of GEICO in January 1992, having served as an Assistant Vice President from August 1979 to January 1992. He also is, or has served as, a director and/or an officer of various subsidiaries of the Corporation.
Thomas M. Wells, 44, was elected a Group Vice President and Controller of the Corporation and GEICO in August 1992 and a director of GEICO in November 1992. He served as Vice President and Controller of the Corporation and GEICO from July 1985 to August 1992. Mr. Wells also serves as a director and/or an officer of several subsidiaries of the Corporation and GEICO.
PART II
Item 5.
Item 5. Market for the Registrant's Common Equity and Related Stockholder Matters.
In response to this Item the material under the caption "Common Stock" (page 7) and the final paragraph of Note C (page 36) of the "Notes to Consolidated Financial Statements" in the Corporation's 1994 Annual Report to Shareholders are incorporated herein by reference.
Item 6.
Item 6. Selected Financial Data.
In response to this Item the material under the caption "Selected Financial Data" (pages 6 and 7) in the Corporation's 1994 Annual Report to Shareholders is incorporated herein by reference.
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Item 7.
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.
In response to this Item the material under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operations" (pages 17 through 26 and page 45) in the Corporation's 1994 Annual Report to Shareholders is incorporated herein by reference.
Item 8.
Item 8. Financial Statements and Supplementary Data.
In response to this Item the consolidated financial statements and the notes thereto contained in the Corporation's 1994 Annual Report to Shareholders (pages 27 through 43) and the Quarterly Highlights of Operating Results (page 44) are incorporated herein by reference.
Item 9.
Item 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosure.
None.
PART III
Item 10.
Item 10. Directors and Executive Officers of the Registrant.
The information required by this Item pursuant to Item 401 of Regulation S-K with respect to directors of the Corporation is incorporated herein by reference from the Corporation's definitive proxy statement filed or to be filed with the Commission pursuant to Regulation 14A under the Securities Exchange Act of 1934 (the "Act"). The information required by this Item pursuant to Item 401 of Regulation S-K with respect to executive officers of the Corporation is included in Part I hereof. The information, if any, required by this Item pursuant to Item 405 of Regulation S-K is incorporated herein by reference from the Corporation's definitive proxy statement filed or to be filed with the Commission pursuant to the Act.
Item 11.
Item 11. Executive Compensation.
The information required by this Item is incorporated herein by reference from the Corporation's definitive proxy statement filed or to be filed with the Commission pursuant to Regulation 14A under the Act.
Item 12.
Item 12. Security Ownership of Certain Beneficial Owners and Management.
The information required by this Item is incorporated herein by reference from the Corporation's definitive proxy statement filed or to be filed with the Commission pursuant to Regulation 14A under the Act.
Item 13.
Item 13. Certain Relationships and Related Transactions.
The information required by this Item is incorporated herein by reference from the Corporation's definitive proxy statement filed or to be filed with the Commission pursuant to Regulation 14A under the Act.
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PART IV
Item 14.
Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K.
(a)(1) and (2) List of Financial Statements and Financial Statement Schedules
The following consolidated financial statements of the Corporation and subsidiaries, included in the Corporation's Annual Report to Shareholders for the year ended December 31, 1994, are incorporated by reference in Item 8:
Consolidated Balance Sheets - December 31, 1994 and 1993
Consolidated Statements of Income - Years Ended December 31, 1994, 1993 and 1992
Consolidated Statements of Shareholders' Equity - Years Ended December 31, 1994, 1993 and 1992
Consolidated Statements of Cash Flows - Years Ended December 31, 1994, 1993 and 1992
Notes to Consolidated Financial Statements.
(a)(3) and (c) Exhibits
The following exhibits are included in response to Item 14(c). Management contracts and compensatory plans are indicated by an asterisk (*).
Exhibit No. Description Reference
3-a Certificate of Incorporation, Exhibit 3-a to GEICO Corpo- as amended. ration's Annual Report on Form 10-K for the fiscal year ended December 31, 1992.
3-b Bylaws of GEICO Corporation, as Exhibit No. 3-b to GEICO amended. Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 1993
4-a Specimen certificate representing Exhibit 6(c) to File the common stock, $1.00 par value. No. 2-63138 on Form S-14.
(Copies of certain indentures, which in the aggregate do not represent securities worth as much as ten percent of the total consolidated assets of GEICO Corporation, will be furnished upon request.)
9 Proxy Agreement between Berkshire Exhibit 9 to Form SE filed Hathaway Inc. and Sovran Bank/ in connection with GEICO Maryland or its successors and Corporation's Annual Report assigns. on Form 10-K for the fiscal year ended December 31, 1986. - 9 - PAGE
10-a* Form of Pension Plan for Non- Exhibit 10-a to GEICO Corpo- Employee Directors, as amended. ration's Annual Report on Form 10-K for the fiscal year ended December 31, 1988.
