Japanese Companies and the End of Cross-ShareholdingsThin moat

Tokio Marine Holdings (8766) — moat facet

Tokio Marine's corporate clients used to be tied to it by shareholdings, and those ties are being cut.

Many of Tokio Marine's corporate clients in Japan were also companies whose shares it held. The market value of those strategic equities was ¥3,605.6 billion in March 2024 and ¥1,964.3 billion in March 20261, and the company plans to hold none by 20302.

Dissolution of excessive-cooperation arrangements, Sep 2024 (%)92.3Agents90.3Policy ownersTokio Marine IR conference, May 2025
Nine in ten agreed.

The unwinding follows the regulators' findings of premium-fixing on corporate policies34. The JFTC's orders involved policies for large companies5. By September 2024, 90.3% of policy owners had agreed to dissolve excessive-cooperation arrangements6.

For corporate clients, the change means buying insurance on price and service rather than as part of a shareholding relationship.

The company's strategic equities were 24.5% of IFRS net assets at March 20267. Removing them changes the company's risk profile as well as its relationships: its capital will depend less on the Japanese stock market.

The measure is corporate premium retention. Keeping the clients after the shares are sold would show the relationships rested on the product.

Moat trajectory: Narrowing

The shareholding ties are being dissolved.

The number that tests this moat
Reported
Policy owners agreeing to dissolve excessive-cooperation arrangements
90.3% (agents 92.3%)

The pace of unwinding the old relationships.

Source: Tokio Marine IR conference, May 2025 ↗
References
  1. ReportedThe market value of those strategic equities was ¥3,605.6 billion in March 2024 and ¥1,964.3 billion in March 2026, and the company plans to hold none by 2030.
    Tokio Marine Holdings, FY2025 results and FY2026 projections presentation - adjusted net income, strategic equity sales, shareholder returns and the FY2026 plan. — FY to March 2026 · publ. May 2026 · source ↗
  2. ReportedThe market value of those strategic equities was ¥3,605.6 billion in March 2024 and ¥1,964.3 billion in March 2026, and the company plans to hold none by 2030.
    Tokio Marine Holdings, FY2025 results and FY2026 projections presentation - adjusted net income, strategic equity sales, shareholder returns and the FY2026 plan. — FY to March 2026 · publ. May 2026 · source ↗
  3. ReportedThe unwinding follows the regulators' findings of premium-fixing on corporate policies.
    Tokio Marine Holdings, Group Business Strategy IR conference, 26 May 2026 - Japan P&C: market share, combined ratios, auto insurance, premiums, sales channels and the regulatory orders. — 2016-2026 · publ. 26 May 2026 · source ↗
  4. ReportedThe unwinding follows the regulators' findings of premium-fixing on corporate policies.
    Japan Fair Trade Commission, 31 October 2024 - cease and desist orders and surcharge payment orders against non-life insurance companies for price-fixing. — October 2024 · publ. 31 October 2024 · source ↗
  5. ReportedThe JFTC's orders involved policies for large companies.
    Japan Fair Trade Commission, 31 October 2024 - cease and desist orders and surcharge payment orders against non-life insurance companies for price-fixing. — October 2024 · publ. 31 October 2024 · source ↗
  6. ReportedBy September 2024, 90.3% of policy owners had agreed to dissolve excessive-cooperation arrangements.
    Tokio Marine Holdings, Business Strategy IR conference, May 2025 - progress on dissolving excessive-cooperation arrangements after the business improvement order. — 2024-2025 · publ. May 2025 · source ↗
  7. ReportedThe company's strategic equities were 24.5% of IFRS net assets at March 2026.
    Tokio Marine Holdings, FY2025 results and FY2026 projections presentation - adjusted net income, strategic equity sales, shareholder returns and the FY2026 plan. — FY to March 2026 · publ. May 2026 · source ↗
Sources
Generated September 24, 2026