Perhaps some of you viewed GEICOs first two years in our Garden State and thought this insurer would pull out? Well, think again.

During 2006, GEICO enjoyed a great year across New Jersey. A written premium increase of $192,447,000 was an eye-popper. In 2006, the written premium increased to a total of $725,754,000. That was up from 2005, which was $560,307,000.

Thats a three-point increase in overall market share. GEICO now has 12.7 percent of the New Jersey personal auto insurance industry.

Wait, it still gets better for these cavemen. The start-up year for GEICO was 2004. Losses were terrible, coming in the 90 percent range. And 2005 was not much better, when the losses came in at 84.5 percent.

So, what about 2006? The 2006 loss ratio for GEICO was 57.1 percent! Just compare that to New Jerseys statewide loss ratio of 58.8 percent.

Of course, Im not quoting a combined ratio. The loss ratio above is incurred losses as a percentage of direct premium earned. And just to make sure we are comparing apples to apples, please note that this loss ratio does not include dividends or loss adjustment expense. These numbers are from the National Association of Insurance Commissioners, the Auto Insurance Report, and A.M. Best.

How in the world did GEICO do this? Well, it beats me. But lets look at their PIP no-fault losses:

2004 " PIP Written: $22,949,000; Incurred Loss: $18,320,000; Adj PIP L/R: 207.5%;

2005 " PIP Written: $114,828,000; Incurred Loss: $111,835,000; Adj PIP L/R: 116.3%;

2006 " PIP Written: $155,204,000; Incurred Loss: $93,278,000; Adj PIP L/R: 63.4%.

OK everyone, please tell me how a New Jersey auto insurer goes from a 116 percent to a 63 percent PIP loss ratio in only one year. Id like a little of that magic those cavemen are practicing!