Alyssa Lane
Berkshire Hathaway is a conglomerate consisting of several insurance and reinsurance companies, among other businesses. The company's insurance business is considered one of its four giants, which account for a significant portion of the firm's value. Berkshire Hathaway owns 100% of its insurance operations, with a float value of US$164 billion. The company's insurance and reinsurance activities are conducted through numerous domestic and foreign-based subsidiaries, providing coverage for property, casualty, life, and health risks. Some of the insurance companies owned by Berkshire Hathaway include GEICO, Berkshire Hathaway Specialty Insurance, MedPro Group, National Indemnity Company, and United States Liability Insurance Group.
| Characteristics | Values |
|---|---|
| Number of employees | 50,500 |
| Insurance business value | US$164 billion |
| Insurance companies owned | Berkshire Hathaway GUARD Insurance Companies, Berkshire Hathaway Specialty Insurance, Gateway Underwriters Agency, GEICO, General RE, MedPro Group, National Indemnity Company, United States Liability Insurance Group, Berkshire Hathaway Primary Group, Berkshire Hathaway Reinsurance Group, Berkshire Hathaway Homestate Companies, Berkshire Hathaway Life Insurance Company of Nebraska |
| Other companies owned | MidAmerican Energy Holdings, PacifiCorp, TTI Inc., BNSF Railway, NRG, Marmon Group, Lubrizol, BerkshireInsurance.com, Oriental Trading Company, Van Tuyl Group, FlightSafety International, Dairy Queen, NetJets |
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What You'll Learn
Berkshire Hathaway's insurance subsidiaries
Berkshire Hathaway is a conglomerate consisting of several insurance and reinsurance companies. The company's insurance business is considered one of its "four giants," which account for a significant portion of the firm's value. Berkshire Hathaway owns 100% of its insurance operations, with a float value of US$164 billion.
Berkshire Hathaway's insurance and reinsurance business activities are conducted through numerous domestic and foreign-based subsidiaries, providing insurance cover for property and casualty risks and reinsurance of life and health risks worldwide. These subsidiaries employ approximately 50,500 people.
Some of the insurance companies owned by Berkshire Hathaway include:
- Berkshire Hathaway Primary Group (BH Primary): BH Primary provides a range of commercial insurance solutions, including healthcare professional liability, workers' compensation, automobile, general liability, property, and specialty coverages for businesses of all sizes.
- Berkshire Hathaway Specialty Insurance (BHSI): BHSI is a subsidiary that offers property and casualty insurance.
- Berkshire Hathaway Homestate Companies (BHHC): BHHC is a group of six insurance carriers designed to deliver exceptional products and services. They have maintained an AM Best A++ (Superior Rating) for 33 consecutive years as of March 13, 2025.
- GEICO: Headquartered in Chevy Chase, Maryland, GEICO primarily offers private passenger automobile insurance and is known for its advertising characters like the GEICO gecko and the GEICO Cavemen.
- MedPro Group: MedPro Group provides insurance solutions in the healthcare industry.
- National Indemnity Company (NICO): Acquired by Berkshire Hathaway in 1967 for $8.6 million, NICO is a significant player in the insurance and reinsurance business.
- United States Liability Insurance Group: This subsidiary provides liability insurance products.
Berkshire Hathaway also has a strong presence in the reinsurance market through its Berkshire Hathaway Reinsurance Group (BHRG), which includes subsidiaries like NICO, General Reinsurance Corporation, and General Reinsurance AG. BHRG offers excess-of-loss and quota-share reinsurance coverages on property and casualty risks and writes life and health reinsurance coverages through subsidiaries like General Re Life Corporation and Berkshire Hathaway Life Insurance Company of Nebraska (BHLN).
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Berkshire Hathaway's acquisitions
Berkshire Hathaway is an American multinational conglomerate holding company that owns several insurance and reinsurance companies. The company is headquartered in Omaha, Nebraska, and is considered one of the "four giants" in the insurance business, which accounts for a significant chunk of the firm's value.
