The property and casualty (P&C) reinsurance segment achieved over US$1 billion in underwriting profit.
In the P&C reinsurance segment, premiums written decreased by 5.4% to $5.6 billion due to reductions in property coverage, while premiums earned increased by 5.3% to $5.6 billion. Loss and loss adjustment expenses rose by 11.9% to $3.124 billion, including catastrophe losses of approximately $130 million. Underwriting expenses increased by 3.8% to $1.462 billion.
The combined ratio for the P&C reinsurance business was 81.8%, up from 78.9% in the previous year. Pre-tax underwriting earnings for P&C reinsurance declined slightly from $1.124 billion in Q2 2023 to $1.022 billion in Q2 2024.
In the life and health reinsurance segment, pre-tax underwriting earnings were $73 million for Q2 2024, compared to $47 million in the previous year. Premiums written fell slightly to $1.226 billion, and premiums earned decreased by 5.4% to $1.22 billion. Life and health benefits decreased from $1.02 billion last year to $842 million this year, while underwriting expenses increased from $222 million to $305 million. The combined ratio improved to 94% from 96.4% in Q2 2023.
Overall, Berkshire Hathaway Reinsurance Group reported underwriting earnings of $782 million for Q2 2024, down from $827 million last year. The Berkshire Hathaway Primary Group posted pre-tax underwriting earnings of $279 million, up from $272 million a year earlier. Premiums written increased by 3.7% to nearly $5 billion, and premiums earned rose by 10% to $4.7 billion. Losses and loss adjustment expenses grew by 8.1% to $3.1 billion, though the loss ratio improved by 1.2 percentage points due to lower catastrophe losses and a change in business mix.
GEICO, Berkshire’s auto insurance unit, reported a significant year-on-year increase in pre-tax underwriting earnings to $1.786 billion in Q2 2024. This growth was driven by higher average premiums per auto policy, lower claims frequencies, and improved operating efficiencies. Premiums written increased by nearly 11% to $10.5 billion, with average written premiums per auto policy rising by 11.3%.
Pre-tax net investment income across Berkshire’s insurance and reinsurance operations rose by 39.7% to $4.068 billion for Q2 2024, resulting in net investment income of $3.32 billion, up from $2.369 billion in Q2 2023. The company’s insurance investment float was $169 billion at the end of Q2 2024, consistent with the end of December 2023.
