Berkshire Hathaway Inc. News Release

Rhea-AI Summary

Berkshire Hathaway's operating results for Q1 2021 reported net earnings of $11.7 billion, rebounding from a $49.7 billion loss in Q1 2020. Operating earnings rose to $7.0 billion from $5.9 billion. Investment gains were $4.7 billion compared to losses of $55.6 billion the previous year. Insurance float reached approximately $140 billion, increasing by $2 billion since 2020. Berkshire repurchased $6.6 billion in shares during the quarter, with 1,525,655 Class A equivalent shares outstanding as of March 31, 2021.

Positive

• Net earnings attributable to shareholders increased to $11.7 billion in Q1 2021, a significant recovery from the previous year's loss of $49.7 billion.
• Operating earnings rose to $7.0 billion, up from $5.9 billion in Q1 2020.
• Investment gains for Q1 2021 amounted to $4.7 billion, contrasting with losses of $55.6 billion in the same quarter last year.
• Insurance float increased to approximately $140 billion, marking a $2 billion rise since year-end 2020.
• $6.6 billion was spent on share repurchases in Q1 2021.

Negative

• None.

Berkshire Hathaway Inc. (BRK.A; BRK.B) –

Berkshire’s operating results for the first quarters of 2021 and 2020 are summarized in the following paragraphs. However, we urge investors and reporters to read our 10-Q, which has been posted at www.berkshirehathaway.com. The limited information that follows in this press release is not adequate for making an informed investment judgment.

Earnings of Berkshire Hathaway Inc. and its consolidated subsidiaries for the first quarters of 2021 and 2020 are summarized below. Earnings are stated on an after-tax basis. (Dollar amounts are in millions, except for per share amounts).

		First Quarter
			2021			2020
Net earnings (loss) attributable to Berkshire shareholders		$	11,711		$	(49,746	)
Net earnings (loss) includes:
Investment and derivative gains (losses)			4,693			(55,617	)
Operating earnings			7,018			5,871
Net earnings (loss) attributable to Berkshire shareholders		$	11,711		$	(49,746	)
Net earnings (loss) per average equivalent Class A Share		$	7,638		$	(30,653	)
Net earnings (loss) per average equivalent Class B Share		$	5.09		$	(20.44	)
Average equivalent Class A shares outstanding			1,533,284			1,622,889
Average equivalent Class B shares outstanding			2,299,925,502			2,434,333,367
Generally Accepted Accounting Principles (“GAAP”) require that we include the changes in unrealized gains/losses of our equity security investments as a component of investment gains/losses in our earnings statements. In the table above, investment gains (losses) include gains of approximately $2.8 billion in the first quarter of 2021 and losses of approximately $54.5 billion in the first quarter of 2020 due to changes during the first quarters of 2021 and 2020 in the amount of unrealized gains that existed in our equity security investment holdings. Investment gains (losses) also include after-tax realized gains on sales of investments of approximately $1,414 million and $965 million in the first quarters of 2021 and 2020, respectively.
The amount of investment gains (losses) in any given quarter is usually meaningless and delivers figures for net earnings per share that can be extremely misleading to investors who have little or no knowledge of accounting rules.
An analysis of Berkshire’s operating earnings follows (dollar amounts are in millions).
		First Quarter
			2021			2020
Insurance-underwriting		$	764		$	363
Insurance-investment income			1,208			1,386
Railroad, utilities and energy			1,954			1,751
Other businesses			2,619			2,038
Other			473			333
Operating earnings		$	7,018		$	5,871

Approximately $6.6 billion was used to purchase shares of Class A and Class B common stock during the first quarter of 2021. On March 31, 2021, there were 1,525,655 Class A equivalent shares outstanding.

At March 31, 2021, insurance float (the net liabilities we assume under insurance contracts) was approximately $140 billion, an increase of approximately $2 billion since yearend 2020.

Use of Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures. The reconciliations of such measures to the most comparable GAAP figures in accordance with Regulation G are included herein.

Berkshire presents its results in the way it believes will be most meaningful and useful, as well as most transparent, to the investing public and others who use Berkshire’s financial information. That presentation includes the use of certain non-GAAP financial measures. In addition to the GAAP presentations of net earnings, Berkshire shows operating earnings defined as net earnings exclusive of investment and derivative gains/losses and impairments of goodwill and intangible assets.

Although the investment of insurance and reinsurance premiums to generate investment income and investment gains or losses is an integral part of Berkshire’s operations, the generation of investment gains or losses is independent of the insurance underwriting process. Moreover, as previously described, under applicable GAAP accounting requirements, we are now required to include the changes in unrealized gains/losses of our equity security investments as a component of investment gains/losses in our periodic earnings statements. In sum, investment gains/losses for any particular period are not indicative of quarterly business performance.

About Berkshire

Berkshire Hathaway and its subsidiaries engage in diverse business activities including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, retailing and services. Common stock of the company is listed on the New York Stock Exchange, trading symbols BRK.A and BRK.B.

Cautionary Statement

Certain statements contained in this press release are “forward looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guaranties of future performance and actual results may differ materially from those forecasted.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210501005004/en/

FAQ

What were Berkshire Hathaway's earnings for Q1 2021?

Berkshire Hathaway reported net earnings of $11.7 billion for Q1 2021.

How did Berkshire Hathaway's operating earnings change in Q1 2021?

Operating earnings increased to $7.0 billion in Q1 2021, up from $5.9 billion in Q1 2020.

What was the investment gain for Berkshire Hathaway in Q1 2021?

Berkshire Hathaway realized investment gains of $4.7 billion in Q1 2021.

How much did Berkshire Hathaway spend on stock repurchases in Q1 2021?

Berkshire Hathaway repurchased $6.6 billion of its shares in Q1 2021.

What is the current insurance float for Berkshire Hathaway?

As of March 31, 2021, Berkshire Hathaway's insurance float is approximately $140 billion.