Berkshire Hathaway, the investment company run by business guru Warren Buffett has suffered a 48% quarterly profit fall as a result of some $US3 billion ($4.07 billion) claims from hurricanes Katrina and Rita.

But for the insurance result, it would have been a good quarter. Berkshire Hathaway noted a 7% rise in profits to $20.53 billion ($27.6 billion) for the third quarter.

But the hurricane claims include $US118 million ($159 million) at car insurer Geico, $US602 million ($811 million) at General Re, and $US2.27 billion ($3 billion) within the company’s reinsurance group.

Berkshire estimates total industry losses from Katrina and Rita at $US60-70 billion ($80.9-94.4 billion) – far higher than the estimates of loss measurement companies.

The profit was the lowest since Berkshire Hathaway earned only $95 million ($128 million) in the fourth quarter of 2001, immediately after the September 11 terrorist attacks.

In Friday trading, Berkshire Class A shares were unchanged at $US88,300 ($119,019), and Class B shares fell $US16 ($21.50) to $US2919 ($3937).

Berkshire Hathaway is co-operating with a number of insurance investigations by US regulators, including into whether General Re helped clients use financial reinsurance to improperly smooth earnings. Regulators in Britain, Germany, Ireland, Canada and Australia are also examining various activities of Berkshire Hathaway insurance subsidiaries.