
Ep 397. The Financial History of GEICO with Capital Allocation Author, Jacob McDonough
Focused Compounding
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The Differences Between Progressive and Geico Insurance
geico was preferred risk because like you said they had entire occupations and Ages which they wouldn't write insurance whereas someone like progressive in their history quoted everybody. A 16 year old boy who wants to drive fast to impress people could still find insurance policies, but that's not a preferred risk. Even if you look out to 1980 every year after Burn took over policies and force dropped each year even through 1980. But right after when bern took over there's definitely multiple things in the annual report saying We're going back to focusing on preferred risk.
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