Berkshire Hathaway’s operating profit jumps as rates lift income

Operating earnings were $14.5 billion in the three months through December, Warren Buffett’s Omaha, Nebraska-based conglomerate said Saturday in a statement

Berkshire Hathaway Inc.’s operating earnings surged 71% in the fourth quarter, as higher interest rates lifted the conglomerate’s investment income and its insurance business improved.

Operating earnings were $14.5 billion in the three months through December, Warren Buffett’s Omaha, Nebraska-based conglomerate said Saturday in a statement. The increase was driven in part by a 48% jump in insurance investment income, to $4.1 billion, amid higher interest rates.

The rise in earnings also got a significant boost from a strong recovery in the firm’s insurance underwriting business, with operating earnings quadrupling over the period to $3.4 billion.

GEICO was the main contributor to Berkshire’s insurance results, with its pretax underwriting earnings more than doubling to $7.8 billion in 2024. The auto insurer successfully added new clients in the second half, reversing a years-long trend that previously weighed on its performance.

Berkshire said it expects pretax losses of approximately $1.3 billion from the wildfires that ravaged entire parts of Los Angeles last month.

Buffett’s cash hoard grew for the 10th quarter in a row, to a record $334.2 billion at the end of 2024, as the billionaire continued to refrain from major stock transactions in the fourth quarter. In the period, the firm was a net seller of $6.7 billion worth of shares.

The firm declined to buy back its own shares for the second quarter in a row, a sign that Buffett believes the stock trades above its intrinsic value.

Berkshire’s market capitalization has been hovering above $1 trillion since late last month.