Berkshire Hathaway reveals Q3 2021 performance – including GEICO

Berkshire Hathaway reveals Q3 2021 performance – including GEICO | Insurance Business America

Berkshire Hathaway reveals Q3 2021 performance – including GEICO

Berkshire Hathaway Inc., the Omaha-headquartered conglomerate led by chief executive Warren Buffett, has published its third quarter results.

Here’s how the organization performed in Q3:

Source

Q3 2021 net earnings/(loss) attributable to shareholders

Q3 2020 net earnings/(loss) attributable to shareholders

Insurance – underwriting

$(784 million)

$(213 million)

Insurance – investment income

$1.16 billion

$1.02 billion

Railroad

$1.54 billion       

$1.35 billion

Utilities and energy

$1.5 billion

$1.4 billion

Manufacturing, service, and retailing

$2.71 billion

$2.35 billion

Investment and derivative contract gains/losses

$3.88 billion

$24.74 billion

Other

$349 million

$(490 million)

Total

$10.34 billion

$30.14 billion

 

As indicated above, only the underwriting business posted negative results in the three months ended September 30.

“Insurance underwriting produced after-tax losses of $784 million in the third quarter and earnings of $356 million in the first nine months of 2021,” reported the group, companies of which include Berkshire Hathaway Specialty Insurance.

In its 52-page Form 10-Q filing, the parent firm noted: “After-tax incurred losses from significant catastrophe events were approximately $1.7 billion in the third quarter and $2.2 billion in the first nine months of 2021, which were partly offset by reductions in incurred losses for prior accident years’ loss events.

“Underwriting results in 2021 also reflected earned premium reductions from the GEICO Giveback programme, higher private passenger auto claims frequencies, and higher losses in the life reinsurance business.”

According to the document seen by Insurance Business, the $784 million net underwriting loss mostly came from Berkshire Hathaway Reinsurance Group. The unit posted a pre-tax underwriting loss worth $708 million; Berkshire Hathaway Primary Group, a loss of $23 million; and GEICO, a further $289 million. The combined pre-tax underwriting loss stood at $1.02 billion.

Berkshire Hathaway’s operating earnings, or the attributable net earnings excluding investment and derivative contract gains, amounted to $6.47 billion in the third quarter.