Buffett’s Berkshire Achieves Record Profit with Insurance & Investments

Warren Buffett’s Berkshire Hathaway has reported its third consecutive record annual operating profit, driven by significant increases in underwriting earnings and investment income from its insurance businesses. In 2024, operating profit surged 27% to $47.44 billion, up from $37.35 billion the previous year. The fourth quarter also set a record, with operating profit soaring 71% to $14.53 billion, or about $1,010 per Class A share, compared to $8.48 billion a year earlier. This impressive growth reflects gains in Berkshire’s insurance operations and favorable foreign currency changes.

Quarterly net income totaled $19.69 billion, or $13,695 per average equivalent share, as the value of Berkshire’s holdings in Apple, American Express, and other stocks increased. For the year, net income reached $89 billion. Berkshire’s insurance underwriting profit more than doubled to $9 billion in 2024, led by a turnaround at auto insurer GEICO. Insurance investment income surged 43% to $13.7 billion, boosted by higher interest rates.

Berkshire’s cash position rose to a new high of $334.20 billion in the fourth quarter. Warren Buffett praised GEICO CEO Todd Combs for reshaping the auto insurer and reiterated his preference for equity investments over cash.