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GEICO Direct's Office Sells Auto Insurance To 3 Millionth Policyholder

29 May 1998

GEICO Direct's Fredericksburg Office Sells Auto Insurance To 3 Millionth Policyholder

    FREDERICKSBURG, Va., May 29 -- GEICO Direct, one of the
country's fastest growing auto insurers, reached a milestone when it added its
3 millionth policyholder on May 21.  Penni Pelletier, a sales counselor in
GEICO Direct's Fredericksburg office, sold the policy to Randall and Carol
Hertzberger in Kennesaw, Ga.
    "We're delighted to reach this milestone in our growth," said Bob Miller,
regional vice president of the Fredericksburg office.  "Our national
advertising campaign is helping drivers realize the savings from dealing
directly with the company and the convenience of 24-hour service seven days a
week.  The company adds more than 10,000 new drivers each week."
    GEICO Direct began accelerating its growth in 1995 with a strategy that
let it provide rate quotes to almost every caller.  The company grew by 10
percent in 1996, the year that it became a part of Berkshire Hathaway, and 16
percent in 1997.  Its growth reached 18.9 percent during the first quarter of
1998.  It insures more than 4.5 million automobiles.
    To handle the growth, GEICO has initiated an expansion program that will
add new buildings in five locations.  Nationally, it has increased the number
of associates from 8,975 at the beginning of 1997 to more than 11,600, and
those numbers are expected to grow.
    The Fredericksburg regional office, which opened in 1992 and moved into
its current building in 1994, now has 2,690 associates and a $63.6 million
payroll.  A national mail center that will employ an additional 125 associates
is under construction on property adjacent to the current building.
    GEICO has four other regional offices (Woodbury, N.Y.; Macon, Ga.; San
Diego; and Dallas), four branch offices (Lakeland, Fla.; Virginia Beach, Va.;
Coralville, Iowa; and Honolulu) and corporate headquarters in Washington, D.C.
It is wholly owned by Berkshire Hathaway.
    GEICO Corporation is the parent company of Government Employees Insurance
Company (GEICO), GEICO General, GEICO Indemnity and GEICO Casualty, which
insure private passenger automobiles and provide homeowner and other types of
insurance for qualified applicants.  The companies are known collectively as
GEICO Direct.