Berkshire Hathaway chairman and CEO Warren Buffett plans to retire from the top executive role at the end of the year. 

The 94-year-old told the group’s annual general meeting he will recommend to the 11-member board that Greg Abel, vice chairman for non-insurance operations, take over.

“I think the time has arrived where Greg should become the CEO at year end,” he said at the Nebraska meeting. “I think they will be unanimously in favour.”

Mr Buffett said he will “hang around and could conceivably be useful in a few cases”, but Mr Abel will be responsible for executive decisions.

Mr Abel has previously been identified as the next CEO, but with no time frame specified. Mr Buffett said in the annual report that it would not be long before Mr Abel was writing the letters to shareholders.

Berkshire Hathaway’s insurance operations include motor division Geico, Berkshire Hathaway Specialty Insurance and reinsurance. It owns freight rail and utility and energy businesses, while its diverse corporate investments include stakes in Apple, Coca-Cola and Kraft Heinz.

Insurance net underwriting earnings fell to $US1.3 billion ($2 billion) in the first quarter from $US2.6 billion ($4 billion).

The result includes after-tax losses from the southern California wildfires of about $US860 million ($1.3 billion). No significant catastrophes affected the year-earlier period.

After-tax earnings from insurance investment income increased $US295 million ($457 million), attributable to higher interest income from investments in US Treasury bills, partially offset by lower dividend income.

Including railways and other sectors, Berkshire Hathaway operating earnings fell to $US9.6 billion ($14.9 billion) from $US11.2 billion ($17.4 billion).

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