Berkshire Hathaway plans to invest $1.8 billion in this insurance stock

Berkshire Hathaway (NYSE: BRK.A; BRK.B) plans to invest about JPY 287.4 billion (roughly $1.8 billion) in Tokio Marine Holdings, a Japanese insurance company.

The investment will be made through Berkshire’s reinsurance arm, National Indemnity Company, which will initially acquire a 2.5% stake in the Japanese firm (48,207,200 common shares), according to an investor note published on Monday, March 23.

Initially, the shares will come from Tokio Marine’s treasury stock, while any additional purchases are expected to occur mainly on the open market.

“Berkshire Hathaway is one of the world’s foremost long-term investors, and the investment from its wholly owned subsidiary, NICO, reflects not only the strategic importance of this Partnership but also its confidence in our ability to deliver attractive returns through sustained long-term value creation,” Tokio Marine Holdings wrote.

Berkshire Hathaway continues its push into Japan

The new move underscores Berkshire’s continuing push into Japan, which began under CEO Warren Buffett, who built positions in the country about six years ago, starting with stakes in major trading houses. 

Both partners have also expressed intent to cooperate on reinsurance and explore potential acquisition opportunities, according to a statement released Monday. 

“We are committed to meeting that expectation, alongside all shareholders, by delivering sustainable long-term value and generating appropriate returns through disciplined management,“ the Japanese company added.

Notably, though, Tokio Marine noted that National Indemnity will not increase its holding beyond 9.9% without prior approval from its board. 

Moreover, to offset dilution from the allotment, Tokio Marine’s board approved a plan on March 23, 2026, to repurchase up to ¥287.4 billion ($1.8 billion) in its own stock between April and September 2026, using proceeds from the transaction to fund the buyback. 

Featured image via Shutterstock