BERKSHIRE’S UNDERWRITING LOSS NARROWS IN Q4

US insurance and investment holding Berkshire Hathaway’s fourth-quarter net earnings rose 23% to $35.84bn as income from investments and derivatives jumped 25% to $30.83bn and its after-tax underwriting loss narrowed by 65% to $299m. Operating earnings for the quarter rose almost 14% to $5.02bn. For all of 2020, the Nebraska-based group’s net income fell 48% to $42.52bn as investment income and gains dropped 45% to $31.59bn, offsetting a doubling of pre-tax underwriting income to $838m. The improved underwriting result was driven by the Geico motor insurance unit, where income more than doubled to $3.43bn owing to a 10% decline in incurred losses that resulted from lower accident frequency amid Covid-19 pandemic-related lockdowns. Underwriting gains at Geico offset a near doubling of Berkshire Hathaway Reinsurance Group’s underwriting loss to $2.70bn, which reflected $964m losses from the pandemic, $664m in losses from hurricanes Laura and Sally and US wildfires, and $162m in adverse reserve development. Berkshire’s insurance float at year-end stood at $138bn.