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 is stable.
Marble Re is a wholly owned subsidiary of Marubeni Corporation, one of Japan’s largest general trading companies.
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.
According to AM Best, 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.
AM Best says, the company’s balance sheet strength is also 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, AM Best adds.
Marble Re’s operating performance has been consistently strong with a five-year average combined ratio of 60 per cent (from 2017 to 2021). The company recorded recoveries in both premium incomes and net profit from the COVID-19 pandemic during the fiscal year (ending 31 March 2022), the ratings company adds.
Its underwriting results remained strong and stable with a combined ratio below 60 per cent. 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 per cent.
