Berkshire Hathaway's Geico, the largest provider of private passenger automobile insurance in New York, is expanding its operations site for Geico Insurance Agency at its Amherst, N.Y. service center, investing $2.4 million and creating about 300 new jobs over three years.

The insurer and Gov. David A. Paterson's office said Geico Insurance Agency will sell homeowners, renters, boat and other insurance coverages, according to joint statement.

Geico Chairman Tony Nicely said the insurer began with a business in Western New York five years ago and "it was one of the best decisions we made."

"We've been able to effectively serve a growing number of Northeast policyholders here, and we've seen our staff continually expand and develop new skills," Nicely said. The new center for the agency subsidiary will work with another Geico Insurance Agency operation in Fredericksburg, Va.

Geico built its facility in New York in 2003 to provide sales, services and claims for Geico auto insurance. More than 1,500 employees work at the site but the facility can hold more than 2,500 employees, making it suitable for the expansion.


Geico was given $1.5 million in tax credits over the next five years to support the multimillion dollar expansion project by the Empire State Development Corp. after being designated a "regionally significant project." The company will also get breaks on sales tax on some equipment purchases and receive low-cost power from the New York Power Authority.

Especially during the current economic climate, Geico's success in Western New York "becomes increasingly important for our local and state economies," said Paterson. "Geico has the full support of the state in its efforts to expand its business operations."

In 2008, the top five writers of private passenger automobile insurance in New York, according to A.M. Best Co. state/line data based on direct premiums written, were: Berkshire Hathaway Insurance Group, with a 23.0% market share; Allstate Insurance Group, with 18.9%; State Farm Group, with 10.8%; Progressive Insurance Group, with 6.6%; and Liberty Mutual Insurance Cos., with 5.7%.