A.M. Best has affirmed the financial strength rating of “A- (Excellent)” and issuer credit rating of “a-” to Marble Reinsurance Corporation (Marble Re) based in the Federated State of Micronesia.
The ratings reflect Marble Re’s strong risk adjusted capitalisation, stable operating performance, strong retrocession coverage and the support from its parent, Marubeni Corporation.
Marble Re’s absolute capitalisation is expected to further increase primarily due to strong profitability and capital injection from the parent company of Marubeni in early 2013.
“Partially offsetting rating factors include an implementation risk in Marble Re’s expansion plan as well as an uncertain outlook of the economy conditions. Although Marbubeni Corporation has a long history in operating captive businesses, the expansion of product lines would cause risk in its implementation.”
“As Marble Re’s major product line is marine cargo, of which sales are susceptible to trading activities, weakening trading activities would lead to a sharp drop in premium income, and consequently, could impair its operating performance,” said the ratings firm.