No. of Recommendations: 3
Repeating: So, it's not wrong, it's just business. If you inferred I was saying that was a problem, then I wasn't clear.
You have a great handle on runoff.
My only point was to comment on your detailed commentary about the variability of Fairfax' profits and some of the obscurity with an explanation of what they do. Using an internal company as a toxic waste dump lets the cleaned subsidiaries grow profitably at a much faster rate than they would if they had a pile of bad policies in their books. As you have seen in their results the last four-five years.
And the runoff can be left to operate as quietly or aggressively as the parent feels like, meaning level of investment in legal and operational staff. 'Nuff said.
FC
