Berkshire Hathaway (BRK.A) (BRK.B) plans to invest JPY 287.4B (about $1.8B) in Japanese insurance firm Tokio Marine Holdings, further expanding the U.S. conglomerate’s exposure to Japan.

The investment will be made through Berkshire’s reinsurance unit, National Indemnity Company, which will initially acquire a roughly 2.5% stake in the insurer. The initial shares will be allocated through the disposition of treasury stock held by Tokio Marine.

Following the allocation of such treasury stock, any additional acquisitions of Tokio Marine shares by National Indemnity are expected to be made primarily through open-market purchases.

The two companies also plan to collaborate on reinsurance as well as potential acquisitions, according to a statement released Monday. The Japanese insurer added that National Indemnity wouldn’t acquire more than 9.9% of the company without prior approval from the Tokio Marine board.

seekingalpha.com - Berkshire hathaway to buy stake in tokio marine in 18b deal