The new deal reportedly comprises the following three key elements: strategic equity investment in TMHD, collaboration in reinsurance, and strategic collaboration in M&A and global investment opportunities.

Berkshire’s NICO will make a strategic investment in 48,207,200 common shares of TMHD, representing 2.49% of TMHD’s total issued shares of 1,934,000,000 as of December 31, 2025.

To implement this investment, TMHD explained that it will conduct a third-party allotment by way of the Disposition of Treasury Shares.

To offset the dilutive impact of the third-party allotment, TMHD’s board of directors resolved at its March 23, 2026 meeting to repurchase up to ¥287.4 billion of its own shares between April and September 2026. The company intends to use the proceeds from the allotment to fund the buyback.

On the reinsurance front, TMHD said it will welcome NICO onto its reinsurance panel, adding that the Berkshire entity will assume a portion of its portfolio through Whole Account Quota Share reinsurance.

“This collaboration will further enhance, both qualitatively and quantitatively, our long-term and stable foundation of reinsurance that is less susceptible to cycles in the reinsurance market. In addition, it will further strengthen our earnings stability and strategic flexibility by mitigating underwriting volatility, particularly in relation to increasingly severe natural catastrophe risks,” TMHD observed.

As mentioned, the two companies also plan to collaborate on global strategic investment opportunities, including M&A, executing joint investments to drive sustained business expansion.

“We have steadily expanded our global footprint through disciplined acquisition principles. Through the Strategic Partnership, by combining our proven M&A execution capabilities with NICO’s peerless capital strength, we believe we are able to broaden our strategic options and access to high-quality growth opportunities,” TMHD added.

Masahiro Koike, Group CEO of TMHD, commented, “We are delighted to establish a strategic partnership with Berkshire Hathaway, one of the world’s leading investors, whose corporate culture and values closely align with ours. This Strategic Partnership represents a major step forward in advancing our insurance business and delivering sustainable value creation by combining the strengths of both organisations. Through disciplined management, we remain fully committed to enhancing corporate value over the long term.”

Ajit Jain, Vice Chairman of Berkshire Hathaway-insurance operations, stated, “We are pleased to build a long-term collaborative relationship with TMHD, which has a strong underwriting franchise and an exceptional management team. We expect this Strategic Partnership to create compelling long-term opportunities for both organisations.”

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Abel took over from Warren Buffett as CEO of Berkshire Hathaway in January 2026, and has now delivered his first letter to shareholders alongside the company’s results for the 2025 financial year.

In his letter, Abel highlights Berkshire’s “extraordinary group of insurance businesses”, but notes that “after several years of needed adjustments to pricing and policy terms”, these trends started to reverse in 2025, which “likely means we will write less property and casualty business for a period of time.”

The CEO went on to state that Berkshire expects its primary insurance businesses “to face continued headwinds in 2026, and potentially beyond,” and warned of similar dynamics in reinsurance.

“The reinsurance sector has attracted significant increases in available capital from both the traditional and alternative markets, which together with a more benign reinsured catastrophe loss burden in 2025 in most major regions has led to significant price declines in property reinsurance. In most casualty reinsurance segments, claims inflation continued to outpace pricing. As long as these phases of the cycle endure, we expect to write less reinsurance premium,” he said.

Nevertheless, 2025 was still another strong year for Berkshire Hathaway’s re/insurance businesses, which together produced pre-tax underwriting earnings of $9.5 billion, compared with $11.4 billion in 2024, and net underwriting earnings of $7.3 billion, a decline of almost 20% from 2024’s $9 billion. Year-on-year, the reinsurance business, the primary insurance business, and GEICO all recorded lower pre-tax underwriting earnings, but again, the performance was still robust.

At Berkshire Hathaway Reinsurance Group, pre-tax underwriting earnings declined by more than 32% year-on-year to $1.9 billion, driven by a decline in property to $3.2 billion from $3.8 billion in 2024, partially offset by higher life and health (L&H) reinsurance earnings of $374 million, compared with $223 million in 2024.

At the same time, pre-tax underwriting losses from the run-off of retroactive reinsurance increased to more than $1 billion, while pre-tax losses from periodic payment annuity contracts increased to $711 million, and variable annuity guarantee reinsurance contracts produced pre-tax earnings of $88 million for the firm in 2025.

