Berkshire Hathaway says insurance underwriting earnings fell in the third quarter, driven by increased property and casualty claims from a hailstorm in Europe.

Underwriting profit dropped to $US170 million ($180 million) from $US392 million ($415 million), while investment income gained 17% to $US861 million ($912 million).

The result took nine-month insurance underwriting earnings to $US1.6 billion ($1.7 billion) from $US1.06 billion ($1.12 billion) in the corresponding period last year.

“In the first nine months… we incurred pre-tax losses of about $US425 million ($450 million) related to floods and a hailstorm in Europe,” the company said. There were no significant catastrophe events in the first nine months of last year.

Berkshire Hathaway says price competition persisted in most property and casualty lines within its General Re reinsurance business.

“Our underwriters continue to exercise discipline by declining offers to write business where prices are deemed inadequate. However, we remain prepared to increase premium volumes should market conditions improve.”

Third-quarter underwriting gains at Geico, which mainly insures private vehicles, fell to $US307 million ($325 million) from $US435 million ($461 million) following an increase in claims frequencies for property damage and injuries.

Berkshire Hathaway Reinsurance Group reported a third-quarter underwriting loss of $US206 million ($218 million) compared with a $US102 million ($108 million) loss a year earlier.