Operating earnings have been on an upward trend as higher interest rates boost investment income and Berkshire's subsidiaries turn in a solid performance.
Sheesh. I had a sailboat for a few years in Florida and the Bahamas, and I was constantly trying to dodge hurricanes, one time unsuccessfully and ended up with a damaged boat. Iām biased, but that sure seems like a scary risk. But they obviously know what they are doing, so I will attempt to ignore it and not worry. š¬
Iām sure the premium received was very high relative to the risk but it would be very painful if things go badā¦ Of course, Berkshire can handle such a huge claim but it would be very unpleasant!
I didnāt realize we were on the hook for $15 billion in Florida. Do you know what the main exposure is? This seems like a pretty big probability for a payout due to hurricanes gaining in strength the last few years.
āWe are very happy with what weāve written. The margins have been healthy. The only thing that I want to mention to you is that, while the mentions have been healthy, we have a very unbalanced portfolio. What that means is if thereās a big hurricane in Florida, we will have a very substantial loss.
As opposed to that if we have a very big loss anywhere other than Florida, relative to our competition, we will have a much smaller loss. Net-net, Iām very happy with the portfolio. It is a lot better than what itās been in the past. I donāt know how long itāll last, and of course if the hurricane happens in Florida, we could lose, across all the units, as much as $15 billion. And if there isnāt a loss, weāll make several billion dollars as profit.ā
Sheesh. I had a sailboat for a few years in Florida and the Bahamas, and I was constantly trying to dodge hurricanes, one time unsuccessfully and ended up with a damaged boat. Iām biased, but that sure seems like a scary risk. But they obviously know what they are doing, so I will attempt to ignore it and not worry. š¬
Iām sure the premium received was very high relative to the risk but it would be very painful if things go badā¦ Of course, Berkshire can handle such a huge claim but it would be very unpleasant!
I didnāt realize we were on the hook for $15 billion in Florida. Do you know what the main exposure is? This seems like a pretty big probability for a payout due to hurricanes gaining in strength the last few years.
Itās based on what Ajit said during the meeting. I found it quite surprising. CNBC now has a transcript up here: https://buffett.cnbc.com/video/2023/05/08/morning-session---2023-meeting.html
āWe are very happy with what weāve written. The margins have been healthy. The only thing that I want to mention to you is that, while the mentions have been healthy, we have a very unbalanced portfolio. What that means is if thereās a big hurricane in Florida, we will have a very substantial loss.
As opposed to that if we have a very big loss anywhere other than Florida, relative to our competition, we will have a much smaller loss. Net-net, Iām very happy with the portfolio. It is a lot better than what itās been in the past. I donāt know how long itāll last, and of course if the hurricane happens in Florida, we could lose, across all the units, as much as $15 billion. And if there isnāt a loss, weāll make several billion dollars as profit.ā