✦ The Berkshire PartnershipNarrow moat

Tokio Marine Holdings (8766) — the future bets

Berkshire will share a slice of Tokio Marine's non-life risks for ten years, and help it buy things.

In March 2026 Tokio Marine and National Indemnity agreed a comprehensive strategic partnership covering an equity investment, reinsurance and cooperation on acquisitions1. Under the reinsurance agreement, National Indemnity assumes a share of Tokio Marine's net non-life premiums, losses and expenses on risks attaching over ten years from 1 April 20262. The partnership lasts a decade, and for the first five years neither side can enter similar agreements with competitors3.

Tokio Marine and National IndemnityEquity stake2.49%, April 2026Reinsurancequota share, 10 years from 1 April 2026Exclusivity5 yearsOwnership cap9.9% without board approvalTokio Marine IFRS results; Berkshire 10-Q; Claims Journal; Business Insurance
Four parts of one partnership.

A quota share with a reinsurer of Berkshire's financial strength lets Tokio Marine write more business with less capital, and shares its losses in bad years. It also links the two companies for a decade.

The acquisition cooperation is the least defined part and potentially the largest: Berkshire has capital and a record of buying insurers.

The investment itself was ¥287.4 billion, about $1.8 billion4. Berkshire had raised just over ¥210 billion by issuing yen bonds late in 20255, the same way it has funded its Japanese trading-house stakes.

The measure is the reinsurance's effect on capital. A higher solvency ratio or more premium written on the same capital would show the partnership working.

Moat trajectory: Widening

A new ten-year partnership.

The number that tests this moat
Reported
Economic solvency ratio after the planned buyback
about 255% (268% before)

The capital cushion the reinsurance supports.

Source: Tokio Marine results presentation, May 2026 ↗
References
  1. ReportedIn March 2026 Tokio Marine and National Indemnity agreed a comprehensive strategic partnership covering an equity investment, reinsurance and cooperation on acquisitions.
    Tokio Marine Holdings, Consolidated Financial Results (IFRS) for the fiscal year ended March 31, 2026 - insurance revenue, net income, segment results, the Japan Life investment loss, acquisitions, the NICO share disposal and the buybacks. — FY to March 2026 · publ. 26 June 2026 · source ↗
  2. ReportedUnder the reinsurance agreement, National Indemnity assumes a share of Tokio Marine's net non-life premiums, losses and expenses on risks attaching over ten years from 1 April 2026.
    Berkshire Hathaway Form 10-Q for the quarter ended March 31, 2026 - NICO's quota-share reinsurance of Tokio Marine's net non-life premiums over a ten-year term from April 1, 2026. — Q1 2026 · publ. May 2026 · source ↗
  3. ReportedThe partnership lasts a decade, and for the first five years neither side can enter similar agreements with competitors.
    Claims Journal (Bloomberg), 24 March 2026 - the partnership lasts a decade, with five years of exclusivity. — March 2026 · publ. 24 March 2026 · source ↗
  4. ReportedThe investment itself was ¥287.4 billion, about $1.8 billion.
    Insurance Journal (Bloomberg), 23 March 2026 - Berkshire Hathaway to invest ¥287.4 billion ($1.8 billion) in Tokio Marine. — March 2026 · publ. 23 March 2026 · source ↗
  5. ReportedBerkshire had raised just over ¥210 billion by issuing yen bonds late in 2025, the same way it has funded its Japanese trading-house stakes.
    Insurance Journal (Bloomberg), 23 March 2026 - Berkshire Hathaway to invest ¥287.4 billion ($1.8 billion) in Tokio Marine. — March 2026 · publ. 23 March 2026 · source ↗
Sources
Generated September 24, 2026