Berkshire's Insurance Business: The Horsepower of its Growth Story

Berkshire Hathaway’s BRK.B insurance operations remain the foundation of its business model and a major growth driver. Although the conglomerate owns more than 90 subsidiaries across diverse industries, it is also one of the world’s largest property and casualty insurers.

Its insurance portfolio includes GEICO, General Re and Berkshire Hathaway Reinsurance Group. Together, these businesses account for approximately one-quarter of Berkshire’s revenues and have consistently generated meaningful underwriting profits. Their broad market exposure, disciplined pricing and strong underwriting capabilities position the segment for sustained growth, even under challenging market conditions.

A crucial advantage is Berkshire’s substantial insurance float—the premiums held before claims are paid. Float increased from approximately $114 billion in 2017 to $177.5 billion at the end of the second quarter of 2026. This large, low-cost and reliable source of capital allows Berkshire to invest in equities and wholly owned businesses, enhancing returns, supporting flexible capital allocation and compounding shareholder value over time.

Nevertheless, the insurance operations face risks from cyclical market conditions, catastrophic losses, pricing pressure and weaker investment returns when interest rates decline. Given low rates, Berkshire’s insurance investment income fell during the first half of 2026.

Despite these risks, Berkshire’s combination of disciplined underwriting, enormous float, financial strength and flexible capital deployment creates a distinctive competitive advantage. Its insurance franchise enables the company to compound capital differently from a conventional insurer while making its balance sheet a powerful strategic asset.

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 1.5% year to date, underperforming the industry.

Image Source: Zacks Investment Research

Image Source: Zacks Investment Research

BRK.B’s Expensive Valuation

BRK.B trades at a price-to-book value ratio of 1.51, much below the industry average of 17. 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 third-quarter and fourth-quarter 2026 EPS has witnessed no movement over the past 30 days. The consensus estimate for full-year 2026 and 2027 has moved 0.8% and 0.4% north, respectively, in the last 30 days.

Image Source: Zacks Investment Research

The consensus estimates for BRK.B’s 2026 and 2027 revenues and earnings indicate year-over-year increases.   

BRK.B stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research