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

Berkshire Hathaway says it is unlikely that its combined insurance operations will post an underwriting profit this year as the Warren Buffett-led company reports a $7 million second-quarter underwriting loss.

As of June 30 Berkshire Hathaway insurance operations recorded an $828 million underwriting loss, as it was hit by pretax estimated catastrophe losses of about $1.9 billion from earthquakes in Japan and New Zealand as well as events in Australia and the United States.

An underwriting profit for the year is not probable due to “the magnitude of the catastrophe losses in the first six months of 2011, as well as the potential for additional losses over the last half 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 casualty insurance, rail transportation, utilities, manufacturing and more, says second-quarter net income was up about 74 percent to $3.42 billion from $1.97 billion a year ago at the same time, driven by improvements in investments and non-insurance ventures.

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

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

P&C operations at Berkshire’s General Re posted an underwriting profit of $41 million during the second quarter, but the property business’ underwriting results basically broke even during the quarter, Berkshire says in the filing. Property business has incurred a $353 million underwriting loss thus far this year.

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

Berkshire Hathaway Reinsurance Group fell to a $354 underwriting loss in the second quarter after posting a $117 million profit during the same time last year. Catastrophe losses attributable to the earthquakes in Japan and New Zealand were $454 million for the first six months.