OMAHA — Berkshire Hathaway reported a sharp rebound in its third-quarter operating profit, driven by a massive surge in its insurance business, the conglomerate said Saturday.
However, with CEO Warren Buffett finding few attractive opportunities in the market, the company’s cash reserves swelled to a record $381.6 billion as it refrained from share repurchases for the third consecutive quarter.
Operating profit — which Buffett emphasizes as a key measure of performance — climbed 34% to $13.485 billion from the year-ago period. The surge was powered by a more than 200% increase in insurance underwriting earnings, which rose to $2.37 billion.
Despite the strong performance and a pullback in its stock price, Berkshire did not repurchase any shares in the quarter. The company’s cash hoard grew from the previous record of $347.7 billion set earlier this year.
The “Oracle of Omaha” also appeared to find little value in the broader stock market. Berkshire was a net seller of equities in the third quarter, recording $10.4 billion in taxable gains from the sales.
The report comes amid a significant transition for the conglomerate. The 95-year-old Buffett announced in May that he will step down as CEO at year-end after six decades at the helm. Greg Abel, vice chairman of non-insurance operations, is slated to take over as chief executive, while Buffett will remain chairman. Abel will also begin writing the company’s famed annual letters to shareholders starting in 2026.
Berkshire’s shares have fallen double digits from their all-time highs since the leadership change was announced, a drop analysts attribute in part to the evaporation of the “Buffett premium.”
In a notable acquisition last month, Berkshire announced a deal to buy Occidental Petroleum‘s petrochemical unit, OxyChem, for $9.7 billion in cash. It marks the company’s largest deal since its $11.6 billion purchase of insurer Alleghany in 2022.
Overall net earnings, which include paper gains from Berkshire’s massive investment portfolio, rose 17% to $30.8 billion.