Berkshire Hathaway’s insurance business sank into the red during the first quarter, driven down partly by estimated losses of $US52 million ($70.22 million) from Cyclone Debbie and incurred losses of $US270 million ($364.62 million) related to prior years’ loss events.

It made an underwriting loss of $US379 million ($511.82 million) in the March quarter, down from a $US348 million ($469.94 million) gain in the corresponding period last year.

Net investment income from insurance operations fell to $US908 million ($1.23 billion) from $US919 million ($1.24 billion).

The US-based diversified conglomerate’s overall net income for the quarter fell to $US4.06 billion ($5.48 billion) from $US5.59 billion ($7.55 billion).

Berkshire Hathaway Reinsurance Group, one of the group’s four insurance divisions, recorded a $US269 million ($363.28 million) pre-tax underwriting loss in its property and casualty business because of Debbie and prior years’ loss events.

The division’s pre-tax underwriting loss worsened to $US600 million ($810.29 million) from $US79 million ($106.69 million).

US motor insurer Geico’s pre-tax underwriting gain fell to $US175 million ($236.34 million) from $US264 million ($356.56 million) as expenses grew to $US1.08 billion ($1.46 billion) from $US963 million ($1.3 billion). Premium written increased to $US7.59 billion ($10.25 billion) from $US6.57 billion ($8.87 billion).

General Re made a pre-tax underwriting loss of $US143 million ($193.18 million), compared with a $US42 million ($56.74 million) gain in the corresponding period last year.

Berkshire Hathaway Primary Group’s pre-tax underwriting gain improved to $US189 million ($255.31 million) from $US121 million ($163.45 million).