"Berkshire Hathaway Inc.'s cash pile soared to $381.7 billion in the third quarter, a fresh record, and operating earnings at Chief Executive Officer Warren Buffett's conglomerate surged 34%. That figure hit $13.5 billion, driven by an increase in insurance underwriting profit, in a period that was marked by an unusually low disaster activity, according to filings published Saturday. Buffett offloaded $6.1 billion of shares during the period."
"In spite of that growing cash hoard, the firm's net investment income declined 13% to $3.2 billion amid lower short-term interest rates. The firm's collection of primary insurance and reinsurance businesses both turned a pretax underwriting profit this quarter, after posting losses in the year-ago period. But Berkshire auto insurer Geico's pretax underwriting profit fell 13% amid higher claims, even as the unit continued to add new clients."
"For the fifth straight quarter, the firm declined to buy back its own shares, even after they fell nearly 12% after Buffett announced in May that he would step down as CEO at the end of the year. Berkshire's earnings are closely watched because the conglomerate's stable of businesses - ranging from insurance to rail, energy and manufacturing - provides a snapshot of the health of the US economy."
Berkshire Hathaway's cash balance reached a record $381.7 billion in the third quarter. Operating earnings rose 34% to $13.5 billion, fueled by higher insurance underwriting profit and unusually low disaster activity. Warren Buffett sold $6.1 billion of shares during the period. Net investment income fell 13% to $3.2 billion due to lower short-term interest rates. Primary insurance and reinsurance units returned to pretax underwriting profits after prior-year losses. Geico's pretax underwriting profit declined 13% because of higher claims, even as it continued to add new clients. The company again refrained from share buybacks.
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