Tokio Marine Holdings: Excessive concern over future M&A appears unwarranted; we value the company’s organic growth, balanced shareholder returns, and disciplined M&A track record

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Tokio Marine Holdings: Excessive concern over future M&A appears unwarranted; we value the company’s organic growth, balanced shareholder returns, and disciplined M&A track record

Global Research

26 June 2026ab

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EquitiesTokio Marine Holdings

Excessive concern over future M&A appears Japan

unwarranted; we value the company’s organic Insurance, Full-Line

12-month rating Buy

growth, balanced shareholder returns, and

disciplined M&A track record 12m price target ¥10,500

Prior : ¥9,500

Price (25 Jun 2026) ¥6,850

Maintaining Buy rating RIC: 8766.T BBG: 8766 JP

We are raising our target price from ¥9,500 to ¥10,500 and maintaining our Buy rating. Trading data and key metrics

We believe the company has high earnings growth visibility over our forecast period. In 52-wk range ¥7,949-5,350

the domestic P&C business, profitability is improving through product enhancement and Market cap. ¥13,248b/US$81.9b

flexible premium revisions. In the US insurance business, growth continues, led by well- Shares o/s 1,934m (ORD)

diversified specialty lines. In addition, we expect investment income to expand, Free float 97%

supported by a favorable macro environment and strong investment capabilities. At the

Avg. daily volume ('000) 6,651

same time, the key factors in assessing further share price upside will be the scale and

Avg. daily value (m) ¥48,407.1

target areas of inorganic investments, including M&A. We believe several trillion yen of

Common s/h equity (03/27E) ¥7952b

equity investment will be needed to achieve the company’s “Aspiration 2035” target of

P/BV (03/27E) 1.6x

adjusted net income exceeding ¥1.7tn in FY2035 (FY3/36). However, the company has a

high-quality and ample capital base, as well as a strong M&A track record based on strict EPS (reported, basic) (¥)