GEICO is the auto insurer that is a wholly owned subsidiary of Berkshire Hathaway. Berkshire acquired the remaining shares it did not already own on January 2, 1996, bringing GEICO fully into its insurance group.
GEICO’s name stands for Government Employees Insurance Company. It was founded in 1936 by Leo Goodwin Sr. and his wife, Lillian, to sell automobile insurance directly to government employees and military personnel. The company later broadened its customer base and became one of the largest auto insurers in the United States.
GEICO is often recognized by its gecko mascot, but its connection to Berkshire is more important than its advertising. Berkshire values insurance businesses partly because premiums create “float”—money held before claims are paid that can be invested. A common mix-up is assuming Progressive, State Farm, or Allstate is Berkshire-owned; those are independent competitors, while GEICO belongs to Berkshire.