Item 1. Financial Statements

BERKSHIRE HATHAWAY INC.

and Subsidiaries

CONSOLIDATED BA****LANCE SHEETS

(dollars in millions)

	September 30, 2024				December 31, 2023
	(Unaudited)
ASSETS
Insurance and Other:
Cash and cash equivalents*	$	32,287			$	33,672
Short-term investments in U.S. Treasury Bills		288,031				129,619
Investments in fixed maturity securities		16,042				23,758
Investments in equity securities		271,650				353,842
Equity method investments		30,133				29,066
Loans and finance receivables		27,106				24,681
Other receivables		45,458				44,174
Inventories		23,617				24,159
Property, plant and equipment		22,300				22,030
Equipment held for lease		17,796				16,947
Goodwill		50,946				50,868
Other intangible assets		28,797				29,327
Deferred charges - retroactive reinsurance		8,885				9,495
Other		20,959				19,568
		884,007				811,206
Railroad, Utilities and Energy:
Cash and cash equivalents*		4,894				4,350
Receivables		6,588				7,086
Property, plant and equipment		182,176				177,616
Goodwill		33,662				33,758
Regulatory assets		5,452				5,565
Other		30,472				30,397
		263,244				258,772
	$	1,147,251			$	1,069,978

——————

*** Includes U.S. Treasury Bills *with maturities of three months or less when purchased of $*3.6 *billion at September 30, 2024 and $*4.8 billion at December 31, 2023.

See accompanying Notes to Consolidated Financial Statements

BERKSHIRE HATHAWAY INC.

and Subsidiaries

CON****SOLIDATED BALANCE SHEETS

(dollars in millions)

	September 30, 2024				December 31, 2023
	(Unaudited)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Insurance and Other:
Unpaid losses and loss adjustment expenses	$	115,836			$	111,082
Unpaid losses and loss adjustment expenses - retroactive reinsurance contracts		33,060				34,647
Unearned premiums		32,997				30,507
Life, annuity and health insurance benefits		18,612				20,213
Other policyholder liabilities		11,107				11,545
Accounts payable, accruals and other liabilities		34,724				32,402
Payable for purchases of U.S. Treasury Bills		14,868				—
Aircraft repurchase liabilities and unearned lease revenues		8,941				8,253
Notes payable and other borrowings		43,651				42,692
		313,796				291,341
Railroad, Utilities and Energy:
Accounts payable, accruals and other liabilities		21,769				22,461
Regulatory liabilities		6,917				6,818
Notes payable and other borrowings		80,856				85,579
		109,542				114,858
Income taxes, principally deferred		92,107				93,009
Total liabilities		515,445				499,208
Redeemable noncontrolling interests		—				3,261
Shareholders’ equity:
Common stock		8				8
Capital in excess of par value		35,478				34,480
Accumulated other comprehensive income		(3,692	)			(3,763	)
Retained earnings		676,524				607,350
Treasury stock, at cost		(79,249	)			(76,802	)
Berkshire Hathaway shareholders’ equity		629,069				561,273
Noncontrolling interests		2,737				6,236
Total shareholders’ equity		631,806				567,509
	$	1,147,251			$	1,069,978

See accompanying Notes to Consolidated Financial Statements

BERKSHIRE HATHAWAY INC.

and Subsidiaries

CONSOLIDATED STATEM****ENTS OF EARNINGS

(dollars in millions except per share amounts)

(Unaudited)

	Third Quarter						First Nine Months
	2024			2023			2024			2023
Revenues:
Insurance and Other:
Insurance premiums earned	$	22,055		$	21,360		$	65,482		$	61,717
Sales and service revenues		38,863			39,456			115,227			116,970
Leasing revenues		2,315			2,104			6,845			6,227
Interest, dividend and other investment income		5,896			4,047			15,450			11,122
		69,129			66,967			203,004			196,036
Railroad, Utilities and Energy:
Freight rail transportation revenues		5,885			5,828			17,242			17,637
Utility and energy operating revenues		16,598			19,033			52,336			53,543
Service revenues and other income		1,383			1,382			3,935			3,890
		23,866			26,243			73,513			75,070
Total revenues		92,995			93,210			276,517			271,106
Investment gains (losses)		20,514			(29,778	)		46,247			38,041
Costs and expenses:
Insurance and Other:
Insurance losses and loss adjustment expenses		15,163			13,719			42,718			42,029
Life, annuity and health benefits		925			1,144			2,824			3,057
Insurance underwriting expenses		4,934			3,496			12,733			10,812
Cost of sales and services		30,323			31,049			90,109			91,989
Cost of leasing		1,774			1,489			5,204			4,423
Selling, general and administrative expenses		7,324			5,120			17,292			15,727
Interest expense		315			311			961			953
		60,758			56,328			171,841			168,990
Railroad, Utilities and Energy:
Freight rail transportation expenses		3,855			4,038			11,705			12,213
Utility and energy cost of sales and other expenses		14,607			18,249			47,694			50,254
Other expenses		1,104			1,089			3,341			3,149
Interest expense		899			949			2,799			2,774
		20,465			24,325			65,539			68,390
Total costs and expenses		81,223			80,653			237,380			237,380
Earnings (loss) before income taxes and equity method earnings		32,286			(17,221	)		85,384			71,767
Equity method earnings		222			262			967			1,461
Earnings (loss) before income taxes		32,508			(16,959	)		86,351			73,228
Income tax expense (benefit)		6,028			(4,392	)		16,541			13,839
Net earnings (loss)		26,480			(12,567	)		69,810			59,389
Earnings attributable to noncontrolling interests		229			200			509			740
Net earnings (loss) attributable to Berkshire Hathaway shareholders	$	26,251		$	(12,767	)	$	69,301		$	58,649
Net earnings (loss) per average equivalent Class A share	$	18,272		$	(8,824	)	$	48,205		$	40,422
Net earnings (loss) per average equivalent Class B share*	$	12.18		$	(5.88	)	$	32.14		$	26.95
Average equivalent Class A shares outstanding		1,436,706			1,446,925			1,437,619			1,450,934
Average equivalent Class B shares outstanding		2,155,058,383			2,170,387,690			2,156,427,917			2,176,400,554

——————

*** Net earnings (loss) per average equivalent Class B share outstanding are equal to one-fifteen-hundredth of the equivalent Class A amount. See Note 19.

See accompanying Notes to Consolidated Financial Statements

BERKSHIRE HATHAWAY INC.

and Subsidiaries

CONSOLIDATED STATEMENTS O****F COMPREHENSIVE INCOME

(dollars in millions)

(Unaudited)

		Third Quarter								First Nine Months
		2024				2023				2024				2023
Net earnings (loss)		$	26,480			$	(12,567	)		$	69,810			$	59,389
Other comprehensive income:
Unrealized gains (losses) on investments			134				11				109				217
Applicable income taxes			(31	)			(7	)			(28	)			(39	)
Foreign currency translation			900				(801	)			139				(169	)
Applicable income taxes			57				(7	)			49				(22	)
Long-duration insurance contract discount rate changes			(882	)			920				(23	)			1,040
Applicable income taxes			188				(204	)			13				(253	)
Defined benefit pension plans			(19	)			14				(18	)			66
Applicable income taxes			4				(1	)			3				(13	)
Other, net			(157	)			23				(170	)			(40	)
Other comprehensive income, net			194				(52	)			74				787
Comprehensive income			26,674				(12,619	)			69,884				60,176
Comprehensive income attributable to noncontrolling interests			260				180				512				747
Comprehensive income attributable to Berkshire Hathaway shareholders		$	26,414			$	(12,799	)		$	69,372			$	59,429

See accompanying Notes to Consolidated Financial Statements

BERKSHIRE HATHAWAY INC.

and Subsidiaries

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(dollars in millions)

(Unaudited)

		Berkshire Hathaway shareholders’ equity
		Common stock and capital in excess of par value				Accumulated other comprehensive income				Retained earnings				Treasury stock				Non- controlling interests				Total
For the third quarter and first nine months of 2024
Balance at December 31, 2023		$	34,488			$	(3,763	)		$	607,350			$	(76,802	)		$	6,236			$	567,509
Net earnings			—				—				12,702				—				130				12,832
Adoption of ASU 2023-02			—				—				(127	)			—				—				(127	)
Other comprehensive income, net			—				(287	)			—				—				(23	)			(310	)
Acquisitions of common stock			—				—				—				(2,573	)			—				(2,573	)
Transactions with noncontrolling interests and other			502				—				—				—				(48	)			454
Balance at March 31, 2024		$	34,990			$	(4,050	)		$	619,925			$	(79,375	)		$	6,295			$	577,785
Net earnings			—				—				30,348				—				150				30,498
Other comprehensive income, net			—				195				—				—				(5	)			190
Acquisitions of common stock			—				—				—				(345	)			—				(345	)
Transactions with noncontrolling interests and other			9				—				—				—				(166	)			(157	)
Balance at June 30, 2024		$	34,999			$	(3,855	)		$	650,273			$	(79,720	)		$	6,274			$	607,971
Net earnings			—				—				26,251				—				229				26,480
Other comprehensive income, net			—				163				—				—				31				194
Acquisitions of common stock			—				—				—				—				—				—
Transactions with noncontrolling interests and other			487				—				—				471				(3,797	)			(2,839	)
Balance at September 30, 2024		$	35,486			$	(3,692	)		$	676,524			$	(79,249	)		$	2,737			$	631,806
For the third quarter and first nine months of 2023
Balance at December 31, 2022		$	35,175			$	(5,052	)		$	511,127			$	(67,826	)		$	8,257			$	481,681
Net earnings			—				—				35,504				—				253				35,757
Other comprehensive income, net			—				76				—				—				6				82
Acquisitions of common stock			—				—				—				(4,439	)			—				(4,439	)
Transactions with noncontrolling interests and other			(11	)			—				—				—				7				(4	)
Balance at March 31, 2023		$	35,164			$	(4,976	)		$	546,631			$	(72,265	)		$	8,523			$	513,077
Net earnings			—				—				35,912				—				287				36,199
Other comprehensive income, net			—				736				—				—				21				757
Acquisitions of common stock			—				—				—				(1,303	)			—				(1,303	)
Transactions with noncontrolling interests and other			(16	)			—				—				—				(163	)			(179	)
Balance at June 30, 2023		$	35,148			$	(4,240	)		$	582,543			$	(73,568	)		$	8,668			$	548,551
Net earnings (loss)			—				—				(12,767	)			—				200				(12,567	)
Other comprehensive income, net			—				(32	)			—				—				(20	)			(52	)
Acquisitions of common stock			—				—				—				(1,087	)			—				(1,087	)
Transactions with noncontrolling interests and other			(667	)			—				—				—				(2,681	)			(3,348	)
Balance at September 30, 2023		$	34,481			$	(4,272	)		$	569,776			$	(74,655	)		$	6,167			$	531,497

See accompanying Notes to Consolidated Financial Statements

BERKSHIRE HATHAWAY INC.

and Subsidiaries

CONSOLIDATED STATEM****ENTS OF CASH FLOWS

(dollars in millions)

(Unaudited)

		First Nine Months
		2024				2023
Cash flows from operating activities:
Net earnings		$	69,810			$	59,389
Adjustments to reconcile net earnings to operating cash flows:
Investment (gains) losses			(46,247	)			(38,041	)
Depreciation and amortization			9,572				9,357
Other			(7,181	)			(5,556	)
Changes in operating assets and liabilities:
Unpaid losses and loss adjustment expenses			2,885				848
Deferred charges - retroactive reinsurance			610				605
Unearned premiums			2,510				3,091
Receivables and originated loans			(1,747	)			(2,861	)
Inventories			232				275
Other assets			(1,549	)			(860	)
Other liabilities			(1,729	)			693
Income taxes			(1,195	)			7,856
Net cash flows from operating activities			25,971				34,796
Cash flows from investing activities:
Purchases of equity securities			(5,809	)			(9,142	)
Sales of equity securities			133,218				32,786
Purchases of U.S. Treasury Bills and fixed maturity securities			(385,224	)			(178,503	)
Sales of U.S. Treasury Bills and fixed maturity securities			30,755				44,325
Redemptions and maturities of U.S. Treasury Bills and fixed maturity securities			226,901				106,879
Acquisitions of businesses, net of cash acquired			(362	)			(8,564	)
Purchases of property, plant and equipment and equipment held for lease			(13,629	)			(13,701	)
Other			(405	)			608
Net cash flows from investing activities			(14,555	)			(25,312	)
Cash flows from financing activities:
Proceeds from borrowings of insurance and other businesses			2,689				1,306
Repayments of borrowings of insurance and other businesses			(1,964	)			(5,657	)
Proceeds from borrowings of railroad, utilities and energy businesses			6,617				5,013
Repayments of borrowings of railroad, utilities and energy businesses			(8,046	)			(3,913	)
Changes in short-term borrowings, net			(3,407	)			252
Acquisitions of treasury stock			(2,918	)			(6,978	)
Other, principally transactions with noncontrolling interests			(4,984	)			(4,292	)
Net cash flows from financing activities			(12,013	)			(14,269	)
Effects of foreign currency exchange rate changes			(54	)			(10	)
Increase (decrease) in cash and cash equivalents and restricted cash			(651	)			(4,795	)
Cash and cash equivalents and restricted cash at the beginning of the year*			38,643				36,399
Cash and cash equivalents and restricted cash at the end of the third quarter*		$	37,992			$	31,604
*Cash and cash equivalents and restricted cash are comprised of:
Beginning of the year—
Insurance and Other		$	33,672			$	32,260
Railroad, Utilities and Energy			4,350				3,551
Restricted cash included in other assets			621				588
		$	38,643			$	36,399
End of the third quarter—
Insurance and Other		$	32,287			$	25,573
Railroad, Utilities and Energy			4,894				5,267
Restricted cash included in other assets			811				764
		$	37,992			$	31,604

