(Il Sole 24 Ore Radiocor) - Milano, 23 mar - The Japanese insurance group Tokio Marine Holdings (TMHD) said that it has entered into a comprehensive strategic partnership with National Indemnity Company (NICO),a reinsurance entity wholly owned by the US investment group Berkshire Hathaway.

"This Strategic Partnership combines NICO's robust capital strength and deep underwriting expertise across insurance and reinsurance, with our globally diversified insurance platform, industry-leading underwriting capabilities, a strong capital base, and proven M&A execution built through disciplined strategic acquisitions over the years," Tokio Marine said.

Under the deal, NICO will make an equity investment in TMHD, initially acquiring an approximately 2.5% stake.

"The initial shares will be allocated through the disposition of treasury stock held by TMHD, as it would be difficult for NICO to acquire TMHD shares in the open market when discussions with TMHD on the Strategic Partnership are taking place," TMHD said.

To prevent dilution for shareholders, TMHD will simultaneously repurchase its own shares in an amount of up to 287.4 billion yen, it added.

Any additional acquisitions of TMHD shares by NICO are expected to be made primarily through open-market purchases, TMHD said.

NICO will not to acquire more than 9.9% of TMHD shares without.

prior approval from Japanese group's board of directors.

(RADIOCOR) 23-03-26 16:35:06 (0484) 5 NNNN