I am aware of how float works and have read BH Letters. You might be informed also that float doesnt just apply to insurance companies. A bank also has float (it gets money from depositors and lends for some return) which works almost the same same way as Insurance companies - using other peoples money. I did not say Insurers do not do investments... what I meant was theat theire core business is in shambles with such a profit margin of approx 3%-4%. Now on the comparison with Centum...Centum is an investment company,just like BerkshirHathaway is and Centum also holds a substatial chunk of an insurer,in this case UAP,Besides other holdings e.g. RVR which for now is causing it a few headaches (Even Buffett's BH had the original Berkshire Harthaway textile mills which) so any investment company may at one time have some companies operating under a difficult enviroment.

e-kijana... I think that making 3-4% from the CORE business is great for an insurance firm. Since you have read BH's letters,I need not explain further. As for Centum,except for the price (a low enough price) the management can't match Jubilee. ***@MainaT: Yes,the Aga Khan firms have very good performance in the longer term. All the firms generally trade at price much higher than their IPO (or Rights) prices. kirubi has 2 firms (Uchumi & Centum). ***merali firms do the opposite. They all trade at BELOW the IPO price! I am not sure of Sasini but it was @ 10/- (post split price adjustment) in the 1990s. Better to have left the money in the bank! Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB