GEICO reports biggest reduction in advertising spending for 2022
of Berkshire Hathaway The subsidiary reportedly spent $1.28 billion on advertising in 2022. This was approximately $800 million less than the prior year as the parent company was impacted by higher natural catastrophe and personal car claims in underwriting results.
In 2022, Berkshire Hathaway insurance underwriting After-tax profits of $728 million and $657 million in 2021 and 2020, respectively, compared to an after-tax loss of $90 million.
GEICO cuts allowed Progressive to spend the most on advertising in 2022. S&P Global saidproperty and casualty insurance subsidiaries total advertising spending of $1.73 billion.
This 7.6% decline from 2021 advertising spending of $1.87 billion is part of the company’s progressive efforts to meet its internal revenue target of 96% combined ratio, said CEO Susan Griffiths. . Effective use in 2023.
all statesLowest ad spend among Big 4
Allstate’s total ad spend will fall below $1 billion in 2022, down 26.9% from the previous year to approximately $950 million.
Although not directly correlated with advertising spending, insurers experienced modest year-over-year increases in the homeowner and personal vehicle sectors in 2022, according to S&P Global.
The memo within the latest Form 10-K also reveals that Allstate’s number of active policies may decrease as it seeks to improve profitability through rate actions and temporary reductions in advertising costs. became.
in the meantime, state farm and its affiliates will spend about $1.01 billion on advertising in 2022, S&P Global said.
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