Overview
- A deal announced Monday between Tokio Marine and Berkshire’s National Indemnity covers a direct sale of about 48 million treasury shares for roughly $1.8 billion.
- Tokio Marine plans to repurchase shares with the proceeds to offset dilution for existing investors.
- The agreement caps Berkshire’s holding at 9.9% without board approval, requires any extra purchases to be made in the open market, and commits NICO to vote with management.
- NICO will join Tokio Marine’s reinsurance panel through a whole‑account quota share, a setup where the reinsurer takes a set share of premiums and claims to reduce earnings swings from catastrophes.
- The tie‑up broadens Berkshire’s Japan strategy beyond its roughly 10% stakes in major trading houses and positions both companies to look for joint acquisitions and investments.