The Berkshire Hathaway subsidiary reportedly spent $1.28 billion on advertising in 2022, about $800 million less than the previous year, as its parent company saw insurance underwriting results hit by natural catastrophes and increases in premiums. private passenger car claims.
In 2022, Berkshire Hathaway’s insurance underwriting posted an after-tax loss of $90 million, compared to after-tax earnings of $728 million and $657 million in 2021 and 2020, respectively.
GEICO’s cut allowed Progressive to become the largest investor in advertising in 2022, S&P Global saidwith its property and casualty subsidiaries recording $1.73 billion in total advertising spend.
This 7.6% decline from previous ad spend of $1.87 billion in 2021 was part of Progressive’s efforts to meet its internal profitability target of a combined ratio of 96%, according to CEO Susan Griffith, who added that the company will continue to evaluate its media investment and use it efficiently in 2023.
Allstate’s ad spending is the lowest among the Big Four
Allstate’s total ad spend fell below $1 billion in 2022 to approximately $950 million, down 26.9% from the prior year.
While there’s no direct correlation to advertising spending, the insurer saw a small year-over-year increase within its homeowners and private auto business lines in 2022, according to S&P Global.
A note inside its most recent Form 10-K also revealed that Allstate’s outstanding policy count may decrease as it tries to improve profitability through rate actions as well as a temporary reduction in its advertising spend.
Meanwhile, State Farm and its affiliates reportedly spent about $1.01 billion on advertising in 2022, S&P Global said, down from $1.07 billion in 2021 and its five-year high of $1.21 billion in 2019.
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