Message to Shareholders from Greg Abel, CEO, Berkshire Hathaway Inc.

This quarter marks Greg Abel’s first letter to shareholders, and it notably reflects stability and a carefully coordinated leadership handoff. The message, released earlier this week, highlights the smooth shift from longtime CEO Warren Buffett, who stepped down at the end of 2025, to Greg Abel. Mr. Buffett will maintain the role of Chairman of the Board.

Abel opens by recognizing Mr. Buffett as “arguably the greatest investor of all time” and emphasizes how valuable he remains to the organization.

We are fortunate to have Warren as Berkshire’s Chairman, in the office five days a week, and available to us as we underwrite insurance, operate our non-insurance businesses, and deploy capital including equity investments. Warren also continues as an owner of Berkshire (although his shares will all go to philanthropy over the 10 years or so following his passing).

Throughout his introduction, Abel underscores Berkshire Hathaway Inc.’s longstanding culture and values. He describes them as essential to protect and pledges to remain a steward of those principles.

The BHHC Forecast

Abel reports a modest decline in operational earnings. Results totaled $44.5B in 2025 compared to $47.4B in 2024. The figure remains above the five-year average of $37.5B. He notes that the insurance operations “accomplished their fundamental goals: grow underwriting profits and float in a disciplined manner.”

Abel also points to weather-related impacts from 2025

• The January 2025 wildfires in Los Angeles
• An unusually “benign” Atlantic hurricane season

Within the primary property and casualty insurance segment, where BHHC operates, Abel explains that the year began with strong demand and pricing that was stable or rising. As more capital entered the market, demand softened.

“We have always prioritized underwriting discipline over volume, and as pricing became less attractive, our premium growth plateaued,” Abel wrote. “We expect these primary insurance businesses to face continued headwinds in 2026, and potentially beyond.” 

Despite a challenging environment, BHHC, including the BHHC P&C and Workers Compensation divisions, achieved 7.4 percent premium growth. 

Abel attributes this resilience to the insurance group’s structural strengths: 

• We have significant capital, enabling us to underwrite large and unusual risks.
• We give our insurance managers autonomy to run their businesses, without quarterly earnings targets or growth mandates that might otherwise distort their underwriting judgment.
• We insist on underwriting discipline as the most important ingredient in insurance success.
• We focus on the long term, resisting temporary industry enthusiasms and exuberances. 

Closing Statement

Abel concluded that the market ahead will reward insurers with sustainable underwriting, strong customer trust, and operational resilience. He suggests that the coming decade will distinguish organizations that maintain discipline from those that rely on short-term opportunities. Structural advantages, including BHHC’s service-focused approach, will grow even more important as industry conditions become increasingly unpredictable. 

This year the Berkshire Hathaway Inc. annual shareholders meeting on May 2, 2026, will feature Greg Abel in two Q&A sessions. One session will include Ajit Jain, Vice Chairman of Insurance Operations at Berkshire Hathaway Inc. The other will feature Katie Farmer, CEO of BNSF Railway, and Adam Johnson, president of Berkshire’s consumer products, services, and retailing group. 

The Berkshire Hathaway Homestate Companies (BHHC) are a group of six insurance carriers that are part of the Berkshire Hathaway insurance group. Headquartered in Omaha, Nebraska, and with over 50 years in business, BHHC has evolved from a regional carrier to a national insurance group writing a diverse book of policies from coast to coast. The Berkshire Hathaway Homestate Companies include Berkshire Hathaway Homestate Insurance Company, BHHC Special Risks Insurance Company, Continental Divide Insurance Company, Cypress Insurance Company, Oak River Insurance Company, and Redwood Fire and Casualty Insurance Company.

Berkshire Hathaway Homestate Companies (BHHC) have earned an enviable record of success in the insurance industry. Supported by A.M. Best’s highest financial strength rating of A++ (Superior) (as of March 13, 2025), our corporate size enables our organization to react swiftly and effectively to opportunities in the insurance marketplace. Our financial strength provides our employees, agency partners, and policyholders the security rarely available in today’s marketplace. Browse bhhc.com to learn more.

Recognition like this matters – to our customers and us.

Coming in at #6, we are excited to announce that Berkshire Hathaway Inc. is ranked in the top 10 of the World’s Most Admired Companies list as determined annually by Fortune. Notably, Berkshire Hathaway Inc. maintained the 1st place ranking for our industry Insurance: Property & Casualty for the 21st consecutive year. The Berkshire Hathaway Homestate Companies are honored to be a part of the Berkshire Hathaway insurance group in support of our organization’s reputation and integrity through a culture of service.

