John J. Byrne
Encyclopedia
John J. Byrne is a longtime insurance industry executive who was CEO of GEICO
, White Mountains Insurance Group
and Fireman's Fund. He also served as chairman of Overstock.com
.
, New Jersey
. He attended Rutgers University
, where he graduated with a mathematics degree, and then worked an actuarial assistant for Travelers Insurance Company. He then earned a master's degree in mathematics.
After service in the U.S. Air Force, Byrne worked as a reinsurance salesman for Lincoln National Life Insurance. He then moved to Travelers and was eventually promoted to executive vice president in charge of life insurance operation.
, then a troubled Washington, D.C. auto insurer. GEICO
sold insurance directly to low-risk drivers, but had begun to lose money after underwriting riskier drivers. The company's shares had declined and regulators wanted to shut it down.
Byrne fired more than 1,500 employees, reducing the staff to fewer than 6,400, and closed 23 sales offices. It also stopped writing policies in several states.
GEICO had a turnaround as a result of these measures, which attracted the attention of investor Warren Buffett. He bought a position in the company and eventually his Berkshire Hathaway
acquired the company. He has called Byrne the "Babe Ruth of insurance."
In 1985, Byrne was invited to run the troubled Fireman's Fund, then a subsidiary of American Express
. Fireman's had incurred $356 million in pretax losses in 1983 and 1984. Byrne vastly improved Fireman's financial performance and initiated a public offering of some of Fireman's shares in 1985. The company was sold to Allianz AG in 1991. Byrne retained the Fireman's holding company, which he later renamed as White Mountains Insurance Group
.
bought a 60% interest in the Internet retailer D2: Discounts Direct, changing its name to Overstock.com
. The elder Byrne served as an Overstock.com director from October 1999 until October 2002, and then rejoined the board in June 2004. He was elected chairman in October 2005.
In March 2006, the elder Byrne said that he was thinking of stepping down in disagreement over his son's campaign against naked short selling
, which he said was distracting his son from leading the company. In April 2006, John Byrne stepped down to become vice-chairman, and was replaced by Patrick Byrne. In July 2006, John Byrne resigned from Overstock's board of directors. He was reelected to the board on May 12, 2010.
GEICO
The Government Employees Insurance Company is an auto insurance company. It is a wholly owned subsidiary of Berkshire Hathaway that as of 2007 provided coverage for more than 10 million motor vehicles owned by more than 9 million policy holders. GEICO writes private passenger automobile insurance...
, White Mountains Insurance Group
White Mountains Insurance Group
White Mountains Insurance Group is a holding company with business interests in property and casualty insurance, and reinsurance. The group owns the direct marketing insurer Esurance and a 75% stake in specialty insurance carrier OneBeacon. In 2008 White Mountains Insurance Group also acquired a...
and Fireman's Fund. He also served as chairman of Overstock.com
Overstock.com
Overstock.com , also known by its shortcut, O.co, is an online retailer headquartered in Cottonwood Heights, Utah, near Salt Lake City. Founded in 1997 by Robert Brazell, under the name D2: Discounts Direct, it was a pioneering online seller of surplus merchandise which, upon its failure in 1999,...
.
Early background
As a young man, Byrne worked for his father, who owned a small insurance agency in WildwoodWildwood
Wildwood is woodland which has developed naturally; particularly where it and a suitable climate have developed together.Wildwood may also refer to:-Place names:Municipalities*Wildwood, Alberta, Canada*Wildwood, Florida, USA*Wildwood, Georgia, USA...
, New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...
. He attended Rutgers University
Rutgers University
Rutgers, The State University of New Jersey , is the largest institution for higher education in New Jersey, United States. It was originally chartered as Queen's College in 1766. It is the eighth-oldest college in the United States and one of the nine Colonial colleges founded before the American...
, where he graduated with a mathematics degree, and then worked an actuarial assistant for Travelers Insurance Company. He then earned a master's degree in mathematics.
