Love how this breaks down the float-as-leverage model that most people miss when evaluating insurers. The fact that Fairfax's float has a negatve cost while financing 160% of equity is wild becuz it turns the traditional capital structure on its head. I've worked with a few insurance-linked securities and seeing disciplined underwriting paired with patient capital allocation is rare. The real test is whether management can stay disciplined when pricing softens and resist the temptation to chase premium growth.
Thanks for sharing this, also really like their quarterly investor presentation videos, always very informative
Keith Smith it's a great investor!
Indeed! 🙏
Love how this breaks down the float-as-leverage model that most people miss when evaluating insurers. The fact that Fairfax's float has a negatve cost while financing 160% of equity is wild becuz it turns the traditional capital structure on its head. I've worked with a few insurance-linked securities and seeing disciplined underwriting paired with patient capital allocation is rare. The real test is whether management can stay disciplined when pricing softens and resist the temptation to chase premium growth.