Berkshire Hathaway’s fourth-quarter operating earnings totaled $10.2 billion, a 29.8% decrease from the same period last year, the company reported Saturday, marking the first earnings release under new Chief Executive Officer Greg Abel.
The decline in earnings was primarily attributed to weakness in the insurance business, according to the report. Last year’s overall operating earnings reached approximately $44.5 billion, down 6% from the prior year. Net income for the full year fell slightly to $19.2 billion, compared to $19.69 billion in 2024.
Insurance underwriting income decreased by 19.5% last year, totaling $7.2 billion. The report specifically noted challenges at Geico, Berkshire’s auto insurance arm, which has experienced weaker customer retention following broad rate increases.
The earnings report also represents the first annual shareholder letter not authored by Warren Buffett, 95, who stepped down at the end of 2025 after six decades leading the conglomerate. Abel, his long-time lieutenant, succeeded him in May 2025.
In his inaugural letter to shareholders, Abel emphasized the continuity of Berkshire’s investment principles and sought to reassure investors. “To invest in Berkshire has long been a vote of trust in our founder – a trust that now rests with Berkshire,” Abel wrote. “Your capital is commingled with ours, but it does not belong to us. Our role is stewardship. That stewardship has shaped a culture and reinforced a set of values that are not the result of our success, but the reason for it.”
Abel paid tribute to Buffett, promising not to deviate from Berkshire Hathaway’s established investment strategy, according to reports. He also addressed the company’s investment in Kraft Heinz, though specific details of those comments were not immediately available.
