Why Insurance Stocks Can Be Some of the Market's Best Long-Term Compounders

Insurance companies can be powerful long-term compounders due to their ability to invest the float—premiums collected before claims are paid out. Different insurers take varying approaches: aggressive investors like Berkshire Hathaway invest heavily in stocks and acquire companies, while conservative insurers like Progressive focus on bonds for stable income. Cincinnati Financial offers a middle ground with ~39% equity exposure and a 50+ year dividend increase streak.