RLI
RLI Corp.
stock NYSE

I would avoid investing in the large insurance brokers. They go around buying up market share because they have to do this to grow. None of them really have any durable competitive advantage imo.
Most of the time they aquire market share they do so at the expense of shareholder value dont look at ROE look at Roic compared to cost of capital.
With cash purchases they are often only gaining low to mid single digits on that capital they use to acquire more market share. Would be better of using it to just buy back shares. Upper management at these firms is incentivised to make acquisitions and their jobs often depend on it - "show me the incentive and Ill show you the result". Thus they are overpaying most of the time. Much better off holding PGR , RLI , Erie....ect for the next 20-30 years.

I would avoid investing in the large insurance brokers. They go around buying up market share because they have to do this to grow. None of them really have any durable competitive advantage imo.
Most of the time they aquire market share they do so at the expense of shareholder value dont look at ROE look at Roic compared to cost of capital.
With cash purchases they are often only gaining low to mid single digits on that capital they use to acquire more market share. Would be better of using it to just buy back shares. Upper management at these firms is incentivised to make acquisitions and their jobs often depend on it - "show me the incentive and Ill show you the result". Thus they are overpaying most of the time. Much better off holding PGR , RLI , Erie....ect for the next 20-30 years.