See accompanying Notes to Consolidated Financial Statements

BERKSHIRE HATHAWAY INC.

and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

Note 1. General

The accompanying unaudited Consolidated Financial Statements include the accounts of Berkshire Hathaway Inc. (“Berkshire” or “Company”) consolidated with the accounts of all its subsidiaries and affiliates in which Berkshire holds controlling financial interests as of the financial statement date. In these notes, the terms “us,” “we” or “our” refer to Berkshire and its consolidated subsidiaries. Reference is made to Berkshire’s most recently issued Annual Report on Form 10-K (“Annual Report”), which includes information necessary or useful to understanding Berkshire’s businesses and financial statement presentations. Our significant accounting policies and practices were presented as Note 1 to the Consolidated Financial Statements included in the Annual Report.

Financial information in this Quarterly Report reflects all adjustments that are, in the opinion of management, necessary to a fair statement of results for the interim periods in accordance with accounting principles generally accepted in the United States (“GAAP”). For several reasons, our results for interim periods may not be indicative of results to be expected for the year. The timing and magnitude of catastrophe losses incurred by insurance subsidiaries and the estimation error inherent to the process of determining liabilities for unpaid losses of insurance subsidiaries can be more significant to results of interim periods than to results for a full year. Given the size of our equity security investment portfolio, changes in market prices and the related changes in unrealized gains and losses on equity securities will produce significant volatility in our interim and annual earnings. In addition, gains and losses from the periodic revaluation of certain assets and liabilities denominated in foreign currencies and asset impairment charges may cause significant variations in periodic net earnings.

Significant estimates are used in the preparation of our Consolidated Financial Statements, including those associated with evaluations of long-lived assets, goodwill and other intangible assets for impairment, expected credit losses on amounts owed to us and the estimation of certain losses assumed under insurance and reinsurance contracts. These estimates may be subject to significant adjustments in future periods due to ongoing macroeconomic and geopolitical events, as well as changes in industry or company-specific factors or events.

Note 2. New accounting and financial reporting pronouncements

In March 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2023-02, “Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method” (“ASU 2023-02”). ASU 2023-02 permits reporting entities to elect to account for tax equity investments from which the income tax credits are received using the proportional amortization method at the program level if certain conditions are met. We elected to apply the proportional accounting method to eligible affordable housing tax credit investments using the modified retrospective method. At the beginning of 2024, we recorded a charge to retained earnings of $127 million, representing the cumulative effect of adopting the proportional method on these investments.

In November 2023, the FASB issued Accounting Standards Update 2023-07, “Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which requires disclosures of significant expenses by segment and interim disclosure of certain items that were previously required only on an annual basis. ASU 2023-07 is to be applied on a retrospective basis and is effective for our 2024 annual Consolidated Financial Statements and interim periods beginning in 2025.

In December 2023, the FASB issued Accounting Standards Update 2023-09, “Improvements to Income Tax Disclosures” (“ASU 2023-09”), which provides for additional income tax rate reconciliation and income taxes paid disclosures. ASU 2023-09 may be adopted on a prospective or retrospective basis and is effective for fiscal years beginning after December 15, 2024, with early adoption permitted.

On March 6, 2024, the U.S. Securities Exchange Commission (“SEC”) issued Release No. 33-11275 and No. 34-99678 “The Enhancement and Standardization of Climate-Related Disclosures for Investors” (“Climate Disclosure Rules”). Among its provisions, the Climate Disclosure Rules will require certain disclosures related to severe weather events and other natural conditions, as well as other disclosures about climate-related risks that materially impacted or are reasonably likely to materially impact a SEC registrant’s business strategy, results of operations or financial condition. The Climate Disclosure Rules are currently effective for large-accelerated SEC filers in annual reports for years beginning on or after January 1, 2025. However, on April 4, 2024, the SEC stayed implementation of the Climate Disclosure Rules, pending the completion of judicial review.

We are evaluating the impacts ASUs 2023-07 and 2023-09 and the Climate Disclosure Rules will have on disclosures in our Consolidated Financial Statements.

Notes to Consolidated Financial Statements

Note 3. Significant business acquisitions and other transactions

Our long-held acquisition strategy is to acquire businesses that have consistent earning power, good returns on equity and able and honest management. Financial results attributable to business acquisitions are included in our Consolidated Financial Statements beginning on their respective acquisition dates.

On January 31, 2023, we acquired an additional 41.4% interest in Pilot Travel Centers, LLC (“Pilot”) for approximately $8.2 billion. The acquisition increased our interest to 80%, representing a controlling interest in Pilot for financial reporting purposes as of that date. Accordingly, we began consolidating Pilot’s financial statements in our Consolidated Financial Statements on February 1, 2023. Prior to that date, we accounted for our 38.6% interest in Pilot under the equity method.

Pilot operates more than 650 travel center and 75 fuel-only locations across 44 U.S. states and five Canadian provinces, primarily under the names Pilot or Flying J, as well as large wholesale fuel and fuel marketing businesses in the U.S. Pilot also sells diesel fuel at other locations in the U.S. and Canada through various arrangements with third party travel centers and operates a water disposal business in the oil fields sector.

In applying the acquisition method of accounting, we remeasured our previously held 38.6% investment in Pilot to fair value as of the acquisition date. We recognized a one-time, non-cash remeasurement gain of approximately $3.0 billion in the first quarter of 2023, representing the excess of the fair value of that interest over the carrying value under the equity method.

In January 2024, we acquired the remaining noncontrolling interests in Pilot for $2.6 billion, increasing our ownership of Pilot to 100%. The acquisition of a noncontrolling interest represents an equity transaction and we recorded an increase of $517 million to capital in excess of par value for the excess of the carrying value of the noncontrolling interest acquired over the consideration paid, net of deferred income tax liabilities arising from the transaction.

A summary of the values of Pilot’s assets acquired, liabilities assumed and noncontrolling interests as of January 31, 2023 follows (in millions).

Assets acquired				Liabilities assumed and noncontrolling interests
Property, plant and equipment	$	8,015		Notes payable	$	5,876
Goodwill*		6,605		Other liabilities		4,918
Other intangible assets		6,853		Liabilities assumed		10,794
Other assets		7,047		Noncontrolling interests, predominantly redeemable		3,361
				Liabilities assumed and noncontrolling interests	$	14,155
Assets acquired	$	28,520		Net assets	$	14,365

——————

*** Goodwill from this acquisition is expected to be deductible for income tax purposes.

On September 30, 2024, Berkshire Hathaway Energy Company (“BHE”) repurchased 5.85% of its outstanding common stock and $100 million par of debt held by certain noncontrolling BHE shareholders in exchange for cash of $2.4 billion and a promissory note for $600 million par amount, which was fully repaid in October 2024. The difference between the value of the consideration paid for the noncontrolling interests acquired and the carrying value was recorded in capital in excess of par value.

Additionally, on September 30, 2024, Berkshire acquired 1.26% of BHE’s outstanding common stock held by certain other noncontrolling shareholders in exchange for 1,368,508 shares of Berkshire Class B common stock valued at $625 million as of that date. Berkshire also entered into an agreement to acquire the remaining shares of BHE common stock held by other noncontrolling shareholders in exchange for 923,123 shares of Berkshire Class B common stock. This transaction closed on October 31, 2024. At that time, BHE became a wholly-owned subsidiary of Berkshire.

Notes to Consolidated Financial Statements

Note 4. Investments in fixed maturity securities

Investments in fixed maturity securities are summarized as follows (in millions).

		Amortized Cost				Unrealized Gains				Unrealized Losses				Fair Value
September 30, 2024
U.S. Treasury, U.S. government corporations and agencies		$	4,482			$	36			$	(2	)		$	4,516
Foreign governments			9,855				55				(6	)			9,904
Corporate bonds			1,154				243				(3	)			1,394
Other			209				21				(2	)			228
		$	15,700			$	355			$	(13	)		$	16,042
December 31, 2023
U.S. Treasury, U.S. government corporations and agencies		$	10,308			$	14			$	(53	)		$	10,269
Foreign governments			11,788				58				(41	)			11,805
Corporate bonds			1,212				241				(4	)			1,449
Other			217				21				(3	)			235
		$	23,525			$	334			$	(101	)		$	23,758

As of September 30, 2024, approximately 94% of our foreign government holdings were rated AA or higher by at least one of the major rating agencies. The amortized cost and estimated fair value of fixed maturity securities at September 30, 2024 are summarized below by contractual maturity dates (in millions). Actual maturities may differ from contractual maturities due to prepayment rights held by issuers.

		Due in one year or less				Due after one year through five years				Due after five years through ten years				Due after ten years				Mortgage- backed securities				Total
Amortized cost		$	9,735			$	5,128			$	573			$	130			$	134			$	15,700
Fair value			9,801				5,163				784				145				149				16,042

Note 5. Investments in equity securities

Investments in equity securities are summarized as follows (in millions).

		Cost Basis				Net Unrealized Gains				Fair Value
September 30, 2024*
Banks, insurance and finance		$	21,165			$	71,383			$	92,548
Consumer products			11,341				90,651				101,992
Commercial, industrial and other			45,606				31,504				77,110
		$	78,112			$	193,538			$	271,650

——————

*** Approximately 70*% of the aggregate fair value was concentrated in* five *companies (American Express Company – $*41.1 *billion; Apple Inc. – $*69.9 *billion; Bank of America Corporation – $*31.7 *billion; The Coca-Cola Company – $*28.7 *billion and Chevron Corporation – $*17.5 billion).

		Cost Basis				Net Unrealized Gains				Fair Value
December 31, 2023*
Banks, insurance and finance		$	27,136			$	51,176			$	78,312
Consumer products			34,248				166,895				201,143
Commercial, industrial and other			48,032				26,355				74,387
		$	109,416			$	244,426			$	353,842

——————

*** Approximately 79*% of the aggregate fair value was concentrated in* five *companies (American Express Company – $*28.4 *billion; Apple Inc. – $*174.3 *billion; Bank of America Corporation – $*34.8 *billion; The Coca-Cola Company – $*23.6 *billion and Chevron Corporation – $*18.8 billion).

Notes to Consolidated Financial Statements

Note 5. Investments in equity securities

In 2019, we invested $10 billion in non-voting Cumulative Perpetual Preferred Stock of Occidental Petroleum Corporation (“Occidental”) and in Occidental common stock warrants. During 2022, we began acquiring common stock of Occidental. Our aggregate voting interest in Occidental common stock exceeded 20% on August 4, 2022, and we adopted the equity method as of that date. See Note 6. Our investments in the Occidental preferred stock and Occidental common stock warrants are recorded at fair value within commercial, industrial and other in the preceding tables. Such investments are not in-substance common stock under GAAP and are not eligible for the equity method.

The Occidental preferred stock accrues dividends at 8% per annum and is redeemable at the option of Occidental commencing in 2029 at a redemption price equal to 105% of the liquidation value, plus any accumulated and unpaid dividends. As of September 30, 2024, our investment in Occidental preferred stock had an aggregate liquidation value of approximately $8.5 billion, which reflected mandatory redemptions by Occidental during 2023 of approximately $1.5 billion. The Occidental common stock warrants allow us to purchase up to 83.86 million shares of Occidental common stock at an exercise price of $59.62 per share. The warrants are exercisable in whole or in part until one year after the date the preferred stock is fully redeemed.

