Berkshire Hathaway profits plummet 77%
Berkshire Hathaway, the US conglomerate that owns motor insurer, Geico, and reinsurer, General Re, has reported a 77% fall in profit in the three months to the end of September.
The company posted profit of $1.06 billion for the quarter, down from $4.55 billion for the same period of 2007.
The group’s investments lost $296 million during the period, compared to a devaluation of $3.18 billion in the third quarter of 2007.
Its reinsurance division reported a loss of $166 million, down from a profit of $183 million a year earlier.
In a trading statement, Berkshire pointed out that errors in estimating liabilities for unpaid losses can be relatively more significant to results for interim periods than to results for a full year.
For example, the last quarter includes losses of $1.05 billion for hurricanes Gustav and Ike, a substantial rise on hurricane losses in the third quarter of 2007.
Category: Companies News, Financials, Insurance News
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