So if, for instance, Progressive is worth $13 billion....FWIWI think a better approach would be to figure out the cyclically adjusted value of an insurance company is given a few key input variables like book value, premiums, float, and decade-average cost of float, and perhaps some small factor for growth potential.Comparison to other firms will swing wildly with prevailing market valuationsand is useful only to "fairness" consultants getting paid to justify overpriced acquisitions.One complication with this approach is the difficulty of drawing the linebetween which assets comprise the regulatory capital backing the floatliability and which investments are the free and clear assets.All the cash and short term fixed income into insurance, plus a pro rata percentage of the rest of the investments till you get to the right number?Jim
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