Berkshire Hathaway says net underwriting income fell 56% to $US213 million ($289 million) in the quarter to March 31, partly due to losses in its reinsurance group.

Pre-tax underwriting gains fell to $US348 million ($472 million) from $US747 million ($1.01 billion) in the corresponding period last year. Total insurance premium earned grew to $US11.1 billion  ($15.1 billion) from $US9.5 billion ($12.9 billion).

Net investment income generated by insurance operations increased to $US919 million ($1.24 billion) from $US875 million ($1.19 billion).

The diversified conglomerate’s overall net profit increased to $US5.59 billion ($7.58 billion) from $US5.16 billion ($7 billion).

“Our insurance businesses generated lower earnings in the first quarter… due primarily to comparatively lower gains from Berkshire Hathaway Reinsurance Group’s property and casualty business and lower foreign currency exchange rate gains attributable to certain of its foreign currency-denominated liabilities,” the group says.

Berkshire Hathaway Reinsurance Group, one of four underwriting units, made a pre-tax loss of $US79 million ($107.13 million), compared with a $US459 million ($622.46 million) gain last year. The loss is attributed to pre-tax losses from retroactive contracts, which deteriorated to $US91 million ($123.4 million) from $US2 million ($2.71 million).

Motor vehicle insurer Geico increased its pre-tax underwriting gain to $US264 million ($358 million) from $US160 million ($217 million), as premiums grew to $US6.05 billion ($8.2 billion) from $US5.39 billion ($7.31 billion).

General Re made a pre-tax gain of $US42 million ($56.94 million), up from a $US47 million ($63.72 million) loss last year. The turnaround is due to improvements in property and casualty and life and health segments.

The property and casualty segment made a pre-tax-gain of $US30 million ($40.68 million) compared with a $US14 million ($18.98 million) loss, while life and health made $US12 million ($16.27 million) after last year’s $US33 million loss ($44.75 million).

Berkshire Hathaway Primary Group’s pre-tax gain fell to $US121 million ($164.05 million) from $US175 million ($237.26 million).