We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Berkshire vs. Chubb: Which Stock Has Better Long-Term Potential?
Read MoreHide Full Article
Key Takeaways
Chubb has an edge over Berkshire, backed by stronger ROE, dividend growth and disciplined underwriting.
CB's 2026 EPS estimate implies 10.3% growth, supported by pricing, renewals and new business growth.
Chubb's cyber insurance strength and emerging-market expansion add further long-term growth opportunities.
Prudent pricing, increasing climate-related risks and rapid digital transformation are likely to influence the insurance industry’s outlook in 2026. Although insurers remain exposed to catastrophe losses, driven by climate change, stronger pricing continues to support profitability. Notably, global commercial insurance rates are expected to have moderated, largely due to abundant capacity and heightened competition among insurers.
At its latest meeting, the Federal Reserve raised the benchmark interest rate by 25 basis points under Chair Kevin Warsh, lifting the federal funds rate target range to 3.75%-4%. The unanimous decision marked the Fed’s first rate increase since 2023 and a notable policy reversal after three consecutive cuts.
In this scenario, industry giants Berkshire Hathaway Inc. (BRK.B - Free Report) and Chubb Limited (CB - Free Report) are expected to remain resilient.
At the same time, increasing adoption of digital technologies is likely to drive a rise in merger and acquisition (M&A) activity, particularly in tech-focused deals, as highlighted by Willis Towers Watson’s Quarterly Deal Performance Monitor.
Against this backdrop, which of these stocks presents a more compelling opportunity for long-term investors focused on the insurance sector? Let’s take a closer look at their fundamentals.
Factors to Consider for BRK.B
Berkshire Hathaway is a highly diversified conglomerate with more than 90 businesses spanning insurance, energy, railroads, manufacturing, retail and consumer products. Its broad operating portfolio reduces its reliance on any single industry, supporting earnings stability and resilience across economic cycles.
Insurance remains Berkshire’s largest business, accounting for roughly one-fourth of total revenues. Disciplined underwriting, steady premium growth and favorable pricing support the segment’s performance. Berkshire’s substantial insurance float—premiums collected before claims are paid—also provides a valuable source of low-cost funding for investments and acquisitions. This structural advantage has been central to the company’s long-term value creation and capital-allocation flexibility.
Beyond insurance, Berkshire continues to reshape its investment portfolio to strengthen income stability and increase geographic diversification. The company has expanded its investments in Japanese trading houses and airline-related businesses while trimming selected payment-company holdings. Its planned $6.8 billion acquisition of Taylor Morrison Home Corp. also underscores its confidence in the long-term prospects of the U.S. housing market.
Berkshire maintains exceptional financial strength, supported by more than $370 billion in cash and U.S. Treasury holdings, conservative leverage and a fortress balance sheet. These resources provide ample flexibility to pursue strategic investments, capitalize on acquisition opportunities and navigate economic uncertainty.
The company’s return on equity of 6.6% exceeds the industry average. BRK.B shares have gained 5.7% over the past six months.
Factors to Consider for CB
Chubb is one of the world’s largest providers of property and casualty insurance and reinsurance and the largest publicly traded P&C insurer by market capitalization. Its broad diversification across products, industries and geographic markets supports earnings stability and resilience throughout insurance cycles.
The company is pursuing growth opportunities in the middle-market segment in the United States and internationally while strengthening its core commercial packages and expanding specialty offerings. Targeted investments in capabilities, distribution and customer reach should further support growth.
Chubb is also a leading U.S. cyber insurer, consistently ranking among the top carriers by direct premiums written. The increasing frequency and sophistication of cyberattacks are driving demand for protection against data breaches, network disruptions and other digital risks. Chubb’s comprehensive offerings position it well to capitalize on this expanding market.
Disciplined underwriting has helped the company maintain one of the industry’s lowest combined ratios. Commercial P&C rate increases, strong renewal retention and expansion in emerging markets should support premium growth and higher long-term returns. Strategic acquisitions also enable Chubb to broaden its capabilities, realize synergies, diversify its portfolio and expand geographically.
Its high-quality, liquid, investment-grade portfolio provides a growing and relatively predictable earnings stream. Strong cash generation, reinvestment above the portfolio yield and a conservative duration profile should support further investment income growth while preserving flexibility to capitalize on attractive opportunities during periods of market dislocation.
Chubb’s solid capital position and cash-generating ability support business expansion and shareholder returns. Its disciplined capital-deployment strategy further enhances long-term value creation. The company’s return on equity of 14.5% exceeds the industry average. Its shares have gained 5.6% over the past six months.
Estimates for BRK.B and CB
The Zacks Consensus Estimate for BRK.B’s 2026 revenues implies a year-over-year increase of 5.6% and that for EPS implies a year-over-year increase of 5.1%. EPS estimates have moved northward 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 7.3%, while that for EPS implies a year-over-year increase of 10.3%. 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 1.45, on par with its median over the last five years. Chubb’s price-to-book multiple sits at 1.63, lower than its median of 1.86 over the last five years.
Image Source: Zacks Investment Research
Conclusion
Holding shares of Berkshire Hathaway adds dynamism to shareholders’ portfolios. It is a diversified operating conglomerate supported by durable cash flows, financial strength and a proven reinvestment framework that has compounded shareholder wealth over decades. Investors are keen to see how the conglomerate fares under the leadership of its new CEO.