After service in the U.S. Air Force, Byrne worked as a reinsurance salesman for Lincoln National Life Insurance. He then moved to Travelers and was eventually promoted to executive vice president in charge of life insurance operation.
Insurance industry magnate
After being passed over for president in 1975, Byrne quit to become chief executive of GEICOGEICO
The Government Employees Insurance Company is an auto insurance company. It is a wholly owned subsidiary of Berkshire Hathaway that as of 2007 provided coverage for more than 10 million motor vehicles owned by more than 9 million policy holders. GEICO writes private passenger automobile insurance...
, then a troubled Washington, D.C. auto insurer. GEICO
GEICO
The Government Employees Insurance Company is an auto insurance company. It is a wholly owned subsidiary of Berkshire Hathaway that as of 2007 provided coverage for more than 10 million motor vehicles owned by more than 9 million policy holders. GEICO writes private passenger automobile insurance...
sold insurance directly to low-risk drivers, but had begun to lose money after underwriting riskier drivers. The company's shares had declined and regulators wanted to shut it down.
Byrne fired more than 1,500 employees, reducing the staff to fewer than 6,400, and closed 23 sales offices. It also stopped writing policies in several states.
GEICO had a turnaround as a result of these measures, which attracted the attention of investor Warren Buffett. He bought a position in the company and eventually his Berkshire Hathaway
Berkshire Hathaway
Berkshire Hathaway Inc. is an American multinational conglomerate holding company headquartered in Omaha, Nebraska, United States, that oversees and manages a number of subsidiary companies. The company averaged an annual growth in book value of 20.3% to its shareholders for the last 44 years,...
acquired the company. He has called Byrne the "Babe Ruth of insurance."
In 1985, Byrne was invited to run the troubled Fireman's Fund, then a subsidiary of American Express
American Express
American Express Company or AmEx, is an American multinational financial services corporation headquartered in Three World Financial Center, Manhattan, New York City, New York, United States. Founded in 1850, it is one of the 30 components of the Dow Jones Industrial Average. The company is best...
. Fireman's had incurred $356 million in pretax losses in 1983 and 1984. Byrne vastly improved Fireman's financial performance and initiated a public offering of some of Fireman's shares in 1985. The company was sold to Allianz AG in 1991. Byrne retained the Fireman's holding company, which he later renamed as White Mountains Insurance Group
White Mountains Insurance Group
White Mountains Insurance Group is a holding company with business interests in property and casualty insurance, and reinsurance. The group owns the direct marketing insurer Esurance and a 75% stake in specialty insurance carrier OneBeacon. In 2008 White Mountains Insurance Group also acquired a...
.
Role at Overstock.com
Byrne's son Patrick M. ByrnePatrick M. Byrne
Patrick M. Byrne is the president, CEO, and chairman of the board of directors of Internet retailer Overstock.com. In 1999, Byrne took control of the company, then called D2: Discounts Direct, and changed its name to Overstock...
bought a 60% interest in the Internet retailer D2: Discounts Direct, changing its name to Overstock.com
Overstock.com
Overstock.com , also known by its shortcut, O.co, is an online retailer headquartered in Cottonwood Heights, Utah, near Salt Lake City. Founded in 1997 by Robert Brazell, under the name D2: Discounts Direct, it was a pioneering online seller of surplus merchandise which, upon its failure in 1999,...
. The elder Byrne served as an Overstock.com director from October 1999 until October 2002, and then rejoined the board in June 2004. He was elected chairman in October 2005.
In March 2006, the elder Byrne said that he was thinking of stepping down in disagreement over his son's campaign against naked short selling
Naked short selling
Naked short selling, or naked shorting, is the practice of short-selling a financial instrument without first borrowing the security or ensuring that the security can be borrowed, as is conventionally done in a short sale. When the seller does not obtain the shares within the required time frame,...
, which he said was distracting his son from leading the company. In April 2006, John Byrne stepped down to become vice-chairman, and was replaced by Patrick Byrne. In July 2006, John Byrne resigned from Overstock's board of directors. He was reelected to the board on May 12, 2010.