On September 30, 2024, we owned 151.6 million shares of American Express Company (“American Express”) common stock representing 21.5% of its outstanding common stock. Since 1995, we have been party to an agreement with American Express whereby we agreed to vote a significant portion of our shares in accordance with the recommendations of the American Express Board of Directors. We have also agreed to passivity commitments as requested by the Board of Governors of the Federal Reserve System, which collectively, in our judgment, restrict our ability to exercise significant influence over the operating and financial policies of American Express. Accordingly, we do not use the equity method with respect to our investment in American Express common stock, and we continue to record our investment at fair value.

Note 6. Equity method investments

Berkshire and its subsidiaries hold investments in certain businesses that are accounted for pursuant to the equity method. Currently, the most significant of these are our investments in the common stock of The Kraft Heinz Company (“Kraft Heinz”) and Occidental. As of September 30, 2024, we owned 26.9% of the outstanding Kraft Heinz common stock and 28.2% of the outstanding Occidental common stock, which excludes the potential effect of the exercise of the Occidental common stock warrants.

Kraft Heinz manufactures and markets food and beverage products, including condiments and sauces, cheese and dairy, meals, meats, refreshment beverages, coffee and other grocery products. Occidental is an international energy company, whose activities include oil and natural gas exploration, development and production and chemicals manufacturing businesses. Occidental’s financial information is not available in time for concurrent reporting in our Consolidated Financial Statements. Therefore, we report the equity method effects for Occidental on a one-quarter lag.

We also own a 50% interest in Berkadia Commercial Mortgage LLC (“Berkadia”), which is included in other in the following table. Jefferies Financial Group Inc. (“Jefferies”) owns the other 50% interest. Berkadia engages in mortgage banking, investment sales and servicing of commercial/multi-family real estate loans. Berkadia’s commercial paper borrowing capacity (currently limited to $1.5 billion) is supported by a surety policy issued by a Berkshire insurance subsidiary. Jefferies is obligated to indemnify us for one-half of any losses incurred under the policy.

The fair values and our carrying values of these investments are included in the following table (in millions).

	Carrying Value								Fair Value
	September 30, 2024				December 31, 2023				September 30, 2024				December 31, 2023
Kraft Heinz	$	13,008			$	13,230			$	11,426			$	12,035
Occidental		16,672				15,410				13,157				14,552
Other		453				426
	$	30,133			$	29,066

As of September 30, 2024, the excess of the carrying values over the fair values of our investments in Kraft Heinz and Occidental was 12% and 21%, respectively, of the carrying values of each investment. We evaluated these investments for other-than-temporary impairment as of September 30, 2024. For each investment, we considered our ability and intent to hold the investment until the fair value exceeds carrying value, the magnitude and duration of the decline in fair value, the operating results of the company, as well as other factors. Based on the prevailing facts and circumstances, we concluded the recognition of an impairment charge in earnings was not required.

Notes to Consolidated Financial Statements

Note 6. Equity method investments

As of September 30, 2024, the carrying values of our investments in Kraft Heinz and Berkadia approximated our share of shareowners’ equity of each of these entities. The carrying value of our investment in Occidental common stock exceeded our share of its common shareholders’ equity as of June 30, 2024 by approximately $10 billion. Based upon the limited information available to us, we concluded the excess represents goodwill.

Our earnings and distributions received from equity method investments are summarized in the following table (in millions). As described in Note 3, we ceased accounting for Pilot under the equity method as of February 1, 2023. Equity method earnings attributable to Pilot were $105 million for the month ending January 31, 2023 and are reported in other in the following table. The earnings we recorded in the first nine months of 2024 and 2023 for Occidental represented our share of its earnings for the nine months ending June 30, 2024 and 2023, respectively.

	Equity in Earnings																Distributions Received
	Third Quarter								First Nine Months								Third Quarter								First Nine Months
	2024				2023				2024				2023				2024				2023				2024				2023
Kraft Heinz	$	(78	)		$	69			$	164			$	556			$	131			$	131			$	391			$	391
Occidental		277				169				740				773				55				40				151				101
Other		23				24				63				132				19				22				37				43
	$	222			$	262			$	967			$	1,461			$	205			$	193			$	579			$	535

Summarized consolidated financial information of Kraft Heinz follows (in millions).

	September 28, 2024				December 30, 2023
Assets	$	88,566			$	90,339
Liabilities		40,097				40,617

	Third Quarter								First Nine Months
	2024				2023				2024				2023
Sales	$	6,383			$	6,570			$	19,270			$	19,780
Net earnings attributable to common shareholders		(290	)			262				613				2,098

Summarized consolidated financial information of Occidental follows (in millions).

	June 30, 2024				September 30, 2023
Assets	$	76,216			$	71,287
Liabilities		43,957				42,515

	Quarter ending June 30,								Nine months ending June 30,
	2024				2023				2024				2023
Total revenues and other income	$	6,879			$	6,731			$	20,418			$	22,315
Net earnings attributable to common shareholders		992				605				2,739				3,315

Notes to Consolidated Financial Statements

Note 7. Investment gains (losses)

Investment gains (losses) in the third quarter and first nine months of 2024 and 2023 are summarized as follows (in millions).

		Third Quarter								First Nine Months
		2024				2023				2024				2023
Investment gains (losses):
Equity securities:
Change in unrealized investment gains (losses) during the period on securities held at the end of the period		$	18,643			$	(30,354	)		$	45,053			$	33,267
Investment gains (losses) on securities sold during the period			1,868				605				1,221				1,748
			20,511				(29,749	)			46,274				35,015
Fixed maturity securities:
Gross realized gains			23				3				37				135
Gross realized losses			(17	)			(29	)			(57	)			(106	)
Other			(3	)			(3	)			(7	)			2,997
		$	20,514			$	(29,778	)		$	46,247			$	38,041

Equity securities gains and losses include unrealized gains and losses from changes in fair values during the period on equity securities we still own, as well as gains and losses on securities we sold during the period. Our proceeds from sales of equity securities were approximately $133.2 billion in the first nine months of 2024 and $32.8 billion in 2023. In the preceding table, investment gains and losses on equity securities sold during the period represent the difference between the sales proceeds and the fair value of the equity securities sold at the beginning of the applicable period or, if later, the acquisition date. Taxable gains and losses on equity securities sold are generally the difference between the proceeds from sales and cost. Our sales of equity securities produced taxable gains of $23.4 billion in the third quarter and $97.1 billion in the first nine months of 2024 compared to taxable gains of $759 million in the third quarter and $5.4 billion in the first nine months of 2023. Other investment gains in the first nine months of 2023 included a non-cash gain of approximately $3.0 billion from the remeasurement of our pre-existing 38.6% interest in Pilot through the application of acquisition accounting under GAAP.

Note 8. Loans and finance receivables

Loans and finance receivables are summarized as follows (in millions).

	September 30, 2024				December 31, 2023
Loans and finance receivables, before allowances and discounts	$	28,907			$	26,289
Allowances for credit losses		(1,051	)			(950	)
Unamortized acquisition discounts and points		(750	)			(658	)
	$	27,106			$	24,681

Loans and finance receivables are principally manufactured home loans, and to a lesser extent, commercial loans and site-built home loans. Reconciliations of the allowance for credit losses on loans and finance receivables for the first nine months of 2024 and 2023 follow (in millions).

	First Nine Months
	2024				2023
Balance at the beginning of the year	$	950			$	856
Provision for credit losses		180				122
Charge-offs, net of recoveries		(79	)			(52	)
Balance at September 30	$	1,051			$	926

As of September 30, 2024, substantially all manufactured and site-built home loans were evaluated collectively for impairment, and we considered approximately 96% of these loans to be current as to payment status. A summary of performing and non-performing home loans before discounts and allowances by year of loan origination as of September 30, 2024 follows (in millions).

	Origination Year
	2024				2023				2022				2021				2020				Prior				Total
Performing	$	5,170			$	5,085			$	3,729			$	3,114			$	2,404			$	8,425			$	27,927
Non-performing		2				15				19				16				14				54				120
	$	5,172			$	5,100			$	3,748			$	3,130			$	2,418			$	8,479			$	28,047

Notes to Consolidated Financial Statements

Note 8. Loans and finance receivables

We also hold a limited number of commercial loans originated or acquired several years ago. The aggregate carrying value of these loans approximated $730 million at September 30, 2024 and $850 million at December 31, 2023. The loans are generally secured by real estate properties or by other assets and are individually evaluated for expected credit losses.

Note 9. Other receivables

Other receivables are comprised of the following (in millions).

	September 30, 2024				December 31, 2023
Insurance and other:
Insurance premiums receivable	$	19,901			$	19,052
Reinsurance recoverables		5,199				7,060
Trade receivables		15,385				14,449
Other		5,647				4,269
Allowances for credit losses		(674	)			(656	)
	$	45,458			$	44,174
Railroad, utilities and energy:
Trade receivables	$	5,642			$	6,034
Other		1,098				1,228
Allowances for credit losses		(152	)			(176	)
	$	6,588			$	7,086

Aggregate provisions for credit losses in the first nine months with respect to receivables in the preceding table were $358 million in 2024 and $399 million in 2023. Charge-offs, net of recoveries, in the first nine months were $364 million in 2024 and $384 million in 2023. Receivables of the railroad, utilities and energy businesses at September 30, 2024 and December 31, 2023 included approximately $1.6 billion and $2.1 billion, respectively, related to Pilot.

Note 10. Inventories

Inventories of our insurance and other businesses are comprised of the following (in millions).

	September 30, 2024				December 31, 2023
Raw materials	$	5,647			$	6,026
Work in process and other		3,430				3,345
Finished manufactured goods		5,167				4,969
Goods acquired for resale		9,373				9,819
	$	23,617			$	24,159

Inventories, materials and supplies of our railroad, utilities and energy businesses are included in other assets and were approximately $4.0 billion at September 30, 2024 and $4.2 billion as of December 31, 2023. Such inventories included approximately $1.1 billion at September 30, 2024 and $1.7 billion at December 31, 2023 attributable to Pilot.

Note 11. Property, plant and equipment

A summary of property, plant and equipment of our insurance and other businesses follows (in millions).

		September 30, 2024				December 31, 2023
Land, buildings and improvements		$	15,519			$	15,058
Machinery and equipment			28,830				28,010
Furniture, fixtures and other			5,657				5,566
			50,006				48,634
Accumulated depreciation			(27,706	)			(26,604	)
		$	22,300			$	22,030

Notes to Consolidated Financial Statements

Note 11. Property, plant and equipment

A summary of property, plant and equipment of our railroad and utilities and energy businesses follows (in millions). The utility generation, transmission and distribution systems and interstate natural gas pipeline assets are owned by regulated public utility and natural gas pipeline subsidiaries.

		September 30, 2024				December 31, 2023
Railroad:
Land, track structure and other roadway		$	73,453			$	71,692
Locomotives, freight cars and other equipment			15,778				16,256
Construction in progress			1,945				1,715
			91,176				89,663
Accumulated depreciation			(20,123	)			(19,464	)
			71,053				70,199
Utilities and energy:
Utility generation, transmission and distribution systems			99,774				96,195
Interstate natural gas pipeline assets			19,750				19,226
Independent power plants and other			15,195				14,781
Land, buildings and improvements*			4,796				4,540
Machinery, equipment and other*			4,177				3,855
Construction in progress			11,225				9,551
			154,917				148,148
Accumulated depreciation			(43,794	)			(40,731	)
			111,123				107,417
		$	182,176			$	177,616

——————

*** Assets held by Pilot

Depreciation expense for the first nine months of 2024 and 2023 is summarized below (in millions).

		First Nine Months
		2024				2023
Insurance and other		$	1,845			$	1,776
Railroad, utilities and energy			5,330				5,302
		$	7,175			$	7,078

Note 12. Equipment held for lease

Equipment held for lease includes railcars, aircraft and other equipment, including over-the-road trailers, intermodal tank containers, cranes, storage units and furniture. Equipment held for lease is summarized below (in millions).

	September 30, 2024				December 31, 2023
Railcars	$	10,226			$	10,031
Aircraft		13,886				12,537
Other		5,751				5,576
		29,863				28,144
Accumulated depreciation		(12,067	)			(11,197	)
	$	17,796			$	16,947

Notes to Consolidated Financial Statements

Note 12. Equipment held for lease

Depreciation expense for equipment held for lease in the first nine months was $1,054 million in 2024 and $935 million in 2023. Operating lease revenues for the third quarter and first nine months of 2024 and 2023 are summarized below (in millions).

	Third Quarter								First Nine Months
	2024				2023				2024				2023
Fixed lease revenue	$	1,637			$	1,502			$	4,801			$	4,397
Variable lease revenue		678				602				2,044				1,830
	$	2,315			$	2,104			$	6,845			$	6,227

Note 13. Goodwill and other intangible assets

Reconciliations of the changes in the carrying value of goodwill for the first nine months of 2024 and for the year ended December 31, 2023 follow (in millions).

