BERKSHIRE POSTS 20% RISE IN 2007 INCOME, DESPITE Q4 DROP

Berkshire Hathaway has reported net income for 2007 up 20% to $13.21bn. The group's insurance and reinsurance businesses posted underwriting gains of $2.18bn, a decline of 12%, while investment and derivative gains more than doubled to $3.58bn. The group's General Re subsidiary generated 2007 underwriting profit of $555m, an increase of 5.5%. Berkshire Hathaway Reinsurance saw its underwriting income fall 14% to $1.43bn. The group's Geico motor insurance unit had underwriting income of $1.11bn, down 15%. For Q4, Berkshire saw net earnings fall 18% to $2.95bn, as underwriting earnings fell 46% to $465m and investment and derivative gains dropped 17% to $597m. In his annual letter to shareholders, chairman Warren Buffett said that 2008 is likely to be a more difficult year for the insurance industry.