The Omaha, Nebraska-based conglomerate disclosed that it holds 25.9 million shares worth $6.72 billion as of March 31
Warren Buffett’s Berkshire Hathaway $BRK.B requested confidential treatment from the Securities and Exchange Commission during the last two quarters of 2023 for at least one of its stockholdings. The speculation ended on Wednesday, when Berkshire disclosed massive holdings in a company not previously seen in its filings: Chubb $CB Limited.
The Omaha, Nebraska-based conglomerate revealed that it has purchased 25.9 million shares worth $6.72 billion of the company in a regulatory filing detailing Berkshire’s first-quarter investments. As of March 31, Chubb is Berkshire’s ninth largest holding.
Chubb’s shares popped more than 7% in pre-market trading on Thursday. It has a market capitalization of nearly $103 billion.
Chubb is a Zurich-based insurance company. It was acquired by ACE Limited in January 2016 for $29.5 billion, combining the company’s two businesses into the largest publicly traded property and casualty insurance company in the world under the Chubb name. Its North American operations are headquartered in Warren, New Jersey.
The company operates in 54 countries and territories, and its offerings include: Commercial property and personal casualty insurance, personal and supplemental health insurance, reinsurance and life insurance to a diverse group of clients, according to its website.
Insurance is the “most important business at Berkshire,” Buffett said at this year’s annual shareholder conference earlier this month. Berkshire’s operating profit surged 39% to $11.22 billion from a year ago, thanks to a 185% year-over-year increase in insurance underwriting earnings — from $911 million to $2.6 billion, the company reported in its first-quarter earnings report.
Berkshire owns auto insurance company GEICO, which made $10.2 billion in revenues for the conglomerate last quarter and $1.9 billion in profits.
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Most recently, Chubb provided former President Donald Trump with a $91.6 million appeal bond in his defamation case with writer E. Jean Carroll after she accused him of rape. Amid heavy criticism, Chubb CEO Evan Greenberg wrote a letter to investors, brokers, and clients defending the decision, noting that the company “isn’t making judgements about the claims, even when the claims involve reprehensible conduct,” Insurance Journal reported.
“I realize how polarizing and emotional this case and the defendant are and how easy it would be for Chubb to just say no,” Greenberg wrote. “However, we support the rule of law and our role in it. We considered this the right thing to do and we frankly left our personal feelings aside.”
The bond allows Trump to appeal the $83.3 million verdict against him — and prevents Carroll from immediately collecting the sum. Chubb declined to underwrite the nearly $500 million appeal bond for Trump’s New York civil fraud case.
This isn’t the first time Berkshire has asked the SEC to keep some of its holdings under wraps, although it doesn’t commonly ask for this type of secrecy. The last time it kept a purchase confidential was in 2020, when it purchased stock in Chevron $CVX and Verizon $VZ, according to CNBC.
The SEC requires companies to periodically disclose significant transactions and actions as a way to encourage transparency. Sometimes, however, these may contain commercially sensitive terms that could hurt a company’s competitive edge if revealed to the public. In those cases, the agency has certain rules in place to allow companies to redact sensitive information that is not crucial to investors.
Correction: A previous version of this article incorrectly stated that Chubb backed out of providing Trump’s appeal bond. It remains in force.
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