Berkshire Hathaway sees jump in earnings in third quarter

Berkshire Hathaway Inc. witnessed a big increase in operating earning for insurance underwriting in the third quarter of 2014 compared to the same period last year, contributing to the company seeing operating earnings increase to US$4.724 billion.

The operating earnings for Q3 were US$4.724 million compared to US$3.662 billion in Q3 last year (after-tax results). For the first nine months of 2014, operating earnings were US$12.588 billion compared to US$11.363 billion for the first three quarters of 2013, notes a statement Friday from Berkshire Hathaway.

More specifically, the statement notes the operating earnings for insurance underwriting was US$629 million for the third quarter of 2014 compared to US$170 million in the third quarter of 2013.

The year to date difference was less dramatic, but down, with Berkshire Hathaway reporting insurance underwriting operating income of US$1.501 billion for the first nine months of 2014 compared to US$1.601 billion for the same period in 2013.

In addition, the operating earnings for insurance-investment income for Q3 of 2014 was US$811 million compared to US$861 million for Q3 of 2013; and for non-insurance businesses, it was US$3.253 billion in Q3 in 2014 compared to US$2.783 billion in Q3 last year.

“Since the beginning of the year, Berkshire’s shareholders’ equity has increased US$15.6 billion and our book value per Class A equivalent share has increased by 7.1% to US$144,542 as of September 30, 2014,” the company statement notes. “Insurance float (the net liabilities we assume under insurance contracts) at September 30, 2014 was approximately US$83 billion as compared to approximately US$77 billion at December 31, 2013,” it adds.

Berkshire Hathaway and its subsidiaries engage in diverse business activities, including property and casualty insurance and reinsurance, utilities and energy, freight rail transportation, finance, manufacturing, retailing and services.