Berkshire Hathaway's Auto Insurer Adds More Drivers
May 11 2009 - 4:00PM
Dow Jones News
Drivers continued to search for cheaper auto insurance in the
first quarter, with Berkshire Hathaway Inc.'s (BRKA, BRKB) Geico
auto insurance business winning a higher percentage of shoppers
than its larger rivals.
The insurer reported Friday that Geico earned $3.261 billion in
auto insurance premiums in the first quarter, up 7.6% from the
first quarter last year, while closest rivals Progressive Corp.
(PGR) edged out Geico with $3.41 billion in premiums, unchanged
from the year before, and Allstate Corp. (ALL) said that premiums
dropped 2.4% in the quarter to $4.43 billion.
Progressive's policies in force in personal lines insurance rose
4% while Allstate's dropped 1.8%.
"The number of policies-in-force increased in 2009 as more
consumers switched to Geico to save money, which management
believes is in response to the economic recession," Berkshire
Hathaway said in its quarterly report.
Like other insurers, Geico reported that more customers
increased their deductible and reduced their overall coverage to
save money.
All three insurers also reported more new applications, as
drivers switched their auto insurance in search of a better deal,
and all three ran advertising that offered to help drivers save
more money.
-By Lavonne Kuykendall, Dow Jones Newswires; (312) 750-4141;
lavonne.kuykendall@dowjones.com