Re:Warren Buffett calls insurance Berkshire Hathaway's most ...
by jbdubwub on Sunday October 22, 2017 @09:26PM
(#15530037)
Even if Berkshire didn't produce an underwriting profit, it'd still be very successful because of the returns they make on their float. There's a line obviously you can't cross but even if they had a combined ratio of like 1.05 they'd be fine. I like their discipline though.
Berkshire has always had a huge insurance component. They bought NICO in the late 60s and built the business to a large part around that.
Berkshire has always had a huge insurance component. They bought NICO in the late 60s and built the business to a large part around that.