Buffett's Berkshire Reveals $6.7B Stake in Insurer Chubb
What You Need to Know
The conglomerate has been building the stake since 2023, and the SEC allowed Berkshire keep it confidential.
Buffett’s Berkshire is deeply familiar with the insurance industry, owning a range of firms like Geico and National Indemnity.
The cash pile at Berkshire reached a record $189 billion at the end of March.
Warren Buffett’s Berkshire Hathaway Inc. unveiled a $6.7 billion stake in insurer Chubb Ltd., ending months of suspense over its mystery position in a financial firm, previously kept concealed in regulatory filings.
Berkshire disclosed the holding in a filing on Wednesday, reflecting its positions at the end of the first quarter.
The conglomerate has been building the stake since 2023 but it hadn’t previously been reported because the Securities and Exchange Commission allowed Berkshire to keep it confidential.
Still, separate quarterly filings reflected that Berkshire’s equity stakes in banks, insurance and finance companies were growing, while the firm was pulling back in other industries including consumer products.
“Millions of people follow what Buffett does,” said David Kass, a finance professor at the University of Maryland‘s Robert H. Smith School of Business, explaining why Berkshire wants confidentiality while it amasses big positions. “Warren Buffett would be more sensitive to the issue than others.”
Buffett’s Berkshire is deeply familiar with the insurance industry, owning a range of companies including Geico and National Indemnity.
The billionaire investor has called Berkshire’s property-casualty insurance operation the “core” of the conglomerate, helping generate “float” that can then be reinvested.
The conglomerate has also invested in other businesses in the insurance industry. Berkshire owns a stake in Aon Plc, a major broker, and has previously bet on rivals including Marsh & McLennan Cos.
