Berkshire Hathaway Insurance Revenue Breakdown

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This page presents the revenue breakdown of Berkshire Hathaway’s insurance segment. For an overview of Berkshire’s insurance revenue, you may visit this page: Berkshire Hathaway insurance vs non-insurance revenue.

Berkshire Hathaway’s insurance revenue consists of multiples sources, including premiums earned from insurance underwriting and investment income.

Please note that the revenue data presented here does not account for the eliminations due to intersegment transactions. Consequently, the total sum of these revenues may slightly differ from the final amount presented in the company’s consolidated statements of earnings.

That said, let’s look at Berkshire’s insurance revenue by segment.

Investors looking for other statistics of Berkshire Hathaway may find more resources on these pages:

Revenue

• Berkshire Hathaway revenue breakdown: insurance, BNSF, retail, etc.,
• Berkshire Hathaway insurance premiums written (grouped by region),
• Berkshire Hathaway insurance vs non-insurance revenue,

Profit Margin

• Berkshire Hathaway insurance profit margin by category,
• Berkshire Hathaway insurance profit breakdown by category,

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Definitions

To help readers understand the content better, the following terms and glossaries have been provided.

Insurance Underwriting: Insurance underwriting is the process by which an insurance company evaluates the risks associated with insuring a person, property, or entity and determines the terms and conditions of the insurance policy.

This process helps the insurer decide whether to provide coverage and at what premium rate. Here are the key steps involved in insurance underwriting:

1. Risk Assessment: Underwriters assess the potential risk factors associated with the applicant. This may include reviewing the applicant’s health, occupation, lifestyle, or the characteristics of the property being insured.
2. Application Review: The underwriter examines the information provided in the insurance application, including any supporting documents, such as medical records or property appraisals.
3. Data Analysis: Underwriters use statistical data, historical claims information, and other relevant data to estimate the likelihood of a claim being made and the potential cost of that claim.
4. Decision Making: Based on the risk assessment and data analysis, the underwriter decides whether to approve or deny the insurance application. If approved, they determine the policy terms, coverage limits, exclusions, and the premium rate.
5. Policy Issuance: Once the terms are agreed upon, the insurance policy is issued to the applicant, outlining the coverage details and the conditions under which claims will be paid.

Insurance underwriting ensures that the insurer can manage its risk portfolio effectively while providing appropriate coverage to policyholders.

Investment Income: Berkshire Hathaway’s investment income refers to the earnings generated from the investments made by its insurance subsidiaries, as well as other segments of the company. Here’s an overview:

• Insurance Float: Berkshire Hathaway’s insurance operations, such as GEICO and Berkshire Hathaway Reinsurance Group, collect premiums from policyholders. This pool of funds, known as “float,” represents money that the company holds until claims are paid out. Warren Buffett and his team invest this float in various financial assets to generate returns.
• Equity Investments: Berkshire Hathaway holds significant positions in publicly traded companies. These equity investments generate income through dividends and capital appreciation. Notable investments include large stakes in companies like Apple, Coca-Cola, and American Express.
• Fixed-Income Investments: The company also invests in fixed-income securities, such as bonds and Treasury bills. These investments provide regular interest income, contributing to the overall investment income.
• Private Investments: Berkshire Hathaway makes investments in private companies and businesses, often acquiring them outright. These investments contribute to the company’s investment income through dividends, interest, and the profits generated by these businesses.
• Real Estate Investments: Berkshire Hathaway invests in real estate properties, both directly and through its subsidiaries. These properties generate rental income and potential capital gains.

Overall, Berkshire Hathaway’s investment income is a critical component of its financial performance, allowing the company to leverage its insurance float and other capital to generate substantial returns.

GEICO: Berkshire Hathaway’s GEICO, also known as the Government Employees Insurance Company, is one of the largest auto insurance companies in the United States.

GEICO was founded in 1936 by Leo and Lillian Goodwin, initially targeting government employees and military personnel for affordable auto insurance. Over the years, GEICO has expanded its customer base to include the general public.

GEICO is a wholly-owned subsidiary of Berkshire Hathaway, the multinational conglomerate led by Warren Buffett. As a subsidiary of Berkshire Hathaway, GEICO benefits from the financial strength and stability of its parent company.

GEICO is well-known for its innovative and memorable advertising campaigns, featuring characters like the GEICO Gecko and the Caveman. The company provides a variety of insurance products, including:

• Auto Insurance: Coverage for cars, motorcycles, and other vehicles.
• Homeowners Insurance: Protection for homes and personal property.
• Renters Insurance: Coverage for personal property in rental units.
• Condo Insurance: Protection for condominium owners.
• Boat Insurance: Coverage for boats and personal watercraft.
• Business Insurance: Various insurance products for small businesses.

GEICO is recognized for its excellent customer service and user-friendly online platform, which allows customers to obtain quotes, manage policies, and file claims efficiently.

