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Insurance companies also invest the premiums. Having a pool of profitable investments to help cover their obligations is part of the business model.
by DoreenMichele 6y ago
Insurance companies also invest the premiums. Having a pool of profitable investments to help cover their obligations is part of the business model.
- runfaster2000 6y agoThat's the same thing as comment about float. Warren Buffett frequently talks about float. At Berkshire, they attempt to both sell premiums at a fair price AND win with float. Seems to have worked well for them.