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.
