Berkshire Hathaway Inc. (NYSE:BRK.B) announced its fourth-quarter 2023 operating earnings of $8.5 billion, reflecting a robust 28% increase compared to the same period last year. This growth was primarily driven by higher earnings in its Insurance-underwriting and Insurance-investment income segments.
Key Highlights
Total costs and expenses for the quarter increased by 20.5% year over year to $321.1 billion, primarily due to higher expenses in the Insurance and Other, as well as Railroad, Utilities, and Energy segments. Operating earnings from the Railroad business decreased by 7.7% year over year to $1.3 billion.
For the full year, revenues increased by 20.7% year over year to $364.5 billion, driven by higher revenues in the Insurance and Other, as well as Railroad, Utilities, and Energy segments.
The Insurance and Other segment reported revenues of $263 billion, up 5.2% year over year, driven by higher insurance premiums earned, leasing revenues, and interest, dividend, and other investment income.
Insurance underwriting after-tax earnings for 2023 were $5.4 billion, compared to losses of $30 million in the previous year. The improvement was attributed to relatively low losses from significant catastrophe events during the year and improved underwriting results at GEICO.
Railroad, Utilities, and Energy operating revenues increased by 94.5% year over year to $101.4 billion, driven by higher freight rail transportation revenues, utility and energy operating revenues, and service revenues and other income.
Pre-tax earnings from the Railroad segment decreased by 14.2% year over year to $6.6 billion.
Total revenues from the Manufacturing, Service, and Retailing segment increased by 0.4% year over year to $168 billion, with pre-tax earnings up by 2.5% year over year to $16.6 billion.
Financial Position
As of December 31, 2023, consolidated shareholders’ equity stood at $561.3 billion, up 18.5% year over year. Cash and cash equivalents were $38.6 billion, up 6.2% from the end of 2022.
Berkshire Hathaway ended the fourth quarter of 2023 with a float of about $169 billion, up from $164 billion reported at the end of 2022.
Cash flow from operating activities totaled $49.2 billion in 2023, up 31.7% from the previous year.
In 2023, Berkshire Hathaway bought back shares worth $9.2 billion.
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Author Stephanie Bédard-Châteauneuf 
