Berkshire Hathaway’s first-quarter profit fell 3.8% to $US4.71 billion ($5.08 billion) as the insurance underwriting result declined.

Net underwriting earnings fell to $US461 million ($497 million) from $US901 million ($971 million) in the corresponding period of last year, mainly on a lower result at Berkshire Hathaway Reinsurance Group (BHRG).

Berkshire Hathaway says results in the first quarter of last year benefitted from gains on a Swiss Re contract that is in run-off and a tax gain related to the life and annuity business.

Premiums earned by BHRG from catastrophe and individual risk contracts were relatively unchanged.

General Re premiums earned increased to $US1.56 billion ($1.68 billion) from $US1.47 billion ($1.58 billion), while the division’s profit fell to $US80 million ($86 million) from $US95 million ($102 million).

Motor vehicle insurer Geico and Berkshire Hathaway Primary Group reported increased earnings.

Insurance net investment income fell to $US720 million ($776 million) from $US799 million ($861 million) after some fixed-maturity securities with higher yields fell due and with significant levels of cash held by the company earning low interest rates.

“We believe maintaining ample liquidity is paramount and we insist on safety over yield with respect to cash and cash equivalents,” the company said.