Benzinga·2025-11-01 15:12Core Insights - Berkshire Hathaway Inc. reported a significant increase in operating earnings, rising 34% in the third quarter, driven by a substantial surge in insurance profits [1][2]. Financial Performance - Operating earnings for the latest quarter reached $13.49 billion, reflecting a 33.6% increase [2]. - Insurance-underwriting profit saw a remarkable 216% increase, amounting to $2.369 billion, compared to $750 million in the same quarter last year [3]. - Insurance-investment income decreased by 13.18% to $3.181 billion [3]. - Net earnings attributable to Berkshire shareholders totaled $30.796 billion, up from $26.251 billion a year ago [4]. - As of September 30, 2025, Berkshire's shareholders' equity was $698.2 billion, an increase of $48.8 billion since December 31, 2024 [4]. Insurance Float and Cash Holdings - The insurance float was approximately $176 billion, an increase of $5 billion since year-end 2024 [4]. - The company held $354.3 billion in cash, cash equivalents, and U.S. Treasury bills, net of unsettled purchase payables, while investments in equity and fixed-maturity securities totaled $301.2 billion [8]. Equity Portfolio Concentration - Berkshire's equity portfolio remained heavily concentrated, with five companies accounting for 66% of total equity holdings at the end of the third quarter, down from 71% as of December 2024 [5]. Strategic Moves - Berkshire Hathaway announced the acquisition of Occidental Petroleum Corporation's chemicals business for $9.7 billion, marking its largest move since the $11.6 billion purchase of insurer Alleghany in 2022 [6][7]. - The acquisition is subject to regulatory approvals and expected to close in the fourth quarter of 2025 [7]. Leadership Transition - Warren Buffett, at 95 years old, is set to hand off the CEO role to Greg Abel at year-end, while remaining as chair [6].