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Berkshire Hathaway(BRK_B) - 2024 Q4 - Annual Report
BRK_BBerkshire Hathaway(BRK_B)2025-02-24 11:03

Financial Performance - Net earnings attributable to Berkshire shareholders for 2024 were 88.995billion,adecreaseof7.888.995 billion, a decrease of 7.8% from 96.223 billion in 2023[277]. - Investment gains for 2024 were 41.558billion,adecreasefrom41.558 billion, a decrease from 58.873 billion in 2023, reflecting significant volatility in market prices[277]. - Total revenue for 2024 was 26,348million,aslightincreaseof1.326,348 million, a slight increase of 1.3% compared to 26,008 million in 2023[358]. - Net earnings attributable to Berkshire shareholders increased to 3,730millionin2024,up60.03,730 million in 2024, up 60.0% from 2,331 million in 2023[358]. - After-tax earnings from non-controlled businesses decreased by 231millionin2024comparedto2023,primarilyduetolowerearningsfromKraftHeinzandPilot[435].−Investmentgainsin2024were231 million in 2024 compared to 2023, primarily due to lower earnings from Kraft Heinz and Pilot[435]. - Investment gains in 2024 were 52.8 billion, a decrease from 74.9billionin2023,whilenetearningswere74.9 billion in 2023, while net earnings were 41.6 billion[438]. - Berkshire's shareholders' equity increased by 88.1billionto88.1 billion to 649.4 billion as of December 31, 2024[444]. Insurance Operations - Insurance underwriting generated after-tax earnings of 9.0billionin2024,upfrom9.0 billion in 2024, up from 5.4 billion in 2023, with significant improvements at GEICO[280]. - GEICO's pre-tax underwriting earnings increased to 7.813billionin2024from7.813 billion in 2024 from 3.635 billion in 2023, driven by higher average premiums and lower claims frequencies[290]. - Losses and loss adjustment expenses for GEICO decreased by 1.5billion(4.71.5 billion (4.7%) in 2024, resulting in a loss ratio of 71.8% compared to 81.0% in 2023[296]. - Estimated ultimate liabilities for losses from prior accident years were reduced by 1.7 billion in 2024, compared to 1.4billionin2023[316].−TheBerkshireHathawayReinsuranceGrouprecordedapre−taxchargeof1.4 billion in 2023[316]. - The Berkshire Hathaway Reinsurance Group recorded a pre-tax charge of 490 million in 2024 related to a settlement agreement concerning non-insurance affiliates[317]. - The company anticipates claims payments in 2025 of approximately 38billionrelatedtoclaimsoccurringpriorto2025[455].−AonepercentagepointchangeinBIclaimsseveritiescouldresultina38 billion related to claims occurring prior to 2025[455]. - A one percentage point change in BI claims severities could result in a 220 million increase or decrease in recorded liabilities, impacting pre-tax earnings correspondingly[465]. Investment Income - Net investment income for 2024 was 13.67billion,upfrom13.67 billion, up from 9.57 billion in 2023, reflecting a significant increase in interest and other investment income[330]. - Interest and other investment income increased by 5.5billionin2024comparedto2023,primarilyduetoincreasesinU.S.TreasuryBillandshort−terminvestmentbalances[331].−Dividendincomedeclinedby5.5 billion in 2024 compared to 2023, primarily due to increases in U.S. Treasury Bill and short-term investment balances[331]. - Dividend income declined by 302 million (5.5%) in 2024 compared to 2023, reflecting net reductions in equity security holdings[332]. Operating Segments - BNSF's after-tax earnings declined by 1.1% in 2024 compared to 2023, impacted by labor agreement charges and ongoing litigation[281]. - Railroad operating revenues decreased by 0.5% in 2024 to 23.355billioncomparedto2023,withanetvolumeincreaseof6.523.355 billion compared to 2023, with a net volume increase of 6.5%[340]. - Operating revenues from consumer products increased by 7.1% in 2024 to 8.4 billion, driven by a volume increase of 16.2%[343]. - Manufacturing revenues reached 77,231millionin2024,a2.477,231 million in 2024, a 2.4% increase from 75,405 million in 2023[374]. - Service and retailing revenues decreased by 3.9% to 138,672millionin2024,downfrom138,672 million in 2024, down from 144,342 million in 2023[374]. Expenses and Liabilities - Losses and loss adjustment expenses rose by 1.4billion(12.81.4 billion (12.8%) in 2024, with a loss ratio increase of 2.1 percentage points compared to 2023[307]. - Underwriting expenses increased by 681 million (15.0%) in 2024, resulting in an expense ratio of 27.8%, up 1.3 percentage points from 2023[308]. - The company recorded approximately 147.6billioninconsolidatedclaimliabilitiesasofDecember31,2024,with74147.6 billion in consolidated claim liabilities as of December 31, 2024, with 74% related to GEICO and the Berkshire Hathaway Reinsurance Group[460]. - The gross unpaid losses and loss adjustment expenses total 51.636 billion, consisting of 16.570billioninpropertyand16.570 billion in property and 35.066 billion in casualty[467]. Capital Management - The company repurchased 2.9billionofitscommonstockin2024,maintainingafocusonfinancialstrengthandliquidity[445].−Cash,cashequivalents,andU.S.TreasuryBillsheldbyinsuranceandotherbusinessestotaled2.9 billion of its common stock in 2024, maintaining a focus on financial strength and liquidity[445]. - Cash, cash equivalents, and U.S. Treasury Bills held by insurance and other businesses totaled 318.0 billion as of December 31, 2024[446]. - Consolidated capital expenditures for 2024 were 19.0billion,withBNSFandBHEforecastingapproximately19.0 billion, with BNSF and BHE forecasting approximately 14.0 billion in capital expenditures for 2025[452]. Miscellaneous - Float was approximately 171billionatDecember31,2024,upfrom171 billion at December 31, 2024, up from 169 billion in 2023 and $164 billion in 2022[334]. - The effective income tax rate for BNSF increased to 24.3% in 2024 from 23.1% in 2023[340]. - The methodologies for estimating IBNR liabilities involve various actuarial techniques, including paid and incurred loss development methods and Bornhuetter-Ferguson methods[473][474].