Insurance

GEICO parent suffers losses in Q3 and 9M- Newshubweek

GEICO parent suffers losses in Q3 and 9M
Written by Arindam

The first nine months, meanwhile, saw a dive – from 2021’s $50.15 billion in net earnings – to $40.98 billion in net losses attributable to shareholders this time around.

The net losses include investment and derivative losses worth $10.45 billion and $65.07 billion, respectively, in the quarter and 9M. A year ago, Berkshire reported investment and derivative gains.

Operating earnings, both higher than their 2021 counterparts, stood at $7.76 billion and $24.08 billion for Q3 and the nine-month span, respectively.

Of the operating earnings in both the quarter and nine months, only insurance underwriting contributed negative results. The underwriting loss in the three months ended September 30 was $962 million, which is bigger than the underwriting loss in Q3 2021.

For the first nine months, Berkshire’s underwriting loss amounted to $334 million – a reversal from last year’s underwriting income.

Lifting the lid on the underwriting figures, Berkshire noted: “After-tax incurred losses attributable to significant catastrophe occurrences in the third quarter were approximately $2.7 billion from Hurricane Ian in 2022 and $1.7 billion from Hurricane Ida and floods in Europe in 2021.

“Underwriting results in 2022 were also negatively impacted by increases in private passenger automobile claims frequencies and severities, and favorably impacted by higher foreign currency exchange rate gains arising from the remeasurement of non-US dollar denominated liabilities of our US insurance subsidiaries and improved life and health reinsurance results.”  

Berkshire’s other earnings contributors, which posted positive results, are investment income (insurance); railroad; utilities and energy; manufacturing, service, and retailing; and others.

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Arindam

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