AM Best Affirms Marble Re’s ‘Excellent’ Ratings, Outlook Stable

KUALA LUMPUR, Nov 13 (Bernama) -- Global credit rating agency, 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), a captive insurer wholly owned by Japanese trading company Marubeni Corporation (Marubeni).

The outlook of these credit ratings (ratings) is stable, reflecting Marble Re’s strong balance sheet, strong operating performance, neutral business profile and appropriate enterprise risk management, AM Best said in a statement.

Marble Re’s risk-adjusted capitalisation is assessed at the strongest level and is expected to remain there, supported by a revised dividend policy that allows it to build capital, despite higher underwriting risks from business growth.

Its investment risk is minimal, with a portfolio made up of cash and short-term deposits, while credit risks from its moderately high reliance on reinsurance are mitigated by a high-quality and well-diversified reinsurance panel.

The company has recorded a five-year average combined ratio of 50 per cent from 2021 to 2025. Its premium income rose moderately in the financial year ended March 31, 2026, driven by growth in its captive business and the start of third-party business.

As a single-parent captive, Marble Re mainly insures risks within the Marubeni group, with marine cargo insurance remaining its main focus in the medium term. AM Best said Marble Re is well integrated with the Marubeni group in risk management, corporate governance and internal controls.

AM Best said the ratings could be lowered if Marble Re’s operating performance deviates materially from its business plan or if Marubeni’s credit profile deteriorates significantly, while an upgrade is unlikely in the medium term.

-- BERNAMA