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Berkshire Aon insurance deal

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Am I right in this?


Let's say the average expense ratio for the insurance industry is 30%, and the average combined ratio is 100%.


Berkshire, by automatically being allocated 7.5% of all premiums written at Lloyds, is piggy-backing off the underwriting work of the other Lloyd's members. Meanwhile, it's marginal expense cost to write this blanket business is close to 0%.


So effectively, if the industry writes at 100% CR, Berkshire writes at 70% CR on this deal?

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