May 4 (UPI) – Investor Warren Buffett’s Berkshire Hathaway on Saturday reported first-quarter profits of $11.2 billion and revealed it now holds a record total of $189 billion in cash reserves.
Cash reserves increased from $167.6 billion during last year’s fourth quarter and reflect the inability to find suitable business targets for large corporate acquisitions this year, the company said. reported in your income statement released during the annual shareholder meeting in Omaha, Nebraska.
The $11.2 billion in first-quarter profits exceeds last year’s first quarter’s $8.9 billion by 39%, thanks in large part to a big increase in profits from Berkshire Hathaway’s insurance underwriting business.
First-quarter earnings were driven by a 185% increase in insurance underwriting profits, which increased to nearly $2.6 billion from $911 million during the first quarter of 2023.
The GEICO subsidiary recorded $1.93 billion in underwriting gains, which represents a 174% increase from $703 million during the same period last year.
Berkshire Hathaway’s insurance investment income also increased significantly to $2.5 billion, representing a 32% increase over the previous year.
During a question-and-answer session with shareholders, the 92-year-old “Oracle of Omaha” advised investors to take insurance results with a “grain of salt,” citing an expected slowdown in the third quarter, CNBC reported.
Buffett also commented on developments in artificial intelligence and renewable energy and said the conglomerate’s future investment decisions will be handled by vice president of non-insurance operations Greg Abel, his presumptive successor.
“I don’t just expect you to come next year. I hope I come next year”, he said in closing.