GEICO
GEICO is a privately-owned insurance company founded nearly 90 years ago in San Antonio, Texas. In 1952, a 25-year-old Warren Buffett, who was then a junior analyst at Buffett-Falk & Co, purchased a few shares in the company. GEICO has more than 24 million auto policies in the United States and also offers homeowners, rental, life, travel, and business insurance policies. In 1996, Berkshire Hathaway bought 100% of the business, turning GEICO into one of its subsidiaries.
Alleghany Corporation
Alleghany Corporation was founded in 1929 by a duo of railroad entrepreneurs as a holding company for their railroad interests. Over time, the company switched its focus to insurance, primarily offering business insurance policies through smaller companies in its portfolio. It also has interests in manufacturing, fabricating, and real estate development. In March 2022, Berkshire Hathaway offered to buy Alleghany Corporation for $11.6 billion in cash, and the deal was finalized in October of the same year.
Duracell
In February 2016, Berkshire Hathaway acquired Duracell from Procter & Gamble for $4.7 billion in stock.
Pilot Flying J
In 2017, Berkshire Hathaway acquired 38.6% of the truck stop chain Pilot Flying J for $2.8 billion. In 2023, the company acquired an additional 41.4% of the company for $8.2 billion, and the remaining 20% in 2024 for $3 billion.
BNSF Railway
In April 2007, Berkshire Hathaway acquired 10.9% of BNSF Railway for $3.23 billion. In February 2010, the company acquired the remaining portion for $26 billion, making it the largest acquisition in Berkshire's history at the time.
Berkshire Hathaway's interest in the insurance industry is well-known, and the company has made significant acquisitions in this sector. The company's chairman and CEO, Warren Buffett, is considered the wealthiest insurance tycoon in the US, with a net worth of US$134 billion as of March 2024.
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Berkshire Hathaway's insurance products
Berkshire Hathaway is a conglomerate consisting of several insurance and reinsurance companies, among other businesses. The company's insurance business is considered one of its "four giants," contributing significantly to its value. Berkshire Hathaway has a unique ownership structure, with 100% ownership of its insurance operations and a substantial float value.
The company's insurance and reinsurance activities are conducted through numerous domestic and foreign subsidiaries, providing comprehensive coverage worldwide. Some of the notable insurance companies owned by Berkshire Hathaway include:
GEICO
GEICO, headquartered in Chevy Chase, Maryland, is a well-known subsidiary offering private passenger automobile insurance. It markets directly to individual consumers in the United States and is recognised for its creative advertising campaigns featuring characters like the GEICO gecko and the GEICO Cavemen.
Berkshire Hathaway Primary Group (BH Primary)
BH Primary provides a comprehensive range of commercial insurance solutions, including healthcare professional liability, workers' compensation, automobile insurance, general liability, property insurance, and specialty coverages for businesses of all sizes.
Berkshire Hathaway Specialty Insurance (BHSI)
BHSI is a subsidiary of Berkshire Hathaway that offers specialised insurance products and services. It has a strong presence in the property insurance market and is known for its expertise in handling tough property markets.
Berkshire Hathaway Homestate Companies (BHHC)
BHHC is a group of six insurance carriers designed to deliver exceptional products and services. With over 50 years of experience, BHHC has consistently achieved superior financial strength ratings and is recognised for its commitment to customer service and integrity.
MedPro Group
MedPro Group is a healthcare-focused insurance provider, offering tailored insurance solutions to medical professionals and organisations.
National Indemnity Company (NICO)
NICO is a significant subsidiary acquired by Berkshire Hathaway in 1967 for $8.6 million, marking the company's entrance into the insurance business. NICO provides property and casualty insurance, as well as reinsurance services.
Berkshire Hathaway's insurance subsidiaries also include Berkshire Hathaway GUARD Insurance Companies, Gateway Underwriters Agency, General RE, United States Liability Insurance Group, and more. These companies collectively employ tens of thousands of people and contribute significantly to the conglomerate's overall success and financial strength.
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Berkshire Hathaway's insurance underwriting
Berkshire Hathaway is a conglomerate consisting of several insurance and reinsurance businesses, among other ventures. The company's insurance business is considered one of its "four giants" and accounts for a significant portion of the firm's value. Berkshire Hathaway owns 100% of its insurance operations, with a substantial float value of US$164 billion as of 2018.
