GEICO is closing all of its offices in California, according to reports.
The company shut down all of its 38 offices in the state and hundreds of GEICO workers are being laid off, the news website SFGate is reporting.
“We continue to write policies in California, and we remain available through our direct channels for the more than 2.18 million California customers presently insured with us,” GEICO stated in a Sacramento Bee article.
Chevy Chase, Maryland-based GEICO is private subsidiary of Berkshire Hathaway and one of the nation’s biggest auto insurers.
GEICO reported a 63% drop in pretax underwriting income in 2021.
Fitch Ratings said in its U.S. Personal Lines Market Update that private passenger auto joined homeowners in unprofitable territory last year, however analysts also said that GEICO and Progressive will overtake State Farm on the personal auto leaderboard in terms of premium volume in 2023.
A GEICO spokesperson has been reached out to for comment.
Related:
- Personal Auto Results Slow to Recover; GEICO, Progressive to Pass State Farm
- State Farm Still Wins: Buffett Talks Auto Insurance at Annual Event
- Berkshire’s GEICO Posts 2021 Profit Much Lower Than 2020
Topics California
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