Berkshire Hathaway's Insurance Float Reached $177.5 Billion, While Underwriting Profit Fell 13%
Berkshire's insurance float has been a key long-term growth driver and reached a record level in the second quarter. Here's what that means for investors.
Overview
Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) has delivered stellar long-term returns, and one major reason why is that it leans heavily on insurance to drive its long-term growth.
In the second quarter, the company saw its float, or the cash generated from premiums collected before claims are actually paid out, jump $1.1 billion to a whopping $177.5 billion. This growing float has been a cornerstone of Berkshire's growing cash pile and ability to make strategic investments across a range of industries.
Details
However, Berkshire's underwriting profit actually dipped during the second quarter. Despite this, the conglomerate saw steady growth across other sectors, showing why Berkshire can continue to deliver for investors.
Source
Originally published at www.fool.com.