Home/News Feed/Berkshire's H1 profits rise 20% but GEICO underwriting drops 40%, raising Q3 concerns. Berkshire Hathaway's manufacturing, service, retail, BNSF, and BHE units generated $6.9 billion after tax in the first half of 2026, a 20% increase year over year. However, GEICO's pre-tax underwriting earnings fell about 40% due to higher claims, severity, and expenses, with its combined ratio worsening to 91.2% from 83.5%. Berkshire produced $21.7 billion in operating cash flow while investing $10.6 billion in capital expenditures. The company's high valuation at 24 times earnings suggests limited tolerance for further GEICO underwriting setbacks in Q3, making upcoming operating earnings closely watched by investors.
Berkshire Hathaway's diverse business performance is under close watch following mixed results from its units, including a significant drop in GEICO's underwriting earnings. On Pluang, BRK.B shares trade at USD 543.17 with a slight 0.06% decrease as of Nov 02, 2026 21:03 WIB. The stock remains near its 52-week high of USD 548.62, reflecting steady investor interest despite recent challenges.