After Berkshire Hathaway Inc. reported an 18 percent drop in fourth-quarter net income, its well-known chairman, Warren Buffett, declared that "the party is over" for insurer profit margins.

Mr. Buffett, also the company's chief executive officer, announced in a television interview last week that he was rescinding an offer to reinsure the municipal bond business of three major financial guarantee insurers.

Berkshire--the Omaha, Neb.-based financial holding company and parent of GEICO, General Reinsurance and other insurance and non-insurance entities--reported that net income dropped $636 million to $2.9 billion in the quarter but rose 20 percent, or $2.2 billion, to $13.2 billion for the year.

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