An analysis of Berkshire’s operating earnings follows (dollar amounts are in millions).
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Second Quarter |
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First Six Months |
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2023 |
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2022 |
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2023 |
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2022 |
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| Insurance-underwriting |
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$ |
1,247 |
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$ |
715 |
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$ |
2,158 |
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$ |
882 |
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| Insurance-investment income |
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2,369 |
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|
1,906 |
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|
4,338 |
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|
3,076 |
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| BNSF |
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1,264 |
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|
1,664 |
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2,511 |
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3,035 |
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| Berkshire Hathaway Energy Company |
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785 |
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789 |
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1,201 |
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1,564 |
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| Other businesses |
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3,503 |
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3,249 |
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6,568 |
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6,274 |
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| Non-controlled businesses * |
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535 |
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182 |
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1,103 |
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464 |
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| Other** |
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|
340 |
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912 |
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229 |
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1,282 |
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| Operating earnings |
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$ |
10,043 |
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$ |
9,417 |
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$ |
18,108 |
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$ |
16,577 |
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| * |
Includes certain businesses in which Berkshire had between a 20% and 50% ownership interest.
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| ** |
Includes foreign currency exchange gains related to non-U.S. Dollar
denominated debt in 2023 of $465 million in the second quarter and $448 million of the first six months and in 2022 of approximately $1.1 billion in the second quarter and approximately $1.6 billion in the first six months.
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Approximately $1.4 billion was used to repurchase Berkshire shares during the second quarter of 2023, bringing the six-month total to $5.8 billion. On June 30, 2023, there were 1,447,541 Class A equivalent shares outstanding.
At June 30, 2023, insurance float (the net liabilities we assume under insurance contracts) was approximately $166 billion, an increase of
approximately $2 billion from yearend 2022.
Use of Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures. The reconciliations of such measures to the most
comparable GAAP figures in accordance with Regulation G are included herein.
Berkshire presents its results in the way it believes will be most
meaningful and useful, as well as most transparent, to the investing public and others who use Berkshire’s financial information. That presentation includes the use of certain non-GAAP financial measures.
In addition to the GAAP presentations of net earnings, Berkshire shows operating earnings defined as net earnings exclusive of investment and derivative gains (losses) and impairments of goodwill and intangible assets.
Although the investment of insurance and reinsurance premiums to generate investment income and investment gains or losses is an integral part of
Berkshire’s operations, the generation of investment gains or losses is independent of the insurance underwriting process. Moreover, as previously described, under applicable GAAP accounting requirements, we are required to include the changes
in unrealized gains (losses) of our equity security investments as a component of investment gains (losses) in our periodic earnings statements. In sum, investment gains (losses) for any particular period are not indicative of quarterly business
performance.
About Berkshire
Berkshire Hathaway and
its subsidiaries engage in diverse business activities including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, retailing and services. Common stock of the company is listed on the New York Stock
Exchange, trading symbols BRK.A and BRK.B.
Cautionary Statement
Certain statements contained in this press release are “forward looking” statements within the meaning of the Private Securities Litigation Reform
Act of 1995. These statements are not guaranties of future performance and actual results may differ materially from those forecasted.
— END —
Contact
Marc D. Hamburg
402-346-1400