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Key Facts

Geico's pre-tax underwriting earnings fell to $994 million in the second quarter of 2026, down from $1.82 billion a year earlier—for a decline of nearly 45%, according to Berkshire's quarterly Securities and Exchange Commission filing.

Geico's loss ratio—the share of premiums paid out in claims—rose to 76.6% in the second quarter and 75.3% for the first half of 2026, up nearly five percentage points from the same periods a year earlier.

The filing says the number of bodily injury claims rose 5% in the first half of 2026 and injury claim costs on average jumped 10%, both measures worsening when compared to 2025.

Berkshire's filing reflects a broader trend in the insurance industry where bodily injury claims have surpassed auto physical damage payouts for the first time in history.

WHY HAVE BODILY INJURY CLAIMS INCREASED?

CCC Intelligent Solutions, an auto insurance software company, reports bodily insurance claim frequency is up 11% over the past two years and the cost of those claims has jumped 10.3% over the last year and 32% over the last four years. CCC says the increase is not because car crashes are becoming more frequent or more severe, instead pointing to changes in the social environment surrounding injury claims. General affordability, higher medical costs and more aggressive legal strategies have all made alleging injuries and filing lawsuits more attractive, according to industry analyst Erik Bahnsen. In other words, people are more likely to win lawsuits and, in doing so, can avoid shouldering the burden of medical costs on their own. For insurance companies, those bodily injury claims are becoming more expensive due to higher rates of attorney involvement, longer negotiations, higher legal fees and rising health care expenses.

SURPRISING FACT

While the number of bad car accidents hasn’t substantially changed, the number of minor ones has. What are known as Advanced Driver Assistance Systems, like automatic emergency braking, have successfully cut down on the number of minor, low-speed fender benders. And because there are fewer of those lower-severity collisions, the remaining claims pool is disproportionately weighted toward more intense crashes that may result in physical injuries.

Key background

Geico was one of Berkshire Hathaway’s strongest performers heading into 2026, recovering from a period of underwriting losses that prompted significant cost cuts and premium increases in previous years. That turnaround made this year’s second-quarter reversal even more striking when underwriting expenses at Geico surged about 28% in the first half of 2026 versus a year earlier. The filing discloses no significant catastrophe losses in the first half of 2026, meaning the Geico deterioration is purely operational rather than weather-driven. Berkshire’s broader operations held $359.2 billion in cash and Treasury bills as of June 30 and generated about $177.5 billion in insurance float—a financial cushion that masks how sharply Geico's underwriting performance has deteriorated.

FORBES VALUATION

Warren Buffett, the investor known as the "Oracle of Omaha," is worth an estimated $151.4 billion as of Monday, making him the 10th-richest person in the world. Buffett took control of Berkshire Hathaway in 1965 and turned the struggling textile company into a giant holding company, of which he was CEO until stepping down in December at age 95. He remains chairman of the board.

further reading

ForbesBerkshire Hathaway Earnings Beat As Abel Deploys Buffett’s Cash HoardBy Bill StoneForbesBerkshire Hathaway Stock’s 2026 Outlook And What It Means For Your PortfolioBy Catherine Brock %!s()

Asked if she expected to speak to the prime minister, the Greens senator said “I hope so”:

double quotation markThe government said they weren’t prepared to move at all, and now here they are. So, I mean … they’re playing games here.

Their own backbenchers know it’s not strong enough.

Hanson-Young said she would not vote for what was “on the table at the moment”

double quotation markIf you are not prepared to do what’s needed here, well, we’ll take this out of your hands and we’ll do it in the Senate ourselves.

Key events

• 4m ago

  Jetstar and Qatar Airways plane involved in near-miss while taxiing at Sydney airport

• 27m ago

  Wilson raises concerns about gambling ads reaching children

• 37m ago

  Ben Carroll vows to boost Victoria’s school funding to meet Gonski standards

• 1h ago

  Labor ‘playing games’ on gambling reforms, Sarah Hanson-Young says

• 1h ago

  Bird flu detected in inland NSW, on the Murray Darling Basin

• 2h ago

  Good morning

Jetstar and Qatar Airways plane involved in near-miss while taxiing at Sydney airport

A Jetstar pilot was forced to brake suddenly when a Qatar Airways plane came into “close proximity” while the other plane was taxiing at Sydney airport this morning.

