Berkshire explains the dual objectives of insurance operations and analyzes the logic behind underwriting profit and float earnings

Glonghui, May 2nd｜The shareholders' meeting clearly outlined the two main operational goals for Berkshire's insurance business: first, to increase underwriting profits and reward shareholders; second, to continuously expand the scale of float. Key business data from the event shows an overall combined ratio of about 93%—for every $100 of premiums, $93 constitutes costs and $7 is underwriting operating profit. Of the costs, 23% are administrative and operational expenses, while the remaining $70 can be counted as float. These funds will only gradually be paid out over the next 30 to 40 years. During this period, the funds can generate long-term investment returns for the company, making float a core value source for Berkshire. From 2025 to 2026, the company's float is expected to double, with a slight increase this quarter. Going forward, the company will make it a long-term core goal to steadily grow float and consistently generate shareholder returns.