Berkshire Hathaway’s global insurance business has reported a drop in its first-half operating earnings due to $US1.9 billion ($1.8 billion) of losses from the Australasian, Japanese and US natural disasters.

The 2011 six-month operating earnings for its insurance business was $US4.2 billion ($4 billion) compared to $US5.2 billion ($5 billion) in the first half last year.

The underwriting losses for the 2011 half were $US828 million ($804 million) compared to a positive $US688 million ($668 million) in the 2010 half-year.

Total earned premiums for the insurance business were $19.1 billion ($18.5 billion) in this year’s half, compared to $US17 billion ($16.5 billion) in the previous corresponding period.

Underwriting losses were reported for both Gen Re and Berkshire Hathaway Re in the six months ending June 30.

Gen Re reported an underwriting loss of $US194 million ($188 million) on earned premiums of $US2.8 billon ($2.7 billion).

This compared to an underwriting profit of $US183 million ($177 million) in the 2010 half-year.

General insurance earned premiums were $US1.4 billion ($1.3 billion) for the 2011 half with a $283 million ($275 million) underwriting loss.

Gen Re’s life insurance business wrote premiums of $US1.4 billion ($1.3 billion) with an underwriting profit of $US89 million ($86.5 million).

Berkshire Hathaway Re underwriting losses were $1.6 billion ($1.55 billion) on earned premiums of $US5.2 billion ($5 billion). This compares to an underwriting profit of $US169 million ($164 million for the first half last year.

Berkshire Hathaway is not confident about its second half, predicting the insurance business will make a loss for the full year, especially if there is a tough US hurricane season.