Guardian Australia understands a Jetstar cabin crew member was injured in the incident, and was treated by paramedics.

The Jetstar flight from Sydney to the Gold Coast was taxiing out from its bay at Sydney airport this morning when the incident occurred.

A Jetstar spokesperson said:

double quotation markOur aircraft was following instructions by Air Traffic Control when the pilots were forced to brake firmly after another aircraft came in close proximity.

We have commenced an investigation into the incident.

Josh Butler

Coalition demands NDIS changes focus on fraud, corruption

Liberal frontbencher Tim Wilson also called on the government to focus more on fraud and corruption issues in the NDIS, as the Coalition and Labor negotiate on changes to the disability scheme.

The government’s bill is being examined by a parliamentary committee, with a report due this coming Friday. Labor may seek to bring that bill back on for debate and vote in the second week of this coming parliamentary sitting.

Wilson accused the government of “an ongoing tolerance” to fraud in the system. The NDIS minister, Jenny McAllister, was on News24 this morning also, and we’ll get you some of her contributions shortly.

He said:

double quotation markWe have people who are awarding either packages to people when they shouldn’t be used, we’re having people taking advantage of the system and we know this is being exposed.

And so as a consequence we’ve seen this massive growth continue to go on and we need to make sure that that’s the focus, not the targeting of the clients. You know, if you go out to voters in Australia, there are a lot of people who are on disability support packages who are very nervous about their future and it’s because of how this government has looked at reforms and they feel like they’re being targeted, not the fraudsters.

Wilson raises concerns about gambling ads reaching children

Josh Butler

The shadow treasurer, Tim Wilson, says he’s concerned that gambling advertisers could still be able to reach children, under the government’s proposed wagering reforms.

Labor’s gambling bill has little support outside the government, with the Coalition, Greens and other cross benchers opposed. Amendments are being discussed to win support in the parliament, and while Wilson wouldn’t say which specific areas the Coalition was negotiating on, he said the bill may not go far enough to reduce harms for kids.

Speaking to News24 this morning, Wilson said:

double quotation markWe’re not wowsers, we do believe in protecting children, particularly from harm.

Under the government’s proposed bill, it doesn’t limit the capacity to advertise to children and that’s something that I’m concerned about, making sure that we’ve got the measures that are consistent, appropriate, and also reflecting the changing nature of technology

Wilson noted many people are watching sport on other platforms beyond TV. The proposed gambling rules include a quirk where streaming platforms will be able to show more ads during breaks in play, if those platforms offer a “triple lock” function which includes an opt-out feature.

“What we need to make sure is that the interests are in alignment, we’re protecting children and of course we’re making sure that measures are taken so that people aren’t taken advantage of,” Wilson said.

Ben Carroll vows to boost Victoria’s school funding to meet Gonski standards

Victoria’s new premier, Ben Carroll, says the state government will boost its funding for public schools before the November election, and opening up a pathway for a federal cash injection.

In an interview with the ABC, Carroll pledged to increase funding of the state’s public schools by 5% – fulfilling its obligations under the former Gonski plan.

Victoria’s school funding model lags behind other jurisdictions, with the state only paying 70% of the Schools Resource Standard – an estimate of a school’s funding based on student’s needs – and the federal government contributing 20%.

Under the national agreement, Carroll’s pledge means Canberra will match the funding increase to close the gap.

Carroll said he had discussed the funding increase with Anthony Albanese.

The teacher’s union has demanded the state fully fund public schools as part of its drawn-out pay dispute with the Victorian government.

ABC’s Insiders is marking its 25th birthday with a special anniversary edition this morning.

The show’s founding host, Barrie Cassidy, has returned to the couch for the first time since he retired in 2019.

