Berkshire's earnings hit speed bump on insurance businesses

Berkshires namesake reinsurance group and General Re unit incurred costs tied to a cyclone in Australia. Pretax profit fell 34 percent at Geico, which sells auto coverage.

By Noah Buhayar, Katherine Chiglinsky | Updated on May 08, 2017

(Bloomberg) – Warren Buffett’s Berkshire Hathaway Inc. hit a speed bump in the first quarter as insurance units posted an underwriting loss, overshadowing gains at the company’s railroad and energy business.

Over the past five decades, he’s transformed Berkshire from a struggling textile business into a financial powerhouse with insurance, energy, retail, transportation and manufacturing units. With an eye toward value and long-term thinking, his stock picks and acquisitions have helped propel steady increases in the company’s earnings.

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