American multinational conglomerate holding company Berkshire Hathaway reported that in the first quarter of 2026, net underwriting income from its insurance and reinsurance business increased by US$1.717 billion, an increase of approximately 29% from the previous year.
There was no major catastrophe loss impact during the quarter, with no major catastrophe events (in excess of $150 million per event), which helped improve the performance of Berkshire Hathaway’s generated insurance and reinsurance underwriting earnings.
A year ago, Berkshire Hathaway’s first-quarter 2025 results were hurt by catastrophic losses from wildfires in California, affecting its property and casualty re/insurance business. After-tax losses caused by major events in the same period last year amounted to US$860 million, of which disaster losses caused by wildfires during the same period amounted to US$1.1 billion.
However, Berkshire Hathaway reported lower underwriting earnings at its reinsurance business and auto specialty insurer GEICO in the first quarter of 2026,
Berkshire Hathaway’s property and casualty (P&C) reinsurance unit reported strong earnings in the first quarter of this year, with National Indemnity Corporation (NICO), General Re and TransRe Group as the main underwriters.
The company reported property and casualty reinsurance pretax underwriting earnings of $637 million in the first quarter of 2026, compared with just $68 million in the same period a year earlier.
However, premium income declined in the first quarter of 2026, falling to $5.992 billion from $6.135 billion a year ago.
Berkshire explained that the decrease in property and casualty reinsurance premiums “was primarily due to lower property and casualty business volumes, partially offset by an increase in casualty business and the favorable foreign currency translation impact of a weaker U.S. dollar.”
Notably, “the decline in real estate sales was due to the impact of increased competition and lower interest rates.”
After announcing its full-year results for 2025, the company said it would “continue to reduce reinsurance premiums as long as these phases of the cycle persist”.
As the property reinsurance market continues to soften, we will likely see Berkshire Hathaway continue to reduce its underwriting, and it will be interesting to see how this changes beyond next quarter, which will include renewal volumes in Japan and Florida.
Berkshire Hathaway’s earnings benefited from the absence of major catastrophic losses, with the company reporting that its losses and loss-adjusted expense ratio were down nearly 20%, or $715 million, from the previous year.
Additionally, changes in final loss estimates from previous accident years were primarily related to lower-than-expected property damage, resulting in $260 million in lower losses incurred in the first quarter of 2026.
Berkshire Hathaway also mentioned its recent strategic partnership with Tokio Marine Holdings (TMHD), under which its reinsurer National Indemnity Company (NICO) will acquire a 2.5% stake in the Japanese insurance company.
Under the strategic agreement, NICO is welcomed by Tokio Marine’s reinsurance group to assume a portion of its investment portfolio through full account quota share reinsurance.
Today, Berkshire Hathaway explained that “NICO will assume, on a quota share basis, a portion of Tokio Marine’s net non-life insurance premiums and related losses and expenses for the attached risk over a ten-year term beginning April 1, 2026. The contract is expected to generate meaningful premiums over its term.”
Likewise, given that Japan’s main reinsurance renewals are on April 1 (i.e. Q2), it will be interesting to see if there is evidence of these volumes in next quarter’s earnings.
In life and health reinsurance, Berkshire Hathaway reported pre-tax underwriting earnings of $126 million in the first quarter of 2026, up from $70 million in the same period last year.
Life reinsurance premiums also rose to $1.318 billion from $1.243 billion, with Berkshire noting increases in France, Asia and the United Kingdom but declines in Australia.
In Berkshire Hathaway’s main group, underwriting revenue in the first quarter of 2026 reached $476 million and written premiums were $4.466 billion, both higher than the $144 million underwriting loss and $4.423 billion in primary premiums in the same period last year.
Given the absence of major catastrophic events in the first quarter of 2026, a significant improvement in loss ratios once again helped Berkshire’s primary insurance business, with reported losses and LAE falling by $660 million in the first quarter of this year.
Berkshire Hathaway said net income from insurance investments fell slightly to $2.26 billion in the first quarter of 2026 from $2.519 billion a year earlier due to lower interest rates.
But as of the end of the first quarter, Berkshire Hathaway’s most important insurance-related premium float increased slightly to $176.9 billion, an increase of $500 million since the end of 2025.
Finally, Berkshire Hathaway’s GEICO’s auto insurance business suffered a rise in claims in the first quarter, with the company reporting that GEICO’s pretax underwriting earnings fell to $1.416 billion, down from $2.173 billion in the first quarter of 2025.
GEICO’s losses and loss adjustment expenses increased $853 million in the first quarter of 2026 compared with the prior year, with Berkshire reporting higher frequency and average severity of claims, including property damage and collision coverage as well as personal injury.
As a result, Berkshire Hathaway’s insurance and reinsurance business had a strong quarter overall, but continued evidence of lower property reinsurance underwriting and higher auto claims may be something to watch for other U.S. auto insurance market results.