Tough quarter for Berkshire Hathaway
Insurance was a comparatively bright spot for Berkshire Hathaway in the first quarter this year, even though Victoria’s bushfires took their toll on reinsurance at General Re.
Berkshire’s $US1.53 billion ($2 billion) loss for the three months to March 31, compared with a $US940 million ($1.2 billion) profit a year earlier, is related mainly to its investment in an energy company, which was king-hit by falling oil prices.
Insurance underwriting operations improved 21% to $US219 million ($286 million), but for General Re there was a $US34 million ($44 million) loss which included the effects of a $US71 million ($93 million) catastrophe loss, primarily from Winter Storm Klaus in Europe and the Victorian bushfires.
Berkshire Hathaway Reinsurance’s $US203 million ($265 million) in pre-tax underwriting profit was well up on the $US29 million ($38 million) from the first quarter last year.
This reflected underwriting gains under a Swiss Re quota-share contract, improved loss ratios for property business and increased gains on foreign currency transactions.
Berkshire’s $US1.53 billion ($2 billion) loss for the three months to March 31, compared with a $US940 million ($1.2 billion) profit a year earlier, is related mainly to its investment in an energy company, which was king-hit by falling oil prices.
Insurance underwriting operations improved 21% to $US219 million ($286 million), but for General Re there was a $US34 million ($44 million) loss which included the effects of a $US71 million ($93 million) catastrophe loss, primarily from Winter Storm Klaus in Europe and the Victorian bushfires.
Berkshire Hathaway Reinsurance’s $US203 million ($265 million) in pre-tax underwriting profit was well up on the $US29 million ($38 million) from the first quarter last year.
This reflected underwriting gains under a Swiss Re quota-share contract, improved loss ratios for property business and increased gains on foreign currency transactions.