This annual list rates firms on critical attributes to identify those with the strongest reputations among the world’s top executives. The rankings emerge from a survey of some 3,000 top executives and directors, along with financial analysts, that examines the companies that enjoy the strongest reputations within their industries and across industries.

Berkshire Hathaway Inc. has made the list before. In fact, since 1998, a 28-year streak, and for the Property & Casualty Insurance industry, since 2005, which is a 21-year streak. Being included as a part of the company that is named to this prestigious roster is an honor every single time. It says we’re innovative; provide high-quality products and services; are well-managed; are socially responsible; attract and retain talented team members; and are financially sound. All things that matter to our customers and to us. These are all things we strive to achieve every day.

The Berkshire Hathaway Homestate Companies (BHHC) are a group of six insurance carriers that are part of the Berkshire Hathaway insurance group. Headquartered in Omaha, Nebraska, and with over 50 years in business, BHHC has evolved from a regional carrier to a national insurance group writing a diverse book of policies from coast to coast. The Berkshire Hathaway Homestate Companies include Berkshire Hathaway Homestate Insurance Company, BHHC Special Risks Insurance Company, Continental Divide Insurance Company, Cypress Insurance Company, Oak River Insurance Company, and Redwood Fire and Casualty Insurance Company.

Berkshire Hathaway Homestate Companies (BHHC) have earned an enviable record of success in the insurance industry. Supported by A.M. Best’s highest financial strength rating of A++ (Superior) (as of March 13, 2025), our corporate size enables our organization to react swiftly and effectively to opportunities in the insurance marketplace. Our financial strength provides our employees, agency partners, and policyholders the security rarely available in today’s marketplace. Browse bhhc.com to learn more.

Disaster Declarations Issued in Arizona

Arizona Declared Disasters in Three Counties Affected by Recent Storms

In response to heavy rain that impacted Arizona in September and tropical storms in October, Gov. Katie Hobbs signed disaster declaration orders in three counties in the state. 

The state issued a declaration of emergency for Gila and Mohave counties in September and for Gila and Maricopa counties in October. These declarations are in effect until January 27, 2026.  

If your business is located in one of the declared emergency areas and was impacted by the weather events, you can contact BHHC Accounting to arrange payment plans or other accommodations.  

Agents, please contact your Marketing Manager or Underwriter with questions about affected accounts. 

Thank you for being a part of the BHHC Workers Compensation community.

The Berkshire Hathaway Homestate Companies (BHHC) are a group of six insurance carriers that are part of the Berkshire Hathaway insurance group. Headquartered in Omaha, Nebraska, and with over 50 years in business, BHHC has evolved from a regional carrier to a national insurance group writing a diverse book of policies from coast to coast. The Berkshire Hathaway Homestate Companies include Berkshire Hathaway Homestate Insurance Company, BHHC Special Risks Insurance Company, Continental Divide Insurance Company, Cypress Insurance Company, Oak River Insurance Company, and Redwood Fire and Casualty Insurance Company.

Berkshire Hathaway Homestate Companies (BHHC) have earned an enviable record of success in the insurance industry. Supported by A.M. Best’s highest financial strength rating of A++ (Superior) (as of March 13, 2025), our corporate size enables our organization to react swiftly and effectively to opportunities in the insurance marketplace. Our financial strength provides our employees, agency partners, and policyholders the security rarely available in today’s marketplace. Browse bhhc.com to learn more.

Flexible Payment Options for Workers Compensation Policyholders During the Federal Government Shutdown

We understand that the ongoing federal government shutdown may be creating financial uncertainty for many of our valued policyholders.

If you are impacted by the shutdown and are experiencing difficulty making your insurance payments, please reach out to us at [email protected]. We are committed to working with each policyholder on a case-by-case basis to provide flexible payment options where needed. Our goal is to support you during this challenging time with understanding and responsiveness.

Thank you for being a part of the BHHC Workers Compensation community.

The Berkshire Hathaway Homestate Companies (BHHC) are a group of six insurance carriers that are part of the Berkshire Hathaway insurance group. Headquartered in Omaha, Nebraska, and with over 50 years in business, BHHC has evolved from a regional carrier to a national insurance group writing a diverse book of policies from coast to coast. The Berkshire Hathaway Homestate Companies include Berkshire Hathaway Homestate Insurance Company, BHHC Special Risks Insurance Company, Continental Divide Insurance Company, Cypress Insurance Company, Oak River Insurance Company, and Redwood Fire and Casualty Insurance Company.

