Warren Buffett's latest bet: Berkshire reveals $6.7 billion investment in insurance giant

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NEW DELHI: Legendary investor Warren Buffett’s Berkshire Hathaway has unveiled a significant investment in the insurance giant Chubb, marking a major move that was kept confidential until now. The stake, amounting to nearly 26 million shares, was disclosed in a recent Securities and Exchange Commission filing, representing a value of approximately $6.7 billion.
This investment in Chubb highlights Buffett’s ongoing strategy of investing heavily in financial firms. Berkshire Hathaway, under Buffett’s leadership, has historically favored the insurance sector, owning companies such as Geico, National Indemnity, and General Re.
Berkshire owns many other companies — including BNSF railroad, a number of utilities and an assortment of manufacturing and retail companies — but insurers, like Geico and General Reinsurance, have always been at the core of the Omaha, Nebraska-based conglomerate. So it makes sense that another insurer like Zurich-based Chubb might appeal to Buffett.
CFRA Research analyst Cathy Seifert said in a note to investors that Chubb is now one of the 10 biggest holdings in Berkshire’s portfolio. “We can’t speculate whether Berkshire would pursue an outright acquisition of CB, but we note their business mixes are highly complementary,” Seifert wrote.
Berkshire had previously requested “confidential treatment” from the SEC to keep the buildup of this position private. The disclosure of this substantial investment comes after Chubb recently made headlines for underwriting a nearly $92 million appeal bond for President Donald Trump in the defamation lawsuit filed by E Jean Carroll.
Following the revelation of Berkshire’s new stake, Chubb’s stock experienced an 8% surge in after-hours trading, reflecting investor confidence boosted by Buffett’s involvement.
This move is part of a broader trend where Berkshire Hathaway has been concentrating its investments in financial entities, including Ally Financial, American Express, and Bank of America, while reducing stakes in consumer products. Notably, Buffett’s firm scaled back its holdings in Apple and HP significantly in recent months.
Berkshire sold off a little over 116 million Apple shares in the quarter — accounting for about 13% of its stake — to trim its biggest single investment. But it still holds nearly 790 million Apple shares, and Buffett told shareholders that he expected the iPhone maker to remain a long-term holding.
The investment community closely watches Buffett’s investment choices, often emulating his strategies, which underscores the significant market impact of his decisions.
(With inputs from agencies)