AM Best Affirms Excellent Credit Ratings For Marble Reinsurance
KUALA LUMPUR, Oct 23 (Bernama) -- AM Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” (Excellent) of Micronesia’s Marble Reinsurance Corporation (Marble Re), maintaining a stable outlook.
In a statement, the global credit rating agency said these credit ratings (ratings) reflected Marble Re’s strong balance sheet, solid operating performance, neutral business profile, and sound enterprise risk management.
Marble Re’s balance sheet remains underpinned by risk-adjusted capitalisation at the strongest level, according to Best’s Capital Adequacy Ratio. Despite a small capital base, the company benefits from low underwriting leverage and a conservative, liquid investment portfolio.
While reinsurance dependency is moderately high, AM Best noted the effect is mitigated by Marble Re’s high-quality, diversified panel of reinsurers.
Operationally, Marble Re continues to deliver strong and stable results, with a five-year average combined ratio of 52 per cent (2020–2024). For the fiscal year ending March 31, 2025, premium income saw a slight decline in property and marine lines, but underwriting profitability remained robust, supported by strict underwriting discipline and conservative reinsurance practices.
The company achieved a 20 per cent increase in net income year-on-year, driven by an improved combined ratio of 38 per cent in 2024. It also raised its net retention limit for non-marine business to support premium growth while maintaining stable profitability expectations.
As a wholly owned captive of Marubeni Corporation (Marubeni), one of Japan’s leading trading houses, Marble Re primarily provides reinsurance protection for group-related risks. Its marine cargo business remains the core focus, with gradual diversification efforts underway.
AM Best cautioned that negative rating actions could result from a material decline in performance or any deterioration in Marubeni’s financial strength. Conversely, upgrades are unlikely unless Marble Re significantly enhances its capital base or balance sheet fundamentals.
-- BERNAMA