Berkshire Hathaway(BRK_A) - 2024 Q4 - Annual Report

Financial Performance - Net earnings attributable to Berkshire shareholders for 2024 were $88.995 billion, a decrease of 7.8$96.223 billion in 2023[381]. - Total revenue for 2024 was $26,348 million, a slight increase from$26,008 million in 2023[462]. - Net earnings for 2024 were $41.6 billion, including after-tax investment gains of approximately$41.6 billion[549]. - Net earnings attributable to Berkshire shareholders increased to $3,730 million in 2024, up 54.3$2,610 million in 2023[464]. Insurance Operations - Insurance underwriting generated after-tax earnings of $9.020 billion in 2024, up from$5.428 billion in 2023, benefiting from improved operating results at GEICO[384]. - GEICO's pre-tax underwriting earnings increased to $7.813 billion in 2024 from$3.635 billion in 2023, with premiums written rising by $3.1 billion (7.7$4.1 billion in 2024, totaling $13.670 billion, compared to$9.567 billion in 2023[384]. - GEICO's loss ratio improved to 71.8% in 2024 from 81.0% in 2023, driven by higher average premiums and lower claims frequencies[400]. - Losses and loss adjustment expenses rose by $1.4 billion (12.8$681 million (15.0%) in 2024, leading to an expense ratio of 27.8%, up 1.3 percentage points from 2023[412]. - Pre-tax underwriting earnings for the Berkshire Hathaway Reinsurance Group were $2.737 billion in 2024, an increase from$1.904 billion in 2023[416]. Investment Performance - Investment gains for 2024 were $41.558 billion, a decrease from$58.873 billion in 2023, reflecting significant volatility in market prices[381][389]. - The company recorded net unrealized gains of $49.3 billion in 2024 and$69.1 billion in 2023 from changes in market prices of equity securities[544]. - Pre-tax net investment income rose to $16.748 billion in 2024, a 44.6$11.581 billion in 2023[434]. - Interest and other investment income increased by $5.5 billion in 2024 compared to 2023, which was an increase of$4.4 billion compared to 2022[435]. Operational Performance - Manufacturing, service, and retailing earnings decreased by 2.2% in 2024 to $13.072 billion, following a 6.8$5.031 billion, impacted by labor agreement charges and ongoing litigation[385]. - Berkshire Hathaway Energy's after-tax earnings increased by $1.4 billion in 2024 to$3.730 billion, reflecting lower wildfire loss accruals[386]. - Railroad operating revenues were $23.4 billion in 2024, a decrease of 0.5$8.4 billion, driven by a volume increase of 16.2%[447]. - Operating revenues from agricultural products increased by 4.5% to $5.8 billion in 2024, attributed to a volume increase of 7.4$19.0 billion, with BNSF and BHE accounting for $12.7 billion of this total[557]. - Cash, cash equivalents, and U.S. Treasury Bills held by insurance and other businesses totaled$318.0 billion as of December 31, 2024[551]. - Berkshire repurchased $2.9 billion of its common stock in 2024, maintaining a focus on financial strength and liquidity[550]. - Total borrowings at December 31, 2024, were$124.8 billion, with over 95% issued by the Berkshire parent company and its subsidiaries[553]. Tax and Regulatory - The effective income tax rate increased to 18.4% in 2024 from 17.4% in 2023[434]. - Estimated future payments associated with long-term contractual obligations are projected to approximate $30 billion over the next five years[560]. Claims and Liabilities - As of December 31, 2024, total net unpaid losses and loss adjustment expenses amounted to$49,633 million, with $15,936 million in property and$33,697 million in casualty[572]. - The gross unpaid losses and loss adjustment expenses totaled $51,636 million, with$16,570 million in property and $35,066 million in casualty[572]. - Case loss estimates exceeded ceding company estimates by approximately$1.7 billion as of December 31, 2024[578]. - Management maintains internal procedures to ensure the completeness and compliance of reported loss data with contract terms[577].