Progressive's Q1 results were poorly received. Does GEICO have an opportunity to reverse market share losses while returning to underwriting profitability?
I keep going back to Mr Buffett's past statements on insurance regarding market share vs. profitability and don't see why car insurance is an exception (it is not). Or another way of looking at it: we are losing money but we will make it up on volume. I hope he sticks to his guns and sacrifices growth for profitably. It is a long game. Hunker down.
I think Buffett has said that in the first year of a new policy holder there seems to be higher losses associated with them. Seems like GEICO has reigned in advertising before PGR. Interested to see the results tomorrow.
I keep going back to Mr Buffett's past statements on insurance regarding market share vs. profitability and don't see why car insurance is an exception (it is not). Or another way of looking at it: we are losing money but we will make it up on volume. I hope he sticks to his guns and sacrifices growth for profitably. It is a long game. Hunker down.
I think Buffett has said that in the first year of a new policy holder there seems to be higher losses associated with them. Seems like GEICO has reigned in advertising before PGR. Interested to see the results tomorrow.