Berkshire’s primary insurance group posted a sharp decline in pretax earnings, falling to $63 mn from $279 mn a year earlier.
The reinsurance unit also slipped, reporting $650 mn in pretax earnings compared to $782 mn in Q2 2024.
Total net underwriting income for Berkshire’s insurance businesses came in at $1.99 bn for the quarter, down from $2.26 bn year-over-year. Total insurance operations, which include investment income, reported $5.36 bn in pretax earnings—slightly lower than $5.58 bn in the same period last year.
Investment income rose modestly by $47 mn to $3.37 bn in Q2. At the same time, total earned premiums across all insurance units reached $22.20 bn, up from $21.95 bn.
Geico reported $1.82 bn in pretax underwriting earnings for Q2, a slight increase from $1.79 bn in the same quarter last year.
Parent company Berkshire Hathaway, however, saw weaker performance across its other insurance operations.
Geico’s written premiums climbed 5.2% to $11.0 bn, a gain of $545 mn. In contrast, Berkshire Hathaway’s primary insurance group saw a 2.3% drop in premiums written, settling at $4.82 bn.
The reinsurance division reported a $21 mn drop in pretax underwriting profit, falling to $52 mn for the quarter. Despite this, written premiums in the segment rose 10.3%, reaching $1.35 bn.
Berkshire disclosed $1.1 bn in catastrophe losses tied to Southern California wildfires during the first quarter of 2025. The firm reported no significant catastrophe losses in the same period last year. After taxes, the wildfire impact amounted to $850 mn over the first half of 2025.
According to the company, rising litigation and jury awards continue to drive up casualty claim costs, particularly in its primary group.
