The basic idea being to floata shell company in London, raise some cash, then use the cash and the float to reverse in some large but foreign and privately owned resource company.
But if acompany keeps growing free cash flow and uses part of the cash to keep shrinking the float, why would not such acompany outperform an equivalent dividend payer?
So to some extent we can view an insurance company as actually a large investment fund: investing that float for however long the company gets to keep it.