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Berkshire Hathaway Inc. (BRK.B - Free Report) delivered first-quarter 2024 operating earnings of $11.2 billion, which increased 39% year over year. The increase was driven by higher earnings in insurance-underwriting and insurance-investment income, other controlled businesses and non-controlled businesses.
Berkshire Hathaway Inc. Price, Consensus and EPS Surprise
Revenues rose 5.2% year over year to $89.8 billion, attributable to an increase in revenues in Insurance and Other and Railroad, Utilities and Energy.
Costs and expenses increased 0.6% year over year to $76.5 billion, largely driven by a rise in costs and expenses in Railroad, Utilities and Energy.
Segment Performance
Berkshire’s Insurance and Other segment revenues increased 3.2% year over year to $65.4 billion on the back of higher insurance premiums earned, leasing revenues, interest, dividend and other investment income.
Insurance underwriting produced operating earnings of $2.6 billion, which surged nearly three-fold year over year.
Railroad operating revenues rose 4.1% year over year to $5.6 billion, reflecting lower revenues per car/unit, partially offset by higher volumes of 6.6%. Pre-tax earnings of Railroad decreased 7.9% year over year to $1.5 billion.
Operating earnings from the Railroad business declined 7.5% year over year.
Total revenues at Manufacturing, Service and Retailing decreased 1.3% year over year to $40.7 billion. Pre-tax earnings increased 1% year over year to $3.9 billion.
After-tax earnings from manufacturing, service and retailing businesses rose 1.3% year over year. This reflected growth at several manufacturing businesses, which were substantially offset by lower earnings from service and retailing businesses.
Financial Position
As of Mar 31, 2024, consolidated shareholders’ equity was $577.8 billion, up 1.8% from the level as of Dec 31, 2023. Cash and cash equivalents and restricted cash were $36.2 billion, up 32.5% from the 2023-end level.
Berkshire exited the first quarter of 2024 with a float of about $168 billion, up from $169 billion as of Dec 31, 2023.
Cash flow from operating activities totaled $10.5 billion, up 21.5% from the year-ago period.
BRK.B bought back shares worth $2.6 billion in the first quarter.
Cincinnati Financial Corporation (CINF - Free Report) reported first-quarter 2024 operating income of $1.72 per share, which beat the Zacks Consensus Estimate by 1.7%. The bottom line surged 93.2% year over year. Total operating revenues in the quarter under review were $2.3 billion, which missed the Zacks Consensus Estimate by 1.4%. The top line, however, improved 8.8% year over year. Net written premiums climbed 11% year over year to $2.2 billion.
Investment income, net of expenses, increased 17% year over year to $245 million, as bond interest grew 21% and dividends from the equity portfolio jumped 9%. The figure was higher than our estimate of $227.7 million. Total benefits and expenses of Cincinnati Financial increased 0.4% year over year to $1.9 billion. The figure was lower than our estimate of $2 billion. In its property & casualty insurance business, Cincinnati Financial recorded an underwriting income of $131 million against the year-ago loss of $10 million. The figure was higher than our estimate of $60.7 million underwriting income.
AXIS Capital Holdings Limited (AXS - Free Report) posted first-quarter 2024 operating income of $2.57 per share, beating the Zacks Consensus Estimate by 1.2%. The bottom line increased 10.3% year over year. Total operating revenues of $1.4 billion missed the Zacks Consensus Estimate by 2.8%. The top line, however, rose 5% year over year. Net investment income jumped 25% year over year to $167 million. Our estimate was $164.8 million.
Total expenses in the quarter under review increased 0.7% year over year to $1.15 billion. Our estimate was $1.1 billion. Pre-tax catastrophe and weather-related losses, and net of reinsurance were $20 million. This compares favorably with the year-ago loss of $38 million. AXIS Capital’s underwriting income of $145.6 million increased 4.5% year over year. Our estimate was $141.5 million. The combined ratio deteriorated 20 bps to 91.1.
American Financial Group, Inc. (AFG - Free Report) reported first-quarter 2024 net operating earnings per share of $2.76, which missed the Zacks Consensus Estimate by 0.3%. The bottom line decreased 4.5% year over year. Total revenues of $1.8 billion increased 5.1% year over year in the quarter. The growth came on the back of higher P&C insurance net earned premiums and other income. The top line missed the Zacks Consensus Estimate by 0.2%.
P&C insurance net earned premiums of $1.5 billion climbed 7.5% year over year. Net investment income decreased 8.7% year over year to $198 million in the quarter under review. The figure was lower than our estimate of $226.8 million. Total cost and expenses increased 8.5% year over year to $1.6 billion due to higher P&C insurance losses & expenses and other expenses. The figure was lower than our estimate of $1.7 billion.
