OMAHA, Neb.—Berkshire Hathaway Inc. says it had $3.81 billion in net income in the first quarter of this year, despite weaker earnings or losses for some of its insurance and reinsurance units.

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The Omaha, Neb.-based company reported an overall profit for this year’s first quarter vs. a $1.45 billion loss for the same period last year. Revenues totaled $25.57 billion, up 25.3% from a year ago. In 2009’s first quarter, Berkshire Hathaway’s loss was mainly attributable to losses related to its investment in ConocoPhillips.

According to the company’s 10-Q statement filed Friday with the U.S. Securities and Exchange Commission, Berkshire Hathaway unit General Reinsurance Corp. had pretax underwriting losses of $39 million in the first quarter, up from losses of $16 million a year ago.

Gen Re’s property/casualty operations reported a $61 million underwriting loss for the first quarter vs. a $23 million loss for the same quarter in 2009. Pretax underwriting results included $123 million in losses from its property business that were offset in part by underwriting gains of $62 million from its casualty/workers compensation business.

The property business produced underwriting losses of $193 million for the 2010 accident year, which includes $278 million in catastrophe losses from the Chilean earthquake and storm- and weather-related losses in Europe, Australia and New England. The pretax underwriting gains from casualty/workers compensation business reflect overall favorable runoff of prior years’ casualty loss reserves, the company said.

Gen Re’s life health segment reported $22 million in underwriting gains, a 214.3% increase over the previous year. Revenues, or premiums earned, totaled $1.44 billion, a 4.4% increase.

Another unit, Berkshire Hathaway Reinsurance Group, reported a 70.6% drop in underwriting income to $52 million for the quarter.

Berkshire Hathaway Reinsurance Group had a $188 million pretax underwriting gain for its catastrophe and individual risk business, a 22.9% decline from the previous year; a $155 million loss for retroactive reinsurance vs. a $107 million loss for the same quarter in 2009; a $127 million gain for other multiline property/casualty business, down 19.1% from the prior-year period; and a $38 million loss for life and annuity businesses vs. a $26 million loss a year earlier. Revenues for the segment totaled $2.11 billion, a 31.8% decrease.

Berkshire Hathaway Primary Group had $33 million in underwriting gains, a seven-fold increase that Berkshire Hathaway said was due primarily to lower losses in its medical malpractice business. Revenues totaled a $425 million, down 6.8%.

Article From: http://www.businessinsurance.com/article/20100510/NEWS/100519991