Within the P&C reinsurance segment, premiums written fell by $1.7 billion to $20.2 billion in 2025, as net earned premiums declined by $1.8 billion to $20.4 billion.

Berkshire attributes the declines to volume reductions in property, driven by “increased competition and lower rates.”

As noted by Abel in his letter to shareholders, although the California wildfires in January were significant, overall, 2025 was a more benign year for reinsured natural catastrophe losses, partly as a result of the dominance of severe convective storms and other so-called secondary peril losses, which the primary market retained more of last year.

Losses and loss adjustment expenses (LAE) declined by 4.5% year-on-year to $11.7 billion, with losses incurred from significant catastrophe events hitting around $765 million, lower than 2024’s $800 million. Losses and LAE in 2025 were also reduced by $1.1 billion of reductions of estimated ultimate claim liabilities for prior accident years’ claims, driven by lower-than-expected property losses.

At the same time, reinsurance underwriting expenses also decreased, by 9.9% to $615 million, primarily due to the impact of lower premiums earned.

The P&C combined ratio weakened slightly in 2025 to 84.5%, compared with 82.9% in 2024, driven by a higher loss ratio of 57.2% and slightly lower expense ratio of 27.3%.

Turning to the L&H reinsurance arm, premiums written increased by roughly $300 million to $5.3 billion, as premiums earned rose by $271 million to $5.3 billion, primarily due to increases in non-US markets.

Berkshire Hathaway attributes the stronger year-on-year underwriting result to increased earnings from international and US life and health business, reduced losses in US long-term care business, and increased foreign currency exchange gains.

At Berkshire Hathaway Primary Group, the company’s primary insurance arm, pre-tax underwriting earnings fell to $785 million in 2025 from $855 million in 2024, as premiums written decreased slightly to $18.7 billion from $18.8 billion. Premiums earned were flat at $18.7 billion.

Losses and LAE declined by more than 1% year-on-year to $12.5 billion for 2025, while prior accident years’ ultimate loss estimates increased by approximately $190 million in 2025 compared to reductions of $52 million in 2024.

Underwriting expenses rose to $5.4 billion for 2025 from $5.2 billion in 2024, with a higher expense ratio of 28.9% attributable to business mix changes.

Berkshire Hathaway Primary Group’s combined ratio increased to 95.8% in 2025 from 95.4% in 2024, driven by the higher expense ratio, partially offset by a lower loss ratio of 66.9%.

The GEICO business writes property and casualty insurance policies, primarily private passenger automobile insurance, in all 50 states and the District of Columbia, and is typically the main driver of the firm’s insurance underwriting profit, and this was again the case in 2025.

GEICO generated pre-tax underwriting earnings of $6.8 billion in 2025 compared with $7.8 billion in 2024, as premiums written increased by more than 5% to $45.2 billion, driven by an increase in policies-in-force over the past year, and premiums earned increased by over 5% to $44.5 billion.

Losses and LAE at GEICO rose by 6% year-on-year to $32.1 billion, as underwriting expenses increased by 34.2% to $5.5 billion. A higher loss ratio of 72.3% and a higher expense ratio of 12.4% resulted in a combined ratio of 84.7% for GEICO in 2025, higher than 2024’s 81.5%.

In terms of insurance investment income, pre-tax investment income declined by 8.9% in 2025 to $15.3 billion, reflecting lower interest and other investment income, primarily attributable to lower short-term interest rates, and reduced dividend income.

Lastly, Berkshire Hathaway’s float has grown from approximately $171 billion at the end of 2024 to around $176 billion at the end of 2025.

“The environment ahead will reward insurers whose focus remains on growing underwriting profit sustainably, not volume; customer trust and loyalty, not temporary spikes in market share; and long-term resilience, not short-lived opportunism,” said Abel in his letter to shareholders.

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Based in New York, Polechronis will be responsible for the company’s financial institutions business nationwide.

He brings nearly 25 years of industry experience focused on financial institutions. He joined BHSI in 2014 and has since held various senior roles, most recently as Co-Head of Financial Institutions.

