Warren Buffett’s 10 New Stock Picks

5. Chubb Ltd (NYSE:CB)

Shares held by Berkshire Hathaway: 27.03 million

Stake Acquired: Q1 2024

Earlier this year, Berkshire initiated a position in Chubb Ltd (NYSE:CB), which was worth more than $6.7 billion as reported in the first-quarter 13F filing. Berkshire further added 1.1 million shares in the second quarter currently holding more than 27 million shares of the insurance company.

It’s no secret that Warren Buffett likes insurance companies, with Berkshire owning a number of them in its portfolio, including GEICO, Berkshire Hathaway Reinsurance Group, Berkshire Hathaway Specialty Insurance, among others. Buffett appreciates insurance businesses’ capital structure, which allows investing the premiums to accumulate more capital. Chubb Ltd (NYSE:CB) is a robust insurance company with a large presence, ranking among the top 20 global insurers. According to Insurance Information Institute, Chubb has a market share of 5.5% as of the end of 2023.

For the first nine months of 2024, the company reported a net Income of $6.70 billion, representing an increase of 14% over the year. The company also recorded a combined ratio (the difference between claims and expenses, and premiums earned) of 87.7% for the third quarter, which shows underwriting profitability. Moreover, Chubb Ltd. (NYSE:CB) saw a 12% increase in net premiums written to $13.4 billion compared to the third quarter of 2023.