Magazine content is available exclusively for TIME subscribers.INSURANCE: GEICO at the Brink
Once upon a quite recent time, the staid insurance industry had a Cinderella firm called Government Employees Insurance Co. (GEICO). By charging low premium rates, GEICO skipped past older firms to become the fifth largest auto insurer in the land. Investors from far and wide flocked to buy a piece of GEICO, bidding its stock up to more than $60 a share. Then Cinderella turned into a pumpkin.
Today GEICO stock is selling at about $2.50 and the company is on the brink of bankruptcy. A GEICO crash would be costly to the...
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