AM Best has affirmed the financial strength rating of A- (excellent) and the long-term issuer credit rating of “a-” (excellent) of Micronesia-domiciled Marble Reinsurance Corporation (Marble Re). The outlook of the ratings (ratings) is stable.
Marble Re is a wholly-owned subsidiary and a single-parent captive of Marubeni Corporation, one of Japan’s largest general trading companies.
The captive provides reinsurance and insurance protection against group-related risks across different regions, with its main line being marine cargo.
The ratings reflect Marble Re’s balance sheet, which is assessed as strong, and its strong operating performance, neutral business profile and appropriate enterprise risk management.
The balance sheet strength is well-supported by Marble Re’s risk-adjusted capitalisation, which is assessed at the strongest level, as measured by Best’s capital adequacy ratio (BCAR).
The company’s capital base is supported by low net underwriting leverage and minimal investment risk from its liquid and conservative investment portfolio.
Although the company has high dependence on reinsurance, it is mitigated by its diversified reinsurance panel.
Marble Re’s operating performance has been consistently strong with a five-year average combined ratio of 59% (2018-2022).
For the fiscal year ended 31 March 2023, the company recorded growth in premium income and net profit.
Negative rating actions could occur if there are substantial losses caused by a material shift in Marble Re’s risk appetite or if there is deterioration in Marubeni Corporation’s credit profile.
“Positive rating actions could occur if the company demonstrates sustained and notable improvement in its balance sheet strength fundamentals or material growth in its capital base,” AM Best said.