Berkshire Hathaway(BRK_A) - 2024 Q2 - Quarterly Report

Investment Performance - Investment gains in the first six months of 2023 included an after-tax non-cash remeasurement gain of approximately $2.4 billion related to a 38.6% interest in Pilot[86] - Investment gains in Q2 2024 were$ 23.9 billion, down from $33.1 billion in Q2 2023, while first six months gains were$ 25.7 billion compared to $67.8 billion in 2023[128] - After-tax equity earnings from non-controlled businesses decreased by$ 315 million in Q2 2024 and $478 million in the first six months compared to 2023[126] - Other earnings increased to$ 533 million in Q2 2024 from $340 million in Q2 2023, driven by higher interest income[129] Underwriting Earnings - GEICO's pre-tax underwriting earnings for Q2 2024 were$ 1.786 billion, a significant increase from $514 million in Q2 2023, while the first six months of 2024 saw earnings of$ 3.714 billion compared to $1.217 billion in 2023[87] - Berkshire Hathaway Primary Group's pre-tax underwriting earnings were$ 279 million in Q2 2024, up from $272 million in Q2 2023, and$ 765 million in the first six months of 2024 compared to $540 million in 2023[92] - Pre-tax underwriting earnings for property/casualty were$ 1,022 million in Q2 2024, down from $1,124 million in Q2 2023, and$ 2,030 million for the first six months, compared to $1,514 million in the same period last year[96] - Pre-tax earnings for BHE in Q2 2024 were$ 326 million, down from $624 million in Q2 2023[110] Premiums and Revenue - Premiums written by GEICO increased by$ 1.0 billion (10.7%) in Q2 2024 and $1.7 billion (8.9%) in the first six months of 2024 compared to 2023, driven by an 11.3% increase in average written premiums per auto policy[89] - Premiums written by Berkshire Hathaway Primary Group increased by$ 174 million (3.7%) in Q2 2024 and $509 million (5.7%) in the first six months of 2024 compared to 2023[92] - Property/casualty premiums earned increased by 5.3% in Q2 2024 to$ 5,608 million compared to $5,325 million in Q2 2023, and by 5.4% in the first six months to$ 11,043 million compared to $10,474 million in the same period last year[94] - Life/health premiums earned decreased by$ 69 million (5.4%) in Q2 2024 to $1,220 million compared to$ 1,289 million in Q2 2023, but increased by $100 million (4.3%) in the first six months to$ 2,449 million compared to $2,349 million in the same period last year[98] Loss Ratios and Expenses - Losses and loss adjustment expenses for GEICO declined by$ 437 million (5.3%) in Q2 2024 and $1.0 billion (6.3%) in the first six months of 2024 compared to 2023[89] - The loss ratio for Berkshire Hathaway Primary Group decreased by 1.2 percentage points in Q2 2024 and 3.1 percentage points in the first six months of 2024 compared to 2023, reflecting lower incurred losses from significant catastrophes[92] - GEICO's loss ratio was 74.1% in Q2 2024, a decrease of 10.2 percentage points compared to 2023, indicating improved claims management[89] - Underwriting expenses for GEICO declined by$ 80 million (7.9%) in Q2 2024 and $119 million (6.1%) in the first six months of 2024 compared to 2023[89] Tax Rates - The effective income tax rate for Berkshire Hathaway's net underwriting earnings was 20.5% in Q2 2024, down from 22.6% in Q2 2023[87] - The effective income tax rate for Q2 2024 was 18.4%, slightly down from 18.6% in Q2 2023, and 18.0% for the first six months compared to 18.1% in the same period last year[102] - The effective income tax rate for BHE in Q2 2024 was significantly negative at (133.1%), reflecting substantial production tax credits[110] - Effective income tax rate remained stable at 21.3% for both Q2 2024 and the first six months of 2024[128] Earnings and Cash Flow - Net earnings for Q2 2024 were$ 1,227 million, compared to $1,264 million in Q2 2023, reflecting a decrease of 2.9%[106] - Net earnings attributable to Berkshire Hathaway shareholders for Q2 2024 were$ 655 million, down from $785 million in Q2 2023[110] - Net earnings attributable to Berkshire shareholders for the first six months of 2024 were$ 43.1 billion, including after-tax investment gains of approximately $20.2 billion[130] - Operating cash flows for the first six months of 2024 were$ 24.2 billion, expected to be reduced by significant income tax payments in the remainder of the year[130] Revenue Trends - Operating revenues from consumer products increased by 12.0% in Q2 2024 to $2.1 billion, driven by a volume increase of 15.0%[107] - Operating revenues from coal decreased by 35.0% in Q2 2024 to$ 608 million, primarily due to a volume decline of 28.9%[109] - Total revenue for BHE in Q2 2024 was $6,492 million, up from$ 6,362 million in Q2 2023, with energy operating revenue increasing to $5,115 million[110] - Revenues for Pilot Travel Centers declined by$ 1.8 billion (11.9%) in Q2 2024 and $3.8 billion (12.9%) in the first six months compared to 2023[113] Capital and Investments - Berkshire's shareholders' equity increased by$ 40.4 billion to $601.7 billion as of June 30, 2024[130] - Berkshire repurchased$ 2.9 billion of its common stock in the first half of 2024[130] - Cash, cash equivalents, and U.S. Treasury Bills held by Berkshire's insurance and other businesses totaled $271.5 billion, including$ 237.6 billion in U.S. Treasury Bills[130] - Consolidated capital expenditures for property, plant, and equipment were $8.9 billion in the first six months of 2024, with forecasted capital expenditures for BHE and BNSF of approximately$ 7.4 billion for the remainder of 2024[130] Debt and Liabilities - Estimated liabilities for unpaid losses and loss adjustment expenses from property and casualty insurance and reinsurance contracts amounted to $146.3 billion as of June 30, 2024[133] - Berkshire's consolidated borrowings were$ 123.6 billion, with the parent company debt decreasing by $710 million to$ 18.1 billion[130] - BNSF's outstanding debt increased by $750 million to$ 24.2 billion as of June 30, 2024[130] Miscellaneous - The financial information from Berkshire Hathaway Inc.'s Quarterly Report for the quarter ended June 30, 2024, includes consolidated balance sheets and earnings statements[101] - The report is formatted in iXBRL, ensuring compliance with modern financial reporting standards[101] - The report was signed by Marc D. Hamburg, Senior Vice President and Principal Financial Officer, on August 3, 2024[145]