		September 30, 2024				December 31, 2023
Balance at the beginning of the year		$	84,626			$	78,119
Business acquisitions			84				7,347
Other, including acquisition period remeasurements and foreign currency translation			(102	)			(840	)
Balance at the end of the period*		$	84,608			$	84,626

——————

*** *Net of accumulated goodwill impairments of $*11.1 billion as of September 30, 2024 and December 31, 2023.

Other intangible assets are summarized below (in millions).

	September 30, 2024										December 31, 2023
	Gross carrying amount			Accumulated amortization			Net carrying value				Gross carrying amount			Accumulated amortization			Net carrying value
Insurance and other:
Customer relationships	$	28,496		$	8,406		$	20,090			$	28,305		$	7,901		$	20,404
Trademarks and trade names		5,686			866			4,820				5,619			846			4,773
Patents and technology		5,406			4,382			1,024				5,238			4,109			1,129
Other		4,773			1,910			2,863				4,826			1,805			3,021
	$	44,361		$	15,564		$	28,797			$	43,988		$	14,661		$	29,327
Railroad, utilities and energy:
Customer relationships and contracts	$	4,080		$	972		$	3,108			$	4,092		$	791		$	3,301
Trademarks and trade names		3,591			190			3,401				3,592			98			3,494
Other		1,169			231			938				1,174			156			1,018
	$	8,840		$	1,393		$	7,447			$	8,858		$	1,045		$	7,813

Intangible assets of the railroad, utilities and energy businesses are included in other assets in our Consolidated Balance Sheets, which includes intangible assets of Pilot. The net carrying values of such assets were $6.3 billion at September 30, 2024 and $6.6 billion at December 31, 2023, which were primarily trademarks and trade names and customer relationships. Intangible asset amortization expense in the first nine months was $1.3 billion in 2024 and 2023. Intangible assets with indefinite lives were $18.9 billion as of September 30, 2024 and December 31, 2023 and primarily related to certain customer relationships and trademarks and trade names.

Notes to Consolidated Financial Statements

Note 14. Unpaid losses and loss adjustment expenses

Reconciliations of the changes in unpaid losses and loss adjustment expenses (“claim liabilities”), excluding liabilities under retroactive reinsurance contracts (see Note 15), for each of the nine-month periods ended September 30, 2024 and 2023 follow (in millions).

	2024				2023
Balance at the beginning of the year:
Gross liabilities	$	111,082			$	107,472
Reinsurance recoverable on unpaid losses		(4,893	)			(5,025	)
Net liabilities		106,189				102,447
Incurred losses and loss adjustment expenses:
Current accident year		43,166				44,537
Prior accident years		(992	)			(3,126	)
Total		42,174				41,411
Paid losses and loss adjustment expenses:
Current accident year		(16,011	)			(16,962	)
Prior accident years		(21,370	)			(22,171	)
Total		(37,381	)			(39,133	)
Foreign currency effect		206				68
Balance at September 30:
Net liabilities		111,188				104,793
Reinsurance recoverable on unpaid losses		4,648				5,031
Gross liabilities	$	115,836			$	109,824

Our claim liabilities under property and casualty insurance and reinsurance contracts are based upon estimates of the ultimate claim costs associated with claim occurrences as of the balance sheet date and include estimates for incurred-but-not-reported (“IBNR”) claims. Incurred losses and loss adjustment expenses relate to insured events occurring in the current year (“current accident year”) as well as events occurring in all prior years (“prior accident years”). Incurred and paid losses and loss adjustment expenses are net of reinsurance recoveries.

We recorded net reductions of estimated ultimate liabilities for prior accident years in the first nine months of $992 million in 2024 and $3.1 billion in 2023, which produced corresponding reductions in incurred losses and loss adjustment expenses in those periods. These reductions, as percentages of the net liabilities at the beginning of each year, were 0.9% in 2024 and 3.1% in 2023.

Estimated ultimate liabilities for prior accident years of our primary insurance businesses in the first nine months increased $222 million in 2024 and declined $1.6 billion in 2023. The increase in 2024 reflected higher projected claim losses for certain commercial auto, business owner and other casualty business, partly offset by lower than expected private passenger auto and medical professional liability losses. The reduction in liabilities in 2023 was driven by lower than expected private passenger auto losses. Estimated ultimate liabilities for prior accident years of our reinsurance businesses declined $1.2 billion in the first nine months of 2024, mostly attributable to lower than expected property losses, and $1.5 billion in 2023 attributable to reductions in both property and casualty losses.

Notes to Consolidated Financial Statements

Note 15. Retroactive reinsurance contracts

Retroactive reinsurance policies provide indemnification of losses and loss adjustment expenses of short-duration insurance contracts with respect to underlying loss events that occurred prior to the contract inception date and may include significant levels of asbestos, environmental and other mass tort claims. Retroactive reinsurance contracts are generally subject to aggregate policy limits and thus, our exposure to such claims under these contracts is likewise limited. Reconciliations of the changes in estimated liabilities for retroactive reinsurance unpaid losses and loss adjustment expenses for each of the nine-month periods ended September 30, 2024 and 2023 follow (in millions).

	2024				2023
Balance at the beginning of the year	$	34,647			$	35,415
Incurred losses and loss adjustment expenses:
Current contract year		51				—
Prior contract years		(117	)			13
Total		(66	)			13
Paid losses and loss adjustment expenses		(1,596	)			(1,471	)
Foreign currency effect		75				(38	)
Balance at September 30	$	33,060			$	33,919
Incurred losses and loss adjustment expenses	$	(66	)		$	13
Deferred charge amortization and adjustments		610				605
Incurred losses and loss adjustment expenses included in the Consolidated Statements of Earnings	$	544			$	618

In the preceding table, the classification of incurred losses and loss adjustment expenses is based on the contract inception dates, which reflect when our exposure to losses began. Incurred losses and loss adjustment expenses in the Consolidated Statements of Earnings include changes in estimated liabilities and related deferred charge asset amortization and adjustments arising from the changes in estimated timing and amount of future loss payments. Unamortized deferred charges on retroactive reinsurance contracts were $8.9 billion at September 30, 2024 and $9.5 billion at December 31, 2023.

Note 16. Long-duration insurance contracts

A summary of our long-duration life, annuity and health insurance benefits liabilities as of September 30, 2024 and 2023, disaggregated for our two primary product categories, periodic payment annuity and life and health insurance, follows. Other liabilities include IBNR claims and claims in the course of settlement. Amounts are in millions.

	September 30,
	2024			2023
Periodic payment annuity	$	11,136		$	9,940
Life and health		4,456			5,365
Other		3,020			3,251
	$	18,612		$	18,556

Notes to Consolidated Financial Statements

Note 16. Long-duration insurance contracts

Reconciliations of periodic payment annuity and life and health insurance benefits liabilities for the first nine months of 2024 and 2023 follow (in millions). The information reflects the changes in discounted present values of expected future policy benefits and expected future net premiums before reinsurance ceded. Net premiums represent the portion of expected gross premiums that are required to provide for future policy benefits and variable expenses.

	Periodic payment annuity								Life and health
	2024				2023				2024				2023
Expected future policy benefits:
Balance at the beginning of the year	$	11,212			$	10,640			$	52,665			$	52,008
Balance at the beginning of the year - original discount rates		11,681				11,549				65,871				63,584
Effect of cash flow assumption changes		—				—				1,485				346
Effect of actual versus expected experience		2				3				(12,709	)			(425	)
Change in benefits, net		(357	)			(349	)			(1,404	)			(2,059	)
Interest accrual		411				402				891				1,288
Foreign currency effect		96				27				218				(528	)
Balance at September 30 - original discount rates		11,833				11,632				54,352				62,206
Effect of changes in discount rate assumptions		(697	)			(1,692	)			(11,111	)			(13,434	)
Balance at September 30	$	11,136			$	9,940			$	43,241			$	48,772
Expected future net premiums:
Balance at the beginning of the year									$	46,916			$	46,129
Balance at the beginning of the year - original discount rates										58,731				56,535
Effect of cash flow assumption changes										1,449				276
Effect of actual versus expected experience										(11,033	)			(266	)
Change in premiums, net										(1,348	)			(1,833	)
Interest accrual										791				1,125
Foreign currency effect										200				(502	)
Balance at September 30 - original discount rates										48,790				55,335
Effect of changes in discount rate assumptions										(10,005	)			(11,928	)
Balance at September 30									$	38,785			$	43,407
Liabilities for future policy benefits:
Balance at September 30	$	11,136			$	9,940			$	4,456			$	5,365
Reinsurance recoverables		—				—				(52	)			(1,399	)
Balance at September 30, net of reinsurance recoverables	$	11,136			$	9,940			$	4,404			$	3,966

Liabilities for future policy benefits and reinsurance recoverables declined in the first nine months of 2024, primarily attributable to the commutations of certain life reinsurance contracts. The impacts of these contract commutations on expected future policy benefits and future net premiums were reflected in effects of actual versus expected experience.

Notes to Consolidated Financial Statements

Note 16. Long-duration insurance contracts

Other information relating to our long-duration insurance liabilities as of September 30, 2024 and 2023 follows (dollars in millions).

	Periodic payment annuity								Life and health
	2024				2023				2024				2023
Undiscounted expected future gross premiums	$	—			$	—			$	101,134			$	106,518
Discounted expected future gross premiums		—				—				58,530				64,394
Undiscounted expected future benefits		30,915				31,049				91,751				101,882
Weighted average discount rate		5.2	%			5.9	%			4.7	%			5.4	%
Weighted average accretion rate		4.8	%			4.8	%			2.6	%			3.4	%
Weighted average duration	17 years				16 years				13 years				14 years

Gross premiums earned and interest expense before reinsurance ceded for the first nine months of 2024 and 2023 were as follows (in millions).

	Gross premiums								Interest expense
	2024				2023				2024				2023
Periodic payment annuity	$	—			$	—			$	411			$	402
Life and health		2,831				2,587				100				163

Note 17. Notes payable and other borrowings

Notes payable and other borrowings of our insurance and other businesses are summarized below (dollars in millions). The weighted average interest rates and maturity date ranges are based on borrowings as of September 30, 2024.

		Weighted Average Interest Rate				September 30, 2024				December 31, 2023
Insurance and other:
Berkshire Hathaway Inc. (“Berkshire”):
U.S. Dollar denominated due 2025-2047			3.5	%		$	3,746			$	3,740
Euro denominated due 2025-2041			1.1	%			5,089				6,145
Japanese Yen denominated due 2025-2060			0.9	%			10,803				8,896
Berkshire Hathaway Finance Corporation (“BHFC”):
U.S. Dollar denominated due 2027-2052			3.6	%			14,468				14,463
Great Britain Pound denominated due 2039-2059			2.5	%			2,304				2,191
Euro denominated due 2030-2034			1.8	%			1,387				1,374
Other subsidiary borrowings due 2024-2051			4.5	%			4,603				4,696
Subsidiary short-term borrowings			6.7	%			1,251				1,187
						$	43,651			$	42,692

Notes to Consolidated Financial Statements

Note 17. Notes payable and other borrowings

Berkshire parent company borrowings consist of senior unsecured debt. In the first nine months of 2024, Berkshire repaid approximately $1.9 billion of maturing senior notes. In April 2024, Berkshire issued ¥263.3 billion (approximately $1.7 billion) of senior notes with interest rates ranging from 0.974% to 2.498% and maturity dates ranging from 2027 to 2054. In September 2024, Berkshire borrowed ¥142.5 billion (approximately $1.0 billion) under a term loan agreement due in 2028 and with an interest rate of 1.25%. In October 2024, Berkshire issued ¥281.8 billion (approximately $1.85 billion) of senior notes with interest rates ranging from 1.031% to 2.625% and maturity dates ranging from 2027 to 2054.

Borrowings of BHFC, a wholly-owned finance subsidiary of Berkshire, consist of senior unsecured notes used to fund manufactured housing loans originated or acquired and equipment held for lease of certain subsidiaries. BHFC borrowings are fully and unconditionally guaranteed by Berkshire. Berkshire also guarantees certain debt of other subsidiaries, aggregating approximately $2.7 billion at September 30, 2024. Generally, Berkshire’s guarantee of a subsidiary’s debt obligation is an absolute, unconditional and irrevocable guarantee for the full and prompt payment when due of all payment obligations.

