Summary
Berkshire Hathaway Inc. reported a net loss of $43.76 billion for the second quarter of 2022, a significant swing from a net earning of $28.09 billion in the same period last year. This loss was largely driven by substantial unrealized losses on its equity investment portfolio, which amounted to $66.9 billion in the quarter. Despite the headline net loss, the company's operating businesses continued to generate solid earnings. Insurance underwriting saw improved profitability, and the railroad, utilities, and energy segments demonstrated resilience. However, GEICO experienced an underwriting loss due to increased claims severity and frequency. The company maintained a strong financial position with substantial cash and investment holdings, and continued its share repurchase program, demonstrating confidence in its intrinsic value.
Financial Highlights
28 data points| Revenue | $76.20B |
| Operating Expenses | $64.79B |
| Net Income | -$43.62B |
Key Highlights
- 1Significant net loss of $43.76 billion in Q2 2022, primarily due to unrealized investment losses on equity securities ($66.9 billion).
- 2Operating earnings remain robust across most segments, with insurance underwriting showing improvement (excluding GEICO), and railroad, utilities, and energy segments performing well.
- 3GEICO's underwriting results deteriorated, reporting a pre-tax loss of $487 million due to higher claims frequency and severity, particularly in automobile insurance.
- 4Insurance investment income increased significantly by 58.3% in the quarter, benefiting from higher interest rates and increased equity investments.
- 5Berkshire repurchased $4.2 billion of its own stock in the first six months of 2022, indicating management's belief that the stock is trading below intrinsic value.
- 6The company continues to hold substantial liquidity, with cash, cash equivalents, and U.S. Treasury Bills totaling $101.3 billion in its insurance and other businesses as of June 30, 2022.