$Berkshire Hathaway(BRK.B)$ The reported decline was primarily an underwriting deterioration at GEICO, rather than a drop in premium volume.
GEICO’s Q3 2026 pre-tax profit fell 45% year on year to US$982 million . Premiums written were broadly unchanged, edging down 0.3% to US$11.71 billion .
Tiger News
The key pressure was claims: total losses and loss-adjustment expenses increased 8.5% . Berkshire attributed this in part to higher claim frequency.
Tiger News
As claims and expenses rose faster than premiums, GEICO’s combined ratio worsened to 91.4% , from 84.3% a year earlier. A higher combined ratio means less underwriting profit per dollar of premium, explaining the bulk of the insurance-group profit pressure.
Tiger News
So the short version is: flat premium growth plus materially higher claims costs compressed underwriting margins. Berkshire’s Q3 operating profit subsequently fell 5.8% year on year, with the insurance weakness cited as a major drag.
Sina Finance
The main item to monitor next is whether GEICO’s claim frequency moderates and whether pricing can again outpace loss costs; continued deterioration in either would prolong the margin pressure.
Berkshire Hathaway Class B (BRK.B)
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