Berkshire Hathaway (NYSE:BRK.B) posted robust third-quarter earnings, showcasing the resilience of its core insurance operations and conservative financial strategy. Analysts pointed to the company’s impressive cash generation and improved underwriting performance as key drivers behind the results.
The conglomerate’s cash reserves surged to a record $381.7 billion, up from $277 billion a year earlier, while operating earnings jumped 34% year-on-year to $13.49 billion, exceeding expectations thanks to stronger insurance results and favorable currency movements, according to TD Cowen analyst Andrew Kligerman.
Kligerman said Berkshire’s results “primarily beat on strong insurance income and FX gains,” although he observed that GEICO’s 5% premium growth fell short of his 7% forecast. Berkshire’s equity portfolio also expanded to $283 billion during the quarter. He maintained a Hold rating on the stock, setting a price target of $479 for Class B shares and $718,000 for Class A shares.
Insurance underwriting profit rose sharply to $2.37 billion from $750 million a year earlier, supported by stronger profitability across the business. Meanwhile, insurance investment income slipped 13% to $3.18 billion, with the company’s insurance float remaining steady at $176 billion. Performance in Berkshire’s non-insurance segments was more uneven.
Evercore ISI analyst David Motemaden said that GEICO’s latest results mark a potential turning point for the insurer.
“It appears like GEICO has finally started to shift to growth with its highest expense dollars since 3Q21,” he wrote, adding that the mix of new business “may be behind the loss ratio deterioration and worse frequency/severity stats.”
Still, analysts saw the increased spending as a constructive move, signaling renewed growth momentum.
Berkshire’s net income rose 17% year-over-year to $30.8 billion, bolstered by broad-based operational improvements and gains in its investment portfolio. The firm’s enormous cash pile—nearly equal to Austria’s GDP—highlights Warren Buffett’s cautious approach, prioritizing liquidity amid ongoing economic uncertainty.
Market analysts said Berkshire’s record cash position and strong insurance earnings leave the group well placed to navigate market volatility and capitalize on new investment opportunities, even as some of its other divisions deliver mixed results.