TOKYO, March 23 - Tokio Marine Holdings Inc announced on Monday that it will establish a strategic partnership with Warren Buffett’s Berkshire Hathaway, beginning with an initial sale of 2.49% of its shares. The transfer will take place through a third-party allotment of treasury shares to Berkshire’s principal reinsurance business, National Indemnity.
Tokio Marine said it expects to use the funds from the allotment - up to 287.4 billion yen, equivalent to approximately $1.80 billion - to repurchase its own stock. Management framed the buyback as a measure to prevent dilution for existing shareholders following the transaction. The filing included an exchange-rate reference of $1 = 159.4100 yen.
Under the terms disclosed, after the initial allocation to National Indemnity any additional purchases of Tokio Marine shares by Berkshire are anticipated to occur primarily through the open market. Separately, National Indemnity has agreed not to acquire more than 9.9% of Tokio Marine’s outstanding shares without first obtaining approval from Tokio Marine’s board.
The company characterized the transaction as the start of a strategic relationship with Berkshire Hathaway. Tokio Marine’s statement specified the mechanics of the initial stake transfer and the intended use of proceeds, and it set out the prospective approach for any subsequent share accumulation by National Indemnity.
The deal structure centers on a third-party allotment of treasury stock for the initial stake, followed by open-market activity for potential additional purchases, constrained by the 9.9% threshold absent board approval. The insurer will channel up to 287.4 billion yen in proceeds into its share repurchase program to offset dilution that could arise from the allotment.
Details in the filing emphasize the limited scope of the initial equity transfer and the governance mechanism that Tokio Marine retains through the board approval requirement for larger accumulations by National Indemnity. The filing did not provide further commentary on timing for open-market purchases or on operational aspects of the strategic partnership beyond the equity arrangements.
Contextual note: The filing states the transaction terms and the buyback plan; it does not provide additional forecasts, timing for further purchases, or other commercial terms of the wider strategic relationship.