HONG KONG--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” 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 categorizes as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).
Marble Re’s balance sheet assessment is underpinned by risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best expects Marble Re’s risk-adjusted capitalization to remain stable, supported by low underwriting leverage and a conservative investment portfolio.
Marble Re’s favorable operating results are demonstrated by a five-year average return on equity of approximately 15%, driven primarily by its good underwriting results, with a five-year average combined ratio of under 60% (2014-2018). Key operating metrics also have been relatively stable, owing largely to a conservative reinsurance program, which has helped reduce the volatility in its underwriting results.
Marble Re’s business profile is assessed as neutral; its underwriting portfolio is composed mainly of marine cargo and hull business from affiliated and related companies within the Marubeni Group, which is one of the largest trading companies in Japan. As a single-parent captive, Marble Re is well-integrated within the Marubeni Group and plays a significant role in managing the group’s risk exposures. The captive benefits from the parent company’s overall ERM practices.
The stable outlooks reflect AM Best’s expectation that Marble Re’s operating performance will remain at a strong level, underpinned mainly by favorable claims experience and an expense ratio that should remain stable over time.
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.
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