Firm noted for strong balance sheet, conservative investments, and stable performance
AM Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” (Excellent) for Marble Reinsurance Corporation (Marble Re), based in Micronesia. The outlook for both ratings remains stable, according to AM Best’s report.
The ratings reflect Marble Re’s strong balance sheet, which AM Best assesses as robust, along with its consistent operating performance, neutral business profile, and appropriate enterprise risk management practices.
Marble Re’s risk-adjusted capitalization is also assessed at the strongest level, supported by the company’s conservative investment portfolio and low net underwriting leverage. AM Best notes that although the company has a moderately high reliance on reinsurance, this is mitigated by the high quality and diversification of its reinsurance panel.
Marble Re’s operating performance has been solid, with a five-year average combined ratio of 59% from 2019 to 2023. For the fiscal year ending March 31, 2024, the company reported growth in both premium income and net profit, while maintaining a combined ratio below 55%.
Despite some volatility in its primary business line, marine cargo insurance, due to its correlation with the trading activities of its parent company, Marubeni Corporation (Marubeni), Marble Re has achieved relatively stable underwriting results. This stability is attributed to strict underwriting guidelines and a conservative reinsurance program.
The company recently raised the net retention limit for its non-marine business, but overall underwriting profitability is expected to remain stable given the low loss ratio in its existing business and its modest contribution to the overall portfolio.
As a wholly owned subsidiary and single-parent captive of Marubeni, one of Japan’s major general trading companies, Marble Re provides reinsurance and insurance coverage for group-related risks across multiple regions.
While the company is exploring diversification opportunities, marine cargo insurance will continue to be its main focus in the near term. Marble Re is fully integrated with Marubeni in terms of risk management, corporate governance, and internal controls.
AM Best noted that negative rating actions could occur if Marble Re’s operating performance significantly deviates from its business plan, or if Marubeni’s financial profile, including operating profitability, financial leverage, and interest coverage, deteriorates.
On the other hand, positive rating actions could be triggered by sustained improvements in Marble Re’s balance sheet strength or notable growth in its capital base.
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