Understanding GEICO Ownership and Its Significance
GEICO, short for Government Employees Insurance Company, is a well-known and respected auto insurer headquartered in Chevy Chase, Maryland. Since 1996, when Warren Buffett acquired the company, GEICO has been a wholly-owned subsidiary of Berkshire Hathaway Inc. This article delves into the ownership structure of GEICO, provides insights into Berkshire Hathaway, and highlights some of GEICO's key characteristics and services.
Ownership Details: GEICO and Berkshire Hathaway
GEICO is not part of the USAA (United Services Automobile Association) but is instead a wholly-owned subsidiary of Berkshire Hathaway Inc. Berkshire Hathaway is a multinational conglomerate holding company with a diverse portfolio of companies under its umbrella. Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, made the strategic move to acquire GEICO in 1996, significantly impacting the company's future.
Berkshire Hathaway's stock is listed on the New York Stock Exchange (NYSE) under the symbol BRK.A, with lower-class shares available under the symbol BRK.B. As of 2015, the annual report highlighted that GEICO contributed to 10% of Berkshire Hathaway's revenue, approximately 22 billion dollars, and 10% of its assets, amounting to around 45 billion dollars. This financial contribution underscores the significant role that GEICO plays in the broader Berkshire Hathaway enterprise.
GEICO's Historical Context and Growth
GEICO was founded in 1936 and has since grown to become one of the largest auto insurers in the United States. The company was originally set up to provide insurance to federal employees, but it soon expanded its services to the general public. In 1996, when Warren Buffett took charge, GEICO became a wholly-owned subsidiary of Berkshire Hathaway Inc., marking a new era in the company's history.
As of 2015, GEICO provided coverage for over 22 million motor vehicles owned by more than 14 million policyholders. The company writes private passenger automobile insurance in all 50 U.S. states and the District of Columbia. GEICO offers its policies through local agents called GEICO Field Representatives, by phone, and through its website.
Key Services and Characteristics of GEICO
One of the most notable characteristics of GEICO is its mascot, a Gold Dust day gecko with a Cockney accent, voiced by English actor Jake Wood. GEICO is well-known for its advertising, which often uses humorous and entertaining commercials to reach customers.
The company's headquarters are located in Chevy Chase, Maryland, just across the border from Washington, D.C. GEICO is user-friendly, providing a simple way to get an auto insurance quote. Their website enables users to access a free auto insurance quote in just two minutes. If you like their rates, you can purchase your policy online and receive immediate proof of insurance.
Conclusion
GEICO is a significant part of the Berkshire Hathaway enterprise, contributing substantially to the company's revenue and assets. As a wholly-owned subsidiary, it has thrived under Warren Buffett's leadership, offering quality insurance services to millions of customers across the United States.
To explore more about GEICO, visit their website and get a free quote. Sign up for their services and enjoy exceptional and cost-effective auto insurance. Want to know more about Berkshire Hathaway? Check out their official website or follow the links provided in the article.