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Progressive vs Geico Financial Strength: AM Best Ratings and Stability
Last verified April 2026
Geico is rated A++ (Superior) by AM Best. Progressive is rated A+ (Superior). Both are in the top tier. Here is what the ratings mean and why financial strength matters when choosing an insurer.
AM Best Financial Strength Ratings
A++
Superior
Geico (via Berkshire Hathaway)
A+
Superior
Progressive Corporation
Both ratings are in AM Best's top tier. A++ and A+ both carry the "Superior" designation, meaning both companies have an exceptional ability to meet their ongoing insurance obligations.
Ratings Across Agencies
| Rating agency | Progressive | Geico |
|---|---|---|
| AM Best | A+ (Superior) | A++ (Superior) |
| S&P Global | A | AA+ |
| Moody's | A2 | Aa1 |
Geico consistently rates slightly higher across all agencies due to Berkshire Hathaway's backing. Both are investment-grade rated by all major agencies.
What AM Best Ratings Mean
AM Best is the most important rating agency for insurance companies. Their Financial Strength Rating (FSR) measures an insurer's ability to pay claims. The scale runs from A++ (best) down to D (worst).
In practical terms, both A++ and A+ mean the same thing for you as a policyholder: the company will pay your claims. The difference between A++ and A+ is relevant mainly to institutional investors and reinsurance markets. For individual consumers, any insurer rated A or higher is considered excellent.
For context, about 60% of all insurance companies rated by AM Best receive a rating of B+ or higher. Only about 15% receive A+ or A++. Both Progressive and Geico are in the elite tier.
Market Share and Size
| Metric | Progressive | Geico |
|---|---|---|
| US auto market rank | 3rd | 2nd |
| Market share | ~14% | ~14% |
| Annual premiums written | ~$60B | ~$42B |
| Number of policies | ~28M | ~18M |
| Parent company | Independent (NYSE: PGR) | Berkshire Hathaway |
State Farm remains the largest US auto insurer at approximately 16% market share. Progressive has been gaining share rapidly and may overtake Geico within the next few years.
Berkshire Hathaway Backing (Geico)
Geico is wholly owned by Berkshire Hathaway, Warren Buffett's conglomerate. Berkshire Hathaway has over $900 billion in assets and is one of the most financially stable companies on Earth. This backing is why Geico receives the highest possible financial strength ratings.
In practical terms, Berkshire Hathaway's backing means Geico could pay claims even in an extreme catastrophe scenario. If a once-in-a-century disaster produced unprecedented claims, Berkshire Hathaway's balance sheet would backstop Geico. This is a genuine advantage, though one that matters only in extreme scenarios.
Progressive's Growth Trajectory
Progressive has been the fastest-growing major auto insurer for over a decade. They have added market share every year, growing from roughly 10% to 14% of the US auto market. This growth is funded by underwriting profits, not by taking on debt or cutting prices below profitability.
Progressive's combined ratio (premiums earned minus claims and expenses) consistently runs below 96%, meaning they keep at least 4 cents of profit on every dollar of premium. This sustained profitability during rapid growth is a sign of strong financial management.
As a publicly traded company (NYSE: PGR), Progressive's financials are transparent and audited quarterly. Investors and regulators provide ongoing oversight that private companies like Geico do not face to the same degree.
Frequently Asked Questions
What does AM Best A++ vs A+ mean?
Both A++ (Superior) and A+ (Superior) are in the top tier of AM Best's rating scale. The difference is marginal: A++ represents 'exceptional' claims-paying ability while A+ represents 'excellent' claims-paying ability. Both ratings indicate extremely strong financial health. You can trust either company to pay your claims.
Is Geico owned by Warren Buffett?
Geico is owned by Berkshire Hathaway, which is led by Warren Buffett. Berkshire Hathaway fully acquired Geico in 1996. This means Geico is backed by one of the largest and most financially stable companies in the world, with over $900 billion in assets.
Is Progressive growing too fast?
Progressive is the fastest-growing major auto insurer, adding market share every year for over a decade. This rapid growth is funded by underwriting profits, not debt. Progressive's combined ratio (measure of profitability) consistently runs below 96%, meaning they earn more in premiums than they pay in claims and expenses.
Which company is more likely to go bankrupt?
Neither. Both Geico and Progressive are among the most financially stable companies in the insurance industry. Geico is backed by Berkshire Hathaway's massive balance sheet. Progressive is independently profitable with decades of consistent underwriting performance. The risk of either company failing is essentially zero.