Let me ask you, a lot of question comes up.
You have insurance and you have reinsurance. What is the difference between the two?
A lot. Or not very much. Whichever. It could be both answers. Basically, an insurance company
is founded in a specific state. Insurance is still state regulated in the United States.
So, for instance, if I wanted to form an insurance company in Texas, it would probably cost me
around $2,000,000. I’d probably need $4,000,000 of capital and surplus to form an insurance
company. But once I have the insurance company formed, then it can issue insurance policies.
It can do anything that it’s licensed to do as an insurance company. Now, compare that
with a reinsurance company. A reinsurance company doesn’t have to have a license to
do business in a state, but it does have to have a license to operate. But reinsurance
is, something that, there’s probably, we tried to do the math on it. A half a trillion dollars
of premiums a year are paid. We’ve just taken the reinsurance laws and used them to our
advantage in the Turks and Caicos Islands.