David Rosenthal: belief

Transcript context

…Right and they are factories. They're looking to identify the same thing over and over and over again. These actually have a very fun name too, these are called super cats—super catastrophic insurance policies. Super cat is a really cool name for a pretty boring thing. Totally. I think the story goes that after 9/11, where Gen Re would take huge losses on 9/11 and Berkshire and Ajit would be fine. But after 9/11, Ajit starts going around the world writing terrorism insurance policies left and right. Everybody wants them now, everybody’s scared. He's like, oh great. This is actually not that risky. I'm going to make a killing on this super-high premium tens of millions of dollar policies. The crazy thing is that Gen Re was basically mismanaged and they had these policies written in 9/11 that had holes in them that they shouldn't have. Where they took on risk that they basically weren't being paid for and then just got destroyed.…

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