Berkshire Hathaway enjoys bounce back in Q2 but suffers H1 loss

Quarterly result represents a major turnaround
Berkshire Hathaway enjoys bounce back in Q2 but suffers H1 loss
INSURANCE NEWS
By Terry Gangcuangco
10 Aug 2020

It’s the turn of Berkshire Hathaway Specialty Insurance (BHSI) parent firm Berkshire Hathaway Inc. to reveal its interim financial results – and it’s a half-full/half-empty scenario, depending on what period you’re looking at.

In the second quarter of 2020, the multinational conglomerate enjoyed US$26.30 billion (around AU$36.7 billion) in net earnings attributable to Berkshire shareholders – a major rebound from Q1’s US$49.75 billion attributable net loss. The amount also signifies a significant improvement from the earnings (US$14.07 billion, around AU$19.6 billion) made in last year’s second quarter.

In terms of operating earnings for the group’s insurance underwriting business, the Q2 figure stood at US$806 million, which is an increase from US$353 million in 2019. Insurance investment income in the quarter went up as well, albeit only slightly.   

The first-half numbers, however, tell a different story for Berkshire.

For the six-month span, the BHSI parent was hit with a US$23.45 billion net loss attributable to Berkshire shareholders. In the same period in 2019, the group posted attributable earnings worth US$35.73 billion.

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