A Solvency Ratio of 268%Narrow moat

Tokio Marine Holdings (8766) — moat facet

Tokio Marine holds capital well above its own target, which is what lets it buy and return money at the same time.

Tokio Marine's economic solvency ratio, its own measure of capital against risk aligned with international standards, was 268% at March 2026 against a target of 190% or higher12. After the planned ¥400 billion buyback it would be about 255%3. The regulatory solvency margin ratio was 689.9% in December 20254.

Economic solvency ratio (%)297Sep 2025268Mar 2026about 255After planned buyback190TargetTokio Marine results presentation and IR conference, May 2026
Well above the target.

Strong capital is a competitive advantage in insurance. It lets the company take large risks, buy businesses and withstand catastrophes.

The ESR is sensitive to Japanese share prices, interest rates and currencies, and the company has said a large fall in share prices would lead it to accelerate strategic equity sales5.

The regulatory solvency margin ratio, the Japanese statutory measure, was 590.8% at March 2025 and 689.9% at December 20256, many times the regulatory minimum. The economic ratio is the stricter measure and the one the company targets.

The measure is the ESR after a large acquisition. A deal on the scale reported in August 2026 would test the margin above 190%.

Moat trajectory: Holding steady

Well above target.

The number that tests this moat
Reported
Regulatory solvency margin ratio, December 2025
689.9% against 590.8% in March 2025

The regulatory measure; the economic ratio is 268%.

Source: Tokio Marine solvency disclosure, March 2026 ↗
⚠ Threats to the moat
⚠ THREAT 01
A Stock Market Fall
Tokio Marine's capital still moves with the Japanese stock market until its client shares are sold.
References
  1. ReportedTokio Marine's economic solvency ratio, its own measure of capital against risk aligned with international standards, was 268% at March 2026 against a target of 190% or higher.
    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 ↗
  2. ReportedTokio Marine's economic solvency ratio, its own measure of capital against risk aligned with international standards, was 268% at March 2026 against a target of 190% or higher.
    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. ReportedAfter the planned ¥400 billion buyback it would be about 255%.
    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 ↗
  4. ReportedThe regulatory solvency margin ratio was 689.9% in December 2025.
    Tokio Marine Holdings, solvency disclosure, 11 March 2026 - the regulatory solvency margin ratio of 590.8% at March 2025 and 689.9% at December 2025. — 2025 · publ. 11 March 2026 · source ↗
  5. ReportedThe ESR is sensitive to Japanese share prices, interest rates and currencies, and the company has said a large fall in share prices would lead it to accelerate strategic equity sales.
    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 ↗
  6. ReportedThe regulatory solvency margin ratio, the Japanese statutory measure, was 590.8% at March 2025 and 689.9% at December 2025, many times the regulatory minimum.
    Tokio Marine Holdings, solvency disclosure, 11 March 2026 - the regulatory solvency margin ratio of 590.8% at March 2025 and 689.9% at December 2025. — 2025 · publ. 11 March 2026 · source ↗
Sources
Generated September 24, 2026