10-b* Revised Stock Option Plan for Key Exhibit 10-b to GEICO Corpo- Employees of GEICO Corporation and ration's Annual Report on Its Subsidiaries ("1992 Plan"). Form 10-K for the fiscal year ended December 31, 1992.
10-c* Form of Non-Qualified Stock Option Exhibit No. 10-c to GEICO Agreement under the 1992 Plan, as Corporation's Annual Report amended. on Form 10-K for the fiscal year ended December 31, 1993.
10-d* Form of Incentive Stock Option Exhibit 10-d to GEICO Corpo- Agreement under the 1992 Plan. ration's Annual Report on Form 10-K for the fiscal year ended December 31, 1992.
10-e* Notice of Election to Exercise Exhibit 10-e to GEICO Corpo- Stock Options under the 1992 ration's Annual Report on Plan. Form 10-K for the fiscal year ended December 31, 1992.
10-f* Revised Stock Option Plan for Key Exhibit 10-l to Form SE Employees of GEICO Corporation and filed in connection with Its Subsidiaries ("1985 Plan"). GEICO Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 1986.
10-g* Form of Non-Qualified Stock Option Exhibit 10-e to GEICO Corpo- Agreement under the 1985 Plan, ration's Annual Report as amended. on Form 10-K for the fiscal year ended December 31, 1989.
10-h* Form of Incentive Stock Option Exhibit 10-g to GEICO Corpo- Agreement under the 1985 Plan. ration's Annual Report on Form 10-K for the fiscal year ended December 31, 1989.
10-i* Form of Incentive Stock Option Exhibit 10-h to GEICO Corpo- Agreement with Stock Appreciation ration's Annual Report on Rights under the 1985 Plan. Form 10-K for the fiscal year ended December 31, 1989.
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10-j* Notice of Election to Exercise Exhibit 10-o to Form SE Stock Options and/or Stock filed in connection with Appreciation Rights under the GEICO Corporation's Annual 1985 Plan. Report on Form 10-K for the fiscal year ended December 31, 1985.
10-k* Statement of 1994 Incentive Exhibit 10-l to GEICO Corpo- Bonus Program. ration's Annual Report on Form 10-K for the fiscal year ended December 31, 1993.
10-l* Statement of 1995 Incentive Page No. 29. Bonus Program.
10-m* Deferred Compensation Plan, Exhibit 10-m to GEICO Corpo- as amended. ration's Annual Report on Form 10-K for the fiscal year ended December 31, 1992.
10-n* Performance Share Plan, as Exhibit 10-k to GEICO Corpo- amended. ration's Annual Report on Form 10-K for the fiscal year ended December 31, 1983.
10-o* Equity Cash Bonus Plan. Page No. 30.
13 Annual Report to Shareholders Page No. 34. for the year ended December 31, 1994 (only as to material specifically incorporated herein by reference).
21 Subsidiaries of GEICO Corporation. Page No. 85.
23 Consent of Accountants. Page No. 86.
27 Financial Data Schedule Page No. 87. (Submitted as an exhibit pur- suant to the requirements of Item 601(b)(27) of Reg. S-K and not deemed filed for purposes of Section 11 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934.)
28P Information from reports Exhibit 28P to Form SE furnished to state insurance filed in connection with regulatory authorities. GEICO Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 1994.
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99 Annual Report on Form 11-K for To be filed by amendment. the Revised Profit Sharing Plan for the Employees of the Govern- ment Employees Companies for the fiscal year ended December 31, 1994.
(b) Reports on Form 8-K.
GEICO Corporation did not file a report on Form 8-K during the three months ended December 31, 1994.
The following financial information is included in response to Item 14(d):
Reference
Report of Independent Accountants Page No. 17.
Schedule I - Summary of Investments - Other Than Investments in Related Parties Page No. 18.
Schedule II - Condensed Financial Information of Registrant Page Nos. 19 - 22.
Schedule III - Supplementary Insurance Information Page Nos. 23 - 24.
Schedule IV - Reinsurance Page No. 25.
Schedule V - Valuation and Qualifying Accounts Page No. 26.
Schedule VI - Supplemental Information Concerning Property/Casualty Insurance Operations Page Nos. 27 - 28.
