Key Quotes from 1975 Shareholder Letter

1. "Economic inflation, with the increase in cost of repairing humans and property far outstripping the general rate of inflation, produced ultimate loss costs which soared beyond premium levels established in a different cost environment."

2. "'Social' inflation caused the liability concept to be expanded continuously, far beyond limits contemplated when rates were established — in effect, adding coverage beyond what was paid for."

3. "'V' shaped textile depression, while one of the sharpest on record, also became one of the shortest ones in our experience. The fourth quarter produced an excellent profit for our textile division, bringing results for the year into the black."

4. "On April 28, 1975 we acquired Waumbec Mills Incorporated and Waumbec Dyeing and Finishing Co., Inc. located in Manchester, New Hampshire."

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Source: Full Letter