Barclays analyst Jay Gelb wrote a research note Tuesday speculating that Chubb would be an attractive acquisition candidate for Warren Buffett’s Berkshire Hathaway.
We believe Chubb would make an attractive asset for Berkshire Hathaway both from a strategic and a financial perspective.
The note, which is speculation, follows an article in Barron’s mentioning a potential acquisition for Berkshire.
Gelb notes that Chubb would add a strong presence in primary property-casualty and high-end personal lines that doesn’t overlap with Berkshire’s existing business.
The largest barrier to a deal, in Gelb’s view, is the price that Chubb would require for such a deal.
Gelb notes that Buffett said during Berkshire Hathaway’s annual shareholder meeting in May that his company had the capacity to make a $30 billion acquisition.
Chubb has an office in Simsbury.