NEW YORK - Warren Buffett's company-owned conglomerate, Berkshire Hathaway Inc. reported first-quarter decline in profit this year because the number of reinsurance claims caused by the earthquake and tsunami Japan.
As quoted by Reuters, in the first quarter of 2011, Berkshire's net profit amounted to USD1, 51 billion or USD917 per share. While in the first quarter of 2010, net profit recorded a profit of insurance companies is USD2.722 per share.
But, in the quarterly report, the company at all regarding the resignation of Executive David Sokol Bekshire who had created a scandal in Berkshire and encourage the SEC investigation.
The company was issued a provisional registration for USD1, 7 billion in the first quarter to pay for losses due to earthquakes in Japan, also to cover losses in New Zealand earthquake and floods in Australia.
Buffett, who is the third richest person in the world also seems to have suspected his company's financial performance will decline.
In addition, Berkshire also recorded a loss USD506 million in the first quarter to decline in value of corporate investments in shares. The biggest contribution of this impairment is the decline in value of Berkshire shares in Wells Fargo, as well as Kraft Foods stock price declines.
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