General presentation of Berkshire Hathaway :
Now let's take a few moments to find out a little bit more about who Berkshire Hathaway is and how it generates its revenue with its activities and sources of profit by segment.
The Berkshire Hathaway Group is an American holding company which is active in various business segments. It is thus possible to group the activities of this group into 6 main categories according to the share of turnover they generate :
- The insurance and reinsurance segment, which generates 27% of the Group's revenues.
- The industrial products and building materials manufacturing segment, which generates 24.6% of revenues.
- The wholesale distribution segment of grocery products and food and non-food products with the subsidiary McLane Company, which generates 19.8% of the profit.
- The rail freight segment which generates 11.5% of revenues with Burlington Northern Santa Fe.
- The electricity and gas generation and distribution segment with 7.9% of revenues by Berkshire Hathaway Energy.
- Finally, the remaining 9.2% of income comes from miscellaneous ancillary activities.
At present, the Berkshire Hathaway Group employs 391,500 people.
Know the competition of the Berkshire Hathaway stock:
We would now like to give you a quick overview of the Berkshire Hathaway Group's main competitors, mainly from the insurance sector. Here is a presentation of the main competitors:
- AIG: American International Group Inc. is a global American property and casualty insurance network and one of the world's leading insurance and financial services companies. It has more than 56,000 employees and 90 million customers in more than 100 countries.
- Aon: This British multinational company is also a major player in risk management, insurance and reinsurance brokerage, human resources consulting, and specialist insurance management and underwriting.
- Allianz: The German insurance group Allianz is the leader in this sector in Europe and ranks fourth worldwide in terms of asset management. In particular, it offers property and casualty and life insurance products and is present in Germany, Switzerland, France and Italy.
- Alltate: This other American group is one of the country's best-known insurance companies, thanks in particular to its strategic takeovers. This company was created through a spin-off from Sears.
- MetLife: Also known as the Metropolitan Life Insurance Company, MetLife is a US insurance company that offers creditor insurance and benefit guarantees for individuals, professionals and intermediaries. It is one of the world's leading insurance players with more than 90 million customers in some 60 countries.
The strategic alliances set up by the Berkshire Hathaway group:
If it is important to know the competition of the Berkshire Hathaway group, it is just as important to know its strategic allies. We now propose you to discover two recent examples of partnerships signed by this company.
- BioTalent Canada: Through its Business Wire subsidiary, Berkshire Hathaway recently partnered with this Canadian national non-profit organization specializing in the country's bio-economy in human resources. The objective of this alliance is to enhance BioTalent's Affiliate Plus program through Business Fire, which specializes in press release distribution and to broaden its audiences in the bio-economy sector in Canada and internationally. BioTalent partners will also be able to take advantage of special packages on BioTalent's dissemination services with Business Fire's segment news posted exclusively on BioTalent Canada's website.
- AIG: The group has also signed a partnership with its competitor AIG which will transfer part of its long-term risks to Berkshire. This $10.2 billion transaction took place in June 2017. It is National Indemnity, the subsidiary of Berkshire which assumes 80% of the net losses related to these risks with a ceiling of 20 billion dollars.