Berkshire Hathaway posts strong Q1

Berkshire Hathaway posted a solid set of results for the first quarter of 2015, despite a fall in premiums at Gen Re and Berkshire Hathaway Reinsurance Group.

The group’s operating earnings jumped to $4.2 billion in the first quarter of 2015, compared with $3.5 billion in the first quarter of 2014.

Its insurance premiums increased to $9.5 billion in the first quarter of 2015, compared with $9.4 billion in the same period of the prior year.

Gen Re’s premiums earned fell to $1.5 billion in the quarter, compared with $1.6 billion in the first quarter of 2014. Within this, its property/casualty business posted a 7 percent decrease in premiums to $730 million in the quarter, compared with $788 million in the first quarter of 2014.

In the first quarter of 2015, the business produced aggregate pre-tax underwriting losses of $14 million, compared with pre-tax underwriting gains of $101 million in 2014. This was driven by an increase in current accident year reported losses within the property business.

Berkshire Hathaway Reinsurance Group’s premiums also decreased to $1.4 billion in the quarter, compared with $2 billion in the first quarter of 2014.

Within the property/casualty business, premiums earned decreased 24 percent to $916 million in the first quarter of 2015, compared with $1.2 billion in the same period of the prior year. The company said this was primarily due to lower premiums earned from property quota-share coverages and from the run-off of a Swiss Re quota-share contract. The business generated pre-tax underwriting gains of $531 million in 2015, compared with $291 million in 2014.