GEICO Corp. spent $1.1 billion on advertising last year, more than any other insurance company, according to a new report from SNL Financial.
The company behind the famous Gecko also spent more money on advertising in relationship to premiums than any other auto insurance ccompany. GEICO's advertising-to-premium ratio was 6.7 percent -- more than two times that of Allstate Insurance Group, the second leading ad spender, with a 3.36 percent spending ratio.
Last year, GEICO increased spending 12.4 percent from 2011. Allstate increase advertising 14.8 percent year over year while State Farm cut advertising expenses by 4.4 percent.
Allstate's increase in ad spending is partially due to the addition of advertising from Esurance Insurance Co., which was previously reported in a separate financial statement, SNL said.
Besides Allstate and GEICO, USAA, Nationwide Mutual Insurance Co., Liberty Mutual Holding Co. Inc. American International Group Inc. and Amica Mutual Insurance Co. all reported increasing ad spending more than 10 percent last year over 2011, according to the SNL report.
Meanwhile, besides State Farm, insurers that reduced ad spending last year were Farmers Insurance Group of Cos., Progressive Corp., American Family Mutual Insurance Co., the Hartford Financial Services Group Inc. and Travelers Cos. Inc.
The top 10 insurance company ad spenders last year were:
- GEICO, $1.1 billion
- Allstate, $828.8 million
- State Farm, $777.9 million
- Progressive, $526 million
- Liberty Mutual, $394.2 million
- Farmers, $386.3 million
- Nationwide, $309.6 million
- Travelers, $161.9 million
- American Family, $153.3 million
- American International Group, $151.3 million