HONG KONG--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Marble Reinsurance Corporation (Marble Re) (Micronesia). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Marble Re’s balance sheet strength, which AM Best assesses as strong, as well as 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 balance sheet strength also is supported by its favourable balance sheet liquidity with no outstanding debt. While the company has relatively high dependence on reinsurance, the risk is mitigated by its high quality and well-diversified reinsurance panel. Marble Re is a wholly owned subsidiary of Marubeni Corporation, one of Japan’s largest general trading companies.
Marble Re’s operating performance has been consistently strong with a five-year average combined ratio of 60% (2017-2021). The company recorded recoveries in both premium incomes and net profit from the COVID-19 pandemic during the fiscal year ended 31 March 2022. Its underwriting results remained strong and stable with a combined ratio below 60%. AM Best expects the company’s cargo business will continue to benefit from Marubeni Corporation’s trading business and higher commodity price in the near future, while its overall combined ratio remains favourable at approximately 60%.
Marble Re continues to benefit from Marubeni Corporation’s global business network, which allows it to maintain a well-diversified business portfolio. As a single-parent captive, Marble Re also is well-integrated within the group and benefits from the parent company’s overall risk management, corporate governance and internal control systems.
Negative rating actions could occur if there are substantial losses caused by a material shift in its risk appetite. Negative rating actions also could arise if there is significant deterioration in Marubeni Corporation’s credit profile, including its operating profitability, financial leverage and interest coverage levels.
AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.
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