Berkshire Hathaway's 14-Year Winning Streak Is Coming to an End
A 14-year winning streak at Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) will likely come to an end this year, as its insurance companies are set to post their first full-year underwriting loss since 2002. It's an unfortunate end to an incredible run, but insurance remains one of Berkshire's best businesses, regardless of recent losses.
The insurance industry makes a profit in two ways. The largest source of profit is usually earned by investing the float generated from taking in premiums in advance of payouts on losses. Second, insurers can generate an underwriting profit by paying out less in losses and expenses than they earn in premiums.
Berkshire's incredible run in insurance will likely end this year. Image source: Getty Images.
Source: Fool.com
