Berkshire Hathaway Inc. reported a sharp rise in underwriting profitability, with third-quarter pretax underwriting earnings tripling to $3.16 bn from $1.03 bn a year earlier, even as Geico’s contribution slipped.
According to Berkshire’s earnings filing, private passenger auto claim frequencies for property damage and collision fell in the low-to-mid single digits during the first three quarters, while severities climbed modestly.
Bodily injury severity, however, surged 11% to 13% from the prior-year period, underscoring continued inflation pressure on claims costs.
The primary insurance and reinsurance operations both swung from losses to solid profits. The reinsurance group posted $884 mn in pretax underwriting income, reversing a $310 mn loss.
Geico’s pretax earnings fell to $1.77 bn from $2.03 bn. Premiums written rose 5% to $11.74 bn, but underwriting expenses jumped nearly 40% to $1.44 bn, driven by higher policy acquisition costs. The loss ratio ticked up slightly to 71.5.
Berkshire’s primary group delivered $506 mn in pretax underwriting income after posting a $689 mn loss in last year’s third quarter.
Premiums earned increased at the primary group but edged lower in reinsurance.
The reinsurance segment also absorbed roughly $760 mn in catastrophe losses for the first nine months of 2025, mostly from the Los Angeles wildfires in January, compared with $380 mn a year earlier.
The gains highlight the strength of Berkshire’s diversified insurance model even in a volatile claims environment. With solid underwriting rebounds offsetting Geico’s higher costs, the quarter positioned the conglomerate well for its leadership handoff.
Warren Buffett reaffirmed that Greg Abel, vice chairman of non-insurance operations, will take the helm at year’s end – marking the company’s most significant transition in decades.
