Financials
Insurance - Diversified
$1.10T
392K
Berkshire Hathaway Inc., through its subsidiaries, engages in the insurance, freight rail transportation, and utility businesses worldwide. The company provides property, casualty, life, accident, and health insurance and reinsurance; and operates railroad systems in North America. It also generates, transmits, stores, and distributes electricity from natural gas, coal, wind, solar, hydroelectric, nuclear, and geothermal sources; operates natural gas distribution and storage facilities, interstate pipelines, liquefied natural gas facilities, and compressor and meter stations; and holds interest in coal mining assets. In addition, the company manufactures boxed chocolates and other confectionery products; specialty chemicals, metal cutting tools, and components for aerospace and power generation applications; flooring products; insulation, roofing, and engineered products; building and engineered components; paints and coatings; and bricks and masonry products, as well as offers manufactured and site-built home construction, and related lending and financial services. Further, it provides recreational vehicles, apparel and footwear products, jewelry, and custom picture framing products, as well as alkaline batteries; castings, forgings, fasteners/fastener systems, aerostructures, and precision components; and cobalt, nickel, and titanium alloys. Additionally, the company distributes televisions and information; franchises and services quick service restaurants; distributes electronic components; and offers logistics services, grocery and foodservice distribution services, and professional aviation training and shared aircraft ownership programs. It also retails automobiles; furniture, bedding, and accessories; household appliances, electronics, and computers; jewelry, watches, crystal, china, stemware, flatware, gifts, and collectibles; kitchenware; and motorcycle clothing and equipment. The company was incorporated in 1998 and is headquartered in Omaha, Nebraska.
Key insights and themes extracted from this filing
Net earnings attributable to Berkshire Hathaway shareholders decreased from $35.504 billion in Q1 2023 to $12.702 billion in Q1 2024. This was largely due to a decrease in investment gains, which fell from $34.758 billion to $1.876 billion.
Insurance underwriting after-tax earnings increased $1.7 billion YoY, driven by improved operating results at GEICO and the absence of significant catastrophe events in Q1 2024.
After-tax earnings of BNSF declined 8.3% YoY, primarily attributable to unfavorable changes in business mix and lower fuel surcharge revenues, partially offset by lower fuel costs.
Berkshire acquired the remaining 20% noncontrolling interest in Pilot on January 16, 2024, bringing ownership to 100%. However, Pilot's pre-tax earnings declined 68.9% YoY, attributed to lower margins on retail fuel sales and higher operating expenses.
BHE's domestic regulated utility interests continue to invest in renewable energy projects. BHE subsidiaries issued $5.1 billion of term debt with a weighted average interest rate of 5.4% and maturity dates ranging from 2029 to 2055.
Premiums written increased $335 million (8.1%) in the first quarter of 2024 compared to 2023. Increases in premiums written in the first quarter of 2024 were generated by nearly all primary insurance businesses.
GEICO's expense ratio decreased 1.0 percentage point YoY, attributable to improved operating efficiencies and increased operating leverage.
After-tax earnings of real estate brokerage declined $125 million in the first quarter of 2024 compared to the first quarter of 2023. The decline was primarily attributable to expense accruals by HomeServices in connection with its ongoing litigation.
Lubrizol's pre-tax earnings increased 44.5% in the first quarter of 2024 compared to 2023. The increase was due to lower raw material and manufacturing costs, partially offset by the impact of lower selling prices and unfavorable product mix.
PacifiCorp recorded cumulative estimated pre-tax probable Wildfire losses of approximately $2.4 billion. It is reasonably possible PacifiCorp will incur significant additional Wildfire losses beyond the amounts currently accrued.
HomeServices is defending against several antitrust cases, and the company agreed to terms with the plaintiffs to settle all claims asserted against HomeServices in the Burnett case as part of a proposed nationwide class settlement. If the settlement is not approved by the court, HomeServices intends to vigorously appeal on multiple grounds the jury's findings and damage award in the Burnett case.
Investment gains predominantly derive from investments in equity securities and include significant net unrealized gains and losses from market price changes. These gains and losses have caused and will continue to cause significant volatility in our periodic earnings.
GEICO's pre-tax underwriting earnings in the first quarter of 2024 reflected higher average premiums per auto policy, lower claims frequencies and improved operating efficiencies compared to 2023.
New vehicle unit sales increased 10.1% in the first quarter of 2024 compared to 2023. The decline in selling prices was attributable to increased price competition.
McLane's revenues in the first quarter of 2024 declined 4.5% compared to 2023, attributable to lower unit volumes. The reduction was primarily in the restaurant business, which experienced a comparative 8.0% sales decline in 2024.
Railroad operating expenses declined $105 million (2.6%) in the first quarter of 2024 compared to 2023. Equipment rents, materials and other expenses decreased $85 million (14.3%) in the first quarter of 2024 compared to 2023, primarily due to lower property taxes, litigation costs and other cost reductions across various spending categories.
GEICO's expense ratio (underwriting expense to premiums earned) was 8.7% in the first quarter of 2024, a decrease of 1.0 percentage point compared to 2023, attributable to improved operating efficiencies and increased operating leverage.
Lubrizol's pre-tax earnings increased 44.5% in the first quarter of 2024 compared to 2023. The increase was due to lower raw material and manufacturing costs, partially offset by the impact of lower selling prices and unfavorable product mix.
The 10-Q filing does not provide specific details on R&D investments or technological advancements. Further analysis of subsidiary filings and press releases would be required to assess this theme.
Berkshire paid $2.6 billion in the first quarter of 2024 to repurchase common stock.
On January 16, 2024, we acquired the remaining 20% noncontrolling interest and we now own 100% of Pilot.
BHE subsidiaries issued $5.1 billion of term debt with a weighted average interest rate of 5.4% and maturity dates ranging from 2029 to 2055.
The 10-Q filing does not provide specific details on ESG initiatives. Further analysis of subsidiary filings and press releases would be required to assess this theme.
On March 6, 2024, the SEC issued Climate Disclosure Rules. However, on April 4, 2024, the SEC stayed implementation of the Climate Disclosure Rules, pending the completion of judicial review.
Operating revenues from coal were $765 million in the first quarter of 2024, a decline of 25.7% compared to 2023, reflecting lower volumes of 20.6% and lower average revenue per car/unit. The volume decline reflected lower utilities demand attributable to the impact of lower natural gas prices.
Service group revenues in the first quarter of 2024 declined $168 million (3.2%) compared to the first quarter of 2023, primarily attributable to lower revenues from TTI (15.5%). New orders at TTI declined in the first quarter of 2024 across most regions, markets and product lines, attributable to excess inventory levels within supply chains which contributed to lower customer demand.
PCC's revenues were $2.5 billion in the first quarter of 2024, an increase of 10.1% compared to the first quarter of 2023. The revenue increase was primarily attributable to higher demand for aerospace products.