Berkshire Hathaway reported insurance underwriting net earnings fell by more than half in the second quarter, dragged down by pandemic provisions and other virus-related fallouts.

Earnings in the June quarter declined to $US376 million ($512 million) from $US806 million ($1.1 billion) a year earlier, and for the first-half of the year, it weakened to $US1.14 billion ($1.6 billion) from $US1.17 billion ($1.6 billion).

The US conglomerate says future earnings may possibly be exposed to further adverse impact from the pandemic, which is seeing a new surge in transmission in parts of the US.

“Underwriting results for certain of our commercial insurance and reinsurance businesses were negatively affected in 2021 and 2020 by estimated losses and costs associated with the COVID-19 pandemic, including estimated provisions for claims and uncollectible premiums and incremental operating costs to maintain customer service levels,” Berkshire said.

“The effects of the pandemic in future periods may be affected by judicial rulings and regulatory and legislative actions pertaining to insurance coverage and claims and by its effects on general economic activity, which we cannot reasonably estimate at this time.”

Pre-tax underwriting earnings at motor insurer Geico fell sharply to $US626 million ($853 million) in the June quarter from $US2.06 billion ($2.8 billion).

Commercial insurer Berkshire Hathaway Primary Group increased its net earnings to $US166 million ($226 million) from $US96 million ($130 million) and Berkshire Hathaway Reinsurance Group narrowed its loss to $US327 million ($445 million) from $US1.1 billion ($1.5 billion).