HONG KONG, October 22, 2021--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating (FSR) 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 is also supported by its favourable balance sheet liquidity and a conservative investment strategy. Although 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% (2016-2020). Although the company recorded lower premium income amid the COVID-19 pandemic during the fiscal year ended 31 March 2021, its underwriting results remained strong with a combined ratio below 60%. AM Best believes the company’s operating performance will remain profitable and its premium income will gradually recover in line with Marubeni Corporation’s trading business over the next two years.
Marble Re continues to benefit from the Marubeni Corporation’s global business network, which allows it to maintain a well-diversified business portfolio. As a single-parent captive, Marble Re is also 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 is a substantial increase in underwriting losses caused by a material increase in Marble Re’s risk appetite. Negative rating actions could also arise if there is significant deterioration in the 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.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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