Berkshire Q3 Profit Falls 28% to $22.1 Billion as Geico Weakens Despite $9.6 Billion Buyback
Updated
Updated · WRAL News · Nov 7
Berkshire Q3 Profit Falls 28% to $22.1 Billion as Geico Weakens Despite $9.6 Billion Buyback
3 articles · Updated · WRAL News · Nov 7
Summary
$22.1 billion in third-quarter profit marked a drop from $30.8 billion a year earlier, while operating earnings slipped nearly 6% to $12.7 billion, still topping FactSet analysts’ per-share estimate.
Geico drove much of the weakness: its underwriting profit fell to $1.35 billion from $2.37 billion as premiums declined and claim costs rose, while swings in Berkshire’s investment values also cut reported earnings.
$9.6 billion of share repurchases more than doubled the prior quarter’s pace, but that buying likely slowed recently after Berkshire’s Class A stock climbed above $878,000.
$377.4 billion in cash at quarter-end, up from $365.5 billion in June, underscored Berkshire’s growing liquidity even as non-insurance businesses such as BNSF, utilities and Precision Castparts outperformed the insurance unit.