AM BEST AFFIRMS MICRONESIA’S MARBLE REINSURANCE CREDIT RATINGS

KUALA LUMPUR, Nov 14 (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).

The outlook of these credit ratings is stable, reflecting Marble Re’s balance sheet strength, assessed as strong by AM Best, as well as its strong operating performance, neutral business profile, and appropriate enterprise risk management.

In a statement today, AM Best said that the balance sheet strength is well-supported by Marble Re’s risk-adjusted capitalisation, which is assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio.

“The company’s balance sheet strength also is supported by its favourable balance sheet liquidity with no outstanding debt.

“While the company has a relatively high dependence on reinsurance, the risk is mitigated by its high-quality and well-diversified reinsurance panel,” the rating agency said.

AM Best said that Marble Re’s operating performance has been consistently strong with a five-year (2017-2021) average combined ratio of 60 per cent.

Marble Re recorded recoveries in both premium incomes and net profit from the COVID-19 pandemic during the fiscal year ending March 31, 2022, it said.

Its underwriting results remained strong and stable with a combined ratio below 60 per cent, the agency said.

Marble Re is a wholly owned subsidiary of Marubeni Corporation, one of Japan’s largest general trading companies.

AM Best expects that the company’s cargo business will continue to benefit from Marubeni Corporation’s trading business and higher commodity price in the near future, while its overall combined ratio remains favourable at approximately 60 per cent.

-- BERNAMA