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"New Fund GoodHaven's Veteran Managers Finding More Patient Buys"


Guest hellsten
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I was reading the P/C part of the interview and they were explaining how insurers make money. One of the ways is "increase in flow" Can someone explain what does that mean?

 

The term referenced is probably float rather than flow.  Float is customer premiums held by an insurance company that doesn't yet belong to the insurance company or will eventually have to be paid to the policy holder or expensed. Technically  float =loss reserves + unearned premium reserves - (AR +RR +DAC)  the advantage of having float is that the money can be invested by the insurance company until it has to be paid out.

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