He makes all his money from leverage. But instead of borrowing from banks or the capital markets whose willingness to roll over debts can be fickle, he borrows

He makes all his money from leverage. But instead of borrowing from banks or the capital markets whose willingness to roll over debts can be fickle, he borrows via the premia his insurance companies collect. Away from this passive income has a terrible tax profile--unless you employ leverage (see above).