2. Questions on "Insurance: Warren Buffet's Bank" reading

Regarding the above reading, please providebrief answers to the following questions:

1) How much of the earnings of Berkshire Hathaway, Warren Buffet's company, are from the insurance business? (p.9). What are the three principles that allow Buffet to prosper in the insurance business while others may struggle?What is the float? (p.10).

2) What is the super-cat insurance business, and give an example. (p.11)

3) What is the ratio: (insurance losses)/float, and what does it imply? (p.12)

4) What is "capacity at the speed of thought?" (p.12)

5) What are the "three rules in running an insurance company" that Buffet uses? (p.14).

6) What is "deprival super-reaction syndrome?" (p.15)

7) Explain the cycle of insurance premium rates. What does Warren Buffet do when the insurance industry has low premium rates? (p.16,17, Buffet has a quote)

8) How did the "911 terrorist attack on the U.S." affect insurance pricing? (p.26)

9) What was Buffet's mistake in the super-cat field in the 1970's? (Ch. 9, p.7)