Isn't it in most cases the reverse? My understanding from reading Warren Buffet's letters for a while is that you take money from customers, try to keep underwriting losses to neutral or slight (though underwriting profitability is great), and then really make your returns on time-value-of-money on the float.
My business holds an E&O policy from USLI, a Berkshire Hathaway subsidiary. We pay them $2k a year for the privilege. I think from reading their annual reports that they earn a slight underwriting profit and make an absolute killing on holding hundreds of thousands of dollars from other firms for years before paying it out to the one unlucky winner of the lawsuit lotto.
My business holds an E&O policy from USLI, a Berkshire Hathaway subsidiary. We pay them $2k a year for the privilege. I think from reading their annual reports that they earn a slight underwriting profit and make an absolute killing on holding hundreds of thousands of dollars from other firms for years before paying it out to the one unlucky winner of the lawsuit lotto.