Berkshire Hathaway (BRK.A / BRK.B) has taken a new position in Japanese insurance company Tokio Marine Holdings (TKOMY).
Berkshire is investing $1.8 billion U.S. in Tokio Marine for a 2.49% stake, according to the holding company that was previously run by legendary investor Warren Buffett.
The investment is being made through Berkshire’s core reinsurance unit, National Indemnity Co., and continues the company’s push into the Japanese market.
“We are pleased to build a long-term collaborative relationship with TMHD, which has a strong underwriting franchise and an exceptional management team,” said Berkshire Hathaway in a news release.
Tokio Marine Holdings is a multinational insurance holding company headquartered in Tokyo, Japan. It is the largest property and casualty insurer in Japan in terms of revenue.
Tokio Marine said that it plans to use the proceeds from the share sale to fund stock buybacks, helping to offset dilution for existing shareholders.
In recent years, Berkshire Hathaway has made several investments in Japanese companies, notably 10% stakes in the country’s leading trading houses that include Mitsubishi (MSBHF) and Mitsui (MITSY).
Berkshire Hathaway is also heavily invested in insurance companies, owning Geico and General Re outright and having large stakes in concerns such as Chubb (CB).
The more affordable Class B stock of Berkshire Hathaway has declined 9% over the past 12 months to trade at $480.94 U.S. per share.
