Berkshire Hathaway, the conglomerate led by Warren Buffett, has posted strong underwriting earnings of $2.4 billion for Q3 2025, marking a significant year-on-year increase from $750 million in Q3 2024. For the nine-month period ending September 30, 2025, the company reported underwriting earnings of $5.7 billion, slightly up from $5.6 billion in the same period last year. Both the reinsurance and primary insurance operations saw a turnaround from the previous year’s quarterly losses.
The company’s re/insurance operations, including Berkshire Hathaway Reinsurance Group, Berkshire Hathaway Primary Group, and GEICO, all contributed to this robust performance.
Reinsurance Division Delivers Strong Results
At Berkshire Hathaway Reinsurance Group, pre-tax underwriting earnings surged to $884 million in Q3 2025, compared to a loss of $310 million in Q3 2024. This improvement was driven by strong earnings of nearly $1.1 billion in property and casualty (P&C) reinsurance, which offset a drop in life and health (L&H) earnings to $50 million from $98 million in Q3 2024.
However, for the first nine months of 2025, the reinsurance segment saw a slight decline in pre-tax net underwriting earnings, dropping to $1.2 billion from $1.4 billion in the same period in 2024. P&C earnings fell marginally to $2.178 billion from $2.191 billion, while L&H earnings decreased to $172 million from $279 million.
In the P&C reinsurance segment, premiums written dropped by 5% year-on-year to $5.2 billion for Q3 2025, and by 6% to $16.3 billion for the nine-month period. Berkshire attributed the decline to reduced property business.
The company also reported a decline of 18% in losses and loss adjustment expenses (LAE) to $2.7 billion for Q3 2025, and a 4% decline to $9 billion for the nine-month period. Losses from significant catastrophe events in 2025, such as the Southern California wildfires, amounted to around $760 million in the first nine months.
The overall P&C losses and expenses for Q3 2025 fell to $4.1 billion, with a combined ratio of 79.4%, a significant improvement from the previous year’s 97%. For the nine-month period, losses and expenses decreased to $13.3 billion, with a combined ratio of 86%, slightly better than 86.7% in 2024.
Life and Health Reinsurance Results
In the L&H reinsurance business, premiums written increased slightly to $1.3 billion for Q3 2025, up from $1.25 billion in Q3 2024. For the nine-month period, L&H premiums rose to $3.9 billion, from $3.7 billion in the same period last year. However, underwriting earnings for L&H declined during both periods, primarily due to lower earnings from US life business.
Berkshire Hathaway Reinsurance Group also posted improved results in its retroactive reinsurance, periodic payment annuities, and variable annuities segments. For the nine-month period, the liability for unpaid losses and LAE for retroactive reinsurance contracts decreased by $1.1 billion to $31.3 billion.
Strong Performance from Berkshire Hathaway Primary Group
Berkshire Hathaway Primary Group reported pre-tax underwriting earnings of $506 million for Q3 2025, a significant recovery from a loss of $689 million in Q3 2024. For the nine-month period, earnings were $425 million, compared to a modest gain of $76 million in 2024.
Premiums written increased by 4% to $5.3 billion for Q3 2025, while premiums for the nine-month period remained relatively flat at $14.5 billion, driven by growth in MedPro, BHHC, NICO Primary, BH Direct, and USLI.
Losses and LAE for the Primary Group declined by 30% to $2.9 billion for Q3 2025, and by 5% to $9.5 billion for the nine-month period. For the quarter, the reduction was attributed to a reduction in the ultimate loss estimates for prior accident years’ claims.
GEICO Faces Decline in Underwriting Earnings
At GEICO, the P&C insurer primarily offering private passenger automobile policies, pre-tax underwriting earnings fell to $1.8 billion in Q3 2025, down from $2 billion in Q3 2024. However, for the nine-month period, underwriting earnings were relatively flat at $5.8 billion.
Premiums written increased by 5% to $11.7 billion for Q3 2025, and by 6% to $34.3 billion for the nine months, driven by a rise in policies-in-force. GEICO’s losses and LAE increased by 5% to over $8 billion for Q3 2025, and by 3% to $23.4 billion for the nine-month period.
The company explained that the decline in loss ratios for the first nine months was due to higher average earned premiums, lower claims frequencies, and lower catastrophe losses, partially offset by increased claim severities.
Investment Income Declines
Net insurance investment income for the Group decreased to $3.2 billion for Q3 2025, down from $3.7 billion a year earlier. For the nine-month period, investment income totalled $9.4 billion, slightly down from $9.6 billion in 2024.
As of September 30, 2025, Berkshire Hathaway’s float, which represents funds held for future claims payments, totalled $176 billion, an increase from $171 billion at the end of 2024.