UK carbon insurtech company Kita has secured an undisclosed strategic investment from Tokio Marine Group and expanded its commercial partnership with the Japanese insurer. The investment was made through Tokio Marine & Nichido Fire Insurance Co. or TMNF.
The deal builds on Kita’s existing work with Tokio Marine Kiln. The companies have already developed political risk insurance for carbon credit transactions and will now extend cooperation across other Tokio Marine Group businesses.
Kita and TMNF are developing insurance in Japan for buyers of carbon credits. The cover addresses transaction risks, including cases where buyers prepay for credits but don’t receive them under the agreed contract.
The companies are also examining carbon project risk assessment services built around satellite analytics. Those services would give TMNF customers additional information on project conditions before investment or insurance decisions.
TMNF plans to connect Kita’s assessment capabilities with carbon project services supplied through Nippon Koei, an engineering consultancy within Tokio Marine Group. The planned structure brings insurance, technical assessment and project support closer together within the same client process.
Nippon Koei’s existing services include field assessments and project design, alongside due diligence and implementation support. TMNF wants to connect those functions with earlier-stage screening and longer-term monitoring of carbon projects.
The proposed service would cover several stages of a project’s development. Early work would include preliminary screening, followed by more detailed investment assessments supported by field surveys.
Longer-term support would focus on carbon credit generation and delivery. Services under consideration also include international project origination, structuring and feasibility work.
Technical due diligence forms another part of the proposed offering, together with human rights reviews. Project implementation, operational management and continuing compliance work are also under consideration.
The investment gives Tokio Marine a closer financial relationship with a specialist insurer focused on carbon markets. For Kita, the agreement provides access to a larger insurance group with underwriting, engineering and distribution capabilities across several markets.
Kita said the broader collaboration is intended to support confidence in carbon credit transactions and improve risk assessment around projects. The company is positioning insurance as part of the transaction structure rather than a separate product added after project development.
The partnership also gives TMNF another route into carbon market risk services. Satellite-based analysis would sit alongside fieldwork and engineering reviews, giving clients more evidence before committing capital or buying credits.
Kita and Tokio Marine Kiln had already tested that approach through political risk insurance. The new agreement extends the relationship toward buyer protection and project assessment, with more Tokio Marine companies involved.
Tokio Marine has also been expanding strategic relationships elsewhere. In March, Berkshire Hathaway’s National Indemnity Company agreed to acquire a 2.49% stake in Tokio Marine for about $1.8 bn.
That agreement covered equity investment and reinsurance cooperation, together with work on mergers and acquisitions. The Kita investment adds a smaller, specialist transaction focused on insurance for carbon markets and related project risks.
