Berkshire Hathaway Inc. New (BRK-B) concentration risks

The company's disclosed concentration profile combines two moderate-share exposures — a reinsurance counterparty dependency and a deliberate equity portfolio concentration — both of which sit at a moderate share by disclosed size. On the reinsurance side, a significant portion of the NICO Group's annual premium derives from a quota-share agreement with Insurance Australia Group Limited — a dependency exposure where a meaningful slice of one subsidiary's inbound premium is tied to a single cedant relationship. This is a contracted arrangement whose economics could be affected by renegotiation or non-renewal. On the investment side, the insurance subsidiaries concentrate a high percentage of equity security investments in a relatively small number of issuers — a structural concentration that reflects a deliberate, conviction-driven investment philosophy rather than inadvertent or forced concentration. Because this approach is embedded in the company's stated investment strategy, the exposure is not likely to be reduced quickly; it moves with the performance of those few names rather than with any single business-line or counterparty decision. Together, the two disclosures describe concentrations that sit in different parts of the enterprise: a subsidiary-level premium dependency and a portfolio-level equity concentration. Neither is so large relative to the whole that it dominates consolidated results on its own, but each is a named risk the filing singles out as potentially material. The equity concentration is the more distinctive feature — reflecting a strategic posture — while the reinsurance counterparty is the more contractually contingent exposure.

For the engine’s reasoning on BRK-B’s current verdict — including which dimensions drove the score — see the per-dimension breakdown.

Concentration counts reflect items disclosed in each peer’s most recent 10-K; disclosed-size classification uses TrendMatrix’s internal 10-K extraction taxonomy.