In 2000 Berkshire had an insurance underwriting loss of $1.6 billion, giving a float cost of 6%.

Judge against Berkshire's 2000 annual report. True: the reported insurance underwriting loss for 2000 was about $1.6 billion (roughly $1.55–1.65 billion, on the basis Buffett used, before tax), and the cost of float given was 6%. Formal restatements govern. Mostly true: one figure is slightly off (loss within about $1.5–1.7 billion, or cost within 5.5–6.5%). Mixed: one figure matches and the other is materially wrong. Mostly false: both figures are noticeably off, though there was a loss. False: Berkshire reported no underwriting loss in 2000, or figures far from those claimed.

Set before the research began.

1. E1 Consolidated Financial Statements Berkshire Hathaway Inc. Own record

   “| Insurance losses and loss adjustment expenses | 17,332 | 12,518 | 4,040 | | Insurance underwriting expenses | 3,602 | 3,220 | 1,184 |”

2. E2 Consolidated Financial Statements Berkshire Hathaway Inc. Own record

   “| Insurance premiums earned | $19,343 | $14,306 | $ 5,481 |”

3. E3 a70817e10-k.txt U.S. Securities and Exchange Commission (EDGAR, Berkshire Hathaway Inc. Form 10-K for fiscal year ended December 31, 2000)

   “General Re ** ...................................................... (1,224) (1,184) --”

4. E4 a70817e10-k.txt U.S. Securities and Exchange Commission (EDGAR, Berkshire Hathaway Inc. Form 10-K for fiscal year ended December 31, 2000)

   “The aggregate float was approximately $27.9 billion at December 31, 2000 and $25.3”

Berkshire's consolidated statements in the 2000 annual report (E1, E2) give insurance premiums earned of $19,343 million, against losses and loss adjustment expenses of $17,332 million and underwriting expenses of $3,602 million. In the first column, which is the latest-year column, that works out to a pre-tax underwriting loss of about $1,591 million. That is within the $1.55–1.65 billion range for "true". The 2000 Form 10-K (E4) gives aggregate float of approximately $27.9 billion at December 31, 2000, followed by a figure of $25.3 whose unit and date are cut off in the quote. The loss divided by average float of about $26.6 billion is roughly 6.0%, which matches the claimed float cost. The quotes do not label the year columns or state the 6% directly, but the column order and the arithmetic both fit the claim.