Why did BRK.B's revenue exceed forecasts in 2024?

Berkshire Hathaway's revenue exceeding forecasts in 2024 can be attributed to several key factors: 1. **Insurance Business Growth**: The insurance business was the primary driver of growth, with operating earnings increasing by 51%. Berkshire Hathaway's insurance underwriting operating earnings rose from $5.4 billion in 2023 to $9 billion in 2024. This significant increase was due to higher interest rates that boosted investment income and an improvement in underwriting results, particularly at GEICO. 2. **Investment Income**: Higher interest rates also contributed to the increase in investment income, which rose by 48% to $4.1 billion in Q4. This improvement in investment income, along with higher underwriting earnings, significantly boosted the company's overall performance. 3. **GEICO Performance**: GEICO, a subsidiary of Berkshire Hathaway, played a crucial role in the insurance business's growth. It added new customers in the second half of the year, reversing a trend of declining policy growth. The auto insurer's pretax underwriting profit more than doubled to $7.8 billion in 2024. 4. **Market Conditions**: Market conditions, including higher property-casualty insurance pricing and an increase in damage from convective storms, were favorable for the insurance business. These conditions, along with Berkshire Hathaway's strong market position, allowed the company to capitalize on opportunities and drive revenue growth. In summary, Berkshire Hathaway's revenue exceeding forecasts in 2024 can be attributed to the significant growth in its insurance business, driven by higher investment income, improved underwriting results, and the strong performance of its subsidiaries like GEICO.