Daily Insurance Industry News
 
 
Daily Insurance Industry News
Saturday 21st of October 2017
November 10, 2008

Berkshire Hathaway profits plummet 77%

by Gill Montia

Story link: 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.

 

News posted:



Related stories to Berkshire Hathaway profits plummet 77%: