Tokio Marine Holdings will spend $970 million (¥150 billion) to acquire Agrihedge, a Chicago-based firm specializing in agricultural commodity risk management, as Japan’s largest property and casualty insurer continues pursuing smaller U.S. deals rather than transformative acquisitions.
The transaction for Commodity & Ingredient Hedging, as the company operates, is expected to close between January and March 2026 pending regulatory approvals. The target, backed by private equity firm Falfurrias Capital Partners since its founding in 1999, generated approximately $130 million (¥19.3 billion) in fee income with roughly 200 employees as of September.
The deal represents a modest step for an insurer that signaled in October it could deploy more than $10 billion on international acquisitions, funded partly by unwinding cross-shareholdings with Japanese companies. Tokio Marine has focused on bolt-on purchases in specialty insurance lines rather than large-scale consolidation.
Agrihedge already serves as an appointed agent for Tokio Marine HCC, the group’s U.S. specialty insurance unit, providing clients with agricultural price hedging through both insurance products and derivatives brokerage via proprietary software. The acquisition expands Tokio Marine’s fee-based revenue streams while strengthening its position in the U.S. agricultural sector, where commodity price volatility has driven demand for risk management tools among farmers, grain merchants and agribusiness operators.
