KUALA LUMPUR, Nov 3 (Bernama) -- Global credit rating agency AM Best has affirmed Micronesia’s Marble Reinsurance Corporation (Marble Re) Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent).
The outlook of these credit ratings is stable, reflecting Marble Re’s balance sheet strength, which the rating agency assesses as strong, as well as its strong operating performance, neutral business profile, and appropriate enterprise risk management.
AM Best in a statement said the balance sheet strength was well-supported by Marble Re’s risk-adjusted capitalisation, which was assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio.
The company’s capital base, albeit small, is viewed to be sufficient supported by low net underwriting leverage and minimal investment risk from a highly liquid and conservative investment portfolio.
Marble Re’s operating performance has been consistently strong with a five-year (2018-2022) average combined ratio of 59 per cent.
For the fiscal year ended March 31 the company recorded notable growth in premium income and net profit due to the strong performance of Marubeni Corporation’s trading business, which was attributable to higher commodity prices and foreign exchange benefits from Japanese Yen depreciation.
Marble Re’s combined ratio is expected to remain favourable and below 60 per cent. Notwithstanding the moderate volatility in its major business line, primarily due to fluctuations in the commodity price, AM Best expects the company’s underwriting margin will remain favourable over the medium term supported by strict underwriting discipline and a conservative reinsurance programme.
As a wholly owned subsidiary and a single-parent captive of Marubeni Corporation, one of Japan’s largest general trading companies, Marble Re provides reinsurance and insurance protection against group-related risks across different regions, and it is well-integrated within the parent group with respect to risk management, corporate governance and internal control systems.
-- BERNAMA
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