Berkshire Hathaway Primary Group: Berkshire Hathaway Primary Group consists of multiple insurance operations that collectively offer a range of commercial insurance products.

These products include commercial motor vehicle insurance, workers’ compensation, commercial property, healthcare liability, business owners’ insurance, and other insurance offerings.

The Primary Group is one of the key segments within Berkshire Hathaway’s insurance operations, contributing significantly to the company’s overall revenue.

Berkshire Hathaway Reinsurance Group: Berkshire Hathaway Reinsurance Group is a division of Berkshire Hathaway Inc. This group is one of the largest reinsurance groups globally, providing insurance and reinsurance solutions to other insurance companies.

Here are some key points about the Berkshire Hathaway Reinsurance Group:

• Financial Strength: The group has unparalleled financial strength, enabling it to facilitate large, tailored solutions for insurance and reinsurance companies worldwide.
• Diverse Portfolio: It offers a diverse portfolio of reinsurance contracts, including treaty, facultative, quota-share, and excess reinsurance.
• Global Reach: The group operates in 26 countries, showcasing its extensive influence and reach in the global reinsurance market.
• Segments: The group includes divisions like Berkshire Hathaway Life, which specializes in large transactions for life and health risks, and other segments focusing on property/casualty reinsurance.

Berkshire Hathaway Reinsurance Group is known for its strategic acumen and resilience, contributing significantly to Berkshire Hathaway’s overall success.

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FAQs

To help readers understand the content better, the following FAQs have been provided.

How does Berkshire Hathaway grow its insurance revenue?

Berkshire Hathaway grows its insurance revenue through several key strategies:

• Diversification: Berkshire Hathaway operates multiple insurance businesses, including GEICO, Berkshire Hathaway Reinsurance Group, and Berkshire Hathaway Primary Group. This diversification allows the company to capture revenue from various segments of the insurance market.
• Underwriting Excellence: The company focuses on strong underwriting practices, ensuring that it maintains a profitable portfolio of insurance policies. This involves careful risk assessment and pricing of insurance products to balance risk and reward.


• Acquisitions: Berkshire Hathaway has a history of acquiring other insurance companies and businesses, which helps to expand its market presence and increase its revenue streams1.
• Investment Income: The company’s insurance operations generate significant investment income from the premiums they collect. These funds are invested in a diversified portfolio of stocks, bonds, and other assets, contributing to overall revenue growth.
• Customer Retention and Growth: By offering competitive insurance products and maintaining strong customer relationships, Berkshire Hathaway ensures a steady stream of renewals and attracts new customers.
• Innovative Products: The company continuously develops and introduces new insurance products to meet evolving market demands and customer needs.

These strategies collectively contribute to Berkshire Hathaway’s robust growth in insurance revenue.

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Insight & Summary of Berkshire Hathaway’s Insurance Revenue

The following analysis consolidates the trends observed across Berkshire Hathaway’s insurance revenue breakdown for the 2016–2025 period.

• Total insurance revenue has more than doubled from $50.4B in 2016 to $104.2B in 2025 — a 106.8% increase over nine years — with the 3-year average of $101.4B reflecting a business operating near its all-time peak. The growth trajectory has not been linear: total insurance revenue peaked at $105.1B in 2024 and eased slightly to $104.2B in 2025 (-0.8%), the first annual decline in the dataset. This modest 2025 contraction reflects a small pullback in investment income ($15.3B vs. $16.8B in 2024) and a slight decline in reinsurance revenue, both attributable to modest interest rate normalisation and reinsurance pricing adjustments rather than structural volume loss.

• GEICO remains the largest single segment but has lost meaningful mix share as the portfolio has grown around it. GEICO revenue grew steadily from $25.5B in 2016 to $44.5B in 2025, a 3-year average of $42.0B. However, GEICO’s mix share declined from 50.6% in 2016 to 40.2% in 2024, settling at 42.7% in 2025 — with a 3-year average of 41.4%. This share compression is not a sign of GEICO weakness; it reflects the faster growth of BH Primary Group, Reinsurance, and especially investment income around it. GEICO’s 3-year average revenue growth of 4.5% is solid for the largest auto insurer in the U.S. and consistent with mid-single-digit rate-driven premium growth. The FY2025 growth of 5.3% is healthy given that GEICO absorbed the 2022 underwriting reset and rebuilt its book on more disciplined terms.

• BH Primary Group has been the fastest-growing underwriting segment on a sustained basis. Primary Group revenue grew from $6.3B in 2016 to $18.7B in 2025, a 197% increase over nine years. The 3-year average of $18.2B and 17.9% mix share confirm Primary Group has nearly tripled its contribution to total insurance revenue. The 3-year average growth of 11.3% — driven by Berkshire’s specialty insurance, commercial auto, and workers’ compensation acquisitions — is the highest of any underwriting segment, though FY2025 showed near-zero growth (-0.1%) suggesting the recent acquisition-driven expansion may be plateauing. Primary Group’s sustained profitability record combined with this revenue growth is the most attractive combination in the dataset.

