Warren Buffett's Berkshire Hathaway has finally unveiled a major stake in the insurance company Chubb, a mystery that had been kept under wraps since last year. The disclosure came through a Securities and Exchange Commission filing, revealing that Berkshire acquired nearly 26 million shares of Chubb, amounting to a value of approximately $6.7 billion.
Chubb, a global insurance business operating in 54 countries, gained attention earlier this year for underwriting President Donald Trump's appeal bond in a defamation lawsuit. The news of Berkshire's investment caused Chubb's stock to surge by over 8% in after-hours trading.
Berkshire Hathaway's move to invest in Chubb aligns with its recent strategy of focusing on financial companies like Ally Financial, American Express, and Bank of America while reducing its holdings in consumer products. This investment in Chubb is in line with Buffett's history of investing in insurance companies, as Berkshire Hathaway already owns subsidiaries such as Geico, National Indemnity, and General Re.
Despite selling off 10 million shares of Apple earlier this year, Apple remains Berkshire's largest investment. Additionally, Berkshire reduced its holdings in printer company HP by 78% in the fourth quarter of 2023.
