According to SNL Financial data, Geico’s about to replace Allstate as the second-largest US auto insurance company. According to a June 28 Advertising Age report, maybe not.
For the first quarter ever – January 1 to March 31, 2013 – Geico overtook Allstate sales, writing $4.72 billion in direct auto insurance premiums while Allstate wrote $4.53 billion. Of course, both combined add up to just $0.82 billion more than category leader State Farm wrote in the same period.
It’s a horse race
But for the year ending March 31, instead of just the quarter, Allstate remained ahead, albeit by a nose, with a $17.65 billion-to-$17.16 billion lead.
In any event, the horse race is far from the finish line. While reporting that “after years of consistent premium growth, Geico is in position to become the second-largest U.S. personal auto writer in 2013,” SNL also warns that its business is more seasonal than Allstate’s. Read more →