Tokio Marine Holdings (8766): FY3/26 briefing: Focus on near-term M&A, which should affect buyback next year

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Tokio Marine Holdings (8766): FY3/26 briefing: Focus on near-term M&A, which should affect buyback next year

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Tokio Marine Holdings (8766)

FY3/26 briefing: Focus on near-term M&A,

which should affect buyback next year

Reiterate Rating: BUY | PO: 9,840 JPY | Price: 7,356 JPY

26 May 2026

No fixed formula for this year’s share buybacks Equity

The ¥400bn share buyback plan announced on May 15 (separate from the ¥287.4bn

announced in March) can be broadly viewed as ¥280bn (2% of market capitalization to Natsumu Tsujino, CFA >>

Research Analyst

boost EPS) plus an additional ¥120bn, although there is no explicit formula. Management BofAS Japan

noted that it has taken into account the recent decline in ESR to 268% (down about natsumu.tsujino@bofa.com

30pt YoY), due to higher US interest rates and bolt-on M&A. The decision appears a

difficult one given the difficulty of quantifying the flexibility enabled by the partnership

with BRK. Stock Data

If the company is unable to execute large-scale M&A over the next year, capital Price (Common / ADR) 7,356 JPY / 46.48 USD

allocation will be determined based on its stated priorities: dividends, growth Price Objective 9,840 JPY / 61.96 USD

investments, and share buybacks. Date Established 25-Mar-2026/ 25-Mar-

When setting the dividend payout ratio at 50% of three-year average adjusted IFRS Investment Opinion B-1-7 / B-1-7

profit, management also considered that ongoing market softening could increase the 52-Week Range 5,300-8,038 JPY

availability of M&A opportunities. Market Value (mn) 14,226,504 JPY

In the near term, we believe focus should be on what types of M&A are announced, as Market Value ($mn) 89,514 USD

this will shape expectations for next year’s buybacks. Shares Outstanding (mn) 1,934.0