Berkshire Hathaway Homestate Companies (BHHC) have earned an enviable record of success in the insurance industry. Supported by A.M. Best’s highest financial strength rating of A++ (Superior) (as of March 13, 2025), our corporate size enables our organization to react swiftly and effectively to opportunities in the insurance marketplace. Our financial strength provides our employees, agency partners, and policyholders the security rarely available in today’s marketplace. Browse bhhc.com to learn more.

Maryland and Kentucky Policies Impacted by Disasters

In response to severe flooding in western Maryland, Gov. Wes Moore issued an executive order on May 15 declaring a state of emergency for Allegany and Garrett counties.

The declaration is in effect until July 14, and we will offer payment extensions and hold cancellations and non-renewals for in-force policies until that time.

In response to storms in Kentucky on May 16 and May 17, Gov. Andy Beshear issued an executive order declaring a state of emergency in Clay, Laurel, Pulaski, and Russell counties.

The declaration is in effect until June 17, and we will hold cancellations and non-renewals for in-force policies until that time.

If your business is located in one of the declared emergency areas and was impacted by the flooding, please reach out to your agent to discuss the accommodations available to you. Agents, please contact your Marketing Manager or Underwriter with questions about affected accounts.

The Berkshire Hathaway Homestate Companies (BHHC) are a group of six insurance carriers that are part of the Berkshire Hathaway insurance group. Headquartered in Omaha, Nebraska, and with over 50 years in business, BHHC has evolved from a regional carrier to a national insurance group writing a diverse book of policies from coast to coast. The Berkshire Hathaway Homestate Companies include Berkshire Hathaway Homestate Insurance Company, BHHC Special Risks Insurance Company, Continental Divide Insurance Company, Cypress Insurance Company, Oak River Insurance Company, and Redwood Fire and Casualty Insurance Company.

Berkshire Hathaway Homestate Companies (BHHC) have earned an enviable record of success in the insurance industry. Supported by A.M. Best’s highest financial strength rating of A++ (Superior) (as of March 13, 2025), our corporate size enables our organization to react swiftly and effectively to opportunities in the insurance marketplace. Our financial strength provides our employees, agency partners, and policyholders the security rarely available in today’s marketplace. Browse bhhc.com to learn more.

Recognition like this matters – to our customers and us.

Coming in at #5, we are excited to announce that Berkshire Hathaway Inc. is ranked in the top 10 of the World’s Most Admired Companies list as determined annually by Fortune. Notably, Berkshire Hathaway Inc. maintained the 1st place ranking for our industry (Insurance: Property & Casualty) for the 20th consecutive year. The Berkshire Hathaway Homestate Companies are honored to be a part of the Berkshire Hathaway insurance group in support of our organization’s reputation and integrity through a culture of service.

This annual list rates firms on nine critical attributes to identify those with the strongest reputations among the world’s top executives. The rankings emerge from a survey of 3,380 top executives and directors, along with financial analysts, that examines the companies that enjoy the strongest reputations within their industries and across industries.

Berkshire Hathaway Inc. has made the list before. In fact, since 1998, a 27-year streak, and for the Property & Casualty Insurance industry, since 2005, which is a 20-year streak. Being included as a part of the company that is named to this prestigious roster is an honor every single time. It says we’re innovative; provide high-quality products and services; are well-managed; are socially responsible; attract and retain talented team members; and are financially sound. All things that matter to our customers and to us. These are all things we strive to achieve every day.

Here’s to continuing the work as BHHC to be among the world’s most admired. After all, we want to be there next year to support and make our contribution to the Property & Casualty Insurance industry 1st place ranking and keep the streak going!

The Berkshire Hathaway Homestate Companies (BHHC) are a group of six insurance carriers that are part of the Berkshire Hathaway insurance group. Headquartered in Omaha, Nebraska, and with over 50 years in business, BHHC has evolved from a regional carrier to a national insurance group writing a diverse book of policies from coast to coast. The Berkshire Hathaway Homestate Companies include Berkshire Hathaway Homestate Insurance Company, BHHC Special Risks Insurance Company, Continental Divide Insurance Company, Cypress Insurance Company, Oak River Insurance Company, and Redwood Fire and Casualty Insurance Company.

Berkshire Hathaway Homestate Companies (BHHC) have earned an enviable record of success in the insurance industry. Supported by A.M. Best’s highest financial strength rating of A++ (Superior) (as of February 22, 2024), our corporate size enables our organization to react swiftly and effectively to opportunities in the insurance marketplace. Our financial strength provides our employees, agency partners, and policyholders the security rarely available in today’s marketplace. Browse bhhc.com to learn more.