Company: BRK-A
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000950170-25-025210
Chunk: 255

Company: BERKSHIRE HATHAWAY INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 7
Chunk 255
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Interest Rate Risk 

We also invest in bonds, loans or other interest rate sensitive instruments. Our strategy is to acquire or originate such instruments at prices or with interest rates considered appropriate relative to the perceived credit risk. We also issue debt in the ordinary course of business to fund business operations and for general purposes. We attempt to maintain high credit ratings to minimize the cost of our debt. We generally do not utilize derivative products, such as interest rate swaps, to manage interest rate risks and we do not attempt to match maturities of assets and liabilities.

The fair values of our fixed maturity investments, loans and finance receivables and notes payable and other borrowings will fluctuate in response to changes in market interest rates. Increases and decreases in interest rates generally translate into decreases and increases in fair values of these instruments. Additionally, fair values of interest rate sensitive instruments may be affected by the perceived credit risk, prepayment options, liquidity and other factors, as well as general market conditions. 

The following table summarizes the estimated effects of hypothetical changes in interest rates on our significant assets and liabilities that are subject to significant interest rate risk. We assumed that the interest rate changes occur immediately and uniformly to each category of instrument and that there were no significant changes to other factors used to determine the value of the instrument. The hypothetical changes in interest rates do not reflect the best or worst case scenarios. Actual results may differ from those reflected in the table. Dollars are in millions. 

    Estimated Fair Value After Hypothetical Change inInterest Rates (bp=basis points)

    FairValue

    100 bpdecrease

    100 bpincrease

    200 bpincrease

    300 bpincrease

    December 31, 2024

    Assets:

    Investments in fixed maturity securities
     
    $
    15,364

    $
    15,503

    $
    15,220

    $
    15,086

    $
    14,958

    Investments in equity securities*

    8,429

    8,743

    8,142

    7,864

    7,597

    Loans and finance receivables

    27,579

    28,774

    26,476

    25,455

    24,508

    Liabilities:

    Notes payable and other borrowings:

    Insurance and other

    40,181

    43,345

    37,