Prior to joining BHSI, Polechronis spent 11 years at Chubb, most recently as Assistant Vice President, Asset Management Unit Manager.

Shelley Norman, Executive & Professional Lines Field Leader, U.S. at BHSI, commented, “Chris is an excellent leader and relationship-builder who has been pivotal to the profitable growth of our financial institutions portfolio over the past decade.

“I look forward to working with him in his expanded role, continuing to deliver BHSI’s long-term underwriting and excellent, CLAIMS IS OUR PRODUCT service across multiple market segments.”

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She currently serves as Chief Operating Officer of GEICO and, since joining the company in 1986, has held leadership roles across claims, underwriting, product management and regional operations.

Ajit Jain, Vice Chairman – Insurance Operations, commented, “Nancy knows the business inside and out. She’s practical, decisive and focused on results. I have full confidence in her ability to move GEICO forward.”

As part of this transition, Todd A. Combs will conclude his tenure at Berkshire Hathaway and join JPMorgan Chase & Co., where he has served as a Director of its Board since 2016.

Warren E. Buffett, Chairman of Berkshire, said, “Todd A. Combs, CEO of GEICO since 2020, has resigned to accept an interesting and important job at JPMorgan, which they describe in a press release that will be available very soon on their website. Todd made many great hires at GEICO and broadened its horizons. JPMorgan, as usually is the case, has made a good decision.”

Additionally, Charles C. Chang has been promoted as its Senior Vice President (SVP) and Chief Financial Officer (CFO), effective June 1st, 2026.

He succeeds Marc D. Hamburg, who served in the same roles and has decided to retire from the firm on June 1st, 2027, after four decades of service.

The duo will work together to ensure a smooth and seamless transition period. Chang will be based in Omaha. Since 2024, he has served as SVP and CFO of Berkshire Hathaway Energy, a role he has held since 2024.

Before this, Chang was a partner at PricewaterhouseCoopers, he has over three decades of experience in public company financial reporting and mergers and acquisitions.

Berkshire Hathaway extends its gratitude to Hamburg for his exceptional leadership and dedication since joining the company in 1987.

Buffett commented, “Marc has been indispensable to Berkshire and to me. His integrity and judgment are priceless. He has done more for this company than many of our shareholders will ever know. His impact has been extraordinary.”

Michael J. O’Sullivan has been appointed SVP and General Counsel, effective January 1st, 2026, based in Omaha.

O’Sullivan joins Berkshire Hathaway from Snap Inc., where he has served as general counsel since 2017. Previously, he practised law at Munger, Tolles & Olson for over two decades, advising companies on corporate governance matters, litigation and mergers and acquisitions.

His appointment marks the creation of a new position at Berkshire Hathaway, which has for decades primarily utilised external legal counsel for corporate matters.

In Non-Insurance operations, Adam M. Johnson, CEO of NetJets, has been appointed President of the Consumer Products, Service and Retailing businesses of Berkshire Hathaway, effective immediately, while continuing in his role at NetJets.

Johnson has nearly three decades of experience at NetJets, including 10 years as CEO, where he strengthened operations and built enduring customer relationships across a global platform.

Gregory E. Abel, Vice Chairman – Non-Insurance Operations, said, “Adam is an accomplished leader with a proven ability to deliver long-term shareholder value. In his new role, he will support the outstanding CEOs of our 32 consumer products, service and retailing businesses, and uphold Berkshire’s culture and values.”

The remaining non-insurance businesses – including industrial products, building products, BNSF, Berkshire Hathaway Energy, Pilot and McLane – will remain under Abel’s direct oversight as he assumes the role of President and CEO of Berkshire Hathaway on January 1st, 2026.

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De Blieck, who joined BHSI in 2022, brings nearly 20 years of experience in the insurance industry, with extensive expertise in financial lines. Based in Brussels, he will now oversee BHSI’s operations in Belgium and report to Louis du Ché, Country Manager of BHSI France.

“Frederic has demonstrated both the excellent capabilities and strong character we value in our team and our leaders,” added Louis du Ché.

“His appointment reflects our commitment to building the finest insurance business in Belgium, grounded in strong character, profitable growth, and long-term partnerships with customers and brokers. I’m especially proud of the team who helped us take the strategic leap into Belgium — their belief in our vision and tireless support have been instrumental in launching and expanding our operations.

