Berkshire's float kept growing, despite the fluctuation of policy prices?

[muscleman]

I've been reading Buffet's letter and I noticed that although Berkshire experience a few cycles when the insurance market is tough and he stated the willingness to stop underwriting unprofitable policies, Berkshire's float kept growing since 1967. Do you know why? I would assume that the float would shrink heavily when they reduce underwriting volumes. ::)

[Liberty]

I've been reading Buffet's letter and I noticed that although Berkshire experience a few cycles when the insurance market is tough and he stated the willingness to stop underwriting unprofitable policies, Berkshire's float kept growing since 1967. Do you know why? I would assume that the float would shrink heavily when they reduce underwriting volumes. ::)

 

On top of organic growth, they have a lot more insurance subs now than in 1967... The purchase of Gen Re in 1998 added tons of new float, for example.

[peter1234]

I've been reading Buffet's letter and I noticed that although Berkshire experience a few cycles when the insurance market is tough and he stated the willingness to stop underwriting unprofitable policies, Berkshire's float kept growing since 1967. Do you know why? I would assume that the float would shrink heavily when they reduce underwriting volumes. ::)

 

Geico is growing .... and growing .... and growing ...

:)

[Kiltacular]

I've been reading Buffet's letter and I noticed that although Berkshire experience a few cycles when the insurance market is tough and he stated the willingness to stop underwriting unprofitable policies, Berkshire's float kept growing since 1967. Do you know why? I would assume that the float would shrink heavily when they reduce underwriting volumes. ::)

 

Geico is growing .... and growing .... and growing ...

:)

 

Beginning after Gen Re, most of the float is from the retroactive reinsurance deals.