BRK-B · 10-Q · 2026Q2 · Full report

Auto Insurance Claims Inflation

BERKSHIRE HATHAWAY INC · 2026-08-10 · Importance 36 · Surprise 40 · Contradicted

GEICO losses and LAE increased $699 million, or 8.8%, in the second quarter and approximately $1.6 billion, or 10.1%, in the first six months of 2026. Private-passenger bodily-injury claim frequency increased in the five-to-seven-percent range, while property-damage and collision frequency increased in the three-to-five-percent range during the first six months. Bodily-injury claim severity increased in the ten-to-twelve-percent range, and property-damage and collision severity increased in the zero-to-three-percent range. The higher frequency and severity drove GEICO’s first-half loss ratio to 75.3%, up from 70.4% in 2025.

Key facts

• There were no significant catastrophe events in the first six months of 2026 while after-tax losses from significant events were $850 million in the first six months of 2025. source
• Private passenger auto average claims severities in the first six months of 2026 increased for bodily injury coverages in the ten to twelve percent range and for property damage and collision coverages in the zero to three percent range compared to 2025. source
• Private passenger auto claims frequencies in the first six months of 2026 increased for bodily injury coverage in the five to seven percent range and for property damage and collision coverages in the three to five percent range compared to 2025. source
• GEICO loss ratio was 76.6% in the second quarter of 2026 and 75.3% in the first six months of 2026, increases of 4.8 and 4.9 percentage points respectively compared to 2025. source

Impact estimates