“Frederic has been a key part of that journey, and I look forward to working closely with him as we continue to grow our presence and deliver BHSI’s hallmark protection and service.”

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The company has reported another strong set of results for its insurance and reinsurance operations, which includes Berkshire Hathaway Reinsurance Group, Berkshire Hathaway Primary Group, and GEICO.

At Berkshire Hathaway Reinsurance Group, pre-tax underwriting earnings increased to $884 million for Q3’25 from a loss of $310 million in Q3’24, driven by earnings of almost $1.1 billion in property/casualty (P&C), which more than offset a decline in the life/health (L&H) result to $50 million ($98m in Q3’24).

For 9M’25, the reinsurance arm’s pre-tax net underwriting earnings did fall from $1.4 billion to $1.2 billion, with a slight reduction in P&C earnings to $2.178 billion ($2.191bn 9M’24), and a decline in L&H earnings to $172 million ($279m 9M’24).

Within P&C reinsurance, premiums written decreased 5% year-on-year to $5.2 billion and decreased by 6% to $16.3 billion for the third quarter and nine month period, respectively. Berkshire attributes the decline in both periods to reductions in property business.

Losses and loss adjustment expenses (LAE) declined by 18% to $2.7 billion for Q3’25, and declined by 4% to $9 billion for 9M’25. The firm reports that losses incurred from significant catastrophe events were approximately $760 million in the first nine months of 2025, attributable to the Southern California wildfires in Q1’25.

In total, so not just within the reinsurance arm, current accident year incurred losses from cat events were $1.1 billion for 9M’25 from the wildfires in California.

Additionally, within P&C, losses and LAE in 9M’25 were reduced $898 million compared to $1.2 billion in 2024 from reductions of estimated ultimate claim liabilities for prior accident years’ claims. The reductions were mostly attributable to lower-than-expected property losses, explains Berkshire.

Total P&C losses and expenses fell to $4.1 billion from $5.3 billion for Q3’25 with a combined ratio of 79.4%, much improved on the prior year’s 97%. For 9M’25, total losses and expenses decreased to $13.3 billion from $14.3 billion with a combined ratio of 86%, a slight strengthening on the prior year’s 86.7%.

In the L&H reinsurance business, premiums written rose slightly to $1.3 billion from $1.25 billion for Q3’25, and increased to $3.9 billion from $3.7 billion for 9M’25. As mentioned, L&H underwriting earnings did fall for both periods, which Berkshire attributes to lower earnings from US life business.

Berkshire Hathaway Reinsurance Group also includes retroactive reinsurance, periodic payment annuity, and variable annuity results, all of which performed better in Q3’25 when compared with Q3’24. For 9M’25, the liability for unpaid losses and LAE for retroactive reinsurance contracts declined $1.1 billion to $31.3 billion.

The company notes that premiums rates for periodic payment annuity business “continue to be unacceptable,” with Berkshire opting not to write any new business since 2022.

Turning to the results of Berkshire Hathaway Primary Group, pre-tax underwriting earnings totalled $506 million for Q3’25 and $425 million for 9M’25, compared with a loss of $689 million in Q3’24 and a gain of $76 million in 9M’25.

Premiums written rose 4% in the quarter to $5.3 billion and were relatively flat for the nine month period at $14.5 billion, driven by increases in MedPro, BHHC and NICO Primary, and BH Direct and USLI.

Losses and LAE declined 30% to $2.9 billion for Q3’25 and fell 5% to $9.5 billion for 9M’25. For the quarter, the decline relates to a reduction in ultimate loss estimates for prior accident years’ claims of $190 million. Prior accident years’ ultimate loss estimates rose $211 million for 9M’25.

Total losses and expenses declined to $4.2 billion for Q3’25 with a combined ratio of 89.3%, a huge improvement on the prior year’s 114.7%. For 9M’25, total losses and expenses decreased to $13.5 billion with a combined ratio of 97%, compared with 99.5% in 9M’254.

At GEICO, a writer of P&C insurance policies, primarily private passenger automobile insurance, in all 50 states and the District of Columbia, pre-tax underwriting earnings fell to $1.8 billion from $2 billion for Q3’25, and were relatively flat for the nine month period at $5.8 billion.

