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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
No. of Recommendations: 13
Berkshire Hathaway (BRK.A) (BRK.B) plans to invest JPY 287.4B (about $1.8B) in Japanese insurance firm Tokio Marine Holdings, further expanding the U.S. conglomerate’s exposure to Japan.
The investment will be made through Berkshire’s reinsurance unit, National Indemnity Company, which will initially acquire a roughly 2.5% stake in the insurer. The initial shares will be allocated through the disposition of treasury stock held by Tokio Marine.
Following the allocation of such treasury stock, any additional acquisitions of Tokio Marine shares by National Indemnity are expected to be made primarily through open-market purchases.
The two companies also plan to collaborate on reinsurance as well as potential acquisitions, according to a statement released Monday. The Japanese insurer added that National Indemnity wouldn’t acquire more than 9.9% of the company without prior approval from the Tokio Marine board.
https://seekingalpha.com/news/4567219-berkshire-ha...
No. of Recommendations: 2
I love this investment. Sizeable market cap for Tokio Marine of $72B, so hopefully BRK can invest up to a 20% holding eventually.
No. of Recommendations: 3
Here is what I got from Google search AI.
Tokio Marine Holdings is a premier global insurance group established in 1879, providing domestic/international life and non-life insurance, reinsurance, and financial services. Headquartered in Tokyo, it holds over US$204 billion in assets, operates in 45+ countries, and boasts a highly profitable, diversified portfolio. The company is strong financially, with a 15.71% return on equity and substantial earnings.
Business Segments :
International Insurance: Reinsurance and international underwriting.
Domestic Non-Life Insurance: Japan’s largest non-life insurer (fire, auto, marine).
Domestic Life Insurance: Life insurance products.
Financial and General: Investment advisory, trust management, and facility management.
History :
Founded (1879): Established as Japan's first insurance company, Tokyo Marine Insurance Company (TMIC), specializing in marine insurance.
Expansion (Early 1900s): Introduced Japan’s first auto insurance in 1914.
Reorganization (2002): Formed Millea Holdings, which later became Tokio Marine Holdings (2008).
Global Expansion (2008-present): Acquired major entities like Philadelphia Insurance Companies, Delphi Financial Group, and HCC Insurance Holdings, expanding its global footprint.
Financial Performance :
Profit Split: Roughly 50% of profits come from overseas businesses, with the remainder from domestic Japanese business.
Recent Performance: As of March 2026, the company reported revenue of $15.11 billion in a single quarter, beating estimates.
Market Position: One of the world’s most highly rated insurance groups, with over 43,000 employees.
In spite of its name, doesn’t seem to offer maritime/marine insurance products.
No. of Recommendations: 1
Further in depth queries revealed that the company does offer marine insurance underwriting.
I wondered if stock price was affected by recent Iran war and closure of Hormuz Strait.
Stock price is down by about 9-10% after start of the war. I doubt that was the reason for Berkshire making the bid. They must have been evaluating the company and liked it enough to want to invest in and partner with it. The fall in stock price must have been a pleasant bonus.
No. of Recommendations: 5
I wondered if stock price was affected by recent Iran war and closure of Hormuz Strait.
Stock price is down by about 9-10% after start of the war. I doubt that was the reason for Berkshire making the bid. They must have been evaluating the company and liked it enough to want to invest in and partner with it. The fall in stock price must have been a pleasant bonus.
It's maybe worth noting that the Nikkei is down 13% since the start of the war, so the market doesn't seem to be punishing Tokio Marine because it's name makes it sound like it is heavily exposed to maritime insurance.
DTB
No. of Recommendations: 1
Berkshire seems to be finding attractive investments in the insurance area, even as it is eschewing equity investments in the last few years.
They bought Allegheny in Oct 22 for $11.6 billion, spent $8 billion on Chubb starting 2025 Q3 and now $1.8 billion on Tokio Marine, which is likely to rise as they have management’s agreement to buy upto 10% (they now own 2.5%).
I too have felt that many other insurers like Fairfax Financial, Markel and Progressive are undervalued, but hesitate to add even more to my substantially overweight insurance holdings. There are no clear company-specific issues affecting them, so it is likely Berkshire is also similarly undervalued. Maybe with substantial stock repurchases and insurance company investments, and stagnant/declining railroad, utilty and MSR segments, Berkshire itself will become more of an insurance business.
In an expensive market, very few other sectors like packaged foods, alcoholic beverages, and oil & gas ( till a few weeks ago) are beaten down.
