GEICO

GEICO Corporation was founded in 1936 in San Antonio, Texas by Leo Goodwin. Goodwin, a former employee of U.S.A.A., established the company with the idea of providing auto insurance for good drivers. The company operated without insurance agents, targeting government employees initially.

In 1937, Goodwin and his wife moved their company to Washington, D.C. and rechartered it on November 30, 1937. They targeted government employees as responsible drivers with steady incomes.

The entry of the US into World War II in 1941 strained GEICO as policyholders moved frequently and were shipped overseas. Goodwin relied on family and young employees to sustain the company.

After World War II, GEICO's business grew significantly as soldiers returned home and purchased cars and houses. In 1946, the company's net income quadrupled to $2.5 million.

In 1948, GEICO's original co-investor, the Rhea family, sold its stake in the company to other investors, leading to GEICO becoming a publicly traded company. Graham-Newman Corporation of New York, E.R. Jones and Company of Baltimore, and David Lloyd Kreeger were among the new stakeholders.

In 1949, GEICO diversified its services by incorporating the Government Employees Corporation (GECO) for loans and setting up the Government Employees Life Insurance Company (GELICO) for life insurance. These spinoff companies were created to prevent financial risks to GEICO.

In 1951, Warren Buffett, who was linked to GEICO through Benjamin Graham, made his first official appearance in the company's history.

In 1959, GEICO opened its new headquarters in Chevy Chase, Maryland.

By 1964, GEICO had surpassed the milestone of 1 million policies-in-force (PIF).

Berkshire Hathaway acquired GEICO in 1965, making it an indirect, wholly owned subsidiary of the company.

By 1966, GEICO's net earnings doubled to $13 million, reflecting the company's financial success and growth trajectory during the 1960s.

In the early 1970s, both Leo and Lillian Goodwin, the founders of GEICO, passed away. This event marked a challenging period for the company as it faced difficulties following the loss of its visionary leaders.

By 1971, GEICO had risen to become the fifth largest publicly held auto insurance company in the United States.

Under Kreeger's leadership in 1974, GEICO began insuring the general public but faced challenges with rapid expansion and financial losses, leading to a reorganization effort supported by Buffett.

In 1975, GEICO reported a significant loss of $126.5 million due to high claims for hospital and auto repair fees, which severely impacted its financial standing.

Warren Buffet's Berkshire Hathaway made a bid for GEICO in 1976, purchasing $1 million shares in the company's stock, marking an important event in the history of both companies.

In 1980, GEICO revolutionized customer service in the insurance industry by introducing 24/7/365 telephone customer support.

In 1982, GEICO acquired a property casualty insurance company and renamed it GEICO General. The company also purchased Garden State Life Insurance Company and rebranded it as GEICO Annuity and Insurance Company.

By 1991, GEICO's profits had reached $193.8 million, and the company had become the country's seventh largest automobile insurer.

In 1993, Olza "Tony" Nicely took on the roles of chairman, president, and CEO at GEICO. He implemented a new four-company strategy to expand the customer base and increased the advertising budget, leading to higher national visibility for the company.

Billionaire investor Warren E. Buffett announced the acquisition of Geico Corp., a Chevy Chase insurer that almost went bankrupt two decades prior. Geico, founded in 1936 as Government Employees Insurance Co., transformed from a struggling company to a successful investment under Buffett's ownership.

In 1996, Warren Buffett acquires the outstanding stock of GEICO, officially making it a subsidiary of Berkshire Hathaway, Inc. This acquisition marks a significant milestone in the history of GEICO.

In March 1998, GEICO launched a $100 million marketing campaign aimed at a wider range of drivers, including college students, as part of its strategy to increase market share.

In the first quarter of 2000, GEICO experienced a total underwriting loss of over $86 million due to an increase in underwriting losses, leading to weaker profits and necessitating rate hikes.

In 2002, GEICO achieved a milestone by surpassing the 5 million PIF (Policies in Force) mark.

In August 2004, GEICO announced their return to the New Jersey auto market at a press conference in Trenton, alongside the introduction of the iconic Cavemen characters in television advertisements. The campaign aimed to emphasize the simplicity of using geico.com for insurance services.

In October 2005, GEICO held a grand opening ceremony for their new 250,000-square-foot regional center in Buffalo, NY, marking a significant milestone for the company.

In 2006, GEICO reached a milestone by attracting its 7 millionth policyholder through a combination of marketing efforts, expanding Internet capabilities, and customer outreach.

By 2007, GEICO further solidified its position in the insurance industry by exceeding the 8 million PIF (Policies in Force) mark.

In 2008, the Caveman was chosen as America's favorite advertising icon and was honored by joining the GEICO Gecko on the Advertising Week Walk of Fame. Despite this recognition, the Caveman did not attend the award ceremony due to his displeasure with GEICO's slogan.

In May 2009, GEICO expanded its services to Massachusetts by setting up operations in the state, marking a significant milestone in the company's growth.

In 2010, GEICO achieved another milestone by exceeding the 10 million PIF mark and becoming the first insurance company to provide the option to buy a policy in a mobile-friendly format through iPhone and Android devices.

In 2012, GEICO achieved a significant milestone by reaching 11 million policyholders, solidifying its position as one of the leading auto insurers in the nation. The company continued its growth trajectory by adding another 3 million policyholders over the next four years.

During 2013, GEICO exceeded 12 million policies-in-force and provided insurance for over 20 million vehicles.

In 2014, GEICO reached the milestone of 13 million policies-in-force and insured more than 22 million vehicles.

From July 2016 through June 2017, GEICO achieved record-breaking sales and growth every month for a year.

In 2017, GEICO achieved its highest growth year ever by surpassing 15 million and 16 million policies in force.

In May 2019, the California Court of Appeal for the Second District upheld a $1 million punitive damages judgment in an insurance bad faith case against GEICO for refusing to settle. The court also awarded $313,000 in compensatory damages.

GEICO was ranked among the top large auto insurers in the country by J.D. Power for factors like product variety, prices, ease of application, and online platform. Despite performing well in price competitiveness during the COVID-19 pandemic, it received a below-average rating for claims satisfaction.

In June 2022, a Missouri woman received a $5.2 million judgment after suing GEICO, claiming she contracted a sexually transmitted disease from having sex in a car insured by the company.

In January 2023, the Supreme Court of Missouri unanimously reversed a previous judgment against GEICO in a lawsuit involving a sexually transmitted disease contracted in a car insured by the company. The case was remanded for further proceedings.