After suffering big losses from September 11, Berkshire Hathaway, the vehicle of US investment guru Warren Buffett, has announced a 51% increase in quarterly profits, resulting from the gains made on rising insurance premiums.

The business reported a net first-quarter profit of $ 1.6 billion compared with $1.2 billion the year before.

The soaring result comes after a decade of declining profit, a change accelerated by the price hikes and the demand for insurance created by September 11. The flow-on effect of September 11 cost Berkshire around $4.4 billion.

The group announced a $1.4 billion operating profit, compared with around $843 million at the same time last year. Realised gains came in at $262 million.