BRK.B's Insurance Business Grows Steadily: Can it Accelerate Growth?
Berkshire Hathaway 's (
BRK.B
) insurance operations serve as the cornerstone of its business model and remain a key growth engine. It's a conglomerate with more than 90 subsidiaries engaged in diverse business activities but is one of the largest property and casualty insurers globally.
Berkshire operates through a diverse portfolio of insurance businesses, including GEICO (auto insurance), General Re (reinsurance), and Berkshire Hathaway Reinsurance Group (BHRG). These subsidiaries consistently generate meaningful underwriting profits and collectively represent about one-quarter of Berkshire's total revenues. The segment is well-positioned for sustained growth, supported by broad market exposure, pricing discipline and strong underwriting capabilities — even in adverse market conditions.
Berkshire's insurance business continues to generate substantial float—the pool of premiums held before claims are paid. This float has grown steadily, rising from roughly $114 billion in 2017 to $173 billion by the end of the first quarter of 2025. The scale and reliability of this capital have enabled Warren Buffett to invest strategically in both equities and wholly owned businesses, amplifying returns and compounding shareholder value over time. The insurance segment, therefore, contributes far beyond earnings, fueling capital deployment flexibility and enhancing return on equity.
For nearly six decades, Berkshire has thrived under Buffett's leadership. As the behemoth prepares for a leadership transition, with Greg Abel set to become CEO on Jan. 1, 2026, investors are watching closely. Buffett will remain executive chairman, ensuring continuity as Berkshire's insurance-led model continues to anchor its long-term strategy.
What About BRK.B's Competitors?
Chubb Limited CB and The Travelers Companies TRV are two other notable companies in the insurance space.
Chubb is focused on capturing growth opportunities in the middle-market segment across both domestic and international arenas. To fuel its long-term expansion, it is strengthening core package solutions while expanding its portfolio of specialty products. Chubb is investing strategically in key initiatives that support its overarching growth objectives.
Travelers' insurance operations, benefiting from disciplined underwriting, pricing strategies and a diversified portfolio of personal, business, and bond & specialty insurance, are its key growth engine. Its conservative risk management enables strong returns and sustained shareholder value even amid market volatility.
BRK.B's Price Performance
Shares of BRK.B have gained 8.9% year to date, underperforming the industry.
BRK.B's Expensive Valuation
BRK.B trades at a price-to-book value ratio of 1.62, above the industry average of 1.58. But it carries a Value Score of D.
Image Source: Zacks Investment Research
Estimates Movement for BRK.B
The Zacks Consensus Estimate for BRK.B's second-quarter and third-quarter 2025 EPS has moved down 3% and 0.3%, respectively, over the past 30 days. The consensus estimate for full-year 2025 has increased 0.2% and the same for 2026 has moved 2.7% higher. While the consensus estimate for BRK.B's 2025 EPS indicates a decline, the same for 2026 suggests an increase.
The consensus estimates for BRK.B's 2025 and 2026 revenues indicate year-over-year increases.
BRK.B stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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The Travelers Companies, Inc. (TRV): Free Stock Analysis Report
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