Crypto Investor God 420

[Aryann @aryann_gupta]

EEA announced a transformational $120m stream financing package for $CORA.L, a junior gold miner in Mali, West Africa.

$CORA.L's Sanankoro project is now fully financed to first gold.

A thread on the transaction 🧵

[Aryann @aryann_gupta]

I was very pleased with $ACIC Q1 Earnings.

Will share more detailed thoughts on it when I am more free.

I am always sad to see companies I own go up. It means I can buy less for cheap, and the company can also buy less.

[Aryann @aryann_gupta]

$BRK.A

I queued at 1am to be first in line and got the best seat @ Berkshire Hathaway Annual Meeting.

[Aryann @aryann_gupta]

Looks like the market really didn’t like $HRTG earnings.

[Aryann @aryann_gupta]

9/x Quota share is also coming down to 20% this 6/1 reinsurance renewal.

As mentioned on the Q4 earnings call it is all about "eating more of our own cooking". Replacing the current QS on an XoL basis will be as good if not better (assuming a lighter CAT load).

[Aryann @aryann_gupta]

8/x The primary growth driver discussed with Brad was Journey Insurance Corporation (JIC, a JV with Tokio Marine) which was prematurely divested to raise capital to cushion American Coastal’s balance sheet following the divestiture of UPC. JIC wrote homeowner’s lines in Texas and North Carolina and at its peak was able to achieve ~40mm in GWP, at an underlying combined ratio comparable to that of the Florida Condo business. Given the strength of American Coastal’s balance sheet, this is expected to be pursued further alongside MGA initiatives.

[Aryann @aryann_gupta]

7/x Competitors can't do what $ACIC is doing because it will take them 10 years to gather the data. They also don't really care about the data. I was convinced of this after talking to Kirk @ $HRTG.

[Aryann @aryann_gupta]

6/x Brad argued that agents can always rely on AmRisc to bring capacity, whereas the same cannot be said of competitors.

[Aryann @aryann_gupta]

5/x AmRisc differentiates based on its distribution network.

Selling insurance is a very relationship-driven business. AmRisc is always willing to bring capacity to the market when other players are not willing to.

[Aryann @aryann_gupta]

4/x Other insurers use the exact same models as AmCo, but they just don't fill in all the data points, e.g., exact roof age.

"Garbage in, garbage out"

[Aryann @aryann_gupta]

3/x Understanding the full lifecycle and value chain of a policy is important.

Policies are onboarded as AmRisc sends people to properties. They typically have iPads are taking pictures.

If the data is not 100% complete they send someone back to collect data again.

[Aryann @aryann_gupta]

2/x Sedgwick is a TPA contracted by AmRisc, which is paid for by the fees AmCo pays AmRisc.

Claims up to $500k are done by Sedgwick. $500k to $750k is done by AmCo and AmRisc claims adjusters. $750k to $1.5mm is reviewed by the AmCo CFO and anything above that by Dan or Brad.

[Aryann @aryann_gupta]

1/x AmRisc and AmCo, their relationship? Who actually does the work is one of the questions I had.

Brad explained when it comes to claims processing 3 parties are involved. Sedgwick, AmCo and AmRisc.

[Aryann @aryann_gupta]

11/x Overall my conviction in management remains as strong as ever.

I hope to upload a more detailed write-up of all the work I have done on $ACIC in the past few months and weeks.

In the meantime, $ACIC remains a core position in my portfolio.

[Aryann @aryann_gupta]

10/x Also touched upon the ongoing DFS lawsuit. Brad did not seem too concerned about this given that they have D&O insurance which covers up to $40mm.

The D&O insurance policy has also been successfully renewed, which is a great sign.

[Aryann @aryann_gupta]

Recapping my $ACIC HQ Visit🧵

Before meeting Dan and Brad, my belief was that $ACIC is a very mature business with limited room for growth. Trading off growth for excellent underwriting. This couldn't be further from the truth.

[Aryann @aryann_gupta]

Short Thread of Thoughts on $MOB.ST 🧵

[FatMan @FatManTerra]

Excellent thread exposing the extent of the deep fraud committed by Kanav Kariya, Bill DiSomma, and Jump Crypto. Hand in hand with Do Kwon, they scammed retail investors for billions of dollars by arranging a secret bailout and hiding crucial investor disclosures.

[Aryann @aryann_gupta]

Had an amazing trip to $ACIC HQ in St. Pete today.

[Aryann @aryann_gupta]

"We ordinarily make no attempt to buy equities for anticipated favorable stock price behavior in the short term. In fact, if their business experience continues to satisfy us, we welcome lower market prices of stocks we own as an opportunity to acquire even more of a good thing at a better price."

- 1977 Berkshire Letter to Shareholders