Company: BRK-A
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000950170-25-025210
Chunk: 214

Company: BERKSHIRE HATHAWAY INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 7
Chunk 214
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 dividend rates on certain of our holdings. Dividend income varies from period to period due to changes in the investment portfolio and the frequency and timing of dividends from certain investees. 

Invested assets of our insurance businesses derive from shareholder capital and net liabilities assumed under insurance contracts or “float.” The major components of float are unpaid losses and loss adjustment expenses, including liabilities under retroactive reinsurance contracts, life, annuity and health benefit liabilities, unearned premiums and certain other liabilities, which are reduced by insurance premiums receivable, reinsurance receivables, deferred charges assumed under retroactive reinsurance contracts and deferred policy acquisition costs. The effect of discount rate changes on long-duration insurance contracts, recorded in accumulated other comprehensive income, are excluded from float, as such amounts are not included in earnings in the Consolidated Statements of Earnings. 

Float was approximately $171 billion at December 31, 2024, $169 billion at December 31, 2023 and $164 billion at December 31, 2022. The cost of float is measured as the ratio of pre-tax underwriting earnings to float balances. Our combined insurance operations generated pre-tax underwriting gains in 2024 and 2023, and the average cost of float was negative in each year. The cost of float in 2022 was nominal. 

A summary of cash and investments held in our insurance businesses as of December 31, 2024 and 2023 follows (in millions). 

    December 31,

    2024

    2023

    Cash, cash equivalents and U.S. Treasury Bills
    $
    212,591

    $
    121,845

    Equity securities
     
    263,366

    345,653

    Fixed maturity securities
     
    15,137

    23,617

    Other, includes loans to affiliates
     
    5,980

    1,188

    $
    497,074

    $
    492,303

Fixed maturity investments as of December 31, 2024 were as follows (in millions). 

    AmortizedCost

    UnrealizedGains (Losses)

    CarryingValue

    U.S. Treasury, U.S. government corporations and agencies
    $
    4,267

    $
    11

    $
    4,278

    Foreign governments
     
    9,430

    (81
    )