In a special annual report to Berkshire shareholders, Warren Buffett says GEICO is poised to grow well into the future. An insurance company that just 18 years ago held only a 2% share of the auto insurance market is now at 9.3% and is going after the remaining 90%. According to Buffett; "Don't bet against (GEICO) acquiring chunks of it year after year in the future."
GEICO's current 9.3% auto market share generates $15 billion in premium. Buffett is proud that GEICO's operations have maintained an underwriting profit for nine consecutive years while State Farm has had an underwriting loss in 8 of the last 11 years.
With over $900 billion in annual advertising costs (about 6% of premium) I guess we will continue to see the gecko, the caveman and who knows what other creepy icon they come up with for many, many years.
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