Berkshire Hathaway 1998 Annual Report Download - page 71

Download and view the complete annual report

Please find page 71 of the 1998 Berkshire Hathaway annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 74

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74

70
BERKSHIRE HATHAWAY INC.
FINANCE AND FINANCIAL PRODUCTS BUSINESSES
Scott Fetzer Financial Group, Inc., Berkshire Hathaway Life Insurance Co. of Nebraska and General Re Financial
Products make up Berkshire's finance and financial products businesses.
Balance Sheets
(dollars in millions)
1998 1997
Assets
Cash and cash equivalents .................................................. $16,907 $1,256
Investment in securities with fixed maturities:
Held to maturity, at cost (fair value $1,366 in 1998; $1,082 in 1997) ................ 1,227 971
Trading, at fair value (cost $5,643) .......................................... 5,219 —
Available for sale, at fair value (cost $745) .................................... 743 —
Trading account assets ..................................................... 6,234 —
Securities purchased under agreements to resell .................................. 1,083 —
Other .................................................................. 1,576 244
$16,989 $1,271
Liabilities
Annuity reserves and policyholder liabilities .................................... $16,816 $1,697
Securities sold under agreements to repurchase .................................. 4,065 —
Securities sold but not yet purchased .......................................... 1,181 —
Trading account liabilities .................................................. 5,834 —
Notes payable and other borrowings .......................................... 1,503 326
Other .................................................................. 2,428 126
$15,827 $1,149
Equity
Berkshire shareholders’ ................................................... 1,162 122
$16,989 $1,271
Statements of Earnings
(dollars in millions)
1998 1997 1996
Revenues:
Annuity premiums earned ............................................. $ 95 $ 248 $ 259
Other revenues ..................................................... 293 112 94
388 360 353
Expenses:
Interest expense .................................................... 27 24 32
Annuity benefits and underwriting expenses ............................... 146 287 277
General and administrative ............................................ 16 21 21
189 332 330
Earnings from operations before income taxes .............................. 199 28 23
Income tax expense .................................................. 70 10 8
Net earnings ....................................................... $ 129 $ 18 $ 15
This presentation includes the assets and liabilities as of December 31, 1998 of General Re Financial Products,
acquired in connection with the acquisition of General Re Corporation on December 21, 1998. It does not include the
operating results of this business.
These statements do not conform to GAAP in all respects
These statements are unaudited