Berkshire Hathaway’s insurance operations posted an after-tax loss of $962 million in the third quarter (pre-tax loss of $1.15 billion), down $178 million from 2021. result.
Overall, Warren Buffett’s conglomerate posted a third-quarter loss of $2.69 billion on Saturday, while net income for the same period in 2021 was over $10 billion.
Geico Insurance, Berkshire Hathaway Primary Group and Berkshire Hathaway Reinsurance Group posted pre-tax losses of $759 million, $281 million and $110 million, respectively. Berkshire posted a third-quarter pre-tax loss of $3.4 billion ($2.7 billion after-tax) from Hurricane Ian and a loss of $2.2 billion ($1.7 billion after-tax) from Hurricane Ida and floods in Europe.
After-tax insurance investment income increased $247 million compared to the third quarter of 2021 to $1.4 billion.
The third-quarter pre-tax loss attributed to auto insurer Geico worsened from a loss of $289 in the third quarter of 2021. Berkshire said the results reflected an “increase in claim severity primarily due to significantly higher costs for property and property damage claims.”
“Rising used car prices are creating higher total loss claims, and vehicle parts shortages are contributing to higher partial damage claims. In addition, the severity of personal injury claims continues to grow. trend,” the company added in its earnings report. Loss and loss adjustment expenses in the third quarter were up about 12% to bring him to $1 billion. Underwriting expenses in the third quarter decreased $355 million as the company reduced advertising expenses and reduced employee-related expenses.
Berkshire Hathaway Primary Group premiums written increased $389 million in the third quarter. However, losses and charges increased to approximately $3.8 billion in the third quarter from approximately $3.0 billion a year ago. This includes his $660 million loss from Hurricane Ian and his $740 million and his $260 million losses primarily from Hurricane Ida.
catastrophe auto profit loss
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