BRK-B · 10-Q · 2026Q1 · Full report
Reinsurance (BHRG) and Tokio Marine Deal
BERKSHIRE HATHAWAY INC · 2026-05-04 · Importance 68 · Surprise 58 · From source text
BHRG reported property/casualty premiums written of $5,992 million in Q1 2026, down $143 million (2.3%) YoY, and premiums earned declined $323 million (6.2%) to $4,912 million versus Q1 2025. Losses and LAE fell $715 million (19.9%) to $2,884 million, with no significant catastrophe losses in Q1 2026 versus $770 million in Q1 2025, improving the loss ratio by 10.0 percentage points. On March 23, 2026, NICO (part of BHRG) entered a ten-year whole-account quota-share reinsurance agreement with Tokio Marine that will assume a portion of Tokio Marine’s net non-life premiums and related losses beginning April 1, 2026, and is expected to generate meaningful premium volumes over the term. Underwriting expenses declined $177 million (11.3%) YoY in Q1 2026, partly due to lower premiums earned and favorable FX remeasurement compared to Q1 2025.
Key facts
- On March 23, 2026, NICO entered into a ten-year whole account quota-share reinsurance agreement with Tokio Marine effective April 1, 2026. source
- BHRG property/casualty losses and LAE declined $715 million (19.9%) in Q1 2026 versus 2025; loss ratio declined 10.0 percentage points and there were no significant catastrophe losses in 2026 compared to $770 million in 2025. source
- Property/casualty BHRG premiums written: $5,992 million in Q1 2026 and $6,135 million in Q1 2025; premiums written declined $143 million (2.3%). source
- BHRG underwriting expenses declined $177 million (11.3%) in Q1 2026 versus 2025 and included foreign currency exchange gains of $12 million in Q1 2026 versus losses of $142 million in Q1 2025. source
- Retroactive reinsurance pre-tax underwriting losses before FX were $251 million in Q1 2026 versus $169 million in Q1 2025. source
- Property/casualty BHRG premiums earned declined $323 million (6.2%) in Q1 2026 versus 2025. source
- Life/health BHRG premiums written: $1,318 million in Q1 2026 and $1,243 million in Q1 2025; premiums earned increased $76 million (6.1%). source
- Periodic payment annuity pre-tax losses before FX were $152 million in Q1 2026 and $150 million in Q1 2025; annuity liabilities were $14.1 billion at March 31, 2026 including $4.0 billion on contracts without life contingencies. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| margin | positive | realized | +10.0% | BHRG property/casualty losses and LAE declined $715 million (19.9%) in Q1 2026 versus 2025; loss ratio declined 10.0 percentage points and… |
| operating_income | positive | realized | +1.1% | BHRG property/casualty losses and LAE declined $715 million (19.9%) in Q1 2026 versus 2025; loss ratio declined 10.0 percentage points and… |
| revenue | negative | realized | -0.5% | Property/casualty BHRG premiums earned declined $323 million (6.2%) in Q1 2026 versus 2025. |
| operating_income | negative | realized | -0.5% | BHRG pre-tax underwriting loss in the First Quarter of 2026: $(307) million. |
| operating_income | positive | realized | +0.3% | BHRG underwriting expenses declined $177 million (11.3%) in Q1 2026 versus 2025 and included foreign currency exchange gains of $12… |
| revenue | negative | realized | -0.2% | Property/casualty BHRG premiums written: $5,992 million in Q1 2026 and $6,135 million in Q1 2025; premiums written declined $143 million… |
| operating_income | negative | realized | -0.1% | Retroactive reinsurance pre-tax underwriting losses before FX were $251 million in Q1 2026 versus $169 million in Q1 2025. |
| revenue | positive | realized | +0.1% | Life/health BHRG premiums written: $1,318 million in Q1 2026 and $1,243 million in Q1 2025; premiums earned increased $76 million (6.1%). |
| liability | positive | committed | — | On March 23, 2026, NICO entered into a ten-year whole account quota-share reinsurance agreement with Tokio Marine effective April 1, 2026. |
| operating_income | negative | realized | 0.0% | Periodic payment annuity pre-tax losses before FX were $152 million in Q1 2026 and $150 million in Q1 2025; annuity liabilities were $14.1… |
| liability | negative | realized | — | Periodic payment annuity pre-tax losses before FX were $152 million in Q1 2026 and $150 million in Q1 2025; annuity liabilities were $14.1… |