Premiums written increased 5% to $11.7 billion for Q3’25 and rose 6% to $34.3 billion for 9M’25, driven by an increase in policies-in-force.

GEICO’s losses and LAE increased 5% to more than $8 billion for Q3’25 and increased 3% to $23.4 billion for 9M’25.

“The loss ratio decline in the first nine months reflected higher average earned premiums per policy, lower claims frequencies, lower catastrophe losses and more favorable development of prior accident years’ claims estimates, partially offset by increases in average claims severities,” explains the firm.

Across the Group, net insurance investment income declined to $3.2 billion for Q3’25 from $3.7 billion a year earlier, and for 9M’25 investment income reached $9.4 billion, down on the prior year’s $9.6 billion.

As of September 30th, 2025, Berkshire reports that its float totalled $176 billion, up on $171 billion as of the end of December 2024.

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AM Best now ranks the top 50 global reinsurers in two lists. Companies that report under IFRS 17 are ranked 1-16 based on gross reinsurance revenue, while companies that report under non-IFRS 17 are ranked 1-34 based on gross written reinsurance premium (GWP).

In 2023, Swiss Re was number one for non-IFRS 17 reporters but has now shifted its reporting and based on year-end 2024 revenue, Swiss Re tops the list for IFRS 17 companies with revenue of $36.2 billion.

The large reinsurer takes the number one spot from Munich Re, the only other firm to have revenue of more than $30 billion in 2024 at $32.6 billion. Although Munich Re dropped down one place on the list, in terms of loss performance, the company led with a non-life reinsurance combined ratio of 77.3%.

Hannover Re sits in third place for IFRS 17 reporters with 2024 revenue of $27.5 billion, followed by SCOR with revenue of $16.8 billion, and then China Re completes the top five with revenue of $5.9 billion.

In light of Swiss Re’s move to IFRS 17 reporting, Berkshire Hathaway is the new global leader for non-IFRS 17 reporters, with 2024 GWP of $26.9 billion, the most significant change among the top five.

The specialist Lloyd’s insurance and reinsurance marketplace is number two on the list for non-IFRS 17 reporters with GWP of $23.5 billion, followed by Reinsurance Group of America with GWP of $15.6 billion, Everest Group with GWP of $12.9 billion, and then RenaissanceRe with 2024 GWP of $11.7 billion.

“The California wildfires in January heavily impacted results for the first quarter, with many reinsurers who had California exposure reporting their worst quarterly underwriting experience in recent years and the impact of the wildfires eroding substantial portions of budgeted catastrophe loads for the year.

“As 2025 plays out, the market has witnessed pockets of rate softening among non-loss affected accounts, though rates modestly improved or maintained on loss affected accounts,” said Chris Pennings, financial analyst, AM Best.

Our Top Global Reinsurance Groups directory is based on research data from rating agency A.M. Best, and ranks companies based on full-year 2024 performance.

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Tran has been appointed Head of Programs, Canada, and will be responsible for launching and leading program strategies, including a new national platform that delivers insurance solutions through strategic partnerships with program administrators, MGAs, and broker partners. He will be based in Toronto.

He brings over 20 years of experience in underwriting and strategic relationship management to his new role.

Tran joins BHSI after five years at Zurich Canada, most recently serving as Vice President, National Strategic Relationships.

Prior to that, he spent a decade at Liberty Mutual Canada, recently as Vice President, Business Development & Programs, Specialty Insurance. Earlier in his career, Tran held roles at Chubb and AIG.

Andrew Knight, Country Manager, Canada, BHSI, said, “BHSI continues to grow steadily across Canada, expanding our team, our geographic reach, and our product lines.

“Our move into the Programs space is a natural evolution of our strategy to ‘go wide and go deep’—broadening our specialty underwriting capabilities and bringing the security of our strong balance sheet to new segments and distribution partners. I’m thrilled to welcome David, whose extensive expertise will be instrumental in driving this strategic initiative.”

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Across the Berkshire Hathaway insurance and reinsurance operations, net underwriting earnings fell from $2.3 billion in Q2 2024 and from $4.9 billion in H1 2024, but remain strong despite a first half underwriting loss at Berkshire Hathaway Primary Group.

