Berkshire Hathaway has reported an underwriting loss for its parent insurance company, Berkshire Hathaway Specialty Insurance, of $213m (£162m) for the third quarter of the year.
The firm said the loss was attributed to a drop in car accidents as fewer drivers were on the road during the Covid-19 pandemic.
Sales and service revenues for the insurance firm also declined to $32.7bn (£24.8bn) in Q3 compared with $34.02bn (£25.9bn) in the same period last year.
Insurance investment income also fell to $1.01bn (£769m) from $1.48bn (£1.12bn) last year reiterating the impact of Covid-19.
However, life and health premiums written increased $288 million (26.3%) in the third quarter compared with the corresponding 2019 period.
Despite falls in the insurance sector, the company remained profitable through cost saving schemes such as a reduction in its cost of leasing by $156m (£118m).
An increase in profits for the company’s railroads, utilities and energy businesses helped to divert loss away from its insurance firms.
The firm overall reported a net earning of $30bn (£22.9bn) for the third quarter, rising from $16.5bn (£12.5bn) last year.
The company’s financial statement expressed that insurance underwriting results will likely remain “negatively affected” over the remainder of the year and in the first quarter of 2021.