Geico Corp. surpassed Allstate Corp. to become the second-largest U.S. private auto insurance company, a major shift at the top of the car insurance marketplace, according to global data research firm SNL Financial.
Geico raked in $4.89 billion in direct premiums during the third quarter of 2013, while Allstate logged $4.65 billion. State Farm Mutual Automobile Insurance remains at the top, with $8.7 billion in direct premium reported in the third quarter.
Direct premium is the amount of premium insurers collect from policyholders before the companies pay any premiums to reinsurers.
Geico and Allstate have been battling it out for second place in the last year. Allstate slipped into third place in the first quarter but regained the second-place slot in the second quarter.
Geico's victory in the third quarter is significant because it was the first time the Berkshire Hathaway Inc. unit beat Allstate on a last 12-months basis, SNL said. In the last 12 months, Geico recorded $18.11 billion direct premiums, compared to Allstate's $17.97 billion.
Here are the top 10 auto insurers and the direct premiums logged in the third quarter, according to SNL:
1. State Farm, $8.7 billion
2. Geico, $4.9 billion
3. Allstate, $4.7 billion
4. Progressive Corp., $3.9 billion
5. Liberty Mutual, $2.5 billion
6. Farmers Insurance Group of Cos., $2.5 billion
7. USAA Insurance Group, $2.4 billion
8. Nationwide Mutual Group, $2 billion
9. Travelers Cos. Inc., $924.8 million
10. American Family Mutual, $877 million