to its list of insurers, closing the $11.6 billion acquisition late last year. Geico’s profit also helped Berkshire’s collection of insurance underwriting businesses deliver $911 million in profit compared with $167 million a year earlier. which had long used telematics programs to track drivers and encourage better behavior before Geico introduced the offering.īerkshire has previously said it expected Geico to return to operating profitability in 2023, after securing premium rate increases. Geico has also been facing pressure from rivals including Progressive Corp., which Buffett has called “well-run,” and Allstate Corp. Geico’s revival follows a difficult period for the underwriting business as inflation took its toll on the cost of materials and labor. Overall, the conglomerate posted operating profit of $8.07 billion, up almost 13% from the same period a year earlier. Geico reported $703 million in earnings as higher average premiums and lower advertising spending contributed to the gain even as claim frequencies fell, Berkshire said in a statement reporting first-quarter earnings on Saturday.
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