- Berkshire Hathaway’s insurance underwriting earnings declined 14% to $2.18 bn in Q2 2026, despite a 16% increase in group operating earnings and net earnings of $25.7 bn.
- Geico’s pre-tax underwriting profit fell 45.4% to $994 mn as auto claims frequency and severity increased, particularly for bodily injury coverage.
- Berkshire Hathaway Primary’s underwriting earnings surged 333% to $273 mn, while P&C reinsurance earnings rose 8.9% to $1.14 bn, supported by favorable reserve developments.
Berkshire Hathaway reported a 14% decline in insurance underwriting earnings to $2.18 bn in the second quarter of 2026, as rising auto insurance claims costs weighed on Geico’s profitability.
The results, released on August 8, contrasted with stronger performance across the conglomerate, where operating earnings increased 16% and net earnings more than doubled to $25.7 bn.
Geico accounted for much of the weakness. The personal auto insurer’s pre-tax underwriting profit fell 45.4% year over year to $994 mn, according to The Insurer, reflecting higher claims frequency and severity.
During the first six months of 2026, private passenger auto claims frequency increased between 5% and 7% for bodily injury coverage compared with the corresponding period in 2025. Property damage and collision claims frequency rose between 3% and 5%.
Claims severity also increased, adding further pressure to underwriting margins. Average bodily injury claims costs climbed between 10% and 12% year over year, according to Berkshire’s disclosures.
Stronger results from Berkshire’s primary insurance and reinsurance businesses partially offset Geico’s deterioration.
Berkshire Hathaway Primary reported a 333% increase in pre-tax underwriting earnings to $273 mn, supported by $268 mn in favorable prior-year reserve releases as claims costs developed below earlier estimates.
Property and casualty reinsurance underwriting earnings increased 8.9% to $1.14 bn, benefiting from $609 mn in favorable reserve adjustments.
Across the insurance operations, after-tax underwriting earnings declined 13.1% to $1.73 bn. Insurance investment income also decreased, falling to $3.06 bn from $3.37 bn in the second quarter of 2025.
Outside insurance, Berkshire recorded higher operating earnings across its railroad, energy, manufacturing and retailing businesses, helping offset the decline in underwriting profitability.
The conglomerate repurchased $4.5 bn of its shares during the quarter. As of June 30, 2026, Berkshire held approximately $177.5 bn in insurance float, representing net liabilities assumed under insurance contracts.