The carrying values of Berkshire and BHFC non-U.S. Dollar denominated senior notes (€5.85 billion, £1.75 billion and ¥1,556 billion par at September 30, 2024) reflect the applicable exchange rates as of each balance sheet date. The effects of changes in foreign currency exchange rates during the period are recorded in earnings as a component of selling, general and administrative expenses. Changes in the exchange rates produced pre-tax losses of $1.5 billion in the third quarter and $136 million in the first nine months of 2024 compared to pre-tax gains of $582 million in the third quarter and $1.1 billion in the first nine months of 2023.

Notes payable and other borrowings of our railroad, utilities and energy businesses are summarized below (dollars in millions). The weighted average interest rates and maturity date ranges are based on borrowings as of September 30, 2024.

		Weighted Average Interest Rate				September 30, 2024				December 31, 2023
Railroad, utilities and energy:
Berkshire Hathaway Energy Company (“BHE”) and subsidiaries:
BHE senior unsecured debt due 2025-2053			4.4	%		$	13,105			$	13,101
Subsidiary and other debt due 2024-2064			4.6	%			43,452				39,072
Short-term borrowings			6.0	%			773				4,148
Pilot Travel Centers (“Pilot”) and subsidiaries			—				—				5,776
Burlington Northern Santa Fe (“BNSF”) and subsidiaries due 2024-2097			4.7	%			23,526				23,482
						$	80,856			$	85,579

BHE subsidiary debt represents amounts issued pursuant to separate financing agreements. Substantially all of the assets of certain BHE subsidiaries are, or may be, pledged or encumbered to support or otherwise secure such debt. These borrowing arrangements generally contain various covenants, including covenants which pertain to leverage ratios, interest coverage ratios and/or debt service coverage ratios. In the first nine months of 2024, BHE subsidiaries issued $5.4 billion of term debt with a weighted average interest rate of 5.4% and maturity dates ranging from 2029 to 2055 and BHE and its subsidiaries repaid term debt and short-term borrowings aggregating approximately $4.4 billion. In October 2024, a BHE subsidiary issued $900 million of 5.6% senior notes due in 2054.

At December 31, 2023, Pilot’s borrowings primarily represented secured syndicated loans. In March 2024, Pilot borrowed $5.7 billion from certain Berkshire insurance subsidiaries, which Pilot used to repay its then outstanding third-party borrowings. BNSF’s borrowings are primarily senior unsecured debentures. In the first nine months of 2024, BNSF issued $1.3 billion of 5.5% debentures due in 2055 and repaid $1.2 billion of maturing debentures. As of September 30, 2024, BHE, BNSF and their subsidiaries were in compliance with all applicable debt covenants. Berkshire does not guarantee any debt, borrowings or lines of credit of BHE, BNSF or their subsidiaries.

Unused lines of credit and commercial paper capacity to support operations and provide additional liquidity for our subsidiaries were approximately $11.5 billion at September 30, 2024, of which approximately $10.4 billion related to BHE and its subsidiaries.

Notes to Consolidated Financial Statements

Note 18. Fair value measurements

Our financial assets and liabilities are summarized below, with fair values shown according to the fair value hierarchy (in millions). The carrying values of cash and cash equivalents, U.S. Treasury Bills, other receivables and accounts payable, accruals and other liabilities are considered to be reasonable estimates of or otherwise approximate the fair values.

		Carrying Value				Fair Value				Level 1				Level 2				Level 3
September 30, 2024
Investments in fixed maturity securities:
U.S. Treasury, U.S. government corporations and agencies		$	4,516			$	4,516			$	4,481			$	35			$	—
Foreign governments			9,904				9,904				9,708				196				—
Corporate bonds			1,394				1,394				—				850				544
Other			228				228				—				228				—
Investments in equity securities			271,650				271,650				261,865				10				9,775
Investments in Kraft Heinz & Occidental common stock			29,680				24,583				24,583				—				—
Loans and finance receivables			27,106				26,645				—				867				25,778
Derivative contract assets (1)			292				292				34				241				17
Derivative contract liabilities (1)			246				246				2				160				84
Notes payable and other borrowings:
Insurance and other			43,651				40,325				—				40,301				24
Railroad, utilities and energy			80,856				77,510				—				77,510				—
December 31, 2023
Investments in fixed maturity securities:
U.S. Treasury, U.S. government corporations and agencies		$	10,269			$	10,269			$	10,234			$	35			$	—
Foreign governments			11,805				11,805				11,559				246				—
Corporate bonds			1,449				1,449				—				860				589
Other			235				235				—				235				—
Investments in equity securities			353,842				353,842				343,358				10				10,474
Investments in Kraft Heinz & Occidental common stock			28,640				26,587				26,587				—				—
Loans and finance receivables			24,681				24,190				—				892				23,298
Derivative contract assets (1)			334				334				39				282				13
Derivative contract liabilities (1)			213				213				7				111				95
Notes payable and other borrowings:
Insurance and other			42,692				39,184				—				39,153				31
Railroad, utilities and energy			85,579				81,036				—				81,036				—

——————

(1)

Assets are included in other assets and liabilities are included in accounts payable, accruals and other liabilities.

The fair values of substantially all of our financial instruments were measured using market or income approaches. The hierarchy for measuring fair value consists of Levels 1 through 3, which are described below.

Level 1 – Inputs represent unadjusted quoted prices for identical assets or liabilities exchanged in active markets.

Level 2 – Inputs include directly or indirectly observable inputs (other than Level 1 inputs) such as quoted prices for similar assets or liabilities exchanged in active or inactive markets; quoted prices for identical assets or liabilities exchanged in inactive markets; other inputs that may be considered in fair value determinations of the assets or liabilities, such as interest rates and yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Pricing evaluations generally reflect discounted expected future cash flows, which incorporate yield curves for instruments with similar characteristics, such as credit ratings, estimated durations and yields for other instruments of the issuer or entities in the same industry sector.

Notes to Consolidated Financial Statements

Note 18. Fair value measurements

Level 3 – Inputs include unobservable inputs used in the measurement of assets and liabilities. Management is required to use its own assumptions regarding unobservable inputs because there is little, if any, market activity in the assets or liabilities and it may be unable to corroborate the related observable inputs. Unobservable inputs require management to make certain projections and assumptions about the information that would be used by market participants in valuing assets or liabilities.

Reconciliations of significant assets and liabilities measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) for the nine months ended September 30, 2024 and 2023 follow (in millions).

	Balance at January 1				Gains (losses) in earnings				Acquisitions (dispositions)				Balance at September 30
Investments in equity securities:
2024	$	10,468			$	(699	)		$	—			$	9,769
2023		12,169				190				(1,661	)			10,698

Quantitative information as of September 30, 2024 for the significant assets and liabilities measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) follows (dollars in millions).

		Fair Value				Principal Valuation Techniques		Unobservable Inputs		Weighted Average
Investments in equity securities:
Preferred stock		$	8,587			Discounted cash flow		Expected duration		5 years
								Discounts for liquidity and subordination		372 bps
Common stock warrants			1,182			Warrant pricing model		Expected duration		5 years
								Volatility		42%

Investments in equity securities in the preceding table include our investments in certain preferred stock and common stock warrants that do not have readily determinable market values as defined by GAAP. These investments are private placements with contractual terms that may restrict transfers and prevent us from economically hedging our investments. We applied discounted cash flow techniques in valuing the preferred stock and we made assumptions regarding the expected duration of the investment and the effects of subordination in liquidation. In valuing the common stock warrants, we used a warrant valuation model. While most of the inputs to the warrant model are observable, we made assumptions regarding the expected duration and volatility.

Note 19. Common stock

Changes in shares of Berkshire’s common stock during the first nine months of 2024 are shown in the table below. In addition to our common stock, 1,000,000 shares of preferred stock are authorized, but none are issued.

	**Class A, $**5 **Par Value (**1,650,000 shares authorized)										**Class B, $**0.0033 **Par Value (**3,225,000,000 shares authorized)
	Issued			Treasury			Outstanding				Issued			Treasury			Outstanding
Balance at December 31, 2023		639,328			(71,553	)		567,775				1,528,152,352			(217,590,844	)		1,310,561,508
Conversions of Class A to Class B common stock		(10,778	)		—			(10,778	)			16,167,000			—			16,167,000
Treasury stock acquired		—			(4,787	)		(4,787	)			—			—			—
Treasury stock issued		—			—			—				—			1,368,508			1,368,508
Balance at September 30, 2024		628,550			(76,340	)		552,210				1,544,319,352			(216,222,336	)		1,328,097,016

Each Class A common share is entitled to one vote per share. Class B common stock possesses dividend and distribution rights equal to one-fifteen-hundredth (1/1,500) of such rights of Class A common stock. Each Class B common share possesses voting rights equal to one-ten-thousandth (1/10,000) of the voting rights of a Class A share. Unless otherwise required under Delaware General Corporation Law, Class A and Class B common shares vote as a single class. Each share of Class A common stock is convertible, at the option of the holder, into 1,500 shares of Class B common stock. Class B common stock is not convertible into Class A common stock. On an equivalent Class A common stock basis, there were 1,437,608 shares outstanding as of September 30, 2024 and 1,441,483 shares outstanding as of December 31, 2023.

Notes to Consolidated Financial Statements

Note 19. Common stock

Since we have two classes of common stock, we provide earnings per share data on the Consolidated Statements of Earnings for average equivalent Class A shares outstanding and average equivalent Class B shares outstanding. Class B shares are economically equivalent to one-fifteen-hundredth (1/1,500) of a Class A share. Average equivalent Class A shares outstanding represents average Class A shares outstanding plus one-fifteen-hundredth (1/1,500) of the average Class B shares outstanding. Average equivalent Class B shares outstanding represents average Class B shares outstanding plus 1,500 times the average Class A shares outstanding.

Berkshire’s common stock repurchase program permits Berkshire to repurchase its shares any time that Warren Buffett, Berkshire’s Chairman of the Board and Chief Executive Officer, believes that the repurchase price is below Berkshire’s intrinsic value, conservatively determined. The program continues to allow share repurchases in the open market or through privately negotiated transactions and does not specify a maximum number of shares to be repurchased. However, repurchases will not be made if they would reduce the value of Berkshire’s consolidated cash, cash equivalents and U.S. Treasury Bill holdings below $30 billion. The repurchase program does not obligate Berkshire to repurchase any specific dollar amount or number of Class A or Class B shares and there is no expiration date to the program.

Note 20. Income taxes

Our consolidated effective income tax rates were 18.5% in the third quarter and 19.2% in the first nine months of 2024 compared to 25.9% in the third quarter and 18.9% in the first nine months of 2023. Our effective income tax rate normally reflects recurring benefits from dividends-received deductions applicable to investments in certain equity securities and production tax credits related to wind-powered electricity generation placed in service in the U.S. Our periodic effective income tax rate will also vary due to the changes in mix of pre-tax earnings, including realized and unrealized investment gains or losses with respect to our investments in equity securities, the amount of non-deductible goodwill impairment charges and other expenses and the underlying income tax rates applicable in the various taxing jurisdictions.

On August 16, 2022, the Inflation Reduction Act of 2022 (“the 2022 Act”) was signed into law. The 2022 Act contains numerous provisions, including a 15% corporate alternative minimum income tax (“CAMT”) on “adjusted financial statement income,” expanded tax credits for clean energy incentives and a 1% excise tax on corporate stock repurchases. The provisions of the 2022 Act are effective for tax years beginning after December 31, 2022. The extent to which we incur CAMT will depend on the facts and circumstances of the given tax year. We do not expect to incur a CAMT liability in 2024.

The Organization for Economic Co-operation and Development has issued Pillar Two model rules introducing a new global minimum tax of 15% intended to be effective on January 1, 2024. While the U.S. has not yet adopted the Pillar Two rules, various other governments around the world are enacting legislation. As currently designed, Pillar Two will ultimately apply to our worldwide operations. Considering we do not have material operations in jurisdictions with income tax rates lower than the Pillar Two minimum, these rules are not expected to materially increase our global tax costs. There remains uncertainty as to the final Pillar Two model rules. We will continue to monitor U.S. and global legislative action related to Pillar Two for potential impacts.

Note 21. Accumulated other comprehensive income

A summary of the net changes in after-tax accumulated other comprehensive income attributable to Berkshire Hathaway shareholders for the nine months ending September 30, 2024 and 2023 follows (in millions).