• BH Reinsurance Group is the largest non-GEICO segment and the most volatile. Reinsurance revenue ranged from $14.1B in 2016 to $27.3B in 2024, with an anomalous $24.0B in 2017 driven by a large catastrophe-exposed book. The 3-year average of $26.7B and 26.4% mix share make it the second-largest underwriting contributor after GEICO. The FY2023 surge to $27.0B (+23.6%) and relative stability in FY2024–2025 ($27.3B and $25.7B) reflect global reinsurance pricing hardening followed by some rate moderation as the market partially softened. The 3-year average growth of 6.3% is respectable for a segment of this size.

• Investment income is the fastest-growing revenue category over the latest three years — and now represents a structurally elevated share of total insurance revenue. Investment income grew from $4.5B in 2016 to $16.8B in 2024 before easing to $15.3B in 2025, with a 3-year average of $14.6B and 14.3% mix share. The 3-year average growth of 28.7% — driven by the rate cycle of 2022–2024 — is by far the highest growth rate in the dataset. Investment income’s mix share expanded from 7.4–9.8% in 2016–2022 to 12.2–16.0% in 2023–2025, a structural increase of approximately 600–700 basis points. This shift means that Berkshire’s insurance revenue profile is now meaningfully more sensitive to interest rate movements than it was three years ago — a positive in the current environment, but one that bears monitoring as rates normalise.

• The underwriting sub-total (Insurance Underwriting) accounts for approximately 85–87% of total insurance revenue on a 3-year average basis — confirming that Berkshire’s insurance revenue is primarily premium-driven rather than investment-income-dependent. Total Insurance Underwriting revenue averaged $86.9B (85.7% mix) over 2023–2025, growing at a 3-year average of 6.1%. This is the appropriate revenue base for underwriting margin analysis — it confirms Berkshire has a $87B-scale premium book that generates meaningful profit both from underwriting discipline and from deploying the associated float.

• Structural Takeaway: Berkshire’s insurance revenue structure is healthy, diversified across three underwriting operations and a massive investment income base. The 2025 total revenue of $104.2B — marginally below 2024’s peak — should be read as normalisation rather than decline. The business is operating at scale, with GEICO, Primary, and Reinsurance all generating premium revenue at or near their historical highs. The sensitivity to investment income has increased but remains manageable given Berkshire’s float management expertise. The 3-year compound story — $95B → $105B → $104B — is the most important context for interpreting any single year’s result.

The table below combines all key Berkshire’s insurance revenue metrics into a single view for the latest three fiscal years.

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Insurance Revenue Numbers: GEICO, BH Primary Group, BH Reinsurance Group, Investment Income

Berkshire’s insurance revenue consists of two primary sources: insurance underwriting and investment income, while insurance underwriting revenue consists of three sources: GEICO, Berkshire Hathaway Primary Group, and Berkshire Hathaway Reinsurance Group.

You may find the definitions of Berkshire’s insurance underwriting and investment income here: insurance underwriting and investment income.

The definitions of Berkshire’s insurance units are available here here: GEICO, Berkshire Hathaway Primary Group, and Berkshire Hathaway Reinsurance Group.

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Insurance Revenue Mix: GEICO, BH Primary Group, BH Reinsurance Group, Investment Income

Berkshire’s insurance revenue consists of two primary sources: insurance underwriting and investment income, while insurance underwriting revenue consists of three sources: GEICO, Berkshire Hathaway Primary Group, and Berkshire Hathaway Reinsurance Group.

You may find the definitions of Berkshire’s insurance underwriting and investment income here: insurance underwriting and investment income.

The definitions of Berkshire’s insurance units are available here here: GEICO, Berkshire Hathaway Primary Group, and Berkshire Hathaway Reinsurance Group.

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Insurance Revenue Growth: GEICO, BH Primary Group, BH Reinsurance Group, Investment Income

Berkshire’s insurance revenue consists of two primary sources: insurance underwriting and investment income, while insurance underwriting revenue consists of three sources: GEICO, Berkshire Hathaway Primary Group, and Berkshire Hathaway Reinsurance Group.

You may find the definitions of Berkshire’s insurance underwriting and investment income here: insurance underwriting and investment income.

The definitions of Berkshire’s insurance units are available here here: GEICO, Berkshire Hathaway Primary Group, and Berkshire Hathaway Reinsurance Group.

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Credits And References

1. All financial data presented in this article was obtained and referenced from Berkshire Hathaway’s annual reports published in the company’s investor relation page: Berkshire’s Reports.

2. Pexels Images.

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Disclosure

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