May 9, 2016 by Canadian Underwriter
Berkshire Hathaway Inc. has reported US$11.124 billion in insurance premiums earned in the first quarter of 2016 ending March 31, up from US$9.540 billion in the first quarter of 2015.
Omaha, Neb.-based Berkshire Hathaway released its financial results on Friday. Berkshire Hathaway and its subsidiaries engage in diverse business activities including insurance and reinsurance, utilities and energy, freight rail transportation, finance, manufacturing, retailing and services.
Operating earnings on an after-tax basis of US$3.737 billion for the first quarter of 2016 ending March 31, compared to US$4.244 billion in the first quarter of 2015. For its insurance-underwriting segment, Berkshire Hathaway reported first quarter 2016 operating earnings of US$213 million, down from US$480 million in Q1 2015. Insurance-investment income was up to US$919 million in Q1 2016, from US$875 million in Q1 2015. The railroad, utilities and energy segment had Q1 2016 operating earnings of US$1.225 billion, down from US$1.466 billion in the first quarter of 2015.
“Other businesses” were up to US$1.577 in the first quarter of 2016, from US$1.466 billion in the first quarter of 2015. “Other” had operating earnings of US$197 million in the latest quarter, compared to US$11 million in the first quarter of 2015. [click image below to enlarge]
Net earnings attributable to Berkshire shareholders were US$5.589 billion in the first quarter of 2016, compared to US$5.164 in the prior-year quarter. Insurance float – the net liabilities Berkshire Hathaway assumes under insurance contracts – was approximately US$89 billion as of March 31.
Berkshire Hathaway Specialty Insurance announced its entry into the Canadian market in January 2015. In early 2016, Berkshire Hathaway Specialty Insurance (BHSI) announced that it is offering claims-made liability in Canada for professionals facing allegations of negligence, misleading statements and breach of duty, among other things. The coverage – dubbed Professional First Miscellaneous Professional Liability – covers professionals and professional firms.