Warren Buffett’s Berkshire Hathaway reveals insurer Chubb as confidential stock it’s been buying
![Warren Buffett’s Berkshire Hathaway reveals insurer Chubb as confidential stock it’s been buying Warren Buffett’s Berkshire Hathaway reveals insurer Chubb as confidential stock it’s been buying](https://goodwordnews.com/wp-content/uploads/2024/05/107410590-1714842908978-Buffet-BAM-050424-6.jpg)
Warren Buffett speaks at Berkshire Hathaway’s annual shareholder meeting in Omaha, Nebraska, May 4, 2024.
CNBC
Warren Buffett finally revealed his secret stock pick in a new regulatory filing, and it’s insurer Chubb.
His Berkshire Hathaway conglomerate bought nearly 26 million shares of Zurich-based Chubb for a stake worth $6.7 billion. The property and casualty insurer became Berkshire’s ninth largest holding company at the end of March.
Chubb shares jumped nearly 7% in extended trading following news of Berkshire’s involvement. The stock has gained about 12% since the start of the year.
Insurer Ace Limited acquired the original Chubb in 2016 for $29.5 billion in cash and stock, and the combined company adopted the Chubb name. Chubb CEO Evan Greenberg is the son of Maurice Greenberg, former chairman and CEO of insurance giant American International Group.
Omaha-based Berkshire has a large footprint in the insurance industry, from gem auto insurer Geico to reinsurance giant General Re and a host of home and life insurance services. The conglomerate also acquired Alleghany Insurance Company for $11.6 billion in 2022.
Berkshire recently liquidated its positions in Markel and Globe Life in the same sector.
Mystery revealed
Berkshire has been buying a mystery stock for three consecutive quarters. Berkshire has benefited from confidential treatment in order to keep the details of one or more of its securities confidential.
The subject of this secret detention was not raised at Berkshire’s annual meeting in Omaha earlier this month.
Many had speculated that the secret purchase could be a banking action, as the conglomerate’s cost basis for stakes in the banking, insurance and financial sectors jumped from $1.4 billion in the first quarter after a $3.59 billion increase in the second half of last year. according to separate Berkshire documents.
It is relatively rare for Berkshire to seek such treatment. The last time it kept a purchase confidential was when it purchased Chevron and Verizon in 2020.
News Source : www.cnbc.com
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