Yeah, losses are all well & good, however with as much capital as there is in this marketplace there is no way that rates will increase. Someone is always lurking in the shadows to cut them for market share.
Fourteen years of having an underwriting profit is still an exceptional feat. Would any of us like to represent a carrier with that track record? I think that Berkshire does have the ability to walk away from any deal that does not make sense. They are not just chasing market share. The AIG retro reinsurance business does give me some concerns as a shareholder, but I just have to trust Berkshire.
Underwriting profit is secondary to them. He makes his money by investing the premiums. The market has been so high the last 5-8 years they have made a massive profit.
Focus on the article’s main point. BH’s underwriting profit ended when the US economy accelerated during TrumPresident’s first year in office (2017) and the rapid stock market growth that ensued, which started shortly after the 11/8/16 election date. The ability of BH to profit through the stock market (alone) led to a dip in underwriting profit, whether intentional or through indifference. Cause; meet Effect.
The hiring of too many ex-AIG employees with the market share mentality has finally caught up with them. Let’s see how many unprofitable underwriting years that brings.
Very interesting that all these years Buffet has stayed aggressively away from writing primary homeowners, now both Berkshire Specialty and Guard are growing homeowners in double digits–why the change in strategy??
Yeah, losses are all well & good, however with as much capital as there is in this marketplace there is no way that rates will increase. Someone is always lurking in the shadows to cut them for market share.
Fourteen years of having an underwriting profit is still an exceptional feat. Would any of us like to represent a carrier with that track record? I think that Berkshire does have the ability to walk away from any deal that does not make sense. They are not just chasing market share. The AIG retro reinsurance business does give me some concerns as a shareholder, but I just have to trust Berkshire.
Underwriting profit is secondary to them. He makes his money by investing the premiums. The market has been so high the last 5-8 years they have made a massive profit.
Focus on the article’s main point. BH’s underwriting profit ended when the US economy accelerated during TrumPresident’s first year in office (2017) and the rapid stock market growth that ensued, which started shortly after the 11/8/16 election date. The ability of BH to profit through the stock market (alone) led to a dip in underwriting profit, whether intentional or through indifference. Cause; meet Effect.
Someone is always lurking in the shadows to cut them for market share. Like California Insurance Commissioner David “Chicken Little” Jones?
The hiring of too many ex-AIG employees with the market share mentality has finally caught up with them. Let’s see how many unprofitable underwriting years that brings.
Very interesting that all these years Buffet has stayed aggressively away from writing primary homeowners, now both Berkshire Specialty and Guard are growing homeowners in double digits–why the change in strategy??