Berkshire Hathaway’s Insurers Hit Hard in 3rd Quarter
Like all other businesses, inflation took a toll on Berkshire Hathaway’s third quarter numbers. Billionaire Warren Buffet’s companies — led by GEICO — took a $962 million underwriting loss. GEICO had the biggest pretax loss at $759 million.
What makes that significant is GEICO not turning anything close to a profit since the second quarter of 2021.
Auto insurers — says CFRA Research analyst, Cathy Seifert — have been particularly hard hit by the current wave of inflation. Collisions are rising as we emerge from COVID and the frequency and severity of some of those crashes have led to very high medical claims, bills and lawsuits.
“Geico is definitely a pressure point to watch at Berkshire,” she said. ”It looks like Geico is losing market share as well.”
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