Warren Buffett’s conglomerate has reported a surge in operating earnings for the fourth quarter, driven largely by insurance underwriting. The company’s operating profit rose to $14.527 billion, up 71% from the same period last year.
Insurance underwriting saw a massive 302% jump, with earnings reaching $3.409 billion, while investment income increased nearly 50% to $4.088 billion. For the full year, operating earnings grew by 27%, coming in at $47.437 billion.
Despite this strong performance, Berkshire warned that wildfires in Southern California will lead to an estimated pre-tax loss of about $1.3 billion for its insurance business. The company’s cash holdings topped out at a record $334.2 billion.
Chairman and CEO Warren Buffett attributed the surge in earnings to a predictable increase in investment income due to rising Treasury Bill yields, as well as a substantial boost from GEICO’s performance. However, he noted that 53% of Berkshire’s operating businesses reported a decline in earnings in 2024.
Buffett defended the company’s large cash holdings, stating that the majority of shareholders’ money remains invested in equities.
Source: https://www.cnbc.com/2025/02/22/berkshire-hathaway-brka-earnings-q4-2024.html