Nov 1 (Reuters) - Berkshire Hathaway ( BRK/A ) on

Saturday reported a 34% increase in quarterly operating profit,

helped by improved underwriting in its insurance operations, in

its last financial report before Warren Buffett bows out as

chief executive.

Buffett's conglomerate also signaled it remained cautious

about markets and valuations, ending September with a record

$381.7 billion of cash and equivalents and repurchasing none of

its own stock.

Third-quarter operating profit rose to $13.49 billion, or

about $9,376 per Class A share, from $10.09 billion a year

earlier.

Net income, including gains and losses from Berkshire's

common stock investments including Apple ( AAPL ), rose 17% to

$30.8 billion, or $21,413 per Class A share, from $26.25 billion

a year earlier.