The company's insurance and reinsurance activities are conducted through numerous domestic and foreign-based subsidiaries, providing insurance cover for property and casualty risks, as well as reinsurance for life and health risks worldwide. Some of the subsidiaries include GEICO, Berkshire Hathaway Specialty Insurance, Berkshire Hathaway Primary Group, and Berkshire Hathaway Reinsurance Group.
Berkshire Hathaway has recently reported strong underwriting performance in its property and casualty (P&C) reinsurance business for the third quarter and first nine months of 2023. The P&C reinsurance book delivered impressive pre-tax underwriting earnings, and the combined ratio strengthened considerably in both periods. Within the Berkshire life and health (L&H) reinsurance arm, there were slight fluctuations in premiums written and earned, but pre-tax underwriting earnings improved.
Berkshire Hathaway's insurance subsidiary, BHSI, provides a range of admitted and non-admitted policies, anchored by underwriting discipline. Their product lines include commercial property, casualty, healthcare professional liability, executive and professional lines, transactional liability, and more. BHSI operates globally with offices across the world, and it is known for its financial strength and customer-first philosophy.
Overall, Berkshire Hathaway's insurance underwriting performance has shown significant improvement, contributing to the company's strong position in the insurance industry.
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Berkshire Hathaway's insurance ratings
Berkshire Hathaway is a conglomerate with a strong presence in insurance and reinsurance, among other sectors. The company's insurance business is considered one of its "four giants," contributing significantly to its overall value. Berkshire Hathaway owns a diverse range of insurance and reinsurance businesses, operating through numerous domestic and foreign subsidiaries.
One of the flagship insurance companies within the Berkshire Hathaway group is the National Indemnity Company (NICO), which is one of the best-capitalized insurance companies globally. NICO boasts impressive financial strength ratings of AA+ (Standard & Poor's) and A++ (A.M. Best). Another key entity is the Berkshire Hathaway Life Insurance Company of Nebraska (BHLN), which is the largest life insurance and reinsurance company within the group. BHLN carries the same high financial strength ratings as NICO, allowing it to provide insurance and reinsurance solutions worldwide.
The Berkshire Hathaway Reinsurance Group (BHRG) is one of the largest reinsurance groups in the world, offering excess-of-loss and quota-share reinsurance coverages on property and casualty risks. BHRG operates through several subsidiaries, including NICO, General Reinsurance Corporation, and General Reinsurance AG. The group also provides life and health reinsurance coverages through entities such as General Re Life Corporation and BHLN.
Berkshire Hathaway's insurance and reinsurance offerings are diverse and comprehensive. They include well-known brands such as GEICO, which offers private passenger automobile insurance across the United States, and the Berkshire Hathaway Primary Group (BH Primary), which provides commercial insurance solutions for businesses of all sizes, including healthcare professional liability, workers' compensation, and property coverages.
The company's insurance subsidiaries also include Berkshire Hathaway Specialty Insurance, Gateway Underwriters Agency, MedPro Group, Berkshire Hathaway GUARD Insurance Companies, and United States Liability Insurance Group. These subsidiaries collectively employ approximately 50,500 people, showcasing the scale of Berkshire Hathaway's insurance operations.
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Frequently asked questions
Berkshire Hathaway owns several insurance and reinsurance companies, including:
- Berkshire Hathaway Primary Group (BH Primary)
- Berkshire Hathaway Specialty Insurance (BHSO)
- Berkshire Hathaway Homestate Companies (BHHC)
- MedPro Group
- Berkshire Hathaway GUARD Insurance Companies
- National Indemnity Company (NICO)
- US Liability Insurance Group
Berkshire Hathaway's insurance and reinsurance businesses include property and casualty insurance, as well as life and health risks.
The company's insurance business is considered one of its "four giants", accounting for a significant chunk of the firm's value.
Approximately 50,500 people are employed by Berkshire Hathaway's insurance subsidiaries.
Berkshire Hathaway has made several notable acquisitions, including:
- FlightSafety International (FSI) in 1997
- Dairy Queen in 1997
- NetJets in 1998
- BNSF Railway in 2007 and 2010
- Marmon Group in 2008 and 2013
- Lubrizol in 2011
