Due to a series of typographical errors, quarterly earnings of Government Employees Insurance Co. and its subsidiaries were incorrectly reported in yesterday's editions. A corrected story appears on Page E5.
Government Employees Insurance Co. reported its profits more than doubled for the first quarter of the year from $9.3 million to $20.6 million, as the big insurance company completed its return from the brink of bankruptcy.
About one-third of Geico's earnings came from tax credits from earlier losses; two of Geico's three affliliated companies reported lower earnings.
The affiliates contributed about $1.3 million to Geico's profits. Earnings of Criterion Insurance Co. and Government Employees Life Insurance Co. were reported on a consolidated basis for the first time, because Geico has increased its share of ownership of those companies.
Geico said its net income before securities transactions increased to $13.2 million (62 cents a share) from $7.1 million (31 cents). The company reported a $200,000 loss on investment transactions against a $185,00 gain the prior year.
A $7.6 million tax credit - up from $2.1 million in 1977 - produced botton-line earnings of $20.6 million compared with $9.3 million last year.
On a per-share basis, primary earnings jumped from 44 cents to $1.04, while fully diluted earnings went from 27 cents a share to 58 cents.
Government Employees Life said its net income before investment gains increased 17 percent from $1.8 million (41 cents a share) to $2.1 million (47 cents).
The total amount of insurance in force for the life insurance company increased 10 percent to $2.3 billion, while sales of individual life insurance during the period grew 2 percent to $39.9 million.
Government Employes Financial Corp. reported its earnings were off about 17 percent, falling from $968,000 (55 cents a share) to $798,000 (43 cents.)
The finance company, which has its headquarters in Denver, reported a 17 percent increase in volume to $51.8 million, and said gross income increased 8.4 percent to $9.4 million.
Criterion Insurance Co., the third Geico affiliate, also reported lower earnings. Criterion's net profits fell from $2 million ($1.37 a share) to $900,000 (62 cents),
A major factor in the downturn has an underwriting loss of $352,000, which contrasted with underwriting profits of $927,000 in the same quarter a year earlier.