Berkshire Hathaway has entered into a comprehensive strategic partnership with Tokio Marine Holdings (TMHD), under which its reinsurance business National Indemnity Corporation (NICO) will acquire a 2.5% stake in the Japanese insurance company.
It is reported that the new transaction includes the following three key elements: strategic equity investment in TMHD, cooperation in reinsurance, and strategic cooperation in mergers and acquisitions and global investment opportunities.
NICO, a subsidiary of Berkshire, will strategically invest 48,207,200 common shares in TMHD, accounting for 2.49% of the total 1,934,000,000 issued shares of TMHD as of December 31, 2025.
TMHD explained that in order to implement this investment, it will conduct a third-party rights issue through the disposal of treasury shares.
In order to offset the dilutive impact of the third-party rights issue, TMHD’s board of directors decided at its meeting on March 23, 2026 to repurchase up to 287.4 billion yen of its own shares between April and September 2026. The company intends to use proceeds from the rights issue to fund the buyback.
On the reinsurance front, TMHD said it would welcome NICO to its reinsurance group, adding that the Berkshire entity would assume a portion of its portfolio through full-account quota share reinsurance.
TMHD said: “This collaboration will further strengthen our long-term stable reinsurance base, both qualitatively and quantitatively, which is less susceptible to reinsurance market cycles. In addition, it will further enhance our earnings stability and strategic flexibility by mitigating underwriting volatility, particularly with respect to growing natural catastrophe risks.”
As previously stated, the two companies also plan to collaborate on global strategic investment opportunities, including mergers and acquisitions, and execute joint investments to drive continued business expansion.
“We have steadily expanded our global footprint through a disciplined acquisition discipline. Through strategic partnerships that combine our proven M&A execution capabilities with NICO’s unparalleled capital strength, we believe we can expand our strategic options and secure high-quality growth opportunities,” TMHD added.
Masahiro Koike, TMHD Group CEO, commented: “We are pleased to enter into a strategic partnership with Berkshire Hathaway, one of the world’s leading investors, whose corporate culture and values are closely aligned with ours. This strategic partnership represents an important step forward in our efforts to drive our insurance business and achieve sustainable value creation by combining the strengths of both companies. Through disciplined management, we will remain fully committed to enhancing corporate value in the long term.”
Ajit Jain, vice chairman of Berkshire Hathaway Insurance, said: “We are pleased to enter into a long-term relationship with TMHD, which has a strong underwriting business and an exceptional management team. We expect this strategic partnership to create compelling long-term opportunities for both organizations.”
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