Subject: Re: farmers insurance and Berkshire H
In July ‘23 Farmers Insurance informed CA homeowners they were limiting renewals due to inflation. Oklahoma homeowners in “wildfire” areas too, received notices of non-renewals.

In May ‘24 Farmers that it would resume accepting new applications for commercial insurance policies in California, including Auto Service & Repair, Manufacturing, Real Estate, and Wholesale Distribution.

I humbly offer a a perspective that Farmers is pivoting or reshaping their insurance portfolio to simply reduce their risk.

Insurance “float” is a fundamental aspect of the insurance business model, and reducing it too aggressively can negatively impact the company's and an Industry’s financial stability and its ability to meet claims obligations. While the Insurance Industry can be cyclical, with profitability influenced by factors like natural disasters and economic conditions, Farmers Insurance has generally maintained a solid financial performance.