Reflecting on how Australian politics has changed since the show began in 2001, Cassidy says:

double quotation markYou’ve had that degrading of the support for the major parties, 80% to 50% in the life of Insiders, and that’s quite extraordinary. It happened kind of like bankruptcy – slowly, and then all at once.

The all-at-once period was pretty much just in the lead-up to the last election.

(A reminder that you can hear more from Cassidy every week on the Guardian’s Back to Back Barries podcast.)

Greens senator Sarah Hanson-Young was also asked about her call for a moratorium on building of data centres until there are the proper laws in place to regulate their impact on the country’ energy, water use, environment and communities.

Asked about the proposal, Hanson-Young said:

double quotation markI want an ironclad guarantee for the Australian people: their power bills won’t go up, their water is going to be protected, their jobs are going to be protected, and that they get some type of community benefit because without those things there is going to be no social license and it’s evaporating very quickly.

Labor ‘playing games’ on gambling reforms, Sarah Hanson-Young says

Hanson-Young says she had spoken to the communications minister, Anika Wells, about amendments to the government’s gambling reform but has not spoken directly to Anthony Albanese.

Asked if she expected to speak to the prime minister, the Greens senator said “I hope so”:

double quotation markThe government said they weren’t prepared to move at all, and now here they are. So, I mean … they’re playing games here.

Their own backbenchers know it’s not strong enough.

Hanson-Young said she would not vote for what was “on the table at the moment”

double quotation markIf you are not prepared to do what’s needed here, well, we’ll take this out of your hands and we’ll do it in the Senate ourselves.

Greens call on Albanese to put ‘cards on the table’ as gambling negotiations continue

Greens senator Sarah Hanson-Young, has called for the Albanese government to put its “cards on the table” as part of a potential strengthening of its gambling reform.

Labor is expected to face strong opposition from gambling giants if it accedes to Coalition and Greens demands for a tough new ban on financial inducements for betting, as part of closely watched Senate deal making expected within days.

Speaking to the ABC’s Insiders, Hanson-Young said:

double quotation markIf the government’s now willing to move on some things … good. But the devil’s going to be in the detail. And what I say to the prime minister and to the government is, put your cards on the table.

Josh Taylor

SA premier meets Apple chief following social media ban

The premier of South Australia, Peter Malinauskas has visited Apple’s headquarters and met with outgoing chief executive Tim Cook in the United States.

Malinauskas posted on LinkedIn that Cook was keen to discuss the under-16s social media ban, which kicked off with South Australia’s proposal last year before the federal government adopted a national approach.

Apple has been keen to credit Australia with inspiring planned changes to parental controls on iPhones and iPads, with Cook calling the prime minister, Anthony Albanese, earlier this year when Apple announced the changes.

Documents released under freedom of information laws this week suggest the pair discussed the possibility of Albanese visiting Apple’s California headquarters on his next trip to the United States.

The documents surrounding the call between Albanese and Cook reveal an unnamed employee at Apple following up the call in late June and enquiring about “the possibility of the PM visiting Apple Park in Cupertino (California) when he visits the US for the UN General Assembly.”

Any potential visit by Albanese to Apple may come after Cook steps down as chief executive, and is replaced by John Ternus on 1 September, as the UN general assembly’s 81st session commences on 8 September.

Bird flu detected in inland NSW, on the Murray Darling Basin

Petra Stock

New South Wales recorded its first cases of H5 bird flu in two local birds on Saturday, including one found near Wentworth on the Murray-Darling Basin.

Jack Gough, chief executive of the Invasive Species Council, said:

double quotation markThat should be ringing alarm bells for governments because it suggests it could soon be spreading among inland bird colonies ahead of spring breeding season.

Birds in the Murray-Darling basin are already in decline due to feral animals, insufficient water to critical wetlands and the loss of habitat - now they have a deadly disease to contend with.

Samples from two deceased greater crested terns in NSW – the other found near Narooma on the south coast – tested positive at CSIRO’s Australian Centre for Disease Preparedness.

On Saturday, a further 28 positive cases were confirmed in South Australia, bringing the state’s total to 147. An additional 13 suspected cases were also detected, including an ibis in Adelaide and a cormorant in Carpenter Rocks on the Limestone Coast.

Victoria confirmed 10 positive cases on Saturday, all from greater crested terns in south-west Victoria and Clyde in south-east Melbourne.

As of 3pm yesterday, Australia had a total of 215 H5 bird flu cases nationally.

Good morning

This is Adeshola Ore here to take you through today’s news as it unfolds.

Let’s get into it. %!s()

The reason is clear the second you walk into the neighbourhood: it stinks.

On 17 June, a fire destroyed a large cold-storage warehouse in the area, leaving behind some 85 million lb (39 million kg) of rotting food, including beef, pork, poultry and seafood.

Nearly two months later, residents of Boyle Heights say the clean-up has taken a lot longer than expected, and they've grown frustrated with the pungent odour hovering over the area.

"It smells really bad, like really bad ... to the point that you want to throw up," says Mesha, a 37-year-old security guard stationed outside a marijuana dispensary.

She likens the smell to that of a dead body.

Lineage, the company that operated the warehouse, said that as of Monday about 80% of the food waste had been removed. But city officials said this week that the company's response "has fallen short", and that they have issued public health and safety violation notices.

"It's been tough," Sicairos, 30, says. After shutting down his coffee stand for two weeks because of the fire, Brew Sting has reopened - but the demand hasn't been the same.

He says flies have been swarming relentlessly over the past weeks, since the food that was stored in the warehouse began rotting.

The warehouse workers that would previously line up to buy coffee haven't been showing up over the past two months.

"Due to the fire, obviously most of them aren't here," Sicairos says. "So we lost those customers, but we also lost customers that don't want to be around the smell, the smoke, the flies. It's understandable. But we have to keep paying our bills, so we're still here."

One cannot walk through the area, which is mostly a warehouse district surrounded by homes, without swatting away countless flies, both big and small, including black, blue and green ones.

As Sicairos packs up his coffee stand for the day, flies are landing on his tables and his body. He acknowledges that patrons don't want to see flies when they're purchasing food or drinks to consume.

A city-commissioned inspection report found that waste and high temperatures at the warehouse could speed up the breeding of flies capable of infecting wounds in both people and animals, a local NBC affiliate reported, external.

The report from a pest control company said it could put people and animals with open wounds at risk of contracting disease.

People in the community have also reported seeing large rats, and they say traps placed along sidewalks aren't big enough to hold them.

Many residents blame the city for what they deem an inadequate response to the fire and a lack of transparency and resources.

"I understand why residents are frustrated," Los Angeles Mayor Karen Bass told the BBC in a statement. "They deserve transparency, clear communication, and meaningful support. Since day one, I have been in Boyle Heights listening to residents, meeting with families, and making sure their voices guide our response."

The mayor, who is up for re-election this year, said she directed city departments to work with local, state, federal, nonprofit and community partners to deliver immediate support and solutions.

Bass has also issued executive orders to mobilise resources and speed up the cleaning process. The city says they and other local partners have brought mobile health clinics to the neighbourhood and delivered thousands of air purifiers.

Late last month, the county's public health department fined Lineage for "unsanitary and nuisance" conditions with $500-a-day citations.

The mayor has given Lineage a 13 August deadline to complete the cleanup. The company said on Monday they are 80% of the way there - up from 60% on July 31.

"Our goal is to complete bulk food waste removal from the site next week," a Lineage spokesperson told the BBC on Wednesday. They expect to spend between $80 million to $100 million on the cleanup.

Outside the warehouse, dozens of workers in hard hats and neon vests can be seen tackling the effort, some wearing face coverings. Officials with the local air quality authority and sheriff's office were also on site.

In an letter shared on Tuesday, Bass said the company's response "has fallen short".

