Tokio Marine Partners With Berkshire, Sells 2.49% Stake

Tokio Marine Holdings on Monday announced a strategic partnership with Berkshire Hathaway, led by investor Warren Buffett. As part of the deal, Tokio Marine will initially sell a 2.49% stake to Berkshire through a third-party allotment of treasury shares.

The partnership aims to strengthen both companies’ global insurance operations. Tokio Marine said the agreement will increase its risk-taking capacity, allowing it to expand into new growth opportunities worldwide.

At the same time, Berkshire’s reinsurance arm, National Indemnity, will gain access to Tokio Marine’s global insurance portfolio, enhancing its international reach.

Both companies also plan to collaborate on global investments, including mergers and acquisitions, as part of their long-term strategy.

Tokio Marine stated it will use proceeds of up to 287.4 billion yen (around $1.80 billion) from the share sale to buy back its own shares. This move is aimed at preventing dilution for existing shareholders.

After the initial stake purchase, any further acquisition of Tokio Marine shares by Berkshire is expected to take place mainly through the open market. However, National Indemnity has agreed not to increase its stake beyond 9.9% without prior approval from Tokio Marine’s board.

This deal marks another step in Berkshire Hathaway’s growing investment presence in Japan, following its earlier stakes in major Japanese trading companies.