The insurance industry is witnessing soft pricing. Per Global Insurance Market Index by Marsh, global commercial insurance rates fell 4% in the third quarter, following seven years of rising rates. The Fed has started lowering rates, and at least one cut is expected this year. Nonetheless, Berkshire Hathaway Inc. (BRK.B Quick QuoteBRK.B - Free Report) and Chubb Limited (CB Quick QuoteCB - Free Report) — two insurance behemoths — stand tall given their expansive operations.  

Being predominantly property and casualty insurers, cat losses weigh on the companies’ underwriting results.  Swiss Re estimates 2025 insured losses from natural catastrophes to approximate $107 billion, largely driven by LA wildfires and severe convective storms in the United States. Yet, the combined ratio is expected to improve to 98.5% in 2025 per Swiss Re.

Nonetheless, increased exposure, accelerated digitalization prudent underwriting and favorable reserve development are likely to support the insurers.

Also, per a report from Willis Towers Watson’s Quarterly Deal Performance Monitor, merger and acquisition (M&A) activity is projected to witness continued momentum, given a higher number of technology-driven deals.

Yet, as an investment option, which stock is more attractive? Let’s closely look at the fundamentals of both stocks.

Factors to Consider for BRK.B

Berkshire Hathaway is a diversified conglomerate with more than 90 subsidiaries operating across a wide range of industries, including insurance, utilities, railroads, manufacturing, and consumer products. This broad business mix significantly reduces concentration risk and provides stability across economic cycles. Among its segments, insurance remains the cornerstone of Berkshire’s operations, contributing roughly one-fourth of the company’s total revenues. The insurance business is well-positioned for long-term expansion, supported by rising demand, disciplined underwriting practices and favorable pricing conditions.

Sustained growth in insurance operations leads to an expanding float, which enhances earnings, boosts return on equity, and supplies substantial capital for strategic investments and acquisitions. This float-driven model has been a key competitive advantage for Berkshire for decades.
Backed by a massive cash reserve, Berkshire Hathaway actively acquires whole businesses or increases stakes in companies with durable earnings, strong competitive advantages, and attractive returns on equity. Large acquisitions create new growth avenues, while smaller bolt-on deals strengthen and expand existing operations.

Warren Buffett’s investment approach consistently focuses on undervalued assets with long-term growth potential. Recent increased investments in Japanese companies align with this philosophy. Long-standing holdings in Coca-Cola, American Express, Apple, Bank of America, Chevron, and Occidental Petroleum further reflect Berkshire’s disciplined, value-driven strategy.

The company’s financial strength is reinforced by over $100 billion in cash, minimal leverage, and a superior credit profile.

Berkshire’s return on equity of 7.3% lags the industry average of 8%, but this company has improved its return over time. BRK.B shares have lost 0.2% in the past three months.

Factors to Consider for CB

Chubb is among the world’s largest providers of P&C insurance and reinsurance and is the largest publicly listed P&C insurer by market capitalization. The company benefits from a highly diversified business model across products, industries and geographic regions, which enhances earnings stability and resilience across market cycles.

Chubb continues to focus on unlocking growth opportunities within the middle-market segment, both in the United States and internationally, while strengthening its core commercial packages and expanding specialty insurance offerings. To further accelerate growth, the company is making targeted strategic investments aimed at improving capabilities, distribution, and customer reach.

The company is also a leading cyber insurance provider in the United States, consistently ranking among the top insurers by direct premiums written. As cyber threats grow in scale and sophistication, demand for cyber insurance is expected to rise significantly. With comprehensive coverage that addresses risks such as data breaches and network security failures, Chubb is well-positioned to capitalize on this expanding market.

Disciplined underwriting practices enable Chubb to maintain one of the lowest combined ratios in the industry. In addition, the company actively pursues strategic mergers and acquisitions to enhance capabilities, generate synergies, diversify its portfolio, and expand geographically. These initiatives, along with commercial P&C rate increases, strong renewal retention and expansion in emerging markets, support premium growth and higher long-term returns on equity.

Though the Fed has started lowering the interest rate, investment income should benefit from improved operating cash flow.  Chubb expects $1.81 billion in adjusted net investment income in first-quarter 2026.

Chubb has a strong capital position and sufficient cash-generation capabilities, which support wealth distribution to shareholders and growth initiatives.  

A solid capital deployment strategy supports growth and helps return wealth to shareholders. Its return on equity of 12.9% betters the industry average. CB has gained 8.1% in the past three months.

Estimates for BRK.B and CB

The Zacks Consensus Estimate for BRK.B’s 2026 revenues implies a year-over-year increase of 6%, while that for EPS implies a year-over-year decrease of 4.2%. EPS estimates have moved southward over the past 30 days. 

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CB’s 2026 revenues implies a year-over-year decrease of 6.5% while that for EPS implies a year-over-year increase 8.6%. EPS estimates have moved northward over the past 30 days. 

Image Source: Zacks Investment Research

Are BRK.B and CB Shares Expensive?

Berkshire is trading at a price-to-book multiple of 1.53, above its median of 1.44 over the last five years. Chubb’s price-to-book multiple sits at 1.52, below its median of 1.56 over the last five years.

Image Source: Zacks Investment Research

Conclusion

Holding shares of Berkshire Hathaway adds dynamism to shareholders’ portfolios. It gives the feel of investing in mutual funds while rewarding investors with higher returns. With the departure of Warren Buffett and Greg Abel as the new CEO, all eyes are now on how he anchors the ship. 

Chubb is poised to grow on better pricing, new business growth and high renewal rates. It is also focused on business lines that have immense room for growth. Chubb is considered a premium insurer, especially in high-net-worth personal lines.

Though both these insurers engage in share buybacks, Berkshire does not pay dividends. On the other hand, Chubb has a solid track record of increasing dividends for the last 32 years. The company’s current dividend yield of 1.3% is better than the industry average of 0.3%, which makes the stock an attractive pick for yield-seeking investors. 

On the basis of return on equity, which reflects a company’s efficiency in generating profit from shareholders' equity as well as gives a clear picture of the company's financial health, CB scores higher than BRK.B.

Though both these stocks carry a Zacks Rank #3 (Hold), Chubb has an edge over Berkshire. 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.