Berkshire Hathaway says its first-quarter net income rose 49percent on the strong performance of its insurance businesses, andthe company says it has the capacity and desire to write morebusiness.

The Omaha, Neb.-based company, home of underwriters Geico andGeneral Re, says its insurance-revenues segment was up 18 percentto $33 billion, with group earnings before taxes increasing 110percent to $2.39 billion.

Total company net income was up $1.65 billion to $5.02 billionand revenues increased 15 percent to $44 billion.

In its filing with the Securities & Exchange Commission, thecompany says the insurance business generated gains in the quarterthanks to no significant catastrophe losses. The company defines“significant catastrophe loss” as a single event or series ofrelated events of pre-tax loss in excess of $75 million.

The greatest improvement was in Berkshire Hathaway ReinsuranceGroup, which writes excess-of-loss reinsurance and quota-sharecoverage on P&C risk for insurers and reinsurers, lifereinsurance and annuity business. That company reported a pre-taxunderwriting gain of $974 million for Q1 2013 compared to a loss of$191 million for the same period last year.

The results benefited from a $223 million pre-tax gain onforeign currency exchange rate changes, and a $255 million one-timegain from amendments to a life-reinsurance contract.

Geico reported Q1 earnings before taxes of $266 million, up 115percent. The insurer shaved 2.9 points off the combined ratio,improving the figure to 94, primarily from improvements inunderwriting expenses.

Losses and loss adjustment expenses increased 3.2 points to 76.2due to property damage and collision claims from severe winterweather.

Reinsurer General Re increased premiums earned in its P&Cbusiness by $23 million, bringing the total to $758 million, thanksto increased international treaty business. Despite the increase,the company says price competition in most P&C lines persists,and it is refusing to give up underwriting discipline in order towrite business where prices “are deemed inadequate.”

Berkshire adds that Gen Re is prepared to increase “premiumvolumes should market conditions improve.”

Premiums earned increased by $206 million, to $713 million,primarily on the acquisition of Clal U.S. Holdings that includesGUARD Insurance Group, a provider of P&C insurance for smalland mid-size businesses, and increased workers' compensationinsurance volume from Berkshire Hathaway Homestate Cos.