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Berkshire Hathaway Acquires 90% Stake in Marsh McLennan for $28 Billion

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  Published in Stocks and Investing on Wednesday, February 18th 2026 at 1:56 GMT by Action News Jax
      Locales: Florida, Nebraska, California, UNITED STATES

Jacksonville, Florida - February 18, 2026 - In a landmark deal signaling continued confidence in the insurance sector, Warren Buffett's Berkshire Hathaway has announced the acquisition of a 90% stake in global insurance broker Marsh McLennan for approximately $28 billion. The move, revealed today, solidifies Berkshire's position as a dominant force within the insurance landscape and underscores its long-held strategy of investing in well-managed, stable businesses with predictable cash flows.

The agreement, anticipated to finalize in late 2024 or early 2025 pending regulatory clearances, will see Marsh McLennan retain its public listing, with existing shareholders maintaining a 10% ownership. This unusual structure - a majority acquisition leaving a significant public float - suggests a desire by Berkshire to maintain the established brand recognition and operational expertise of Marsh McLennan while benefiting from its substantial earnings.

A Logical Extension of Berkshire's Insurance Empire

For decades, Warren Buffett has demonstrated a keen eye for identifying and acquiring companies within the insurance industry. Berkshire Hathaway already owns a diverse portfolio of insurance businesses, including GEICO, General Re, and several smaller specialty insurers. These acquisitions have historically proven incredibly profitable, providing Berkshire with a massive "float" - the money received from premiums that is invested while awaiting claims payouts. Marsh McLennan represents a unique addition to this portfolio, as it focuses on broking insurance, rather than underwriting it. This distinction is crucial.

While Berkshire's current insurance subsidiaries primarily assess risk and provide coverage directly to customers, Marsh McLennan acts as an intermediary, advising clients on risk management and securing the best insurance policies from a variety of underwriters. This position gives Marsh McLennan considerable influence and insight into the global insurance market, allowing it to identify trends, negotiate favorable terms, and ultimately benefit from the increasing demand for risk mitigation in a complex world.

Beyond Insurance: Expanding Global Reach and Capabilities

Marsh McLennan's global footprint, operating in over 130 countries, significantly expands Berkshire's international presence. This is particularly important given the growing risks associated with global supply chains, geopolitical instability, and climate change. Companies increasingly require sophisticated risk management solutions that transcend national borders, and Marsh McLennan is well-positioned to provide these services.

The broker's capabilities extend beyond traditional property and casualty insurance. Marsh McLennan also specializes in areas like employee benefits, risk consulting, and data analytics, offering a comprehensive suite of services to businesses of all sizes. This diversification provides a hedge against cyclical downturns in any single insurance segment and positions Berkshire to capitalize on emerging risks.

Analysts Weigh In: A Strategic Masterstroke

Financial analysts have largely lauded the acquisition as a strategic masterstroke. "This isn't just about adding another insurance business to the Berkshire portfolio," says Emily Carter, senior analyst at Financial Insights Group. "It's about gaining access to a critical piece of the insurance ecosystem. Marsh McLennan's client base and expertise will provide Berkshire with invaluable insights and opportunities for cross-selling its existing insurance products."

Some analysts also point to the relatively stable and predictable nature of Marsh McLennan's revenue stream as a key factor in Berkshire's decision. Unlike underwriting, which is subject to unpredictable claims payouts, insurance broking generates fees based on premium volume, providing a more consistent and reliable source of income.

Implications for the Insurance Industry

The acquisition is likely to have ripple effects throughout the insurance industry. Other major brokers may face increased pressure to consolidate in order to compete with the combined might of Berkshire and Marsh McLennan. Underwriters could also see their bargaining power diminish as Marsh McLennan leverages its scale to negotiate even more favorable terms.

Looking ahead, the integration of Marsh McLennan into the Berkshire Hathaway family is expected to be gradual. Buffett has a reputation for allowing acquired companies to maintain their autonomy, fostering a culture of entrepreneurship and innovation. This approach is likely to continue with Marsh McLennan, ensuring that the company's expertise and client relationships are preserved. The deal further cements Berkshire Hathaway's legacy as a long-term investor and a leader in the global insurance market.