NU Online News Service, Aug. 8, 2:49 p.m.EDT

Berkshire Hathaway says it is unlikely that its combinedinsurance operations will post an underwriting profit this year asthe Warren Buffett-led company reports a $7 million second-quarterunderwriting loss.

As of June 30 Berkshire Hathaway insurance operations recordedan $828 million underwriting loss, as it was hit by pretaxestimated catastrophe losses of about $1.9 billion from earthquakesin Japan and New Zealand as well as events in Australia and theUnited States.

An underwriting profit for the year is not probable due to “themagnitude of the catastrophe losses in the first six months of2011, as well as the potential for additional losses over the lasthalf of the year, including exposure to hurricanes in the U.S.,”according to the company’s 10-Q filing.

Berkshire Hathaway, which invests in property and casualtyinsurance, rail transportation, utilities, manufacturing and more,says second-quarter net income was up about 74 percent to $3.42billion from $1.97 billion a year ago at the same time, driven byimprovements in investments and non-insurance ventures.

The company’s auto insurer, Geico, saw losses andloss-adjustment expenses in the second quarter of $2.95 billion, ora 13.4 percent increase compared to last year. Catastrophe losseswere $114 million during the quarter.

Premiums earned at Geico increased 7.4 percent, comparing thesecond quarter this year to the same time a year ago.

P&C operations at Berkshire’s General Re posted anunderwriting profit of $41 million during the second quarter, butthe property business’ underwriting results basically broke evenduring the quarter, Berkshire says in the filing. Property businesshas incurred a $353 million underwriting loss thus far thisyear.

Premiums earned in the second quarter in General Re’s P&Cbusiness increased 8.3 percent to $755 million.

Berkshire Hathaway Reinsurance Group fell to a $354 underwritingloss in the second quarter after posting a $117 million profitduring the same time last year. Catastrophe losses attributable tothe earthquakes in Japan and New Zealand were $454 million for thefirst six months.