Berkshire spent $9.6 billion buying itself back. Its insurance profits fell

A faster buyback under Abel

Berkshire Hathaway disclosed on Saturday that it bought back $9.6 billion of its own shares in the third quarter, more than twice the $4.5 billion it spent in the preceding three months. The acceleration came as operating earnings fell 5.8% from a year earlier, to $12.7 billion, with insurance weighing on results.berkshirehathaway +1

The purchases mark a shift in the first year of chief executive Greg Abel, who succeeded Warren Buffett in January. Berkshire bought no shares in 2025; it restarted repurchases in March 2026. Buying shares reduces the number outstanding, giving remaining shares a slightly larger claim on the company, though the value to investors depends on the price paid.reuters +1

Why insurance slowed

Geico’s pretax underwriting profit fell to $982 million from $1.77 billion a year earlier. Berkshire said policies continued to grow, but average premiums per policy fell while claims became more frequent and costly. Underwriting expenses also rose, with advertising and commissions contributing to the increase over the first nine months.berkshirehathaway +1

Across Berkshire’s insurers, after-tax underwriting earnings fell to $1.35 billion from $2.37 billion. Insurance investment income also declined, partly because lower short-term interest rates reduced interest earnings.berkshirehathaway +1

Other businesses and the cash pile

The weakness was not universal. After-tax earnings at BNSF railroad rose to $1.73 billion from $1.45 billion, helped by higher shipping volumes and improved efficiency. Berkshire Hathaway Energy and the manufacturing, service and retailing group also reported higher earnings.berkshirehathaway +1

Berkshire’s insurance and other businesses held $352.3 billion in cash and Treasury bills at September 30, net of bills purchased but not yet paid for. That excludes cash held by the railroad and energy businesses; broader gross totals reported elsewhere are not directly comparable.berkshirehathaway +1

What the buyback does—and doesn’t—promise

Berkshire’s policy allows repurchases when the chief executive, after consulting the chairman, believes the price is below a conservatively determined intrinsic value. It sets no required purchase amount and bars buybacks that would reduce consolidated cash and Treasury holdings below $30 billion.berkshirehathaway

The company disclosed roughly $2 billion in additional repurchases in October. That does not guarantee the pace will continue: the program leaves future purchases to management’s judgment.berkshirehathaway +1