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Berkshire (BRK.B) Q1 Earnings Rise Y/Y, Segment Results Solid
Berkshire Hathaway Inc. (BRK.B - Free Report) delivered first-quarter 2024 operating earnings of $11.2 billion, which increased 39% year over year. The increase was driven by higher earnings in insurance-underwriting and insurance-investment income, other controlled businesses and non-controlled businesses.
Berkshire Hathaway Inc. Price, Consensus and EPS Surprise
Berkshire Hathaway Inc. price-consensus-eps-surprise-chart | Berkshire Hathaway Inc. Quote
Behind the Headlines
Revenues rose 5.2% year over year to $89.8 billion, attributable to an increase in revenues in Insurance and Other and Railroad, Utilities and Energy.
Costs and expenses increased 0.6% year over year to $76.5 billion, largely driven by a rise in costs and expenses in Railroad, Utilities and Energy.
Segment Performance
Berkshire’s Insurance and Other segment revenues increased 3.2% year over year to $65.4 billion on the back of higher insurance premiums earned, leasing revenues, interest, dividend and other investment income.
Insurance underwriting produced operating earnings of $2.6 billion, which surged nearly three-fold year over year.
Railroad operating revenues rose 4.1% year over year to $5.6 billion, reflecting lower revenues per car/unit, partially offset by higher volumes of 6.6%. Pre-tax earnings of Railroad decreased 7.9% year over year to $1.5 billion.
Operating earnings from the Railroad business declined 7.5% year over year.
Total revenues at Manufacturing, Service and Retailing decreased 1.3% year over year to $40.7 billion. Pre-tax earnings increased 1% year over year to $3.9 billion.
After-tax earnings from manufacturing, service and retailing businesses rose 1.3% year over year. This reflected growth at several manufacturing businesses, which were substantially offset by lower earnings from service and retailing businesses.
Financial Position
As of Mar 31, 2024, consolidated shareholders’ equity was $577.8 billion, up 1.8% from the level as of Dec 31, 2023. Cash and cash equivalents and restricted cash were $36.2 billion, up 32.5% from the 2023-end level.
Berkshire exited the first quarter of 2024 with a float of about $168 billion, up from $169 billion as of Dec 31, 2023.
Cash flow from operating activities totaled $10.5 billion, up 21.5% from the year-ago period.
BRK.B bought back shares worth $2.6 billion in the first quarter.
Zacks Rank
Berkshire currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Some Other P&C Insurers
Cincinnati Financial Corporation (CINF - Free Report) reported first-quarter 2024 operating income of $1.72 per share, which beat the Zacks Consensus Estimate by 1.7%. The bottom line surged 93.2% year over year. Total operating revenues in the quarter under review were $2.3 billion, which missed the Zacks Consensus Estimate by 1.4%. The top line, however, improved 8.8% year over year. Net written premiums climbed 11% year over year to $2.2 billion.
Investment income, net of expenses, increased 17% year over year to $245 million, as bond interest grew 21% and dividends from the equity portfolio jumped 9%. The figure was higher than our estimate of $227.7 million. Total benefits and expenses of Cincinnati Financial increased 0.4% year over year to $1.9 billion. The figure was lower than our estimate of $2 billion. In its property & casualty insurance business, Cincinnati Financial recorded an underwriting income of $131 million against the year-ago loss of $10 million. The figure was higher than our estimate of $60.7 million underwriting income.
AXIS Capital Holdings Limited (AXS - Free Report) posted first-quarter 2024 operating income of $2.57 per share, beating the Zacks Consensus Estimate by 1.2%. The bottom line increased 10.3% year over year. Total operating revenues of $1.4 billion missed the Zacks Consensus Estimate by 2.8%. The top line, however, rose 5% year over year. Net investment income jumped 25% year over year to $167 million. Our estimate was $164.8 million.
Total expenses in the quarter under review increased 0.7% year over year to $1.15 billion. Our estimate was $1.1 billion. Pre-tax catastrophe and weather-related losses, and net of reinsurance were $20 million. This compares favorably with the year-ago loss of $38 million. AXIS Capital’s underwriting income of $145.6 million increased 4.5% year over year. Our estimate was $141.5 million. The combined ratio deteriorated 20 bps to 91.1.
American Financial Group, Inc. (AFG - Free Report) reported first-quarter 2024 net operating earnings per share of $2.76, which missed the Zacks Consensus Estimate by 0.3%. The bottom line decreased 4.5% year over year. Total revenues of $1.8 billion increased 5.1% year over year in the quarter. The growth came on the back of higher P&C insurance net earned premiums and other income. The top line missed the Zacks Consensus Estimate by 0.2%.
P&C insurance net earned premiums of $1.5 billion climbed 7.5% year over year. Net investment income decreased 8.7% year over year to $198 million in the quarter under review. The figure was lower than our estimate of $226.8 million. Total cost and expenses increased 8.5% year over year to $1.6 billion due to higher P&C insurance losses & expenses and other expenses. The figure was lower than our estimate of $1.7 billion.