Berkshire reinsurance swings to profit in Q2
Berkshire Hathaway Reinsurance Group made a profit in the second quarter of 2018 as performance in both property/casualty (P&C) as well as life/health (L&H) underwriting improved.
Berkshire Hathaway Reinsurance offers excess-of-loss and quota-share reinsurance coverages on P&C risks and L&H reinsurance. The segment posted an underwriting gain of $297 million in the second quarter of 2018 after an underwriting loss of $375 million in the same period of 2017.
P&C reinsurance reported a pre-tax gain of $338 million in the second quarter compared to $40 million in the same period of 2017. The unit reduced retroactive reinsurance spending to $147 million from $333 million over the period. As a result, the P&C operations posted a pre-tax underwriting gain of $191 million for the second quarter of 2018 compared to a loss of $293 million in the same period a year ago.
Life and health reinsurance produced a pre-tax underwriting gain of $106 million after an underwriting loss of $82 million a year ago.
Overall, Berkshire’s insurance businesses posted a net underwriting gain of $943 million in the second quarter after a loss of $22 million a year ago.
Berkshire’s private passenger automobile insurance provider GEICO made an underwriting gain of $673 million in the second quarter after $119 a year ago. Berkshire Hathaway Primary Group made an underwriting gain of $234 million after $232 million a year ago.
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