US insurers enjoy mixed fortunes
US insurer Berkshire Hathaway has suffered a dramatic decline in revenue from insurance premiums and investments. Gross earnings were $US7.31 billion ($7.8 billion) for the owner of Gen Re and insurers Geico and National Indemnity – half the earnings of the first quarter last year.
Net earnings from insurance underwriting were $US181 million ($193 million), well down on the $US601 million ($640 million) of a year earlier. Overall, the company saw net profit decline 64% to $US940 million ($1 billion).
The results continue a downward earnings trend from the previous quarter, when Chairman Warren Buffett said “the party is over” for insurers.
AIG has reported losses of $US7.8 billion ($8.3 billion) in a disastrous first quarter it attributes to events outside the company’s control.
The giant insurer claims a weak US housing market, disruptive credit markets and volatile equity markets are the chief contributors to an $US11.94 billion ($12.7 billion) fall in net income from the previous quarter.
The company announced plans to raise $US12.5 billion ($13.3 billion) in capital from investors, made up of a common stock offer, equity-linked instruments and fixed income securities.
But there’s good news elsewhere, with Liberty Mutual group banking a 3% increase in net profit to $US360 million ($383 million).
Premium income grew 10% to $US6.25 billion ($6.7 billion) during the quarter.
Loss adjuster Crawford & Company saw net profit surge 174% to $US9.1 million ($9.7 million). Total revenue grew 5% to $US256 million ($273 million) for the quarter.
Net earnings from insurance underwriting were $US181 million ($193 million), well down on the $US601 million ($640 million) of a year earlier. Overall, the company saw net profit decline 64% to $US940 million ($1 billion).
The results continue a downward earnings trend from the previous quarter, when Chairman Warren Buffett said “the party is over” for insurers.
AIG has reported losses of $US7.8 billion ($8.3 billion) in a disastrous first quarter it attributes to events outside the company’s control.
The giant insurer claims a weak US housing market, disruptive credit markets and volatile equity markets are the chief contributors to an $US11.94 billion ($12.7 billion) fall in net income from the previous quarter.
The company announced plans to raise $US12.5 billion ($13.3 billion) in capital from investors, made up of a common stock offer, equity-linked instruments and fixed income securities.
But there’s good news elsewhere, with Liberty Mutual group banking a 3% increase in net profit to $US360 million ($383 million).
Premium income grew 10% to $US6.25 billion ($6.7 billion) during the quarter.
Loss adjuster Crawford & Company saw net profit surge 174% to $US9.1 million ($9.7 million). Total revenue grew 5% to $US256 million ($273 million) for the quarter.