	Unrealized gains (losses) on investments				Foreign currency translation				Long-duration insurance contracts				Defined benefit pension plans				Other				Total
First nine months of 2024
Balance at the beginning of the year	$	190			$	(5,393	)		$	1,353			$	(97	)		$	184			$	(3,763	)
Other comprehensive income		81				78				(10	)			(44	)			(34	)			71
Balance at the end of the period	$	271			$	(5,315	)		$	1,343			$	(141	)		$	150			$	(3,692	)
First nine months of 2023
Balance at the beginning of the year	$	(187	)		$	(6,142	)		$	1,541			$	(552	)		$	288			$	(5,052	)
Other comprehensive income		178				(187	)			786				51				(48	)			780
Balance at the end of the period	$	(9	)		$	(6,329	)		$	2,327			$	(501	)		$	240			$	(4,272	)

Notes to Consolidated Financial Statements

Note 22. Supplemental cash flow information

A summary of supplemental cash flow information follows (in millions).

		First Nine Months
		2024				2023
Cash paid during the period for:
Income taxes		$	17,466			$	5,768
Interest:
Insurance and other			1,047				1,077
Railroad, utilities and energy			2,761				2,670
Non-cash investing and financing activities:
Liabilities assumed in connection with business acquisitions			20				10,832
Class B common stock issued in exchange for noncontrolling interests			625				—

Note 23. Contingencies and commitments

We are parties in a variety of legal actions that routinely arise out of the normal course of business, including legal actions seeking to establish liability directly through insurance contracts or indirectly through reinsurance contracts issued by Berkshire subsidiaries. Plaintiffs occasionally seek punitive or exemplary damages. We do not believe that such normal and routine litigation will have a material effect on our financial condition or results of operations.

PacifiCorp, a wholly-owned subsidiary of Berkshire Hathaway Energy Company (“BHE”), operates as a regulated electric utility in Oregon and other Western states. HomeServices of America, Inc. is also a wholly-owned subsidiary of BHE. Certain legal matters related to these entities are described below.

PacifiCorp

In September 2020, a severe weather event resulting in high winds, low humidity and warm temperatures, contributed to several major wildfires, which resulted in real and personal property and natural resource damage, personal injuries and loss of life and widespread power outages in Oregon and Northern California. These wildfires spread across certain parts of PacifiCorp’s service territory and surrounding areas across multiple counties in Oregon and California, including Siskiyou County, California; Jackson County, Oregon; Douglas County, Oregon; Marion County, Oregon; Lincoln County, Oregon; and Klamath County, Oregon, burning over 500,000 acres in aggregate. Third-party reports for these wildfires (the “2020 Wildfires”) indicate over 2,000 structures destroyed, including residences; several other structures damaged; multiple individuals injured; and several fatalities.

According to the California Department of Forestry and Fire Protection, a wildfire began on July 29, 2022, in the Oak Knoll Ranger District of the Klamath National Forest in Siskiyou County, California located in PacifiCorp’s service territory (the “2022 Wildfire”) burning over 60,000 acres. Third-party reports indicate that the 2022 Wildfire resulted in 11 structures damaged, 185 structures destroyed, 12 injuries and four fatalities. The 2020 Wildfires and 2022 Wildfire, together, are referred to as the “Wildfires”.

Investigations into the cause and origin of each of the Wildfires are complex and ongoing and have been or are being conducted by various entities, including the U.S. Forest Service, the California Public Utilities Commission, the Oregon Department of Forestry, the Oregon Department of Justice, PacifiCorp and various experts engaged by PacifiCorp.

As of the date of this filing, a significant number of complaints and demands alleging similar claims related to the Wildfires have been filed in Oregon and California, including a class action complaint in Oregon associated with the 2020 Wildfires for which certain jury verdicts were issued as described below. The plaintiffs seek damages for economic losses, noneconomic losses, including mental suffering, emotional distress, personal injury and loss of life, as well as punitive damages, other damages and attorneys’ fees. Several insurance carriers have filed subrogation complaints in Oregon and California with allegations similar to those made in the aforementioned complaints. Additionally, the U.S. and Oregon Departments of Justice have informed PacifiCorp that they are contemplating filing actions against PacifiCorp in connection with certain of the Oregon 2020 Wildfires. PacifiCorp is actively cooperating with the U.S. and Oregon Departments of Justice on resolving these alleged claims through alternative dispute resolution.

As of September 30, 2024, amounts sought in outstanding complaints and demands filed in Oregon and in certain demands in California approximated $3 billion, excluding any doubling or trebling of damages included in the complaints and the mass complaints described below that seek $46 billion. Generally, the complaints filed in California do not specify damages sought and are excluded from this amount.

Based on available information to date, we believe it is probable that losses will be incurred associated with the Wildfires. Final determinations of liability will only be made following the completion of comprehensive investigations, litigation and similar processes.

Notes to Consolidated Financial Statements

Note 23. Contingencies and commitments

On September 30, 2020, a class action complaint against PacifiCorp was filed captioned Jeanyne James et al. v. PacifiCorp et al. (the “James case”), in Oregon Circuit Court in Multnomah County, Oregon (the “Multnomah Court”) in connection with the 2020 Wildfires. In April 2023, a jury trial for the James case with respect to 17 named plaintiffs began in Multnomah Court. In June 2023, the jury issued its verdict finding PacifiCorp liable to the 17 named plaintiffs and to the class with respect to four wildfires. The jury found PacifiCorp’s conduct grossly negligent, reckless and willful as to each plaintiff and the entire class. The jury awarded the 17 named plaintiffs $90 million of damages, including $4 million of economic damages, $68 million of noneconomic damages and $18 million of punitive damages based on a 0.25 multiplier of the economic and noneconomic damages.

In September 2023, the Multnomah Court ordered trial dates for three damages phase trials for the James case, wherein plaintiffs in each of the three damages phase trials would present evidence regarding their damages.

In January 2024, the Multnomah Court entered a limited judgment and money award for the June 2023 James case verdict of $92 million based on the amounts awarded by the jury, as well as doubling of the economic damages and offsetting of insurance proceeds received by plaintiffs. In January 2024, PacifiCorp filed a notice of appeal associated with the June 2023 verdict in the James case, including whether the case can proceed as a class action, and filed a motion to stay further damages phase trials. On February 14, 2024, the Oregon Court of Appeals denied PacifiCorp’s request to stay the damages phase trials. On February 13, 2024, the 17 named plaintiffs filed a notice of cross-appeal as to the January 2024 limited judgment and money award. The appeals process and further actions could take several years.

In January 2024, the jury for the first James case damages phase trial awarded nine plaintiffs $62 million of damages, including $6 million of economic damages and $56 million of noneconomic damages. Subsequently, the Multnomah Court increased the economic damages by $6 million and added $16 million of punitive damages, bringing the aggregate damages awarded to $84 million. In March 2024, the Multnomah Court granted in large part PacifiCorp’s request to offset the damage awards by deducting insurance proceeds received by any of the nine plaintiffs. In April 2024, the Multnomah Court entered a limited judgment and money award of $80 million for the January 2024 James verdict, based on the aggregate damages awarded, offset by insurance proceeds received by plaintiffs.

In March 2024, the jury for the second James case damages phase trial awarded ten plaintiffs $42 million of damages, including $12 million of doubled economic damages and $30 million of noneconomic and punitive damages. In May 2024, the Multnomah Court granted PacifiCorp’s request to offset the damage awards by deducting insurance proceeds received by any of the ten plaintiffs. In June 2024, the Multnomah Court entered a limited judgment and money award of $38 million for the March 2024 James verdict, based on the aggregate amounts awarded, offset by insurance proceeds received by plaintiffs.

The January, April and June 2024 limited judgments created liens against PacifiCorp, attaching a debt for the money awards. In each instance, PacifiCorp posted a supersedeas bond, which stays any effort to seek payment of the judgment pending final resolution of any appeals. Under ORS 82.010, interest at a rate of 9% per annum will accrue on the judgment commencing at the date the judgment was entered until the entire money award is paid, amended or reversed by an appellate court. PacifiCorp amended its January 2024 appeal of the June 2023 James verdict to include the January 2024 jury verdict and further amended its appeal of the June 2023 verdict to include the March 2024 jury verdict. In March 2024, settlement was reached with five commercial timber plaintiffs in the James case, and the jury trial scheduled for April 2024 was cancelled.

In April, May, July and September 2024, five separate mass complaints against PacifiCorp naming 1,536 individual class members were filed in the Multnomah Court referencing the James case as the lead case. These mass complaints make allegations seeking economic, noneconomic and punitive damages, as well as doubling of economic damages. PacifiCorp believes the magnitude of damages sought by the class members in the James case mass complaints to be of remote likelihood of being awarded based on the amounts awarded in the jury verdicts described above that are being appealed.

In October 2024, the Multnomah Court issued a case management order, which sets forth nine additional damages phase trials with 10 plaintiffs per trial. The trials are scheduled to occur throughout 2025, beginning in the first quarter.

A provision for a loss contingency is recorded when it is probable a liability has been incurred and the amount of loss can be reasonably estimated. PacifiCorp evaluates the related range of reasonably estimated losses and records a loss based on its best estimate within that range or the lower end of the range if there is no better estimate.

Estimated probable losses associated with the Wildfires were based on the information available to the date of this filing, including (i) ongoing cause and origin investigations; (ii) ongoing settlement and mediation discussions; (iii) other litigation matters and upcoming legal proceedings; and (iv) the status of the James case. Wildfire estimated losses include estimates for fire suppression costs, real and personal property damages, natural resource damages and noneconomic damages such as personal injury damages and loss of life damages that are considered probable of being incurred and that it is able to reasonably estimate at this time, and which is subject to change as additional relevant information becomes available.

Notes to Consolidated Financial Statements

Note 23. Contingencies and commitments

Through September 30, 2024, PacifiCorp recorded cumulative estimated probable Wildfire losses, before taxes and expected related insurance recoveries, of approximately $2.7 billion. Wildfire loss accruals were $251 million in the first nine months of 2024 and $1.9 billion in the first nine months of 2023, of which $1.4 billion was recorded in the third quarter. Expected insurance recoveries recorded to date in connection with the Wildfires are $534 million, including $257 million recorded in the first nine months of 2023. No further insurance recoveries are expected to be available. Cumulative Wildfire loss payments through September 30, 2024 were approximately $1.2 billion, of which $529 million was paid in the first nine months of 2024. Estimated unpaid liabilities for the Wildfires were approximately $1.45 billion at September 30, 2024.

It is reasonably possible PacifiCorp will incur significant additional Wildfire losses beyond the amounts currently accrued; however, it is currently unable to reasonably estimate the range of possible additional losses that could be incurred due to the number of properties and parties involved, including claimants in the class to the James case, the variation in those types of properties and the ultimate outcome of legal actions.

HomeServices of America, Inc.

HomeServices of America, Inc. (“HomeServices”) is currently defending against several antitrust cases, all in federal district courts. In each case, plaintiffs claim HomeServices and certain of its subsidiaries (and in one case BHE) conspired with co-defendants to artificially inflate real estate commissions by following and enforcing multiple listing service (“MLS”) rules that require listing agents to offer a commission split to cooperating agents in order for the property to appear on the MLS (“Cooperative Compensation Rule”). None of the complaints specify damages sought. However, two cases also allege Texas state law deceptive trade practices claims, for which plaintiffs have provided written notice of the damages sought totaling approximately $9 billion by separate notice as required by Texas law.

In one of these cases, Burnett (formerly Sitzer) et al. v. HomeServices of America, Inc. et al. (the “Burnett case”), a jury trial in the U.S. District Court for the Western District of Missouri commenced on October 16, 2023, and the jury returned a verdict for the plaintiffs on October 31, 2023, finding that the named defendants participated in a conspiracy to follow and enforce the Cooperative Compensation Rule, which conspiracy had the purpose or effect of raising, inflating, or stabilizing broker commission rates paid by home sellers. The jury further found that the class plaintiffs had proved damages in the amount of $1.8 billion. Joint and several liability applies for the co-defendants. Federal law authorizes trebling of damages and the award of pre-judgment interest and attorney fees. To date, all co-defendants have reached settlements with the plaintiffs. The U.S District Court approved certain of these settlements in May 2024, which has been appealed to the U.S. Court of Appeals for the Eighth Circuit.

In April 2024, HomeServices agreed to terms with the plaintiffs to settle all claims asserted against HomeServices and its subsidiaries in the Burnett case as part of a proposed nationwide class settlement. The final settlement agreement includes scheduled payments over the next four years aggregating $250 million, which is subject to court approval scheduled for November 26, 2024. If the settlement is not approved by the court, HomeServices intends to vigorously appeal on multiple grounds the jury’s findings and damage award in the Burnett case, including whether the case can proceed as a class action. The appeals process and further actions could take several years.

