Berkshire Hathaway is making another big move in Japan. This time, Warren Buffett’s company is buying a stake in Tokio Marine, one of the country’s oldest and largest insurers. The deal is worth $1.8 billion, which comes out to ¥287.4 billion. Berkshire will pick up a 2.49% ownership slice through its reinsurance arm, National Indemnity Company, also known as NICO.
The Japanese insurance giant is selling about 48.2 million of its treasury shares to fund this. The announcement landed on March 23, 2026. This is not Berkshire’s first trip to Japan, but it is their first major insurance play there. The move shows Buffett’s team sees serious long-term value in Japanese financial firms, especially those that know how to handle risk.
The Essence of the Partnership
Times / If this partnership works well, do not be surprised to see Berkshire find other Japanese financial firms to back.
NICO will join Tokio Marine’s reinsurance panel, meaning Berkshire’s team will help cover some of the risks that Tokio Marine takes on. Specifically, NICO will assume a portion of Tokio Marine’s risk portfolio through a Whole Account Quota Share arrangement.
That arrangement matters because it provides Tokio Marine with stable, long-term backup against underwriting shocks. Think about big hurricanes or earthquakes. Those events can drain an insurer’s capital fast. With Berkshire standing behind them, Tokio Marine can handle those blows more easily.
The two companies also plan to hunt for global investment opportunities together, including mergers and acquisitions. NICO brings enormous cash reserves, while Tokio Marine brings deep underwriting experience and a deal-making engine that works across nearly 40 countries.
The Fine Print Shows How Both Sides Protect Themselves
Tokio Marine is not just pocketing the $1.8 billion and moving on. The company will use most of that money to buy back its own shares. The buyback is worth up to ¥287.4 billion, which matches the sale amount. This move prevents existing shareholders from getting diluted.
Berkshire also agreed to a cap on future buying. National Indemnity cannot go above 9.9% ownership without getting a green light from Tokio Marine’s board. If Berkshire wants to buy more shares later, it will have to do so on the open market like any other investor.
This gives Tokio Marine control over how much influence Berkshire eventually gets. It is a respectful boundary that keeps the partnership balanced.
Tokio Marine and Berkshire Are a Natural Fit
Japan Times / Tokio Marine has been around since 1879. That is nearly 150 years of writing insurance policies, paying claims, and surviving every economic storm Japan has thrown at it.
The company operates in almost 40 countries and knows how to price risk across different markets. Masahiro Koike, the Group CEO of Tokio Marine, said he is delighted to partner with Berkshire because the two companies share similar values and cultures.
Ajit Jain, Berkshire’s vice chairman who runs the insurance operations, praised Tokio Marine’s underwriting franchise and management team. Jain rarely throws compliments around loosely. When he says a company is exceptional, insurance professionals pay attention.
Berkshire started buying Japanese trading companies back in 2019. Those five firms, Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo, have turned into a massive holding for Berkshire. By the end of 2025, those stakes were worth roughly $35.4 billion.
The transaction is expected to close soon, and both companies are already planning the next steps. If this partnership works well, do not be surprised to see Berkshire find other Japanese financial firms to back. Buffett once said his favorite holding period is “forever.” With Tokio Marine, the Oracle of Omaha just added another forever candidate to the list.
