Berkshire Hathaway’s insurance arm returned to profitability in the first quarter, with $US407 million ($540 million) in net earnings following a $US267 million ($354 million) loss in the corresponding period last year.

Lower losses for prior-year property and casualty events and the favourable effect of a lower tax rate partly offset increased losses on retroactive reinsurance contracts.

The insurance business made a pre-tax underwriting profit of $US518 million ($687 million) – a sharp turnaround from a $US379 million ($503 million) deficit in the corresponding period last year.

Motor insurer Geico increased its pre-tax underwriting profit to $US677 million ($898 million) from $US175 million ($232 million), while gross written premium grew to $US8.7 billion ($11.5 billion) from $US7.6 billion ($10.1 billion).

For Berkshire Hathaway Reinsurance Group, the pre-tax underwriting loss narrowed to $US258 million ($342 million) from $US743 million ($985 million).

Berkshire Hathaway Primary Group’s pre-tax underwriting profit decreased to $US99 million ($131 million) from $US189 million ($251 million).

The insurance arm increased its investment income to $US1.01 billion ($1.34 billion) from $US908 million ($1.2 billion).