Other legal matters

In September 2024, National Indemnity Company (“NICO”) recorded a pre-tax charge of $490 million in connection with a settlement agreement reached concerning certain non-insurance affiliates that filed voluntary petitions under Chapter 11 of bankruptcy code in the United States Bankruptcy Court for the District of New Jersey (the “Court”) in 2023. Under the terms of the settlement agreement, NICO has agreed to pay $535 million to the bankruptcy estate in consideration of a release of all estate causes of action against NICO and its affiliates. The settlement agreement, which is opposed by certain creditors, is subject to approval by the Court. NICO also accrued a $45 million recoverable from a third party that is covered under the release.

Berkshire and certain of its subsidiaries are also involved in other kinds of legal actions, some of which assert or may assert claims or seek to impose fines and penalties. We currently believe that liabilities that may arise as a result of such other pending legal actions will not have a material effect on our consolidated financial condition or results of operations.

Notes to Consolidated Financial Statements

Note 24. Revenues from contracts with customers

The following tables summarize customer contract revenues disaggregated by reportable segment and the source of the revenue for the third quarter and first nine months of 2024 and 2023 (in millions). Other revenues, which are not considered to be revenues from contracts with customers under GAAP, are primarily insurance premiums earned, interest, dividend and other investment income and leasing revenues.

		Manufacturing				McLane				Service and Retailing				BNSF				Berkshire Hathaway Energy				Pilot				Insurance, Corporate and other				Total
Three months ending September 30, 2024
Manufactured products:
Industrial and commercial		$	7,185			$	—			$	49			$	—			$	—			$	—			$	—			$	7,234
Building			5,176				—				—				—				—				—				—				5,176
Consumer			4,749				—				—				—				—				—				—				4,749
Grocery and convenience store distribution			—				7,882				—				—				—				—				—				7,882
Food and beverage distribution			—				4,372				—				—				—				—				—				4,372
Auto sales			—				—				2,722				—				—				—				—				2,722
Other retail and wholesale distribution			823				—				3,598				—				—				733				—				5,154
Service			414				232				1,464				5,866				1,098				76				—				9,150
Electricity, natural gas and fuel			—				—				—				—				5,834				9,775				—				15,609
Total			18,347				12,486				7,833				5,866				6,932				10,584				—				62,048
Other revenues			1,323				41				1,995				54				391				39				27,104				30,947
		$	19,670			$	12,527			$	9,828			$	5,920			$	7,323			$	10,623			$	27,104			$	92,995
Nine months ending September 30, 2024
Manufactured products:
Industrial and commercial		$	21,854			$	—			$	156			$	—			$	—			$	—			$	—			$	22,010
Building			15,083				—				—				—				—				—				—				15,083
Consumer			13,530				—				—				—				—				—				—				13,530
Grocery and convenience store distribution			—				22,984				—				—				—				—				—				22,984
Food and beverage distribution			—				13,286				—				—				—				—				—				13,286
Auto sales			—				—				7,988				—				—				—				—				7,988
Other retail and wholesale distribution			2,485				—				11,107				—				—				2,063				—				15,655
Service			1,193				698				4,278				17,182				3,108				208				—				26,667
Electricity, natural gas and fuel			—				—				—				—				15,940				33,715				—				49,655
Total			54,145				36,968				23,529				17,182				19,048				35,986				—				186,858
Other revenues			3,843				130				5,893				162				1,020				115				78,496				89,659
		$	57,988			$	37,098			$	29,422			$	17,344			$	20,068			$	36,101			$	78,496			$	276,517

Notes to Consolidated Financial Statements

Note 24. Revenues from contracts with customers

		Manufacturing				McLane				Service and Retailing				BNSF				Berkshire Hathaway Energy				Pilot				Insurance, Corporate and other				Total
Three months ending September 30, 2023
Manufactured products:
Industrial and commercial		$	7,008			$	—			$	53			$	—			$	—			$	—			$	—			$	7,061
Building			5,211			—				—				—				—				—					—				5,211
Consumer			4,578			—				—				—				—				—					—				4,578
Grocery and convenience store distribution		—					8,212			—				—				—				—					—				8,212
Food and beverage distribution		—					4,775			—				—				—				—					—				4,775
Auto sales		—				—					2,752			—				—				—					—				2,752
Other retail and wholesale distribution			807			—					3,933			—				—					688				—				5,428
Service			385				250				1,390				5,811				1,141				79				—				9,056
Electricity, natural gas and fuel		—				—				—				—					5,804				12,320				—				18,124
Total			17,989				13,237				8,128				5,811				6,945				13,087				—				65,197
Other revenues			1,179				42				1,793				18				324				58				24,599				28,013
		$	19,168			$	13,279			$	9,921			$	5,829			$	7,269			$	13,145			$	24,599			$	93,210
Nine months ending September 30, 2023***
Manufactured products:
Industrial and commercial		$	21,458			$	—			$	172			$	—			$	—			$	—			$	—			$	21,630
Building			15,147			—				—				—				—				—					—				15,147
Consumer			12,956			—				—				—				—				—					—				12,956
Grocery and convenience store distribution		—					23,540			—				—				—				—					—				23,540
Food and beverage distribution		—					14,439			—				—				—				—					—				14,439
Auto sales		—				—					8,106			—				—				—					—				8,106
Other retail and wholesale distribution			2,420			—					12,301			—				—					1,791				—				16,512
Service			1,086				747				4,106				17,587				3,169				188				—				26,883
Electricity, natural gas and fuel		—				—				—				—					15,874				35,238				—				51,112
Total			53,067				38,726				24,685				17,587				19,043				37,217				—				190,325
Other revenues			3,440				131				5,247				51				1,015				157				70,740				80,781
		$	56,507			$	38,857			$	29,932			$	17,638			$	20,058			$	37,374			$	70,740			$	271,106

——————

*** Revenues from Pilot are for the eight months ending September 30, 2023.

A summary of the transaction price allocated to the significant unsatisfied remaining performance obligations related to contracts with expected durations exceeding one year as of September 30, 2024 and the timing of when the performance obligations are expected to be satisfied follows (in millions).

		Less than 12 months				Greater than 12 months				Total
Electricity, natural gas and fuel		$	3,105			$	19,361			$	22,466
Other sales and service contracts			3,340				5,193				8,533

Notes to Consolidated Financial Statements

Note 25. Business segment data

Our operating businesses include a large and diverse group of insurance, freight rail transportation, utilities and energy, manufacturing, service and retailing businesses. We organize our reportable business segments in a manner that reflects how management views those business activities. Certain businesses are grouped together for segment reporting based upon similar products or product lines and marketing, selling and distribution characteristics, even though those business units are operated under separate local management. We acquired control of Pilot on January 31, 2023. In this presentation, revenues and pre-tax earnings of the Pilot segment in 2023 are for the eight months ending September 30. Prior to January 31, 2023, our earnings from Pilot were determined under the equity method and were included in earnings from non-controlled businesses. Revenues and earnings before income taxes by segment for the third quarter and first nine months of 2024 and 2023 were as follows (in millions).

	Third Quarter								First Nine Months
	2024				2023				2024				2023
Revenues of Operating Businesses
Insurance:
Underwriting:
GEICO	$	10,699			$	9,844			$	31,402			$	29,184
Berkshire Hathaway Primary Group		4,685				4,449				13,882				12,643
Berkshire Hathaway Reinsurance Group		6,671				7,067				20,198				19,890
Investment income		4,609				2,948				11,850				8,258
Total insurance		26,664				24,308				77,332				69,975
BNSF		5,940				5,847				17,405				17,694
BHE		7,335				7,281				20,104				20,094
Pilot		10,630				13,166				36,132				37,428
Manufacturing		19,675				19,174				58,044				56,565
McLane		12,723				13,477				37,656				39,419
Service and retailing		9,842				9,946				29,492				30,018
		92,809				93,199				276,165				271,193
Reconciliation to consolidated amount
Corporate, eliminations and other		186				11				352				(87	)
	$	92,995			$	93,210			$	276,517			$	271,106

	Third Quarter								First Nine Months
	2024				2023				2024				2023
Earnings Before Income Taxes of Operating Businesses
Insurance:
Underwriting:
GEICO	$	2,033			$	1,053			$	5,747			$	2,270
Berkshire Hathaway Primary Group		(689	)			510				76				1,050
Berkshire Hathaway Reinsurance Group		(310	)			1,437				1,384				2,495
Investment income		4,594				2,933				11,814				8,230
Total insurance		5,628				5,933				19,021				14,045
BNSF		1,846				1,608				4,987				4,872
BHE		1,101				(147	)			1,859				700
Pilot		217				291				486				613
Manufacturing		3,135				3,077				9,178				8,791
McLane		145				116				452				358
Service and retailing		877				1,186				2,754				3,669
		12,949				12,064				38,737				33,048
Reconciliation to consolidated amount
Investment gains (losses)		20,514				(29,778	)			46,247				38,041
Interest expense, not allocated to segments		(102	)			(100	)			(317	)			(317	)
Non-controlled businesses		222				262				967				1,461
Corporate, eliminations and other		(1,075	)			593				717				995
	$	32,508			$	(16,959	)		$	86,351			$	73,228

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Results of Operations

Net earnings (loss) attributable to Berkshire Hathaway shareholders for the third quarter and first nine months ended September 30, 2024 and 2023 are disaggregated in the table that follows. Amounts are after deducting income taxes and exclude earnings attributable to noncontrolling interests (in millions).

	Third Quarter								First Nine Months
	2024				2023				2024				2023
Insurance – underwriting	$	750			$	2,422			$	5,611			$	4,580
Insurance – investment income		3,664				2,470				9,582				6,808
BNSF		1,383				1,221				3,753				3,732
Berkshire Hathaway Energy (“BHE”)		1,629				498				3,001				1,699
Pilot Travel Centers (“Pilot”)		198				183				436				380
Manufacturing, service and retailing		3,144				3,341				9,374				9,712
Non-controlled businesses***		199				226				824				1,329
Investment gains (losses)		16,161				(23,528	)			36,391				29,780
Other		(877	)			400				329				629
Net earnings (loss) attributable to Berkshire Hathaway shareholders	$	26,251			$	(12,767	)		$	69,301			$	58,649

——————

** Includes certain businesses in which Berkshire had between a 20% and 50% ownership interest.*

Through our subsidiaries, we engage in numerous diverse business activities. We manage our operating businesses on an unusually decentralized basis. There are few centralized or integrated business functions. Our senior corporate management team participates in and is ultimately responsible for significant capital allocation decisions, investment activities and the selection of the Chief Executive to head each of the operating businesses. The business segment data (Note 25 to the accompanying Consolidated Financial Statements and Note 26 to the Consolidated Financial Statements included in Form 10-K for the year ended December 31, 2023) should be read in conjunction with this discussion.

Our periodic operating results may be affected in future periods due to impacts of ongoing macroeconomic and geopolitical events, as well as changes in industry or company-specific factors or events. We cannot reliably predict the future economic effects of these factors or events on our businesses.

Insurance underwriting after-tax earnings decreased $1.7 billion in the third quarter and increased $1.0 billion in the first nine months of 2024 compared to 2023. Earnings in the third quarter of 2024 were negatively impacted by estimated losses from Hurricane Helene ($565 million), increases in liabilities for prior accident years’ claims, unrealized foreign currency exchange losses and accruals in connection with a bankruptcy settlement agreement related to a non-insurance affiliate. Earnings in the first nine months of 2024 benefited from improved operating results at GEICO. In the first nine months of 2023, after-tax losses from significant catastrophe events were approximately $465 million. After-tax earnings from insurance investment income increased $1.2 billion in the third quarter and $2.8 billion in the first nine months of 2024 compared to 2023, driven by higher interest income from investments in U.S. Treasury Bills.

After-tax earnings of BNSF increased 13.3% in the third quarter and were relatively unchanged in the first nine months of 2024 compared to 2023. Earnings in 2024 benefited from higher unit volume, improvements in employee productivity and lower other operating costs, and were negatively affected by higher litigation charges. After-tax earnings of BHE increased $1.1 billion in the third quarter and $1.3 billion in the first nine months of 2024 compared to 2023. The earnings increases reflected comparative declines in litigation-related charges affecting the U.S. utilities and higher earnings from natural gas pipelines, including reductions in earnings attributable to noncontrolling interests.

As disclosed in Note 3 to the accompanying Consolidated Financial Statements, we increased our ownership in Pilot from 38.6% to 80% on January 31, 2023, and further increased our ownership to 100% on January 16, 2024. We began consolidating Pilot’s results of operations on February 1, 2023. For the month ended January 31, 2023, earnings from Pilot on our 38.6% interest were determined under the equity method and were included in earnings from non-controlled businesses in the preceding table.

