Passing the Torch: Buffett’s Exit, Insurtech’s Rise, and a Market Reset (3 Things We Learned)

Hi Friends!

It was a busy week with two major conferences: Target Markets Mid-Year meeting in Dallas and RIMS RiskWorld in Chicago. Both featured Martha Stewart as a keynote speaker, how coincidental!

There was record attendance at TMPAA, and the conference was buzzing with carriers interested in specialty programs. MGA and program administrators are continuing to harness the momentum with their niche underwriting focus.

Meanwhile, earnings were again center stage in the headlines this week, along with Warren Buffett’s retirement announcement this past weekend. Insurtech funding trends were revealed for Q1 2025, which coincided with the Big Three public insurtechs reporting their first quarter results.

Overall, the industry remains strong and is powering ahead. Let’s explore the three things we learned this week

Warren Buffett’s Retirement Impact on Insurance

Warren Buffett’s decision to step down as CEO of Berkshire Hathaway marks the end of a legendary era—and the start of a new one under Greg Abel. This shift raises strategic questions for the broader insurance market, especially around Berkshire’s unique model of using insurance float to fund investments and drive long-term value.

Berkshire’s conservative underwriting principles have shaped generations of reinsurance and P&C leaders. With evolving risk dynamics and new technology entering the fray, the industry will watch closely to see whether Berkshire modernizes its approach or stays rooted in tradition.

Insurtechs Find Their Footing

Gallagher Re’s Q1 2025 Global InsurTech Report shows insurtech investment bouncing back sharply, with funding hitting $1.31B, marking renewed confidence in AI-powered and data-centric models. The report highlights a strategic shift, as capital flows less toward flashy distribution plays and more toward infrastructure and automation enablers.

Lemonade continued its march toward scale, crossing the $1B mark in in-force premium and emphasizing a path to profitability rooted in improved retention and automation across lines. Root also posted encouraging signs—turning a corner operationally and highlighting the growing strength of its embedded distribution partnerships, which are fueling more stable growth.

Hippo remains in transition mode, with top-line momentum but lingering questions around volatility and exposure management, especially in catastrophe-prone markets. Still, the tone was more grounded than in past quarters, suggesting a company more focused on core execution than expansion headlines.

Traditional Carriers Reset Expectations

This week’s earnings painted a clear picture: carriers are still managing through catastrophe pressure and shifting economic headwinds, but operational discipline and investment income provide a stabilizing counterweight.

The common theme? Carriers that embraced tech-driven efficiency and made tough portfolio decisions are starting to pull ahead. As 2025 unfolds, expect further separation between those leaning into transformation and those trying to ride out the cycle on legacy infrastructure.

Hamilton posted meaningful profit, though cat events pushed its underwriting into the red—a theme echoed in Fairfax’s earnings, where investment returns offset catastrophe volatility. Skyward Specialty continued its growth story with steady profitability and expanding specialty capabilities.

Liberty Mutual’s performance reflected broader pressures, including elevated loss activity and a heavier reinsurance bill. CNA showed stable core income but softer underwriting margin, while Ryan Specialty posted solid top-line growth but swung to a net loss, likely reflecting M&A and scaling investments. Zurich showed strength across all lines, reinforcing its position as a global leader, maintaining consistency even through headwinds.

From the past weekend, AIG delivered “excellent” results, leaning on investment performance and continued strategic repositioning. Berkshire Hathaway’s results underscored the enduring power of its insurance holdings, with GEICO returning to profitability through cost-cutting. However, it left questions about future tech investments, especially as Ajit Jain noted a cautious stance on AI spend. Fortegra helped lift Tiptree’s results, showcasing strong underwriting execution with a sub-90 combined ratio despite cat losses.