Tokio Marine Holdings is a dividend growth machine

Insurer from Japan jumps another 14.6% as Berkshire Hathaway takes 2.5% stake

Tokio Marine (TSE:8766) surged another 14.6% on March 25 to ¥7,857, hitting a new all-time high after news that Berkshire Hathaway has taken a $1.8 billion (2.5%) stake. The stock had already jumped 17.1% the previous day, bringing its 2026 gain to +35%. Alongside this rally, Tokio Marine continues to deliver strong dividend growth, with a ~2.5% yield and recent increases of up to 40%.

---

Key Points

• Shares up +14.6% to ¥7,857; +35% YTD 2026

• Berkshire Hathaway takes 2.5% stake (~$1.8bn)

• Dividend FY2025: ¥172 (+~40%), interim FY2026: ¥105.5 (+30%)

• Market cap approx. ¥15.2tn (~$96bn)

---

Company Overview

Tokio Marine (TSE:8766), founded in 1879, is one of Japan’s largest insurance groups, operating across dozens of countries with businesses in property & casualty insurance, life insurance and reinsurance. The company has built a strong global footprint and focuses increasingly on risk diversification and international growth.

---

---

Partnership with Berkshire Hathaway

Tokio Marine announced it will sell treasury shares to National Indemnity, Berkshire Hathaway’s reinsurance unit, as part of a broader partnership. The cooperation includes reinsurance collaboration and potential joint acquisitions, combining Tokio Marine’s deal-making capabilities with Berkshire’s capital strength.

The company will offset dilution through share buybacks and confirmed that Berkshire will not exceed a 9.9% stake without board approval. The partnership is expected to improve earnings stability, particularly by reducing volatility from large catastrophe risks.

Tokio Marine’s stock price surged in recent years

Financials & Fundamentals

Tokio Marine continues to combine strong share-price momentum with solid fundamentals. The stock has delivered average annual returns of over 27% over the past five years and adds another +35% in 2026 so far.

Despite this performance, the shares trade at a P/E of just over 15, with a dividend yield of approximately 2.5%, reflecting the typical combination of moderate valuation and income seen in Japanese large-cap stocks.

Dividend

Tokio Marine has significantly accelerated its dividend growth. The dividend for FY2024/2025 increased nearly 40% to ¥172, while the interim dividend for the current fiscal year rose 30% to ¥105.5.

Tokio Marine hiked its dividend by 39.8% in the last year to a record high of 172 yen

The stock goes ex-dividend on March 30 for the interim payment. Over the past five years, dividend growth has averaged around 19% per year, an unusually high level for a global insurance company.

Analyst Overview

Analyst sentiment remains positive, with 3 Strong Buy, 8 Buy and 3 Hold ratings. Following the recent sharp share-price increase, the average price target now sits below the current share price.

Summary

Tokio Marine (TSE:8766) continues its strong momentum, driven by a major strategic partnership with Berkshire Hathaway and sustained global growth. The company combines high double-digit dividend growth, a 2.5% yield, and a moderate valuation, even after a sharp rally. With shares at new highs, the latest move highlights both strong investor demand and the impact of long-term capital partnerships on Japan’s insurance sector.

Previously Berkshire Hathaway mostly invested in Japanese trading houses, including Mitsui, Marubeni, Itochu, Mitsubishi and Sumitomo.

---

At DividendJapan, we aim to highlight these opportunities and uncover hidden gems that may not yet be on your radar. Stay tuned as we explore Japan’s dividend growth stories and the next generation of market leaders!

Disclaimer: The information provided here is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.