Finance

Warren Buffett’s Berkshire Takes a Beating on Auto Insurance

By Aahil

November 08, 2022

The company posted its largest quarterly loss in a year, a $962 million loss on insurance underwriting, in the third quarter.

With a pretax loss of $759 million, Geico's auto insurance division suffered the most among its insurance businesses.

The third quarter saw the corporation record its biggest quarterly loss in a year, a $962 million loss on insurance underwriting. The car insurance segment of Geico suffered the most among its insurance businesses, with a pretax loss of $759 million.

The aftermath of Hurricane Ian, which struck southwest Florida in late September and caused billions of dollars in damage, has also been a problem for the larger insurance business.

Even though customer demand for goods and services was still generally strong in 2022, it started to decline at some of our businesses in the third quarter, Berkshire said in a regulatory filing.

The increase included a 17% increase in revenue from companies in which Berkshire owns between a 20% and 50% stake, as well as $858 million in foreign exchange gains related to debt not denominated in US dollars.

According to the company, results from that division will be reported with a quarter's lag; therefore, Berkshire's portion of Occidental earnings will be included in earnings in the fourth quarter of 2022.

Additionally, Berkshire posted net earnings of roughly $2.69 billion for the quarter, driven by a $10.4 billion hit to its investment portfolio as market turbulence was caused by the economy.

Additionally, Berkshire posted net earnings of roughly $2.69 billion for the quarter, driven by a $10.4 billion hit to its investment portfolio as market turbulence was caused by the economy.

Warren Buffett did two new thing in this Century