Ericsson wrote:winmak wrote:Ericsson wrote:CIC Insurance is capitalizing on mistakes made by Jubilee,Britam and Old Mutual UAP
Which mistakes are these?
You saw Britam's Unit trust Mkt share is reducing as per CMA stats.
Jubilee recorded a decline in Earned premiums “[A great insurance manager] follows the
policy of sticking with business that he understands and wants, without giving consideration to the impact on volume.” Warren Buffet's 1978 letter page 6.
“We hear about a great many insurance managers talk about being
willing to reduce volume in order to underwrite profitably, but we find that very few actually do so.” Warren Buffett's 1979 letter page 5.
While it is common to talk about writing business only with strict underwriting criteria, it is hard to avoid the siren song of growth, especially for publicly traded carriers that have to worry about investors who only care about next quarter. Though it is challenging,
a good underwriter must practice discipline in choosing the risks that it insures. Profitable companies will understand that this
may mean growing more slowly or less than the year before but will assure profitability.Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett