Berkshire Hathaway’s insurance underwriting earnings fell 14% in the second quarter of 2026 to $2.18 billion, according to the company’s earnings report released on August 8. The decline came despite strong performance across much of the conglomerate’s broader business, which posted operating earnings growth of 16% and net earnings that more than doubled to $25.7 billion.
The insurance earnings drop was driven primarily by deteriorating results at Geico, the company’s personal auto insurance subsidiary. Geico’s pre-tax underwriting income fell 45.4% year-over-year to $994 million in the quarter, according to reporting by The Insurer.
Geico faced mounting cost pressures from higher claims activity. Private passenger auto claims frequencies increased between 5% and 7% for bodily injury coverage and 3% to 5% for property damage and collision coverages in the first half of 2026 compared to the same period in 2025, Berkshire disclosed. Average claims severities—the cost per claim—rose even more sharply, with bodily injury claims climbing 10% to 12% year-over-year.
The primary insurance and reinsurance groups within Berkshire’s insurance operation partially offset Geico’s weakness. Berkshire Hathaway Primary’s pre-tax underwriting earnings surged 333% to $273 million, benefiting from $268 million in reserve releases as prior-year claims came in lower than expected. P&C reinsurance earnings grew 8.9% to $1.14 billion, also aided by favorable reserve adjustments of $609 million.
On an after-tax basis, Berkshire’s total insurance underwriting earnings fell 13.1% to $1.73 billion. Insurance investment income declined to $3.06 billion from $3.37 billion in the prior year quarter.
The broader Berkshire conglomerate showed strength in other segments. Operating earnings from the railroad, energy, and manufacturing and retailing divisions all grew, offsetting the insurance softness. Berkshire completed $4.5 billion in share repurchases during the quarter and held approximately $177.5 billion in insurance float—the net liabilities assumed under insurance contracts—as of June 30.
Sources
- The Insurer — Berkshire Hathaway pre-tax underwriting earnings decline, Geico performance, claims frequency and severity data for Q2 2026
- Barron’s — Operating earnings rise 16%, overall financial results
- Las Vegas Sun / Business Wire — Official Berkshire Hathaway earnings release, net earnings, operating earnings by segment, share repurchases, insurance float
