Summary
Berkshire Hathaway Inc. (BRK-B) reported a net loss attributable to shareholders of $22.8 billion for the year ended December 31, 2022. This significant loss was largely driven by substantial investment and derivative contract losses totaling $67.9 billion, primarily due to market volatility in equity securities. Despite the net loss, the company's diverse operating businesses demonstrated resilience, with strong performance in insurance investment income, utilities and energy, and manufacturing, service, and retailing segments. The insurance underwriting segment experienced a slight loss of $90 million, impacted by catastrophe events and increased claims frequencies and severities at GEICO. However, positive investment income within the insurance segment significantly offset underwriting results. Key strategic moves during the year included the acquisition of Alleghany Corporation for $11.5 billion, which expanded its property and casualty reinsurance and insurance operations. Berkshire also continued its share repurchase program, demonstrating a commitment to returning value to shareholders. The company maintains a strong financial position with substantial liquidity and significant equity, although the balance sheet reflects a decrease in shareholders' equity due to investment market fluctuations. Management anticipates that certain businesses, like GEICO, may return to profitability in the upcoming year.
Financial Highlights
30 data points| Revenue | $302.02B |
| Operating Expenses | $266.48B |
| Interest Expense | $4.35B |
| Net Income | -$22.76B |
Key Highlights
- 1Berkshire Hathaway reported a net loss of $22.8 billion for the year, primarily due to a $67.9 billion loss on investments and derivative contracts.
- 2Insurance underwriting resulted in a net loss of $90 million, impacted by $2.4 billion in catastrophe losses and higher claims costs at GEICO.
- 3Insurance investment income increased significantly by $1.7 billion to $6.5 billion, driven by higher dividend income and increased interest rates.
- 4Acquired Alleghany Corporation in October 2022 for $11.5 billion, adding significant property and casualty insurance and reinsurance businesses.
- 5Burlington Northern Santa Fe (BNSF) railroad revenues increased 11.9% to $25.2 billion, though pre-tax earnings slightly decreased by 1.9% to $7.7 billion due to higher fuel and operating costs.
- 6Berkshire Hathaway Energy (BHE) reported a net earning of $3.9 billion, a 9.3% increase, driven by U.S. utilities, natural gas pipelines, and other energy businesses.
- 7The company repurchased $7.9 billion of its own stock during 2022.