Profile: Berkshire Hathaway Inc (BRKb)
24 Nov 2015
Berkshire Hathaway Inc., incorporated on June 16, 1998, is a holding company owning subsidiaries engaged in various business activities. The Company conducts insurance businesses on both a primary basis and a reinsurance basis, a freight rail transportation business and a group of utility and energy generation and distribution businesses. Its insurance and reinsurance business activities are conducted through various domestic and foreign-based insurance entities. Its insurance businesses provide insurance and reinsurance of property and casualty risks and also reinsure life, accident and health risks across the world. Its segments include GEICO, General Re, Berkshire Hathaway Reinsurance Group, Berkshire Hathaway Primary Group, BNSF, Berkshire Hathaway Energy, McLane Company, Manufacturing, Service and retailing, and Finance and financial products.
The Company's GEICO segment includes its subsidiaries, which are Government Employees Insurance Company, GEICO General Insurance Company, GEICO Indemnity Company, GEICO Casualty Company, GEICO Advantage Insurance Company, GEICO Choice Insurance Company, GEICO Secure Insurance Company and GEICO County Mutual Insurance Company. These companies offer private passenger automobile insurance to individuals in 50 states of the United States and the District of Columbia. In addition, GEICO insures motorcycles, all-terrain vehicles, recreational vehicles and small commercial fleets and acts as an agent for other insurers who offer homeowners, boat and life insurance to individuals.
The Company's General Re segment consists of General Re Corporation (General Re), which is the holding company of General Reinsurance Corporation (GRC) and its subsidiaries and affiliates. General Re subsidiaries conduct business activities globally in 51 cities and provide insurance and reinsurance coverages throughout the world. General Re provides property/casualty insurance and reinsurance, life/health reinsurance and other reinsurance intermediary and risk management services, underwriting management and investment management services. General Re’s property/casualty reinsurance business in North America is conducted through GRC. General Re’s property/casualty business in North America also includes specialty insurers. General Re’s international property/casualty reinsurance business operations are conducted through internationally-based subsidiaries on a direct basis via General Reinsurance AG, as well as other General Re subsidiaries and branches in 23 countries, and through brokers. General Re’s North American and international life, health, long-term care and disability reinsurance coverages are written on an individual and group basis.
Berkshire Hathaway Reinsurance Group
The Company's Berkshire Hathaway Reinsurance Group (BHRG) segment includes activities conducted through various subsidiaries, such as National Indemnity Company (NICO) and Columbia Insurance Company. BHRG provides principally excess and quota-share reinsurance to other property and casualty insurers and reinsurers. BHRG also offers life reinsurance and annuity contracts through Berkshire Hathaway Life Insurance Company of Nebraska (BHLN) and financial guaranty insurance through Berkshire Hathaway Assurance Corporation. BHRG underwrites traditional non-catastrophe property and casualty insurance and reinsurance, catastrophe excess-of-loss treaty and facultative reinsurance, and individual primary insurance policies on an excess-of-loss basis. BHLN offers annuity insurance products in structured settlements markets and reinsurance of annuity liabilities. BHRG assumes risks associated with guaranteed minimum death, income and other benefits under closed-blocks of variable annuity contracts.
Berkshire Hathaway Primary Group
The Company's Berkshire Hathaway Primary Group segment is a collection of independently managed insurance operations that provide various insurance coverages to policyholders located principally in the United States. Its operations include National Indemnity Company (NICO) and certain affiliates (referred to as the National Indemnity Primary Group) underwrite motor vehicle and general liability insurance to commercial enterprises on both an admitted and excess and surplus basis. A collection of insurance companies referred to as the Berkshire Hathaway Homestate Companies (BHHC) primarily offer standalone workers’ compensation, commercial auto and commercial property coverages. Medical Protective Corporation (MedPro) provides healthcare liability insurance coverage and risk solutions for physicians, dentists, hospitals and health systems, as well as other healthcare facilities and healthcare providers, offered through its subsidiaries ,The Medical Protective Company and Princeton Insurance Company, and other Berkshire Hathaway affiliates. U.S. Investment Corporation (USIC), through its four subsidiaries led by United States Liability Insurance Company, is a specialty insurer that underwrites commercial, professional and personal lines of insurance on an admitted and excess and surplus basis. Applied Underwriters, Inc. (Applied) is a provider of payroll and insurance services to small and mid-sized employers.
