Here's How BH Primary Group Fuels BRK.B's Insurance Operations

Berkshire Hathaway’s BRK.B insurance segment is the backbone of its operational model. The insurance portfolio includes GEICO (auto insurance), Berkshire Hathaway Primary Group (BH Primary), and Berkshire Hathaway Reinsurance Group (BHRG). While GEICO serves as the cornerstone, Berkshire Hathaway Primary Group is also an important pillar, providing stability and diversification as well as producing underwriting “float” that Warren Buffett has long leveraged for investments.  BH Primary comprises independently run insurers, such as Berkshire Hathaway Homestate, National Indemnity, Berkshire Hathaway Specialty Insurance, MedPro, U.S. Liability, Berkshire Hathaway Direct, and Alleghany’s P&C operations. Together, they serve niche and specialty markets with customized insurance solutions. The group stands out for its stable, low-volatility earnings and its consistent ability to grow profitably across insurance cycles.Unlike GEICO, whose performance is more exposed to pricing swings in auto insurance, BHPG’s specialty and commercial lines offer a steadier underwriting foundation. This dependable profitability strengthens Berkshire Hathaway’s overall insurance results, supports reliable float generation, and ensures ample capital for long-term investment deployment. Further, BHPG leverages BRK.B’s exceptional financial strength to underwrite large and complex risks without heavy reliance on external reinsurance.Overall, BHPG is not just a segment within Berkshire Hathaway’s insurance operations — it is a critical engine of durability, diversification, and sustained cash generation.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 PerformanceShares of BRK.B have gained 12.1% year to date, outperforming the industry.Image Source: Zacks Investment ResearchBRK.B’s Expensive ValuationBRK.B trades at a price-to-book value ratio of 1.56, above the industry average of 1.52. It carries a Value Score of D.Image Source: Zacks Investment ResearchEstimate Movement for BRK.BThe Zacks Consensus Estimate for BRK.B’s fourth-quarter 2025 EPS has moved 15.8% south over the past seven days, while that for first-quarter 2026 EPS has moved 12.3% north in the same period. The consensus estimate for full-year 2025 and 2026 EPS has witnessed no movement over the past seven days.Image Source: Zacks Investment ResearchThe consensus estimate for BRK.B’s 2025 and 2026 revenues indicates year-over-year increases. While the consensus estimate for BRK.B’s 2025 and 2026 EPS indicates a year-over-year decline.  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.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>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 The Travelers Companies, Inc. (TRV): Free Stock Analysis Report Chubb Limited (CB): Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks