AM Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” (Excellent) of Micronesia-based Marble Reinsurance Corporation (Marble Re). Marble Re is a wholly-owned subsidiary and a single-parent captive of Marubeni Corporation, a Japanese general trading company. The captive provides reinsurance and insurance protection against group-related risks across different regions. The outlook of these credit 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 also assessed at the strongest level, as measured by AM Best’s capital adequacy ratio. Marble Re’s operating performance has been consistently strong and stable with a five-year average combined ratio of 59 per cent (2018-2022). For the fiscal year that ended on 31 March 2023, the company recorded notable growth in premium income and net profit due to the strong performance of Marubeni Corporation’s trading business. This was attributable to higher commodity prices and foreign exchange benefits from the Japanese Yen depreciation. AM Best expects Marble Re’s combined ratio to remain favourable and below 60 per cent and for its underwriting margin to remain favourable over the medium term — supported by strict underwriting discipline and a conservative reinsurance programme.
