Berkshire Hathaway discloses hidden minority investment in insurer Chubb

Berkshire Hathaway, the conglomerate led by legendary investor Warren Buffett, has quietly amassed a $6.7 billion position in Chubb, one of the world’s largest insurance companies. This revelation came to light through regulatory filings published on Wednesday, showcasing Buffett’s continued interest in the financial services sector.

The stake in Chubb, which has a market capitalization of over $100 billion, was built up over the past year but was kept confidential until now. The news of Berkshire’s investment caused Chubb’s stock to surge more than 9% in after-hours trading.

Buffett’s cash pile has grown to a record $189 billion in the first quarter of this year, as he has been trimming his stakes in other stocks like Apple. This move into Chubb signals a strategic shift in Berkshire’s investment portfolio.

Chubb, known for providing a range of insurance products such as home, car, and liability insurance, has become a global leader in the industry under the leadership of CEO Evan Greenberg. However, recent events, such as the collapse of Baltimore’s Key Bridge, have posed risks for insurers like Chubb.

As Berkshire prepares for a post-Buffett era, with Greg Abel set to take on a more prominent role in investment decisions, the revelation of the stake in Chubb underscores Buffett’s long-standing interest in the financial services sector. This move adds to Berkshire’s existing investments in companies like Geico, Mastercard, and Bank of America, solidifying its position in the industry.