The Company's BNSF segment consists of Burlington Northern Santa Fe, LLC. BNSF Railway Company operates railroad systems in North America with approximately 32,500 route miles of in 28 states, and also operates in three Canadian provinces. BNSF Railway owns approximately 23,000 route miles, including easements. BNSF transports a range of products and commodities derived from manufacturing, agricultural and natural resource industries. BNSF’s primary routes, including trackage rights, allow it to access cities and ports in the western and southern United States, as well as parts of Canada and Mexico. In addition to major cities and ports, BNSF serves smaller markets by working with approximately 200 shortline partners. BNSF has also entered into marketing agreements with other rail carriers.
Berkshire Hathaway Energy
The Company's Berkshire Hathaway Energy segment consists of Berkshire Hathaway Energy Company (BHE). BHE is an energy company with subsidiaries that generate, transmit, store, distribute and supply energy. BHE’s businesses are managed as separate operating units. BHE’s domestic regulated energy interests comprise four regulated utility companies serving approximately 4.6 million retail customers, two interstate natural gas pipeline companies with approximately 16,400 miles of pipeline and a design capacity of approximately 7.8 billion cubic feet of natural gas per day and ownership interests in electricity transmission businesses. Its domestic regulated utility interests comprise PacifiCorp, MidAmerican Energy Company (MEC) and NV Energy. BHE also owns two domestic regulated interstate natural gas pipeline companies. BHE also operates a portfolio of independent power projects and a residential real estate brokerage firm and franchise network in the United States. PacifiCorp operates a regulated utility business in portions of various Western states, including Utah, Oregon and Wyoming. MEC operates a regulated utility business primarily in Iowa and Illinois.
The Company's McLane Company (McLane) segment consists of McLane Company, Inc., which provides wholesale distribution of groceries and non-food items in 50 states of the United States to customers that include convenience stores, discount retailers, wholesale clubs, drug stores, military bases, quick service restaurants and casual dining restaurants. McLane provides wholesale distribution services to Wal-Mart Stores, Inc. (Wal-Mart), which accounts for approximately 24% of McLane’s revenues. Grocery operations provide products to approximately 46,000 retail locations nationwide, including Wal-Mart. McLane’s grocery distribution unit operates 23 facilities in 19 states.
The Company's Manufacturing segment consists of industrial and end-user products, building products and apparel. Marmon Holdings, Inc. (Marmon) manufacturing includes Marmon Engineered Components Company (Engineered Components), Marmon Retail Technologies Company (Retail Technologies) and the Engineered Wire & Cable operations within Marmon Energy Services Company (Energy Services). Building products consists of Shaw Industries Group, Inc. (Shaw), a carpet manufacturer. Johns Manville (JM) is a manufacturer and marketer of products for building insulation, mechanical insulation, commercial roofing and roof insulation, as well as fibers and non-wovens for commercial, industrial and residential applications. MiTek Industries, Inc. is a supplier of engineered connector products, construction hardware, engineering software and services and computer-driven manufacturing machinery. Benjamin Moore & Co. is a formulator, manufacturer and retailer of a range of architectural coatings. The Company's apparel manufacturing businesses include manufacturers of various clothing and footwear. Businesses engaged in the manufacture and distribution of clothing products include Fruit of the Loom, Inc. (Fruit), Russell Brands, LLC (Russell), Vanity Fair Brands, LP (VFB), Garan and Fechheimer Brothers.
Service and retailing
The Company's Service and retailing segment consists of FlightSafety International Inc., a provider of aviation training services. NetJets Inc. (NetJets) is a provider of fractional ownership programs for general aviation aircraft. TTI, Inc. (TTI) is a specialty distributor of passive, interconnect, electromechanical and discrete components used by customers in the manufacturing and assembling of electronic products. Its retailing businesses principally consist of various independently managed home furnishings and jewelry operation. The home furnishings businesses are the Nebraska Furniture Mart (NFM), R.C. Willey Home Furnishings (R.C. Willey), Star Furniture Company (Star) and Jordan’s Furniture, Inc. (Jordan’s).
Finance and financial products
The Company's Finance and financial products include Clayton Homes, Inc. (Clayton), which is a manufactured housing company. UTLX Company (UTLX) operates railcar, crane, intermodal tank container, manufacturing and service businesses under various brand names. XTRA Corporation (XTRA) is a transportation equipment lessor operating under the XTRA Lease brand name. CORT Business Services Corporation is a national provider of rental relocation services, including rental furniture, accessories and related services.
The Company competes with Union Pacific Railroad Company, Infineum International Ltd., Chevron Oronite Company, Afton Chemical Corporation, Nalco Energy Services, Baker Hughes Inc., Schlumberger Ltd., Halliburton Company and Sandvik and Kennametal, Inc.
Berkshire Hathaway Inc
3555 Farnam St
OMAHA NE 68131-3311