"Residents, public agencies, and elected officials have repeatedly sought timely information regarding the cleanup, remediation, environmental monitoring, and recovery," Bass wrote in the letter to Lineage shareholders. "Too often, those requests have been met with delayed communication, limited transparency, and insufficient public engagement".

The mayor also directed city departments to halt plans to rebuild the warehouse "until the health and safety of the community are protected".

Lineage, which is a temperature-controlled warehousing and logistics company, says "cleanup crews are working around the clock to remove food waste, clear debris and dismantle damaged sections of the structure.

"However, this is a highly complex operation," they say, adding that reducing odours is a "key priority" in their cleanup effort. %!s()

MySpace, once the world's biggest social network, is flirting with a comeback. Its owners, brothers Tim and Chris Vanderhook, say they plan to relaunch the platform, though no date or product details have been announced.

A spokesperson for Viant, which owns MySpace, says the company does not have any updates to share "at this time."

But just the idea of a comeback has stirred nostalgia among people who remember the MySpace days of more than 20 years ago as a place where personal pages were messy, loud, and deeply individual.

It has also caught the attention of creators like Melissa Kristin, a TikTok star with more than 900,000 followers, who grew up on MySpace and remembers it as a more personal digital space.

"It was all very much your own little world, your own corner of the internet," Kristin says.

That sense of autonomy shaped how she expresses herself online today, and she believes that a revived MySpace should avoid the algorithmic, pay-to-play dynamics that dominate modern platforms.

"It would be best served for personal connection rather than performance," she says.

"Just to recapture that high we felt as millennials when we got all the friend requests and comments. It helped us feel connected."

MySpace launched in 2003 and quickly became a cultural hub, helping artists like Arctic Monkeys, Adele, and Nicki Minaj find early audiences.

But its highly customised pages, auto-playing music, and busy layouts eventually became a liability.

Facebook's cleaner, simpler design pulled users away, and MySpace struggled through redesigns and ownership changes before fading from mainstream use.

Marketing experts say any comeback will depend on learning from that history.

Dr Alexa Fox, a marketing professor at the University of Akron, says the platform was a "first mover" in social media, but one that became too complex for many users.

She believes MySpace's original strengths – music, creativity, and personal expression – could still resonate, but only with more accessible design.

"It could be more user-friendly, with less coding involved," she says.

Alex Mills, a social media strategist who has led campaigns for Spotify and Adobe, says the very thing people are nostalgic for, a feed without algorithms, was also "the thing that killed it."

"People still want a feed," Mills says. "They just want a better one than the ones optimising for rage bait."

Kevin McClary, head of performance marketing at Gorilla 76, believes MySpace should not try to compete directly with Meta, TikTok, or X.

"They can be successful and sustainable even as a niche platform," he says, arguing it should be rooted in 2000s culture.

McClary says leaning into MySpace's music identity could be a smart move, from profile songs to 2000s-themed festivals and merchandise.

He believes the audience could be broader than former users, with younger generations embracing the early-2000s aesthetics they never experienced firsthand.

"You see younger generations now buying old point-and-shoot digital cameras, MP3 players, even film cameras," McClary says. "They clearly have an interest in the past."

MySpace could meet users where that trend is growing by becoming a place rooted in a "specific time," he says. He noted that creators making 2000s-style content on other platforms are often at the "mercy" of algorithms.

Fox agrees that differentiation is essential.

"MySpace shouldn't hang their hat on features other platforms already dominate," Fox says, pointing to Reels and short-form videos.

Popular formats can be added, she says, but they should not define the platform.

She also sees an opportunity to offer a calmer experience. Today's feeds, she notes, are "algorithmic-driven AI, constantly in your face."

A platform where users have more control, or simply feel less overwhelmed, could stand out in a crowded market.

For fans like Hawkins and Kristin, the appeal is emotional as much as practical. Both say they would return if MySpace kept its original spirit.

For now, its comeback exists mostly as a promise – a reminder of a time when social media felt a little less polished and a lot more personal.

"Are you still gonna have that same feeling?" Hawkins says. "Are you still gonna feel like, 'oh my god, somebody loves me?'" %!s()