The Benefits of Floating in the Insurance Business

Charlie and I have lost about the same amount at about 20 pounds each. The insurance business provides us with float and float is money that we hold that doesn't belong to us. To date with Berkshire in the 29 years we've been in the business it appears that our float is not cost us anything on average. It's been years when we've had an underwriting loss when there's a cost There's been years When we had an underwritten profit and so we had a reverse cost. So we have obtained that float on very advantageous terms over the years. $17 million of free money is worth something but it's not worth a ton.