Kevin Dietsch
Berkshire Hathaway (NYSE:BRK.B) (NYSE:BRK.A) Q4 operating earnings slipped from year ago, hurt by a $1.45B loss at its “other” businesses, which includes foreign exchange currency losses on non-U.S. denominated debt. Earnings from its railroad and insurance underwriting also declined.
The company bought back ~$2.6B of its common stock during the last quarter of 2022 compared with ~$1.05B in Q3, and bringing the year total to $7.9B.
The investment giant held ~$128.7B of cash and short-term securities at Dec. 31, 2022, vs. ~$109.0B at Sept. 30. That’s even with the company acquiring Alleghany Corp. in the last quarter of 2022.
Q4 operating earnings of $6.71B vs. $7.76B in the prior quarter and $7.29B in the year-ago quarter.
Insurance float was $164B at Dec. 31, 2022 compared with ~$150B at Sept. 30. The amount of float increased by $17B during the year, mostly reflecting $14B related to Berkshire’s (BRK/B) acquisition of Alleghany Corp.
Operating earnings by business segment:
- Insurance – underwriting: $244M vs. -$962M in Q3 and $372M in Q4 2021;
- Insurance – investment income: $2.00B vs. $1.41B in Q3 and $1.22B in Q4 2021;
- Railroad – $1.47B vs. $1.44B in the prior quarter and $1.69B in the year-ago quarter;
- Utilities and energy – $739M vs. $1.59B in the prior quarter and 589M$ in the year-ago quarter;
- Other controlled businesses – $2.99B vs. $3.25B in Q3 and $2.79B in Q4 2021;
- Non-controlled businesses – $718M vs. $362M in the prior quarter and $174M in the year-ago quarter;
- Other – -$1.45B vs. $67M in Q3 and $446M in Q4 2021.
Investment and derivative gains of $11.5B in Q4 2022, most of which is unrealized, vs. $10.4B loss in Q3 and $32.4B gain in Q4 2021.
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