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 33 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.
View the Zacks #1 Rank List
Image: Bigstock
Berkshire vs. Chubb: Which Stock Has Better Long-Term Potential?
Key Takeaways
Prudent pricing, increasing climate-related risks and rapid digital transformation are likely to influence the insurance industry’s outlook in 2026. Although insurers remain exposed to catastrophe losses, driven by climate change, stronger pricing continues to support profitability. Notably, global commercial insurance rates are expected to have moderated, largely due to abundant capacity and heightened competition among insurers.
At its latest meeting, the Federal Reserve raised the benchmark interest rate by 25 basis points under Chair Kevin Warsh, lifting the federal funds rate target range to 3.75%-4%. The unanimous decision marked the Fed’s first rate increase since 2023 and a notable policy reversal after three consecutive cuts.
In this scenario, industry giants Berkshire Hathaway Inc. (BRK.B - Free Report) and Chubb Limited (CB - Free Report) are expected to remain resilient.
At the same time, increasing adoption of digital technologies is likely to drive a rise in merger and acquisition (M&A) activity, particularly in tech-focused deals, as highlighted by Willis Towers Watson’s Quarterly Deal Performance Monitor.
Against this backdrop, which of these stocks presents a more compelling opportunity for long-term investors focused on the insurance sector? Let’s take a closer look at their fundamentals.
Factors to Consider for BRK.B
Berkshire Hathaway is a highly diversified conglomerate with more than 90 businesses spanning insurance, energy, railroads, manufacturing, retail and consumer products. Its broad operating portfolio reduces its reliance on any single industry, supporting earnings stability and resilience across economic cycles.
Insurance remains Berkshire’s largest business, accounting for roughly one-fourth of total revenues. Disciplined underwriting, steady premium growth and favorable pricing support the segment’s performance. Berkshire’s substantial insurance float—premiums collected before claims are paid—also provides a valuable source of low-cost funding for investments and acquisitions. This structural advantage has been central to the company’s long-term value creation and capital-allocation flexibility.
Beyond insurance, Berkshire continues to reshape its investment portfolio to strengthen income stability and increase geographic diversification. The company has expanded its investments in Japanese trading houses and airline-related businesses while trimming selected payment-company holdings. Its planned $6.8 billion acquisition of Taylor Morrison Home Corp. also underscores its confidence in the long-term prospects of the U.S. housing market.
Berkshire maintains exceptional financial strength, supported by more than $370 billion in cash and U.S. Treasury holdings, conservative leverage and a fortress balance sheet. These resources provide ample flexibility to pursue strategic investments, capitalize on acquisition opportunities and navigate economic uncertainty.
The company’s return on equity of 6.6% exceeds the industry average. BRK.B shares have gained 5.7% over the past six months.
Factors to Consider for CB
Chubb is one of the world’s largest providers of property and casualty insurance and reinsurance and the largest publicly traded P&C insurer by market capitalization. Its broad diversification across products, industries and geographic markets supports earnings stability and resilience throughout insurance cycles.
The company is pursuing growth opportunities in the middle-market segment in the United States and internationally while strengthening its core commercial packages and expanding specialty offerings. Targeted investments in capabilities, distribution and customer reach should further support growth.
Chubb is also a leading U.S. cyber insurer, consistently ranking among the top carriers by direct premiums written. The increasing frequency and sophistication of cyberattacks are driving demand for protection against data breaches, network disruptions and other digital risks. Chubb’s comprehensive offerings position it well to capitalize on this expanding market.
Disciplined underwriting has helped the company maintain one of the industry’s lowest combined ratios. Commercial P&C rate increases, strong renewal retention and expansion in emerging markets should support premium growth and higher long-term returns. Strategic acquisitions also enable Chubb to broaden its capabilities, realize synergies, diversify its portfolio and expand geographically.
Its high-quality, liquid, investment-grade portfolio provides a growing and relatively predictable earnings stream. Strong cash generation, reinvestment above the portfolio yield and a conservative duration profile should support further investment income growth while preserving flexibility to capitalize on attractive opportunities during periods of market dislocation.
Chubb’s solid capital position and cash-generating ability support business expansion and shareholder returns. Its disciplined capital-deployment strategy further enhances long-term value creation. The company’s return on equity of 14.5% exceeds the industry average. Its shares have gained 5.6% over the past six months.
Estimates for BRK.B and CB
The Zacks Consensus Estimate for BRK.B’s 2026 revenues implies a year-over-year increase of 5.6% and that for EPS implies a year-over-year increase of 5.1%. EPS estimates have moved northward 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 7.3%, while that for EPS implies a year-over-year increase of 10.3%. 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 1.45, on par with its median over the last five years. Chubb’s price-to-book multiple sits at 1.63, lower than its median of 1.86 over the last five years.
Image Source: Zacks Investment Research
Conclusion
Holding shares of Berkshire Hathaway adds dynamism to shareholders’ portfolios. It is a diversified operating conglomerate supported by durable cash flows, financial strength and a proven reinvestment framework that has compounded shareholder wealth over decades. Investors are keen to see how the conglomerate fares under the leadership of its new CEO.
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 33 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