An analysis of Berkshire’s operating earnings follows (dollar amounts are in millions).
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Fourth Quarter |
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Full Year |
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2023 |
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2022 |
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2023 |
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2022 |
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| Insurance-underwriting |
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$ |
848 |
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$ |
160 |
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$ |
5,428 |
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$ |
(30 |
) |
| Insurance-investment income |
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2,759 |
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2,000 |
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9,567 |
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6,484 |
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| Railroad |
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1,355 |
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|
1,469 |
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5,087 |
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5,946 |
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| Utilities and energy |
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632 |
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739 |
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2,331 |
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3,904 |
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| Other businesses |
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3,691 |
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3,709 |
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15,112 |
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14,040 |
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| Other* |
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(804 |
) |
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(1,452 |
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(175 |
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509 |
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| Operating earnings |
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$ |
8,481 |
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$ |
6,625 |
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$ |
37,350 |
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$ |
30,853 |
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| * |
Includes foreign currency exchange losses related to non-U.S. Dollar
denominated debt of approximately $684 million in the fourth quarter and gains of approximately $211 million in the full year in 2023 and in 2022 includes foreign currency exchange losses of approximately $1.2 billion in the fourth
quarter and gains of approximately $1.3 billion in the full year. |
Approximately $2.2 billion was used to repurchase
Berkshire shares during the fourth quarter of 2023 bringing the total for the year to approximately $9.2 billion. On December 31, 2023 there were 1,441,483 Class A equivalent shares outstanding. At December 31, 2023, insurance
float (the net liabilities we assume under insurance contracts) was approximately $169 billion, an increase of $5 billion since yearend 2022.
Use of Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures. The reconciliations of such measures to the most
comparable GAAP figures in accordance with Regulation G are included herein.
Berkshire presents its results in the way it believes will be most
meaningful and useful, as well as most transparent, to the investing public and others who use Berkshire’s financial information. That presentation includes the use of certain non-GAAP financial measures.
In addition to the GAAP presentations of net earnings, Berkshire shows operating earnings defined as net earnings exclusive of investment and derivative gains/losses and impairments of goodwill and intangible assets.
Although the investment of insurance and reinsurance premiums to generate investment income and investment gains or losses is an integral part of
Berkshire’s operations, the generation of investment gains or losses is independent of the insurance underwriting process. Moreover, as previously described, under applicable GAAP accounting requirements, we are required to include the changes
in unrealized gains/losses of our equity security investments as a component of investment gains/losses in our periodic earnings statements. In sum, investment gains/losses for any particular period are not indicative of quarterly business
performance.
About Berkshire
Berkshire Hathaway and
its subsidiaries engage in diverse business activities including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, retailing and services. Common stock of the company is listed on the New York Stock
Exchange, trading symbols BRK.A and BRK.B.
Cautionary Statement
Certain statements contained in this press release are “forward looking” statements within the meaning of the Private Securities Litigation Reform
Act of 1995. These statements are not guaranties of future performance and actual results may differ materially from those forecasted.
— END —
Contact
Marc D. Hamburg
402-346-1400