Capital: Selling the Cross-ShareholdingsNarrow moat

Tokio Marine Holdings (8766) — moat facet

Tokio Marine is selling ¥3.6 trillion of client shares and handing much of the money to its own shareholders.

For decades Japanese non-life insurers held shares in their corporate clients, a practice that tied the relationship together. Tokio Marine is selling all of them. The market value of its strategic equities was ¥3,605.6 billion at March 2024, ¥2,209.2 billion at March 2025 and ¥1,964.3 billion at March 2026, and is planned at ¥1,534.3 billion at March 20271. It sold ¥922.4 billion in the year to March 2025 and ¥745.6 billion in 20262. The target is zero by the end of the year to March 20303.

Strategic equity holdings, market value (¥ bn, March)3,605.620242,209.220251,964.320261,534.32027 planTarget zero by March 2030; Tokio Marine results presentation, May 2026
Down by nearly half in two years.

The sales are part of the response to the regulatory orders4, and they change the company. They release capital for acquisitions and buybacks, reduce exposure to the Japanese stock market and end a practice that tied corporate customers to insurers through shareholdings rather than price.

The capital is strong. The economic solvency ratio was 268% at March 2026 against a target of 190% or higher56, and bonds and borrowings of ¥598.0 billion are small against equity of ¥7,955.6 billion7.

Returns to shareholders have risen with the sales. Total distributions grew from ¥267.6 billion in the year to March 2018 to ¥652.4 billion in 2026, and are planned at ¥860.6 billion8; the dividend has risen for fifteen consecutive years including the current one9.

The company's adjusted net assets on the IFRS basis were ¥6,439.1 billion at March 2025 and ¥7,183.2 billion at March 2026, and are planned at ¥7,441.0 billion10. Strategic equities are planned to fall from 24.5% to 19.4% of IFRS net assets over the current year11.

The cash flow shows the returns. Under Japanese GAAP it spent ¥269.0 billion on share buybacks in the year to March 2025 and ¥251.6 billion in 202612; under IFRS it paid dividends of ¥281.0 billion and ¥375.4 billion13.

The advantage is narrow but real: a balance sheet that can fund both acquisitions and large returns. The measure is the ESR after the sales. Holding above 190% while the equities go to zero and returns rise would show the capital strong without the equity cushion.

Moat trajectory: Widening

Capital released from equities funds higher returns.

The number that tests this moat
Reported
Economic solvency ratio, March 2026
268% against a target of 190% or higher

The capital cushion as the strategic equities are sold.

Source: Tokio Marine results presentation, May 2026 ↗
Aspects of the moat
DIG DEEPER 01
Strategic Equities to Zero
Tokio Marine has sold nearly half its client shareholdings in two years and plans to sell the rest by 2030.
DIG DEEPER 02
A Solvency Ratio of 268%
Tokio Marine holds capital well above its own target, which is what lets it buy and return money at the same time.
DIG DEEPER 03
Fifteen Dividend Increases
Tokio Marine has raised its dividend for fifteen years and now sets it at half of three years' profit.
DIG DEEPER 04
Buybacks: ¥400 Billion Plus the Berkshire Offset
Tokio Marine plans to return nearly as much as it earns this year, funded by selling its client shares.
⚠ Threats to the moat
⚠ THREAT 01
Gains That Will Stop
Two-fifths of Tokio Marine's reported Japanese GAAP profit last year came from selling shares it will soon run out of.
⚠ THREAT 02
Returns Below the Plan's Target
Tokio Marine's return on equity is running a point below its plan's target on the basis that now matters.
References
  1. ReportedThe market value of its strategic equities was ¥3,605.6 billion at March 2024, ¥2,209.2 billion at March 2025 and ¥1,964.3 billion at March 2026, and is planned at ¥1,534.3 billion at March 2027.
    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. ReportedIt sold ¥922.4 billion in the year to March 2025 and ¥745.6 billion in 2026.
    Tokio Marine Holdings, FY2025 results and FY2026 projections presentation - Japan P&C results: premiums, auto, natural catastrophes and expense ratios. — FY to March 2026 · publ. May 2026 · source ↗
  3. ReportedThe target is zero by the end of the year to March 2030.
    Tokio Marine Holdings, FY2025 results and FY2026 projections presentation - Japan P&C results: premiums, auto, natural catastrophes and expense ratios. — FY to March 2026 · publ. May 2026 · source ↗
  4. ReportedThe sales are part of the response to the regulatory orders, and they change the company.
    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 ↗
  5. ReportedThe economic solvency ratio was 268% at March 2026 against a target of 190% or higher, and bonds and borrowings of ¥598.0 billion are small against equity of ¥7,955.6 billion.
    Tokio Marine Holdings, FY2025 results and FY2026 projections presentation - Japan P&C results: premiums, auto, natural catastrophes and expense ratios. — FY to March 2026 · publ. May 2026 · source ↗
  6. ReportedThe economic solvency ratio was 268% at March 2026 against a target of 190% or higher, and bonds and borrowings of ¥598.0 billion are small against equity of ¥7,955.6 billion.
    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 ↗
  7. ReportedThe economic solvency ratio was 268% at March 2026 against a target of 190% or higher, and bonds and borrowings of ¥598.0 billion are small against equity of ¥7,955.6 billion.
    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 ↗
  8. ReportedTotal distributions grew from ¥267.6 billion in the year to March 2018 to ¥652.4 billion in 2026, and are planned at ¥860.6 billion; the dividend has risen for fifteen consecutive years including the current one.
    Tokio Marine Holdings, Group Business Strategy IR conference, 26 May 2026 - capital, strategic equities, shareholder returns, the ten-year key statistics and the 2035 aspiration. — 2016-2026 · publ. 26 May 2026 · source ↗
  9. ReportedTotal distributions grew from ¥267.6 billion in the year to March 2018 to ¥652.4 billion in 2026, and are planned at ¥860.6 billion; the dividend has risen for fifteen consecutive years including the current one.
    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 ↗
  10. ReportedThe company's adjusted net assets on the IFRS basis were ¥6,439.1 billion at March 2025 and ¥7,183.2 billion at March 2026, and are planned at ¥7,441.0 billion.
    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 ↗
  11. ReportedStrategic equities are planned to fall from 24.5% to 19.4% of IFRS net assets over the current year.
    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 ↗
  12. ReportedUnder Japanese GAAP it spent ¥269.0 billion on share buybacks in the year to March 2025 and ¥251.6 billion in 2026; under IFRS it paid dividends of ¥281.0 billion and ¥375.4 billion.
    Tokio Marine Holdings, Consolidated Financial Results (Japanese GAAP) for the fiscal year ended March 31, 2026 - ordinary income, net income, segment profit, dividends, cash flows and securities. — FY to March 2026 · publ. 20 May 2026 · source ↗
  13. ReportedUnder Japanese GAAP it spent ¥269.0 billion on share buybacks in the year to March 2025 and ¥251.6 billion in 2026; under IFRS it paid dividends of ¥281.0 billion and ¥375.4 billion.
    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 ↗
Sources
Generated September 24, 2026