Financial statements of unconsolidated affiliates and 50% or less owned persons accounted for by the equity method have been omitted because they do not, considered individually or in the aggregate, constitute a significant subsidiary.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
GEICO CORPORATION
March 31, 1995 By: /s/ W. Alvon Sparks, Jr. W. Alvon Sparks, Jr. Executive Vice President and Chief Financial Officer (Principal Financial Officer)
March 31, 1995 By: /s/ Thomas M. Wells Thomas M. Wells Group Vice President and Controller (Principal Accounting Officer)
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
/s/ Olza M. Nicely March 31, 1995 Olza M. Nicely Date President and Chief Executive Officer - Insurance Operations and Director (Co-Principal Executive Officer)
/s/ Louis A. Simpson March 31, 1995 Louis A. Simpson Date President and Chief Executive Officer - Capital Operations and Director (Co-Principal Executive Officer)
/s/ John H. Bretherick, Jr. March 31, 1995 John H. Bretherick, Jr. Date Director
/s/ Norma E. Brown March 31, 1995 Norma E. Brown Date Director
/s/ Samuel C. Butler March 31, 1995 Samuel C. Butler Date Director
/s/ James E. Cheek March 31, 1995 James E. Cheek Date Director
/s/ A. James Clark March 31, 1995 A. James Clark Date Director
/s/ Delano E. Lewis March 31, 1995 Delano E. Lewis Date Director
/s/ Coleman Raphael March 31, 1995 Coleman Raphael Date Director
/s/ William J. Ruane March 31, 1995 William J. Ruane Date Director - 14 -
SIGNATURES
/s/ W. Alvon Sparks, Jr. March 31, 1995 W. Alvon Sparks, Jr. Date Director
/s/ W. Reid Thompson March 31, 1995 W. Reid Thompson Date Director
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ANNUAL REPORT ON FORM 10-K
ITEM 14(d)
FINANCIAL STATEMENT SCHEDULES
YEAR ENDED DECEMBER 31, 1994
GEICO CORPORATION
WASHINGTON, D. C.
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REPORT OF INDEPENDENT ACCOUNTANTS
To The Shareholders GEICO Corporation
Our report on the consolidated financial statements of GEICO Corporation and subsidiaries has been incorporated by reference in this Form 10-K from page 27 of the 1994 Annual Report to Shareholders of GEICO Corporation. In connection with our audits of such financial statements, we have also audited the related financial statement schedules listed in the index on page 12 of this Form 10-K.
In our opinion, the financial statement schedules referred to above, when considered in relation to the basic financial statements taken as a whole, present fairly, in all material respects, the information required to be included therein.
As discussed in Note A to the consolidated financial statements, GEICO Corporation changed its methods of accounting for postemployment benefits in 1994 and for income taxes, postretirement benefits other than pensions, and investments in debt securities in 1993.
By: COOPERS & LYBRAND L.L.P.
Washington, D.C. February 17, 1995
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SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES
(1) Fixed maturities at amortized cost and equity securities at original cost.
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SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT GEICO CORPORATION (PARENT COMPANY) BALANCE SHEETS In Thousands
(1) Eliminated in consolidation. See accompanying note to condensed financial statements. - 19 - PAGE
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT GEICO CORPORATION (PARENT COMPANY) STATEMENTS OF INCOME In Thousands
(1) Eliminated in consolidation.
See accompanying note to condensed financial statements.
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SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT GEICO CORPORATION (PARENT COMPANY) STATEMENTS OF CASH FLOWS In Thousands
(1) Eliminated in consolidation. See accompanying note to condensed financial statements. - 21 - PAGE
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
GEICO CORPORATION (PARENT COMPANY)
NOTE TO CONDENSED FINANCIAL STATEMENTS
December 31, 1994
The condensed financial statements of GEICO Corporation (parent company) should be read in conjunction with the consolidated financial statements and notes thereto of GEICO Corporation and subsidiaries incorporated by reference in this Form 10-K Annual Report.
In 1994 the parent company received $133.0 million of dividends from its consolidated subsidiaries, consisting of $115.0 million of cash and $18.0 million of equity securities. In 1992 the parent company received $389.9 million of dividends from its consolidated subsidiaries, consisting of $232.9 million of cash, $68.8 million of equity securities and $88.2 million of the common stock of GEICO Indemnity Company, a consolidated subsidiary. The noncash portion of the dividends in 1994 and 1992 related to the acquisition of equity securities and the consolidated subsidiary are excluded from the parent company's statements of cash flows.
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SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION
GEICO CORPORATION AND SUBSIDIARIES In Thousands
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SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION
GEICO CORPORATION AND SUBSIDIARIES In Thousands
(1) Includes interest on policyholders' funds of $3,972, $3,565 and $3,239 forthe years ended December 31, 1994, 1993 and 1992, respectively. - 24 - PAGE
SCHEDULE IV - REINSURANCE
* Includes premiums earned by life insurance and property/casualty insurance subsidiaries. - 25 - PAGE
SCHEDULE V - VALUATION AND QUALIFYING ACCOUNTS
GEICO CORPORATION AND SUBSIDIARIES In Thousands
(1) Uncollectible Accounts Written Off, Net of Recoveries
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