Berkshire Hathaway announced a substantial increase in its fourth-quarter operating profit, which surged 71% to $14.527 billion compared to the prior year. This growth was primarily driven by a 302% jump in insurance underwriting profits to $3.409 billion and a nearly 50% rise in insurance investment income to $4.088 billion.
For the full year 2024, operating earnings increased 27% to $47.437 billion, with Chairman and CEO Warren Buffett noting that 53% of the company's 189 operating businesses reported a decline in earnings. The company's cash holdings reached a new record of $334.2 billion by the end of 2024, up from $325.2 billion in the third quarter.
Investment gains in the fourth quarter slowed to $5.167 billion from $29.093 billion in the year-earlier period, as Berkshire continued to pare stock investments, including a chunk of its Apple stake. The company remained a net seller of equities for the ninth consecutive quarter, with total sales exceeding $134 billion in 2024, and did not repurchase any shares in the fourth quarter or through February 10 of the current year.
Berkshire Hathaway also disclosed an estimated pre-tax loss of approximately $1.3 billion for its insurance business due to wildfires that occurred in Southern California. This highlights the impact of catastrophic events on the company's insurance segment.
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