Berkshire’s insurance arm has posted a moderate drop in first-quarter underwriting net earnings, falling to $US389 million ($554.5 million) from $US407 million ($580.15 million) a year earlier.

On a pre-tax basis, earnings declined to $US487 million ($694.19 million) from $US518 million ($738.38 million).

Its motor insurer Geico was the only business to return an underwriting profit, with pre-tax earnings of $US770 million ($1.1 billion), down from $US677 million ($965.02 million).

The business was affected by a 7.9% rise in losses and adjustment expenses to $US6.6 billion ($9.4 billion) and 11.4% increase in underwriting expenses to $US1.3 billion ($1.95 billion).

Berkshire Hathaway Reinsurance Group remained in the red, recording $US253 million ($360.64 million) in pre-tax underwriting losses, compared with $US258 million ($367.76 million) a year earlier.

Commercial insurance provider Berkshire Hathaway Primary Group slumped to a $US30 million ($42.76 million) deficit after making $US99 million ($141.12 million) a year earlier.

Net investment income from the insurance arm grew to $US1.24 billion ($1.77 billion) from $US1.01 billion ($1.44 billion).