Group-wide insurance underwriting earnings included after-tax losses of roughly $850 million from the Los Angeles, California wildfires, which occurred in Q1 2025, and impacted both the primary insurance business and Berkshire Hathaway Reinsurance Group’s property and casualty (P&C) business.

At Berkshire Hathaway Reinsurance, which offers excess-of-loss and quota-share reinsurance coverages on property and casualty risks via NICO, General Re, and TransRe Groups, pre-tax underwriting earnings fell from $782 million in Q2’24 to $650 million in Q2’25, and from $1.7 billion in H1’24 to $343 million in H1’25, reflecting the elevated loss experience.

Within the reinsurance arm, P&C underwriting income increased slightly to $1.1 billion in Q2’25 but decreased from $2 billion in H1’24 to $1.1 billion in H1’25.

For the quarter, losses and loss adjustment expenses declined by 12% to $2.8 billion, but for the first half of the year increased by 4% to $6.4 billion. Losses incurred from the California wildfires were approximately $760 million in the first six months of 2025. However, the P&C business also saw estimated ultimate liabilities for losses occurring in prior accident years reduced by $506 million in 2025 and $734 million in 2024, mostly attributable to lower-than-expected property losses.

Underwriting expenses fell 11% in Q2’25 to $1.3 billion and by 1% to $2.9 billion in H1’25, and included foreign currency exchange losses from the remeasurement of certain non-U.S. Dollar denominated liabilities of $58 million in Q2 and $200 million in H1’25, and gains of $25 million in Q2 and $51 million in H1’24.

In terms of growth, the P&C reinsurance operation saw premiums decline 10% in Q2’25 to just over $5 billion, while premiums written for H1’25 declined by 7% year-on-year to $11.2 billion. Berkshire Hathaway attributes the decline to writing less property business in the periods.

P&C reinsurance premiums earned totalled $5.1 billion in Q2’25 compared with $5.6 billion a year earlier, and for the first six months of 2025, totalled $10.3 billion, down on H1’24’s $11 billion.

The reinsurance business also writes life and health reinsurance coverages through the General Re Group and Berkshire Hathaway Life Insurance Company of Nebraska, and here, underwriting earnings fell from $73 million to $52 million in Q2’25, and from $181 million to $122 million in H1’25. According to the firm, the year-to-date decline reflected the impact of U.S. life contract commutation gains of approximately $50 million in 2024.

L&H reinsurance premiums written increased to $1.4 billion in Q2’25 from $1.2 billion last year, and for H1’25 rose to $2.6 billion from $2.5 billion. Premiums earned also increased, by 10% in Q2’25 to $1.4 billion, and by 6% in H1’25 to $2.6 billion, driven by increases in non-U.S. markets.

Berkshire Hathaway Reinsurance Group also includes retroactive reinsurance, periodic payment annuity, and variable annuity operations. On the former, Berkshire notes that it has not written any significant retroactive reinsurance contracts in recent years, explaining that pre-tax underwriting results derive from changes in the ultimate claim liability estimates and changes in the related deferred charge assets, and from foreign currency exchange gains and losses attributable to non-U.S. Dollar denominated reinsurance contracts.

“Changes in foreign currency exchange rates produced losses of $88 million in the second quarter and $128 million in the first six months of 2025 compared to losses of $26 million in the second quarter and gains of $19 million in the first six months of 2024. Pre-tax underwriting losses before foreign currency exchange gains/losses were $349 million in the first six months of 2025 compared to $327 million in 2024,” explains the firm.

On the periodic payment annuity business, Berkshire notes that premiums rates for new business continue to be at unacceptable levels, with the company not writing any new business since 2022.

“Changes in foreign currency exchange rates produced losses of $87 million in the second quarter and $136 million in the first six months of 2025 compared to losses of $13 million in the second quarter and $15 million in the first six months of 2024. Pre-tax underwriting losses before foreign currency effects were $276 million in the first six months of 2025 compared to $299 million in 2024,” says the company.

Berkshire’s variable annuity guarantee reinsurance contracts produced pre-tax losses of $3 million in H1’25 compared to earnings of $105 million in 2024, with earnings impacted by changes in securities markets, interest rates and foreign currency exchange rates.

