Tokio Marine Holdings announced a large-scale stock split, with each share split into 15 shares. It also announced a strategic partnership under which a Berkshire Hathaway insurance subsidiary will invest approximately ¥287.4 billion in Tokio Marine, and outlined plans to pursue cooperation including reinsurance and M&A. The companies appear poised to pursue growth in overseas specialty insurance by leveraging their stable domestic foundation.
Tokio Marine Holdings announced plans to split its shares 15-for-1 in August 2026. Based on the closing price of ¥8,200 on 18 September, the reference date, the cost of starting an investment is expected to fall substantially.
On 23 March, a Berkshire Hathaway group company was allocated approximately 48.21 million treasury shares in Tokio Marine, for an acquisition price of approximately ¥287.4 billion. The ownership stake could eventually rise to 9.9%.
The two companies have agreed to pursue cooperation including reinsurance and M&A, and Berkshire intends to cooperate in the insurance business rather than act merely as a major shareholder.
Tokio Marine’s strengths lie in its stable domestic insurance business and its ability to circulate capital by investing in highly profitable specialty insurance overseas.
Berkshire shares its emphasis on decentralized management and its management philosophy of giving the management teams of acquired companies autonomy, indicating a policy aimed at achieving long-term capital growth.