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A.M. Best Affirms Credit Ratings of Marble Reinsurance Corporation
[October 31, 2016]

A.M. Best Affirms Credit Ratings of Marble Reinsurance Corporation


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.

The ratings reflect Marble Re's strong risk-adjusted capitalization and profitable operating performance. Marble Re is a single-parent captive of the Marubeni Corporation (Marubeni), a major Japanese trading company that handles products across a broad range of sectors.

Marble Re's risk-adjusted capitalization remains strong and supports the current ratings primarily due to its conservative risk appetite and strong retrocession panel in its major business line, marine cargo insurance.

Marble Re has reported strong profitability in the past five years, mainly driven by its favorable underwriting results from marine cargo. Marble Re has purchased adequate stop-loss covers for this line, which helped support stable results during the period.

A partially offsetting rating factor is Marble Re's limited business profile as a single-parent captive. Marubeni's credit profile has weakened, as its profitability was negatively affected by large impairment losses from commodity-related projects in recent years.

While positive rating actions are unlikely, negative rating actions could occur if there is a material shift in risk appetite, which potentially could undermine Marble Re's profitablity and capitalization. In addition, significant deterioration in Marubeni's credit profile could place downward pressure on Marble Re's ratings.



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.


This press release relates to Credit Ratings that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best's Credit Ratings.

A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2016 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.


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