Warren Buffett's Berkshire Hathaway is deepening its bet on Japan, with subsidiary National Indemnity Company set to acquire a 2.49% stake in Tokio Marine Holdings for ¥287.4 billion (US$1.8 billion) as part of a sweeping strategic partnership between two of the world's largest insurance groups.
Under the deal, NICO will take the stake through a third-party allotment of treasury shares. Tokio Marine said it would buy back its own stock to prevent dilution for existing shareholders. NICO has agreed not to acquire more than 9.9% of the Japanese insurer without prior board approval.
Beyond the equity investment, the partnership spans reinsurance collaboration and joint pursuit of mergers and acquisitions, combining NICO's capital strength with Tokio Marine's global underwriting platform.
Tokio Marine, Japan's oldest insurance company, reported consolidated total assets of ¥31.2 trillion (roughly US$205 billion) as of March 2025, with adjusted net income of approximately ¥1.07 trillion for the fiscal year. It operates in around 38 countries.
NICO, widely regarded as one of the best-capitalised insurers in the world, carries an A++ rating from A.M. Best. Berkshire Hathaway's total insurance float stood at approximately US$176 billion at the end of 2025.
"This represents a major step forward in advancing our insurance business and delivering sustainable value creation by combining the strengths of both organisations," Tokio Marine Group CEO Masahiro Koike said.
Ajit Jain, vice chairman of Berkshire Hathaway's insurance operations, said the company was "pleased to build a long-term collaborative relationship with TMHD, which has a strong underwriting franchise and an exceptional management team."
The investment extends a pattern that began in 2019, when Berkshire revealed stakes in Japan's five largest trading houses. Those holdings were worth roughly US$35 billion by the end of December 2025. The Tokio Marine deal marks Berkshire's first major foray into Japan's insurance sector.
Tokio Marine itself has spent more than US$17 billion on US acquisitions over the past two decades, including deals for Philadelphia Insurance Companies, Delphi Financial Group, HCC Insurance Holdings and Pure Group.
The NICO partnership could accelerate that trajectory through Berkshire's deal-sourcing reach and reinsurance capacity.
The partnership also arrives against the backdrop of a landmark US-Japan trade agreement reached in July 2025. Under the deal, Japan committed up to US$550 billion in US investment over three years - a figure the St. Louis Federal Reserve noted is equivalent to about 12% of Japan's 2024 GDP.
A White House fact sheet described it as the single largest foreign investment commitment ever secured by any country.
A September 2025 memorandum of understanding identified target sectors including semiconductors, energy, shipbuilding and artificial intelligence, and by December the two governments had convened a bilateral panel to begin selecting projects.
Tokio Marine America CEO Kenyu Okuda has previously pointed to the agreement as a source of new underwriting demand, noting that a surge in Japanese corporate investment would drive need for domestic coverage across property, liability, workers' compensation and umbrella lines.
