A.M. Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” of Marble Reinsurance Corporation, based in the Federated States of Micronesia, and the single-parent captive of Marubeni Group.
The rating company categorises Marble Re’s balance sheet strength as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).
Marble Re’s balance sheet assessment is underpinned by risk-adjusted capitalisation at the strongest level, as measured by Best’s capital adequacy ratio (BCAR).
The captive’s risk-adjusted capitalisation is expected to remain stable, supported by low underwriting leverage and a conservative investment portfolio, according to A.M. Best.
A.M. Best explained hat Marble Re’s favourable operating results are demonstrated by a five-year average return on equity of approximately 15 percent, driven primarily by its good underwriting results, with a five-year average from 2014 to 2018, which combined ratio of under 60 percent.
Marble Re’s underwriting portfolio is composed mainly of marine cargo and hull business from affiliated and related companies within the Marubeni Group. The captive plays a significant role in managing the group’s risk exposures.
The rating firm said the captive benefits from the parent company’s overall ERM practices.
The stable outlooks reflect A.M. Best’s expectation that Marble Re’s operating performance will remain at a strong level, underpinned mainly by favourable claims experience and an expense ratio that should remain stable over time.