After-tax earnings from our manufacturing, service and retailing businesses decreased 5.9% in the third quarter and 3.5% in the first nine months of 2024 compared to 2023. Earnings in 2024 reflected lower earnings from our service and retailing businesses, partially offset by earnings increases at several of our manufacturing businesses.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Results of Operations

Investment gains (losses) predominantly derive from our investments in equity securities and include significant unrealized gains and losses from changes in market prices and foreign currency exchange rates applicable to certain of our investments. We believe that investment gains and losses, whether realized from dispositions or unrealized from changes in market prices, are generally meaningless in understanding our reported periodic results or evaluating the economic performance of our operating businesses. These gains and losses have caused and will continue to cause significant volatility in our periodic earnings. Investment gains in the first nine months of 2023 also included an after-tax non-cash remeasurement gain of approximately $2.4 billion related to our previously held 38.6% interest in Pilot through the application of the acquisition accounting method.

Other earnings included after-tax foreign currency exchange rate losses of $1.1 billion in the third quarter and $98 million in the first nine months of 2024 and gains of $447 million in the third quarter and $895 million in the first nine months of 2023 related to the non-U.S. Dollar denominated debt issued by Berkshire and Berkshire Hathaway Finance Corporation (“BHFC”).

Insurance—Underwriting

Our management views our insurance business as possessing two distinct activities – underwriting and investing. Underwriting decisions are the responsibility of the unit managers, while investing decisions are the responsibility of Berkshire’s Chairman and CEO, Warren E. Buffett and Berkshire’s corporate investment managers. Accordingly, we evaluate performance of underwriting operations without any allocation of investment income or investment gains and losses. We consider investment income as an integral component of our overall insurance operating results. However, we consider investment gains and losses, whether realized or unrealized, as non-operating. We believe that such gains and losses are not meaningful in understanding the periodic operating results of our insurance businesses.

The timing and magnitude of catastrophe losses can produce significant volatility in our periodic underwriting results, particularly with respect to our property and casualty reinsurance businesses. We currently consider pre-tax incurred losses exceeding $150 million from a current year catastrophic event to be significant. Significant catastrophe events in the first nine months of 2024 included Hurricane Helene in the third quarter, while significant events in 2023 included a cyclone and floods in New Zealand in the first quarter. In October 2024, Hurricane Milton struck Florida and caused significant damage. We currently estimate that pre-tax incurred losses from Hurricane Milton could be between $1.3 billion and $1.5 billion. Losses from this event will be reflected in our fourth quarter earnings based on information available at that time.

Changes in estimates for unpaid losses and loss adjustment expenses, including amounts established for occurrences in prior years, and foreign currency transaction gains and losses arising from the changes in the valuation of non-U.S. Dollar denominated assets and liabilities can also significantly affect our periodic underwriting results.

We provide primary insurance and reinsurance products covering property and casualty risks, as well as life and health risks. Our insurance and reinsurance businesses are GEICO, Berkshire Hathaway Primary Group (“BH Primary”) and Berkshire Hathaway Reinsurance Group (“BHRG”). We strive to produce pre-tax underwriting earnings (defined as premiums earned less insurance losses/benefits incurred and underwriting expenses) over the long term in all business categories, except in our retroactive reinsurance and periodic payment annuity businesses. Time-value-of-money is an important element in establishing prices for retroactive reinsurance and periodic payment annuity policies. We normally receive premiums at the contract inception date, which are then available for investment. Ultimate claim payments can extend for decades and are expected to exceed premiums, producing underwriting losses over the claim settlement periods through deferred charge asset amortization and accretion of discounted liabilities.

Underwriting results of our insurance businesses are summarized below (dollars in millions).

	Third Quarter								First Nine Months
	2024				2023				2024				2023
Pre-tax underwriting earnings:
GEICO	$	2,033			$	1,053			$	5,747			$	2,270
Berkshire Hathaway Primary Group		(689	)			510				76				1,050
Berkshire Hathaway Reinsurance Group		(310	)			1,437				1,384				2,495
Pre-tax underwriting earnings		1,034				3,000				7,207				5,815
Income taxes		284				578				1,596				1,235
Net underwriting earnings	$	750			$	2,422			$	5,611			$	4,580
Effective income tax rate		27.5	%			19.2	%			22.1	%			21.2	%

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Insurance—Underwriting

GEICO

GEICO writes property and casualty policies, primarily private passenger automobile insurance, in all 50 states and the District of Columbia. GEICO markets its policies mainly by direct response methods where most customers apply for coverage directly to the company via the Internet or over the telephone. GEICO also operates an insurance agency that offers primarily homeowners and renters insurance to its auto policyholders. A summary of GEICO’s underwriting results follows (dollars in millions).

	Third Quarter																First Nine Months
	2024								2023								2024								2023
	Amount				%				Amount				%				Amount				%				Amount				%
Premiums written	$	11,181							$	10,420							$	32,435							$	29,929
Premiums earned	$	10,699				100.0			$	9,844				100.0			$	31,402				100.0			$	29,184				100.0
Losses and loss adjustment expenses		7,634				71.4				7,879				80.0				22,803				72.6				24,063				82.5
Underwriting expenses		1,032				9.6				912				9.3				2,852				9.1				2,851				9.7
Total losses and expenses		8,666				81.0				8,791				89.3				25,655				81.7				26,914				92.2
Pre-tax underwriting earnings	$	2,033							$	1,053							$	5,747							$	2,270

GEICO’s pre-tax underwriting earnings in the first nine months of 2024 reflected higher average premiums per auto policy, lower claims frequencies and improved operating efficiencies compared to 2023, partially offset by less favorable development of prior accident years’ claims estimates, a rise in average claims severities and an increase in catastrophe losses.

Premiums written increased $761 million (7.3%) in the third quarter and $2.5 billion (8.4%) in the first nine months of 2024 compared to 2023, reflecting an increase in average written premiums per auto policy of 10.1%, primarily attributable to rate increases, partially offset by a 2.5% decrease in policies-in-force over the past year. The rate of decline in policies-in-force slowed in the first half of 2024, with growth experienced in the third quarter driven by increased new business and stable retention rates. Premiums earned increased $855 million (8.7%) in the third quarter and $2.2 billion (7.6%) in the first nine months of 2024 compared to 2023.

Losses and loss adjustment expenses declined $245 million (3.1%) in the third quarter and $1.3 billion (5.2%) in the first nine months of 2024 compared to 2023. GEICO’s loss ratio (losses and loss adjustment expenses to premiums earned) was 71.4% in the third quarter and 72.6% in the first nine months of 2024, decreases of 8.6 percentage points and 9.9 percentage points, respectively, compared to 2023. The loss ratio declines reflected the impact of higher average earned premiums per auto policy and lower claims frequencies, partially offset by increases in average claims severities and less favorable development of prior accident years’ claims estimates.

Claims frequencies in 2024 declined for property damage (two to three percent range) and collision coverages (eight to nine percent range) versus 2023, with bodily injury coverage down slightly. Average claims severities in 2024 increased for property damage (five to seven percent range), collision (four to six percent range) and bodily injury (eight to ten percent range) coverages compared to 2023. Losses and loss adjustment expenses in the first nine months included reductions in the ultimate loss estimates for prior accident years’ claims of $339 million in 2024 and $1.2 billion in 2023. Losses and loss adjustment expenses incurred in the third quarter of 2024 from Hurricane Helene were approximately $260 million.

Underwriting expenses were relatively flat in the first nine months of 2024 compared to 2023. GEICO’s expense ratio (underwriting expense to premiums earned) in the first nine months of 2024 was 9.1%, a decrease of 0.6 percentage points compared to 2023, attributable to improved operating efficiencies and increased operating leverage, partially offset by increased advertising expenses. The earnings from GEICO’s insurance agency (third-party commissions, net of operating expenses) are included as a reduction of underwriting expenses.

Berkshire Hathaway Primary Group

BH Primary consists of several independently managed businesses that provide a variety of primarily commercial insurance solutions, including healthcare professional liability, workers’ compensation, automobile, general liability, property and specialty coverages for small, medium and large clients. BH Primary’s insurers include Berkshire Hathaway Specialty Insurance (“BHSI”), RSUI Group Inc. and CapSpecialty, Inc. (“RSUI and CapSpecialty”), Berkshire Hathaway Homestate Companies (“BHHC”), MedPro Group, GUARD Insurance Companies (“GUARD”), National Indemnity Company (“NICO Primary”), Berkshire Hathaway Direct Insurance Company (“BH Direct”) and U.S. Liability Insurance Company (“USLI”).

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Insurance—Underwriting

Berkshire Hathaway Primary Group

A summary of BH Primary’s underwriting results follows (dollars in millions).

	Third Quarter																First Nine Months
	2024								2023								2024								2023
	Amount				%				Amount				%				Amount				%				Amount				%
Premiums written	$	5,075							$	4,990							$	14,499							$	13,905
Premiums earned	$	4,685				100.0			$	4,449				100.0			$	13,882				100.0			$	12,643				100.0
Losses and loss adjustment expenses		4,066				86.8				2,733				61.4				9,971				71.8				8,250				65.3
Underwriting expenses		1,308				27.9				1,206				27.1				3,835				27.7				3,343				26.4
Total losses and expenses		5,374				114.7				3,939				88.5				13,806				99.5				11,593				91.7
Pre-tax underwriting earnings (loss)	$	(689	)						$	510							$	76							$	1,050

Premiums written increased $85 million (1.7%) in the third quarter and $594 million (4.3%) in the first nine months of 2024 compared to 2023, primarily due to increases at NICO Primary, BH Direct and BHHC, partially offset by lower volumes at GUARD. The increases at NICO Primary and BHHC were primarily attributable to commercial auto coverage while the increase at BH Direct reflected growth across several product lines. The decline in premium volumes at GUARD were as a result of new management’s decision to exit admitted homeowners business and to tighten underwriting guidelines in other lines of business. Premiums earned increased 5.3% in the third quarter and 9.8% in the first nine months of 2024 versus 2023.

Losses and loss adjustment expenses increased $1.3 billion (48.8%) in the third quarter and $1.7 billion (20.9%) in the first nine months of 2024 and the loss ratio increased 25.4 percentage points in the third quarter and 6.5 percentage points in the first nine months of 2024 compared to 2023. Estimated ultimate claim liabilities attributable to pre-2024 accident years increased $789 million in the third quarter and $561 million in the first nine months of 2024. In 2023, estimated ultimate claim liabilities for prior accident years were reduced $219 million in the third quarter and $396 million in the first nine months. A significant portion of the increases in 2024 were related to GUARD. As a result of deteriorating loss experience, new management performed a comprehensive review of claims and, as a result, increased estimated ultimate claim liabilities. Excluding GUARD, development of estimated ultimate claim liabilities for prior accident years in the first nine months were less favorable or were unfavorable in 2024 across several of our businesses that write medical professional liability and commercial liability coverages, attributable to unfavorable social inflation trends, including the impacts of increased jury awards and litigation costs. Incurred losses from Hurricane Helene in the third quarter of 2024 were approximately $80 million, while losses from significant catastrophe events were approximately $35 million in the first nine months of 2023. BH Primary insurers write significant levels of workers’ compensation, commercial and professional liability insurance and the related claim costs may be subject to high severity and long claim-tails. Ultimate claim liabilities could be greater than anticipated due to a variety of factors, including adverse legal and judicial rulings.

Underwriting expenses increased $102 million (8.5%) in the third quarter and $492 million (14.7%) in the first nine months of 2024 compared to 2023, reflecting the increases in premiums earned. The underwriting expense ratio increased 0.8 percentage points in the third quarter and 1.3 percentage points in the first nine months of 2024 compared to 2023.

Berkshire Hathaway Reinsurance Group

The Berkshire Hathaway Reinsurance Group offers excess-of-loss and quota-share reinsurance coverages on property and casualty risks to insurers and reinsurers worldwide through several subsidiaries, led by National Indemnity Company (“NICO”), General Reinsurance Corporation, General Reinsurance AG and Transatlantic Reinsurance Company. We also write life and health reinsurance coverages through General Re Life Corporation, General Reinsurance AG and Berkshire Hathaway Life Insurance Company of Nebraska (“BHLN”). We assume property and casualty risks under retroactive reinsurance contracts written through NICO and we write periodic payment annuity contracts through BHLN. A summary of BHRG’s pre-tax underwriting results follows (in millions).

	Third Quarter								First Nine Months
	2024				2023				2024				2023
Property/casualty	$	161			$	1,488			$	2,191			$	3,002
Life/health		98				50				279				234
Retroactive reinsurance		(265	)			(126	)			(573	)			(584	)
Periodic payment annuity		(229	)			(91	)			(543	)			(466	)
Variable annuity		(75	)			116				30				309
Pre-tax underwriting earnings (loss)	$	(310	)		$	1,437			$	1,384			$	2,495