Berkshire's Underwriting Margins Narrow as Tokio Marine Deal Lifts Premiums and Analysts Split on Targets
Published on 11/15/2026 at 15:02 | Editorial boerse-global.de
Berkshire Hathaway is leaning on its Tokio Marine agreement to keep booked premiums expanding, even as tougher price competition across U.S. property-casualty markets eats into underwriting margins. The conglomerate's Q3 2026 disclosure points to a mixed picture: premium growth on one side, deteriorating loss ratios on the other.
Margins Slip at GEICO and Primary Group
GEICO's loss and expense ratio climbed to 91.4% in Q3 2026, up from 84.3% a year earlier. Berkshire Hathaway Primary Group fared no better, with its combined ratio rising to 97.4% from 89.3%. The underwriting result for the insurance division as a whole fell to $1.35 billion from $2.37 billion in the same period last year.
Buybacks Continue at Pace
Berkshire repurchased $9.6 billion of its own stock during the third quarter. Across the first nine months of the year, buybacks totaled roughly $14.4 billion. The company also reported Q3 2026 operating profit of $12.7 billion on November 7, a decline of 5.8% from the prior-year quarter's $13.5 billion.
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Two Analysts, Two Targets
Wall Street's read on the stock remains divided. TD Cowen lifted its price target to $834,000 from $792,000 on Friday, replacing its previous valuation. Shares rose 0.8% that day. Keefe, Bruyette & Woods had raised its own target on November 9, moving from $735,000 to $765,000 while keeping an "Underperform" rating. KBW attributed its move to quarterly operating results that beat its expectations and larger-than-anticipated buybacks.
Yen Bond Terms Set
Berkshire also finalized terms for a senior yen-denominated bond issue. According to a term sheet reviewed by Reuters on Friday, the company will raise 182.3 billion yen across five tranches with maturities ranging from 2029 to 2056. Settlement is scheduled for November 19, 2026.
13F Filing Due
Investors will get their next look at Berkshire's equity holdings on November 16, when the deadline for the Form 13F report on third-quarter 2026 positions arrives.
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