Kuala lumpur: 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.
According to BERNAMA News Agency, the global credit rating agency stated that these credit ratings reflect Marble Re’s strong balance sheet, solid operating performance, neutral business profile, and sound enterprise risk management. Marble Re’s balance sheet remains robust, supported by risk-adjusted capitalisation at the strongest level, as per Best’s Capital Adequacy Ratio. Despite operating with a small capital base, Marble Re benefits from low underwriting leverage and a conservative, liquid investment portfolio.
AM Best observed that while Marble Re has a moderate dependency on reinsurance, this is mitigated by its high-quality, diversified panel of reinsurers. Operationally, Marble Re continues to deliver stable results, boasting a five-year average combined ratio of 52 per cent from 2020 to 2024. In the fiscal year ending March 31, 2025, there was a slight decline in premium income from property and marine lines; however, underwriting profitability remained robust due to strict underwriting discipline and conservative reinsurance practices.
The company reported a 20 per cent increase in net income year-on-year, attributed to an improved combined ratio of 38 per cent in 2024. Additionally, Marble Re 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, one of Japan’s leading trading houses, Marble Re primarily provides reinsurance protection for group-related risks, with its marine cargo business remaining a core focus amidst gradual diversification efforts.
AM Best cautioned that negative rating actions could occur if there is a significant decline in performance or deterioration in Marubeni’s financial strength. Conversely, rating upgrades are unlikely unless Marble Re significantly enhances its capital base or balance sheet fundamentals.