2024-05-04 13:45:15
- Driven by insurance underwriting profits
Follow: Hisham Mukhana
Berkshire Hathaway on Saturday reported a sharp increase in first-quarter operating profits year-over-year, with cash flow reaching new record levels.
Profits of the group led by famous billionaire Warren Buffett increased 39% to $11.22 billion for the quarter ended in March compared to the same period a year earlier. This was driven by a 185% year-on-year increase in insurance underwriting profits to $2.598 billion from $911 million previously recorded, in addition to higher investment income from insurance by 32% to more than 2.5 billion dollars.
Profit from Berkshire’s rail business was $1.14 billion, down slightly from the first quarter of last year. While the Energy division’s profits almost doubled from $416 million a year ago to $717 million. First-quarter net profits, which include fluctuations in Berkshire’s stock investments, fell 64% to $12.7 billion.
At the same time, the group’s cash position reached a new record of $188.99 billion, up from $167.6 billion in the fourth quarter. This massive stake, which exceeds CFRA research estimates by more than $170 billion, indicates Buffett’s inability to find a suitable major acquisition target, something the former investor himself has regretted in recent years .
Year to date, Berkshire Hathaway’s Class A shares have risen more than 11%, hitting an all-time high in late February. Meanwhile, Class B shares are up more than 12% during this period.
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