No. of Recommendations: 10
I believe BH withdrew already from much of Florida, and Geico too...but this is now multi state according to the call I literally just received. How is this going to affect BH ? ( and others) Float is very valuable and seems to me a lot of float just disappeared, with all the ripple effects that entails...
I don't know the answer to the more important question about whether BH is withdrawing agricultural insurance in Texas or other southern states, but I think the loss of a bit of float would not have much impact on Berkshire. One of the major concerns about Berkshire is that there has not been much to do with all that float, for the last 20 years or so, with a mixture of high valuations and Buffett backing off when there were chances to buy when things looked rough in 2008 and 2020. FLoat stood at $169b at the end of Q3, just part of the cash pile that was already $224b at the end of Q2 and is almost certainly much higher now. So as long as that cash pile is mostly idle, it is not crucial to Berkshire's net income.
dtb