A.M. 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 Res balance sheet strength, which A.M. Best categorizes as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
Marble Re’s strong balance sheet assessment mainly reflects its modest capital size, low underwriting leverage and conservative investment portfolio. Given the volume of risks that the company writes and retains, the capital required to support its current book of business is relatively modest.
Marble Res underwriting results over the most-recent five-year period have been consistently positive, contributing to an average combined ratio of under 60%. The volatility of the key operating metrics also has been relatively stable, owing largely to a conservative reinsurance program that helped reduce the volatility in its underwriting results.
Marble Re is a wholly owned subsidiary of Marubeni Corporation (Marubeni), which is one of the largest trading companies in Japan. In its role as a single-parent captive, the company only insures and reinsures the risks of affiliated and related companies within the Marubeni group. The types of business written expose the companys performance to high-severity, low-frequency losses. Nevertheless, Marble Re has managed this risk through a prudent underwriting guideline and a robust reinsurance program with conservative retention levels and limits, including the presence of stop-loss covers for each line of business.
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The stable outlooks reflect A.M. Bests expectation that Marble Res operating performance will remain at a strong level, underpinned mainly by favorable claims experience and an expense ratio that should remain stable over time.
Negative rating actions could occur if there is a material increase in risk appetite, which could potentially undermine Marble Res profitability and capitalization. Additionally, negative rating actions could occur if there is significant deterioration in Marubenis credit profile.
A.M. Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated throughout the world. For current Bests 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 A.M. Bests 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 A.M. Bests Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Bests Credit Ratings. For information on the proper media use of Bests Credit Ratings and A.M. Best press releases, please view Guide for Media – Proper Use of Bests Credit Ratings and A.M. Best Rating Action Press Releases.
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