Warren Buffet and some of the leading private equity firms own large insurance, reinsurance businesses. Warren Buffet and some of the leading private equity firms invest the assets under management from insurance reinsurance premiums received by their insurance, reinsurance businesses in both publicly listed and private companies.
Warren Buffet's investment track record speaks for itself. The investment track record of the largest private equity firms also is excellent. Warren Buffet and the largest private equity firms seem to be investing the insurance, reinsurance premiums gathered from the insurance, reinsurance businesses they own in a sound, legitimate way.
There are, however some dubious, according to media reports and public statements businessmen that own large mid sized, even big insurance companies who invest the assets under management gathered from insurance premiums of the insurance companies they own in sometimes dubious business endeavors.
After the savings and loans crisis in the 1980s and 1990s bank assets have been well protected.
Insurance premium up till now have also be carefully managed.
If all insurance owners manage their assets under management like Warren Buffet and the leading private equity firms, the global financial system will be sound.
If there is insurance, reinsurance businesses' assets mismanagement, however a global financial crisis followed by a global economic recession could ensue.
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