By Michael SalfinoSource |Published: December 08, 2018 12:24:00By Michael SaffronThe deal between Geico and Pekin will create a new company with the same name and name of the existing company.
The new company will be called Life Insurance and Geico will become a wholly owned subsidiary.
Geico, which has been in business since 1995, is one of the largest insurance companies in the United States and has more than 100 million subscribers.
Pekin is a national leader in insurance products and services.
In a news release on Thursday, Pekins president and CEO Jim Pascarella said, “We are excited to announce a merger of the companies that will provide an insurance company that is both a trusted partner to consumers and an equal partner in providing quality and value to our members.
We are thrilled to join forces to provide our members the best value for their money.”
The Pekin company, which includes Pekin Life Insurance, Peak Life Insurance & Co., Peak Car Insurance, and Peak Mutual Life Insurance Corp., has been on a steady decline in the past few years.
Last year, the company lost about 8% of its market value, according to the Insurance Information Institute, down from more than 30% in the 1990s.
Geisins company had also been dealing with problems with its car insurance program.
The company had faced financial issues and its chief executive, Bob Kocher, resigned in April after three months in office.