Written November 8, 2022, at 9:40
Berkshire Hathaway’s quarterly results were marred by losses at its insurance division, including its auto insurance subsidiary Geico, whose pretax loss reached $759 million in the summer months. 1.42 billion in nine months (compared to a profit of 1.36 billion as of September 30, 2021). These entities had to cope with the losses associated with Hurricane Ian, but also with the increase in the frequency and severity of car insurance claims. In the third quarter, inflation and lower freight volumes weighed on the results of rail operations (BNSF), whose pretax operating profit fell 7% year over year to $1.9 billion.
After all, operating profit at Warren Buffett’s group rose 20% to $7.76 billion, helped mainly by the improvement in the results of other activities, but also by the rise in interest rates, which boosted income from investments in the insurance industry, as well as foreign exchange gains on debt that is not denominated in dollars.