Berkshire Hathaway Posts $2.7B Underwriting Profit Amid Leadership Shift and Climate Challenges
Berkshire Hathaway Inc., a prominent U.S. holding company with extensive insurance and reinsurance operations, reported a $2.7 billion pre-tax underwriting profit in 2024. This strong performance includes $21.9 billion in property and casualty premiums and $5 billion in life and health premiums, underscoring the firm's significant market presence in the insurance sector. The company's reinsurance services are primarily offered through subsidiaries such as Gen Re, Berkshire Hathaway Reinsurance Group (BHRG), and Berkshire Hathaway Life, which serve a global client base with complex risk coverage needs.
Tracing its origins to the 19th century, Berkshire Hathaway transitioned under Warren Buffett's leadership from a textile manufacturer to a diversified holding company with a focus on insurance and investments. In 2025, Warren Buffett announced his retirement as CEO, appointing Vice Chair Greg Abel as his successor, signaling a notable leadership transition for the conglomerate.
Berkshire Hathaway's corporate culture emphasizes long-term results, independent management, and localized leadership autonomy. Subsidiaries like Berkshire Hathaway Homestate Companies (BHHC) and GUARD Insurance maintain stable, growth-oriented workplace environments with strong employee development pathways, internal promotion opportunities, and comprehensive benefits. Inclusion efforts are managed at the subsidiary level, focusing on community engagement and tailored diversity initiatives rather than centralized mandates.
The company encountered over $1.3 billion in wildfire-related losses in Southern California during 2025, with its reinsurance units absorbing much of this impact. This event prompted Berkshire Hathaway to reduce property exposure in high-risk wildfire zones, reflecting prudent risk management practices. Despite climate-related challenges, the firm's reinsurance operations achieved substantial gains, contributing to a 60% increase in overall insurance earnings year-over-year.
Berkshire Hathaway subsidiaries also engage in community and philanthropic activities through foundations supporting education, health, and local programs. These initiatives align with the company's values of fostering trust and supporting the regions in which they operate. The conglomerate's ability to navigate market and environmental risks while maintaining strong underwriting discipline positions it as a resilient player in the insurance industry.