Recent Developments
The year 1996 was significant in GEICO’s history as it became a wholly owned subsidiary of Berkshire Hathaway, Warren Buffett’s investment organization. Buffett first purchased GEICO stock in 1951. His holdings grew in percentage terms due to GEICO’s own corporate stock repurchases, until he owned more than half of all outstanding shares. In 1995, Buffett, through Berkshire Hathaway, made a bid to purchase the remaining shares of GEICO’s outstanding stock. Shareholders responded favorably to the offer, and GEICO became part of the Berkshire Hathaway family of companies.
GEICO’s Web site, geico.com, which allows users to get a free rate quote and coverage information, also went online in 1996, and the company has continued to refine and enhance its Web site since then. Customers choosing to do business over the Internet can now complete many sales, service, and claims transactions online. The site is also available in Spanish, catering to GEICO’s growing Hispanic customer base.
The Internet was an ideal fit for GEICO, which has more than six decades of dealing with customers using a direct model. The site continues to increase rapidly in popularity, setting weekly records for quotes and sales.
