Company: BRK-A
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000950170-25-025210
Chunk: 76

Company: BERKSHIRE HATHAWAY INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 1B
Chunk 76
---
 5,007

    $
    5,093

    $
    5,185

    Premiums earned
    $
    4,998

    100.0

    $
    5,072

    100.0

    $
    5,224

    100.0

    Life and health benefits
     
    3,415

    68.3

    3,593

    70.8

    4,112

    78.7

    Underwriting expenses
     
    1,360

    27.2

    1,125

    22.2

    1,003

    19.2

    Total benefits and expenses
     
    4,775

    95.5

    4,718

    93.0

    5,115

    97.9

    Pre-tax underwriting earnings
    $
    223

    $
    354

    $
    109

Premiums earned in 2024 declined $74 million compared to 2023, which included a reduction of $161 million attributable to the commutations of several U.S. life contracts in the first quarter of 2023. Otherwise, premiums earned declined $235 million (4.5%) in 2024 compared to 2023, primarily attributable to reductions in non-U.S. life business, and were substantially unchanged in 2023 versus 2022.

Pre-tax underwriting earnings decreased $131 million in 2024 compared to 2023, which increased $245 million over 2022. Earnings included gains from life contract commutations of $53 million in 2024 and $134 million in 2023. Otherwise, underwriting earnings in 2024 decreased $50 million compared to 2023, reflecting decreased earnings from non-U.S. life business and increased losses from the U.S. long-term care business in run-off, partly offset by increased earnings from U.S. life business. 

Retroactive reinsurance 

Pre-tax underwriting results from retroactive reinsurance derive from changes in the ultimate claim liability estimates and changes in the related deferred charge assets, as well as from foreign currency exchange gains and losses attributable to non-U.S. Dollar denominated contracts. Changes in foreign currency exchange rates produced pre-tax gains of $52 million in 2024, losses of $57 million in