Berkshire Hathaway, the Warren Buffett-run holding company and conglomerate, has achieved an 82% year-on-year rise in net underwriting earnings across its insurance and reinsurance businesses for the second quarter of 2024, as the firm’s property and casualty (P&C) reinsurance operation again generated more than $1 billion in underwriting profit.

Within P&C reinsurance, premiums written fell 5.4% in the second quarter to $5.6 billion as a result of reductions in property, while premiums earned increased 5.3% to $5.6 billion.

Loss and loss adjustment expenses rose 11.9% in Q2 2024 to $3.124 billion, with catastrophe losses of roughly $130 million. At the same time, underwriting expenses increased 3.8% to $1.462 billion.

All in all, Berkshire’s P&C reinsurance business generated a combined ratio of 81.8% in the second quarter, which is slightly up on last year’s 78.9%.

Pre-tax underwriting earnings across P&C reinsurance fell slightly year-on-year, from $1.124 billion in Q2 2023 to $1.022 billion in Q2 2024.

On the life and health reinsurance side, Berkshire has reported pre-tax underwriting earnings of $73 million for Q2 2024, so up on last year’s $47 million.

Premiums written fell slightly to $1.226 billion, and premiums earned decreased 5.4% to $1.22 billion.

Life and health benefits came down from $1.02 billion last year to $842 million this year, as underwriting expenses increased to $305 million from $222 million.

Berkshire’s life and health reinsurance arm delivered a second quarter 2024 combined ratio of 94%, an improvement on Q2 2023’s 96.4%.

Overall underwriting earnings for Berkshire Hathaway Reinsurance Group amounted to $782 million in Q2 2024, down on last year’s $827 million.

On the primary insurance side, Berkshire Hathaway Primary Group generated pre-tax underwriting earnings of $279 million, compared with $272 million a year earlier.

Premiums written grew 3.7% to almost $5 billion, and premiums earned rose 10% in the quarter to $4.7 billion, with increases in several lines of business. Losses and loss adjustment expenses rose 8.1% to $3.1 billion, driven by the growth in earned premiums, although the loss ratio came down 1.2 percentage points on lower cat losses and a change in business mix.

Turning to GEICO, Berkshire’s auto insurer, and pre-tax underwriting earnings increased significantly year-on-year to $1.786 billion in Q2 2024, reflecting higher average premiums per auto policy, lower claims frequencies, and improved operating efficiencies. Premiums written grew by almost 11% to $10.5 billion, reflecting an increase in average written premiums per auto policy of 11.3%.

Pre-tax net investment income across Berkshire’s insurance and reinsurance operations increased by an impressive 39.7% to $4.068 billion for Q2 2024, driving net investment income of $3.32 billion, compared with $2.369 billion in Q2 2023.

Berkshire Hathaway’s insurance investment float sat at $169 billion at the end of Q2 2024, which is in line with the end of December 2023.