The Japanese insurance industry has become a new battlefield for global capital, with Berkshire Hathaway investing $1.8 billion in Tokio Marine Holdings.

It is noted that Berkshire Hathaway (BRK.A.US, BRK.B.US) will invest 287.4 billion yen (approximately 1.8 billion US dollars) in the insurance giant Tokio Marine Holdings Inc., further expanding this American conglomerate's risk exposure in the Japanese market. According to a statement on Monday, Berkshire's National Indemnity Company will make a strategic investment of 2.49% in Tokio Marine. The two companies will collaborate in the reinsurance sector and global investments, including mergers and acquisitions. This move showcases Berkshire's growing ambitions in Japan. About six years ago, under Buffett's leadership, the company revealed investments in several of Japan's largest trading houses (the five major sogo shosha). Buffett had previously stated in the annual shareholder letter that the company sought to "gradually" increase its holdings in Japan's five major trading houses over time. This latest transaction indicates Berkshire's desire to capitalize on the flourishing insurance industry in Japan, which is becoming increasingly attractive to foreign companies. KKR, Apollo Global Management Inc., and other major international giants have taken actions to expand their life insurance businesses, joining the wave of foreign companies seizing growth opportunities in Japan. Ikuo Mitsui, a fund manager at Blue Edge Securities, stated, "A partnership with Berkshire could provide an advantage in expanding business ahead of others by utilizing global expertise." Tokio Marine is Japan's largest property and casualty insurance company. A spokesperson for the company, Mitsuhiro Izu, stated that this transaction means Tokio Marine can use National Indemnity Company as a reinsurance option, without being limited to specific types of insurance. He added that the initiative for this collaboration came from Berkshire. Izu also pointed out that the partnership will last for ten years. In the first five years, neither Berkshire nor Tokio Marine will be able to sign similar agreements with competitors. Berkshire will purchase approximately 1.8 billion US dollars' worth of Tokio Marine's stock, and the Japanese company will then match this amount by repurchasing existing shares. In the statement, Tokio Marine indicated that if Berkshire continues to buy the company's stock in the future, it will likely do so through the public market. Berkshire Hathaway stated that its ownership stake will not exceed 9.9% without the approval of Tokio Marine's board. As Berkshire's interest in Japan as an investment destination continues to grow, the company is also engaging in financing activities in Japan. At the end of last year, Berkshire raised slightly over 210 billion yen (approximately 1.3 billion US dollars) through the issuance of yen-denominated bonds, returning to the financing market it first entered in 2019.