Berkshire Hathaway said Geico has cut tens of thousands of jobs to help revive its underperforming business.
Vice Chair Ajit Jain said the insurer’s workforce dropped from about 50,000 to 20,000, though he didn’t give a timeframe, according to Bloomberg.
Geico posted $2.2 billion in pretax underwriting earnings in Q1—a 13% increase from last year—and gained new customers, continuing its recovery from earlier market share losses.
And Geico has made significant tech upgrades to better align insurance rates with risk, Jain said Saturday at the company’s annual meeting, according to Reuters. Geico’s turnaround is due to workforce cuts and tech improvements, Jain said, praising CEO Todd Combs. “I do not want to be so arrogant to say ‘mission accomplished,’” he added, emphasizing the need to focus on AI to stay competitive.
“Mission accomplished? We have achieved a lot, but we have to do a lot more,” Jain said.
Jain, who oversees Berkshire’s insurance operations, noted Geico made "rapid strides in telematics" and now "is as good as anyone." He also credited Combs for workforce cuts—over 2,300 jobs in 2024—which helped sharpen Geico’s competitive edge.
In 2024, Geico improved its performance by slowing new policy growth and reducing the share of premiums used to pay accident claims. Previously, Jain had said Geico lagged in telematics, which tracks driver behavior to help price policies more accurately.
Recall, over the weekend Warren Buffett said he would be stepping down as CEO of Berkshire Hathaway, marking the end of an era for U.S. investing.
