Berkshire Hathaway's Q1 2026 Earnings: Significant Growth in Insurance Operations
Berkshire Hathaway reported a substantial increase in net underwriting earnings from its insurance and reinsurance operations, hitting $1.717 billion for the first quarter of 2026. This marks a 29% rise from the previous year, influenced by competitive conditions in the property reinsurance market and lower rate conditions, resulting in decreased written premiums for the quarter. A significant factor boosting earnings was the absence of catastrophe losses exceeding $150 million.
In 2025, Berkshire Hathaway faced $1.1 billion in losses due to the California wildfires. However, this year the company showed marked improvement, especially in the property and casualty (P&C) reinsurance sector. Pre-tax underwriting earnings in P&C reinsurance surged to $637 million, up from $68 million, even as premiums written slightly decreased from $6.135 billion to $5.992 billion.
The decline in P&C reinsurance premiums was largely due to lower property business volumes, albeit partially offset by increased casualty business and favorable currency impacts from a weaker dollar. The competitive landscape and persistent lower rates have led Berkshire Hathaway to adopt a cautious approach in writing fewer reinsurance premiums during this part of the cycle.
A decrease in loss and loss adjustment expenses by $715 million, due to the absence of major catastrophes, positively impacted results. Adjustments to prior accident year's loss estimates further reduced incurred losses by $260 million. Berkshire Hathaway also announced a strategic partnership with Tokio Marine Holdings, with National Indemnity Company acquiring a 2.5% stake, anticipated to drive significant premium volumes over a decade-long contract.
In life and health reinsurance, pre-tax underwriting earnings climbed to $126 million, up from $70 million the previous year. This increase was bolstered by higher premiums in markets including France, Asia, and the U.K., despite a decline in Australia. Meanwhile, the Berkshire Hathaway Primary Group posted underwriting earnings of $476 million and premiums of $4.466 billion, a stark improvement from a $144 million loss in the same quarter last year.
Despite a slight dip in net insurance investment income from $2.519 billion to $2.26 billion, the premium float increased modestly to $176.9 billion by the end of the first quarter, up half a billion from the end of 2025. GEICO, Berkshire's auto insurance segment, faced higher claims, with pre-tax underwriting earnings dropping to $1.416 billion from $2.173 billion. GEICO also saw an uptick in claims frequencies and average severities in property damage, collision coverages, and bodily injuries.
Overall, while Berkshire Hathaway's insurance and reinsurance divisions showcased robust results, the continued decline in property reinsurance activity and the rise in auto insurance claims reveal trends worth monitoring in the broader U.S. auto insurance market.