Berkshire Hathaway's Insurance Float Hits Record $177.5 Billion Despite Drop in Underwriting Profit
In Q2 2026, Berkshire Hathaway reported a record insurance float of $177.5 billion, an increase of $1.1 billion from the previous quarter. This cash reserve is generated by collecting premiums before claims are paid and has been instrumental in funding the company's long-term investments. Despite this growth, underwriting profit fell 13% year-over-year due to higher-than-expected costs at GEICO. GEICO’s loss ratio rose to 76.6%, up from 71.8% a year earlier, driven by increased auto insurance claims and advertising expenses. However, other parts of Berkshire's insurance segment performed well, with lower losses and strong premium growth in its Primary Group and Reinsurance Group. Berkshire’s overall operating earnings rose 16% to nearly $13 billion during the quarter as gains from manufacturing, service, and retail businesses offset declines in insurance underwriting. The company also increased its stake in Alphabet to $40 billion and became a net buyer of equities for the first time in over three years.
