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Lines of Insurance:
Auto States licensed to sell insurance in:
AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, VI, WA, WV, WI, WY Type of Insurance Company: Subsidiary of Berkshire Hathaway. Inc. Name of Parent Company:
Bershire Hathaway, Inc. Insurance subsidiaries:
GEICO General Insurance Company
GEICO Indemnity Company
GEICO Casualty Company
Government Employees Insurance Company
Company Overview:
Company History: The name goes back to GEICO’s first customers in 1936 who were government employees and Military personnel. Founder Leo Goodwin went into business determined that he could deliver automobile insurance at reduced prices by selecting prime customer groups and marketing directly to them. Goodwin succeeded in driving down operating costs and passed on the savings to policyholders up front as discounts. GEICO continues to find ways to manage its business costs in order to offer savings to customers today.
Size and Scope: - GEICO is the fourth-largest private passenger auto insurer in the United States
- The third-largest property/casualty insurer in the world (Berkshire Hathaway/GEICO global revenues 2003)
- The fastest-growing major auto insurer in the U.S., with policies-in-force growth of 12.4 percent in 2005
- $21.2 billion in assets as of 12/31/05
- More than 20,000 associates
- 12 major offices around the country
- Provides 24-hour service, 7 days a week, 365 days a year
- Four affiliated companies meet insurance needs of all types of drivers
In 1996, GEICO became a wholly-owned subsidiary of Berkshire Hathaway, headed by Warren Buffett, one of the country’s most successful investors. For the past two years, Fortune magazine has named Berkshire’s property-casualty insurance operation the most admired in the country
The Government Employees Group is the insurance operation of Berkshire Hathaway Inc., a publicly traded holding company which also owns businesses in a wide range of industries (including paint manufacturing, jewelry retailing, aviation timesharing, and others) and maintains an extensive portfolio of common stock investments (including American Express, Coca Cola, the Washington Post) that was valued at over $60 billion at the end of 2006. The insurance and reinsurance business activities are conducted through over 60 domestic and foreign insurance companies that provide insurance and reinsurance of property and casualty risks in the U.S. and worldwide and include reinsurance of life, and accident and health business. GEICO’s auto insurance business in the U.S. primarily sells private passenger automobile insurance. Its policies are mainly sold by direct response methods in which customers apply for coverage directly to GEICO by phone, mail or the Internet. The insurance operation accounted for over 30% of Berkshire Hathaway’s 2006 revenues.
Since it began in 1936 as Government Employees Insurance Company (GEICO), GEICO’s goal has been to provide low-cost, high-quality insurance. GEICO was a pioneer in selling directly to customers. Today the Government Employees Insurance Company (the lead company) generates about 30% of the group’s property/casualty direct premiums. It writes preferred personal lines insurance for government employees and military personnel. GEICO General Insurance Company, which generates about 41% of the group’s direct premium, writes preferred automobile insurance for people who are not government employees or military personnel. GEICO Indemnity Company, which generates about 22% of the group’s premiums, writes standard automobile and motorcycle insurance. GEICO Casualty Company, which generates 7% of the group’s premiums, writes non-standard automobile insurance. The companies together provide auto, homeowner, and other types of insurance to over 5 million people. Homeowner’s insurance is offered to policyholders of the group through Travelers’ – as well as some additional companies -- using a Maryland independent insurance agency owned by GEICO. GEICO’s strategy is to concentrate on its core business of auto insurance while providing its customers a way to obtain homeowner’s coverage.
In 2005, New York accounted for 19.2% of direct premium writings, Florida (14.5%), Maryland (6.8%), and Virginia (5.7%).
Principal Methods: GEICO sells directly to consumers through the Internet and call centers.
In addition to auto insurance, GEICO offers customers insurance products for their motorcycles, all-terrain vehicles (ATV's), boats, homes, apartments and mobile homes. Personal umbrella protection and life insurance are also available.
Life Annuity Business: GEICO refers Life Insurance request to Insure.com.
Auto Business: Sold direct to consumers through GEICO's website and phone centers.
Homeowners Business: GEICO offers homeowners insurance through Insurance
Counselors Inc.
Company Rating:
Best Insurance Reports: A++
Url of page rating was collected: http://www.geico.com/about/background/honors_ratings.htm
Best Rating: Financial strength rating: A++ (Superior)
Debt rating on company's existing debt securities: aaa
The outlook for both ratings - stable Company Financial Status:
Assets & Premiums: 2006 Revenues = $11.055 Billion in Earned Premium with earnings before taxes of $1.3 Billion |
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