Earnings

Need to Know

The broker earlier reported that its Q4 organic growth decelerated 3.4 points sequentially and 5.1 points year-on-year to 10.3%, amid an overall public broker market slowdown.

The carrier’s Q4 underwriting results benefited from a shift in the mix of its portfolio, continued run-off of some exited businesses and lower catastrophe losses.

This marked a 5.1-point slowdown compared to the prior-year period.

Management spoke with analysts after the carrier released its 10-K and the CEO’s shareholder letter.

The firm booked a Q4 $5mn reserve release that represented a favorable effect on its results of 2%, down from 6.7% in Q4 2021.

Despite the suspension of the casualty reinsurance business, CFO Sarah Doran told analysts that she expects the company’s total gross premium to grow in 2023.

Buffett said Berkshire's financial strength allows its insurance subsidiaries to “follow valuable and enduring investment strategies” unavailable to competitors.

The firm’s US unit recorded $36.6mn of net unfavorable development in Q4 2022, compared with a $121.6mn charge in Q4 2021.

The deterioration of combined ratios in the specialty P&C and Lloyd's syndicates segments was offset by the improved results in workers' compensation.

The carrier’s loss ratio for its casualty reinsurance business declined to 74.5% from 380.7% in the prior-year period.

The carrier raised rates on average of 19% across the segment in 2022, with larger increases in Florida and hail-prone states such as Colorado and Oklahoma.