Berkshire Q3 results hit by $3bn nat cat losses
Berkshire Hathaway recorded an overall net loss from insurance underwriting of $1.44 billion in the third quarter of 2017 compared to a net income of $272 in the same period a year ago.
Underwriting results in the third quarter of 2017 included estimated pre-tax losses of approximately $3.0 billion ($1.95 billion after-tax) attributable to three major hurricanes in the US and Puerto Rico and an earthquake in Mexico.
Property/casualty and life re/insurer Berkshire Hathaway Reinsurance Group posted an underwriting loss of $1.34 billion in the third quarter of 2017 compared to an underwriting loss of $19 million in the third quarter of 2016. The results included estimated losses of approximately $1.45 billion related to hurricanes Harvey, Irma and Maria and an earthquake in Mexico.
Motor insurer GEICO reported an underwriting loss of $416 million for the third quarter of 2017 compared to underwriting earnings of $138 million in the same period a year ago. GEICO incurred estimated losses related to hurricanes Harvey and Irma of approximately $500 million the third quarter.
Property/casualty and life re/insurer General Re recorded an underwriting loss of $504 million compared to an underwriting profit of $100 million over the period. The results included aggregate estimated losses of $835 million from hurricanes Harvey, Irma and Maria and an earthquake in Mexico.
Overall, insurance premiums earned grew to $13.35 billion in the third quarter of 2017 compared to $11.36 billion in the same period a year ago. Revenues at GEICO increased to $7.54 billion from $6.47 billion over the period. General Re grew the revenues to $1.63 billion from $1.39 billion. Similarly, Berkshire Hathaway Reinsurance Group’s revenues were up at $2.32 billion from $1.87 billion.
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