Turning to the results of Berkshire Hathaway Primary Group, which consists of several independently managed underwriting operations, pre-tax underwriting earnings fell sharply to $63 million in Q2’25 from $279 million in Q2’24, and for H1’25 the business has recorded an underwriting loss of $81 million compared with a gain of $765 million in H1’24.

Total losses and expenses increased for both periods when compared with last year. Losses and loss adjustment expenses increased by 3% in Q2’25 to $3.2 billion and by 13% to $6.7 billion in H1’25. Losses incurred from the California wildfires were approximately $300 million in H1’25. Additionally, losses incurred this year also included increases in estimated ultimate losses for prior accident years’ claims of a significant $401 million in the first six months of the year, attributable to higher ultimate loss estimates in liability coverages, partly offset by lower ultimate loss estimates in property lines.

In terms of growth at the primary insurance business, written premiums declined by 2% to $4.8 billion in Q2’25 and by 2% to $9.2 billion in H1’25. Premiums earned were flat for the quarter at $4.7 billion and slightly higher for H1’25 at $9.3 billion.

“The declines were primarily due to reductions at GUARD (36% year-to-date) and, to a lesser degree, at BHSI and RSUI, partially offset by higher volumes at NICO Primary, BHHC and BH Direct. GUARD’s premium declines reflected volume reductions across multiple product categories due to management’s decision to exit certain unprofitable lines and tightened overall underwriting standards beginning in 2024,” reports Berkshire Hathaway.

The biggest contributor to Berkshire’s insurance and reinsurance underwriting operations is GEICO, a writer of property and casualty insurance policies, primarily private passenger automobile insurance, in all 50 states and the District of Columbia.

While GEICO’s performance in both Q2’25 and H1’25 failed to offset declines at both the primary arm and reinsurance division, underwriting earnings were strong and increased to $1.82 billion from $1.79 billion in Q2’25, and rose to $4 billion from $3.7 billion in H1’25, and this is despite higher total losses and expenses for both periods.

At GEICO, losses and loss adjustment expenses increased by 3% to $8 billion in Q2’25 and rose 1% in H1’25 to $15.4 billion. However, the loss ratio came down for both periods by 2.3 and 2.9 points, respectively, reflecting the impact of higher average earned premiums per auto policy and lower claims frequencies, partially offset by increases in average claims severities and less favorable development of prior accident years’ claims estimates.

Premiums written at GEICO increased by 5% in Q2’25 to $11 billion and by 6% in H1’25 to $22.5 billion, reflecting an increase in policies-in-force and higher average premiums per policy. At the same time, premiums earned rose by 6% to $11.1 billion in Q2’25 and by 5% to $21.8 billion in H1’25.

Across the re/insurance businesses, after-tax earnings from investment income increased by 1.4% to $3.4 billion in Q2’25 and by 6% to $6.3 billion in H1’25, driven by higher average short-term investment balances, partially offset by lower interest rates and dividend income, as well as the impact of capital distributions to Berkshire in the fourth quarter of 2024.

Berkshire Hathaway’s float has increased from approximately $171 billion at the end of 2024 to $174 billion at June 30th, 2025.

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These policies follow the launch of BHSI’s proprietary Directors & Officers Liability Insurance in December 2024.

Marco Vantellino, Head of Executive and Professional, BHSI Italy, said, “Launching our proprietary policy wordings in Italy is indicative of our commitment to leading domestic and international insurance programs for our customers.

“Each of these new policies embody BHSI’s simple, clearly understood policy wordings approach, delivering contract certainty along with coverage flexible for our customers.”

BHSI underwrites on a net capacity basis without accessing reinsurance markets, allowing for greater flexibility in product design and enabling responsive local decision-making from underwriting through to claims. Central to all BHSI products is its “CLAIMS IS OUR PRODUCT” philosophy, underscoring its commitment to providing excellent claims service.

Leonardo Castrichino, Country Manager for BHSI in Italy, added, “The introduction of these policies is an important step in our steady expansion in Italy. We look forward to continuing to grow, hiring talented professionals, launching new products, entering new segments, and expanding our geographical presence throughout Italy.”

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