Berkshire Hathaway to Acquire $1.8 Billion Stake in Japan's Tokio Marine — 2nd Update

By Kosaku Narioka

Warren Buffett's Berkshire Hathaway plans to acquire a 2.5% stake in Japanese insurance giant Tokio Marine Holdings for $1.8 billion as part of a newly formed strategic partnership.

Tokio Marine said Monday that it would sell treasury shares to National Indemnity, Berkshire Hathaway's core reinsurance unit, and that the partnership would include collaboration in reinsurance and potential acquisitions.

The Japanese insurer said National Indemnity would join its reinsurance panel and assume a portion of its portfolio.

Tokio Marine, founded in 1879, operates in several dozen countries worldwide. The company said the tie-up would strengthen earnings stability by mitigating underwriting volatility, particularly amid increasingly severe natural catastrophe risks.

The partnership would combine Tokio Marine's M&A execution capabilities with the reinsurer's capital strength to broaden strategic options and access to high-quality growth opportunities, the company said.

The insurer added that National Indemnity wouldn't acquire more than a 9.9% stake without prior approval from Tokio Marine's board. It also said the Berkshire Hathaway unit would exercise its voting rights in accordance with Tokio Marine's recommendations.

"We expect this strategic partnership to create compelling long-term opportunities for both organizations," said Ajit Jain, vice chairman of Berkshire Hathaway's insurance operations.

Tokio Marine said it would buy back shares by using the funds raised to prevent dilution for existing shareholders.

Tokio Marine Chief Executive Masahiro Koike said in an interview late last year that the company wanted to deploy some $10 billion from the sale of Japanese shareholdings for acquisitions and growth-oriented investments. Japanese insurers like Tokio Marine have long held stakes in customers and other business partners but are gradually unwinding those holdings under pressure from the Japanese government.

For Berkshire Hathaway, Japan has been a major investment destination outside the U.S. The investment giant has built roughly 10% stakes in five major Japanese trading houses, including Mitsubishi Corp., Itochu Corp. and Mitsui & Co. The stakes were worth about $35 billion at the end of December.

Berkshire began buying shares of the major Japanese trading companies in July 2019. Buffett has praised the trading houses for their capital allocation, management and attitude toward shareholders.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

March 23, 2026 07:24 ET (11:24 GMT)