AM Best Affirms Credit Ratings of Marble Reinsurance Corporation

HONG KONG--(BUSINESS WIRE)--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) (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 prospective risk-adjusted capitalization is expected to remain at the strongest level with a sufficient capital buffer, supported by the recent revision of the dividend payout policy enabling the company’s capital accumulation, despite its recent increase in underwriting risks from business growth. Marble Re has minimal investment risk from a highly liquid, conservative investment portfolio, which is comprised of cash and short-term deposits. The company’s potential credit risks from its moderately high reinsurance dependency are mitigated by its high quality and well-diversified reinsurance panel.

Marble Re has historically shown a strong and stable operating performance with a five-year average combined ratio of 50% (2021-2025). For fiscal-year ending 31 March 2026, the company recorded a moderate increase in premium income, primarily driven by the growth in its captive business and the commencement of third-party business, which is expected to contribute a meaningful share of premium income going forward. Overall profitability is expected to remain strong, primarily supported by the company’s strict underwriting guidelines, historically favourable loss experience of the underlying portfolios and the flexibility afforded by its annual renewals.

As a wholly owned subsidiary and a single-parent captive of Marubeni Corporation (Marubeni), a major general trading company in Japan, Marble Re benefits from the parent group’s diversified networks and business sources across various regions when providing insurance protection against group-related risks. While Marble Re continues to explore further diversification of its business portfolio, its marine cargo business, which covers captive risk, will remain the company’s primary focus in the intermediate term. The company is well-integrated within the parent group with respect to risk management, corporate governance and internal control systems.

Negative rating actions could occur if Marble Re’s operating performance materially and adversely deviates from its business plan to a level that no longer supports AM Best’s current assessment. Negative rating actions also could occur if there is a significant deterioration in Marubeni’s credit profile, including its operating profitability, financial leverage and interest coverage levels. Positive rating actions, although unlikely in the intermediate term, could occur if Marble Re demonstrates sustained and notable improvement in its balance sheet strength fundamentals or material growth in its capital base.

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.

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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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