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), based in Micronesia. The outlook for both ratings remains stable, the global credit rating agency announced.
According to AM Best, the affirmation reflects Marble Re’s “strong balance sheet strength, strong operating performance, neutral business profile, and appropriate enterprise risk management.”
The agency noted that Marble Re’s balance sheet strength is supported by its risk-adjusted capitalization, assessed at the strongest level as measured by Best’s Capital Adequacy Ratio (BCAR). Although the company’s capital base is relatively small, AM Best said it remains sufficient due to low net underwriting leverage and minimal investment risk, backed by a highly liquid and conservative investment portfolio.
While Marble Re has a moderately high dependence on reinsurance, AM Best said the risk is mitigated by the reinsurers’ quality and diversification. The company’s reinsurance panel comprises well-rated entities, helping support its capital stability.
Marble Re has also demonstrated consistent profitability, with a five-year average combined ratio of 52% between 2020 and 2024. For the fiscal year ending March 31, 2025, the reinsurer experienced a moderate decline in premium income, mainly within its property and marine lines. Despite this, underwriting results remained favourable, supported by conservative reinsurance and underwriting practices.
In 2024, Marble Re reported a 20% increase in net income compared to the previous year, alongside an improved combined ratio of 38%. The company also raised its net retention limit for non-marine business in a move to expand its premium base. AM Best said underwriting profitability is expected to remain stable due to the reinsurer’s historically low loss ratios and its modest exposure to new business.
Marble Re operates as a wholly owned subsidiary and single-parent captive of Japan’s Marubeni Corporation, a major general trading company. It provides reinsurance and insurance protection for Marubeni’s group-related risks worldwide.
The rating agency added that Marble Re remains well-integrated within its parent group’s governance and risk frameworks. While diversification continues, its marine cargo business covering captive risk is expected to remain its primary focus in the medium term.
AM Best said negative rating actions could occur if Marble Re’s performance deviates materially from its plan or if Marubeni’s credit profile weakens. Positive actions, though unlikely, may arise from sustained improvements in capital strength or material capital growth.
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