Company: BRK-A
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000950170-25-025210
Chunk: 204

Company: BERKSHIRE HATHAWAY INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 7
Chunk 204
---
107

    Premiums earned
    $
    42,252

    100.0

    $
    39,264

    100.0

    $
    38,984

    100.0

    Losses and loss adjustment expenses
     
    30,331

    71.8

    31,814

    81.0

    36,297

    93.1

    Underwriting expenses
     
    4,108

    9.7

    3,815

    9.7

    4,567

    11.7

    Total losses and expenses
     
    34,439

    81.5

    35,629

    90.7

    40,864

    104.8

    Pre-tax underwriting earnings (loss)
    $
    7,813

    $
    3,635

    $
    (1,880
    )

2024 versus 2023

GEICO’s pre-tax underwriting earnings increase in 2024 compared to 2023 reflected higher average premiums per auto policy, lower claims frequencies and improved operating efficiencies. These effects were partially offset by less favorable development of prior accident years’ claims estimates, increases in average claims severities and losses from catastrophe events. 

Premiums written increased $3.1 billion (7.7%) in 2024 compared to 2023, reflecting an increase in average written premiums per auto policy of 7.8%, primarily attributable to rate increases, partially offset by a 0.5% decrease in policies-in-force over the past year. The rate of decline in policies-in-force slowed in the first half of 2024, with growth experienced in the second half of the year. Premiums earned in 2024 increased $3.0 billion (7.6%) compared to 2023. 

Losses and loss adjustment expenses decreased $1.5 billion (4.7%) in 2024 compared to 2023. GEICO’s loss ratio (losses and loss adjustment expenses to premiums earned) was 71.8% in 2024 and 81.0% in 2023. The loss ratio decline reflected the impact of higher average earned premiums per auto policy and lower claims frequencies, partially offset by increases in average claims severities and less favorable development of prior accident years’ claims estimates.