Earnings dip in Berkshire Hathaway’s re/insurance segment
Berkshire Hathaway posted solid growth across most of its re/insurance units in the first quarter of 2016, though revenues generated by General Re dipped slightly.
Total revenues generation by its re/insurance group, which includes GEICO, General Re and the primary and reinsurance operations of Berkshire Hathaway, increased to $12.2 billion in the quarter compared with $10.6 billion in the first quarter of 2015.
All these segments enjoyed increases except General Re, which saw its revenues fall to $1.4 billion compared with $1.5 billion a year earlier.
This translated into the insurance group generating combined pre-tax earnings of $1.5 billion in the quarter, a decrease on the $1.8 billion this group make a year earlier.
In terms of net earnings to Berkshire Hathaway shareholders, the insurance group’s underwriting operations made $213 million compared with $480 million a year earlier while investment income generated by the insurance business increased to $919 million compared with $875 million a year earlier.
The company said that the reason for the insurance businesses generating lower earnings in the first quarter of 2016 was due primarily to comparatively lower gains from Berkshire Hathaway Reinsurance Group’s property/casualty business and lower foreign currency exchange rate gains attributable to certain of its foreign currency denominated liabilities.
