Berkshire Hathaway has entered into a comprehensive strategic partnership with Tokio Marine Holdings, Inc. (TMHD), under which its reinsurance business, National Indemnity Company (NICO), will acquire a 2.5% stake in the Japanese insurer.
The new deal reportedly comprises the following three key elements: strategic equity investment in TMHD, collaboration in reinsurance, and strategic collaboration in M&A and global investment opportunities.
Berkshire’s NICO will make a strategic investment in 48,207,200 common shares of TMHD, representing 2.49% of TMHD’s total issued shares of 1,934,000,000 as of December 31, 2025.
To implement this investment, TMHD explained that it will conduct a third-party allotment by way of the Disposition of Treasury Shares.
To offset the dilutive impact of the third-party allotment, TMHD’s board of directors resolved at its March 23, 2026 meeting to repurchase up to ¥287.4 billion of its own shares between April and September 2026. The company intends to use the proceeds from the allotment to fund the buyback.
On the reinsurance front, TMHD said it will welcome NICO onto its reinsurance panel, adding that the Berkshire entity will assume a portion of its portfolio through Whole Account Quota Share reinsurance.
“This collaboration will further enhance, both qualitatively and quantitatively, our long-term and stable foundation of reinsurance that is less susceptible to cycles in the reinsurance market. In addition, it will further strengthen our earnings stability and strategic flexibility by mitigating underwriting volatility, particularly in relation to increasingly severe natural catastrophe risks,” TMHD observed.
As mentioned, the two companies also plan to collaborate on global strategic investment opportunities, including M&A, executing joint investments to drive sustained business expansion.
“We have steadily expanded our global footprint through disciplined acquisition principles. Through the Strategic Partnership, by combining our proven M&A execution capabilities with NICO’s peerless capital strength, we believe we are able to broaden our strategic options and access to high-quality growth opportunities,” TMHD added.
Masahiro Koike, Group CEO of TMHD, commented, “We are delighted to establish a strategic partnership with Berkshire Hathaway, one of the world’s leading investors, whose corporate culture and values closely align with ours. This Strategic Partnership represents a major step forward in advancing our insurance business and delivering sustainable value creation by combining the strengths of both organisations. Through disciplined management, we remain fully committed to enhancing corporate value over the long term.”
Ajit Jain, Vice Chairman of Berkshire Hathaway-insurance operations, stated, “We are pleased to build a long-term collaborative relationship with TMHD, which has a strong underwriting franchise and an exceptional management team. We expect this Strategic Partnership to create compelling long-term opportunities for both organisations.”
