BRK-B · 10-Q · 2026Q2 · Full report

GEICO Underwriting Costs

BERKSHIRE HATHAWAY INC · 2026-08-10 · Importance 59 · Surprise 48 · Contradicted

GEICO premiums earned increased 2.1% to $11.291 billion in the second quarter and 3.0% to $22.477 billion in the first six months of 2026. Losses and LAE increased 8.8% to $8.644 billion in the quarter and 10.1% to $16.921 billion year to date, with the first-half loss ratio rising 4.9 percentage points to 75.3% because of higher claim frequency and severity. Underwriting expenses increased 28.3% to $3.146 billion in the first six months, primarily because of higher commissions and advertising, raising the expense ratio 2.7 percentage points to 14.0%.

Key facts

• GEICO losses and LAE in second quarter 2026: $8,644 million (76.6% of premiums earned); first six months 2026: $16,921 million (75.3%) source
• GEICO underwriting expenses increased $355 million (27.3%) in second quarter 2026 and $693 million (28.3%) in first six months 2026 versus 2025 source
• GEICO underwriting expenses in second quarter 2026: $1,653 million (14.6%); first six months 2026: $3,146 million (14.0%) source
• GEICO loss ratio increased 4.8 percentage points in second quarter 2026 and 4.9 percentage points in first six months 2026 versus 2025 source
• GEICO expense ratio was 14.0% in the first six months of 2026, an increase of 2.7 percentage points versus 2025 source

Impact estimates