Best’s News & Research Service - September 21, 2017 10:49 AM (EDT)
A.M. Best Affirms Credit Ratings of Marble Reinsurance Corporation
- September 21, 2017 10:49 AM (EDT)
Hong Kong //BestWire// - 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.
Marble Re is a wholly owned subsidiary of Marubeni Corporation (Marubeni), a major trading company in Japan that is engaged in a broad range of business. The ratings reflect Marble Re’s strong risk-adjusted capitalization and five-year trend of positive operating performance.
Marble Re’s risk-adjusted capitalization remains strong, supported by a low level of underwriting leverage and its conservative retrocession arrangements with highly rated reinsurers. The captive has stop-loss covers for its major lines, which limit volatility in performance. Marble Re has reported positive operating performance, driven mainly by profitable underwriting results. Offsetting these positive rating factors is Marble Re’s limited business scope as a single-parent captive of Marubeni.
While positive rating actions are unlikely, negative rating actions could occur if there is a material increase in risk appetite, which potentially could undermine Marble Re’s profitability and capitalization. In addition, negative rating actions could occur if there is significant deterioration in Marubeni’s 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 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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