Posted by scott
In 2012, even with Superstorm Sandy, Geico earned a profit of 680 million. But aside from that profit, Geico and it's mother company Berkshire Hathaway holds 73 billion dollars in reserves. That's 73 billion dollars Geico has set aside in case of a lot of claims. What does it do with that massive pile of money? It invests it, of course. That 73 billion invested conservatively is earning an additional 4 billion or so in interest. Far more than the underwriting profits of the company.