OMAHA, Neb., May 4 (Reuters) - Warren Buffett's

Berkshire Hathaway Inc ( BRK/A ) posted a record quarterly profit

on Saturday, bolstered by a significant increase in income from

insurance underwriting.

Berkshire said net income fell 64%, reflecting much lower

unrealized gains from its common stock holdings as the share

price of Apple ( AAPL ) declined. It also repurchased $2.6

billion of its own stock.

First-quarter operating profit rose 39% to $11.22 billion,

or about $7,807 per Class A share, from $8.07 billion a year

earlier.

Net income fell to $12.7 billion, or $8,838 per share, from

$35.5 billion. An accounting rule requires Berkshire to report

unrealized gains and losses with net results, and Buffett urges

investors to ignore the resulting volatility.

The results were released ahead of Berkshire's annual

shareholder meeting in Omaha, part of a weekend that draws tens

of thousands of people to the city.