Letters by Topic
Letters on Insurance Float
The premiums collected by an insurance company before claims are paid, which can be invested at no cost until needed.
1967·First systematic explanation of float as a source of capital
Float—premiums we hold before paying claims—is a significant factor in insurance economics.
1977·Discussion of insurance operations generating float
Our insurance operations generated significant float—the premiums we hold before paying claims.
2010·Explaining how float contributed to Berkshire's success
Float has allowed us to earn returns on other people's money, creating extraordinary compounding power.
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Insurance Float is one of the ideas behind the ValueOS tools. See it applied to real companies.