By Rebecca Delaney
July 15 - (The Insurer) - Marco Capital Holdings' Guernsey-based reinsurer Marco Re has secured an A3 insurance financial strength rating from Moody's Ratings, the company announced on Tuesday.
The outlook of the rating is stable.
Moody's said the rating reflected Marco Re's core status within the wider Marco Capital group.
"Marco Re’s rating reflects the group’s growing market position and franchise in the European run-off market, moderate product risk due to its good diversification of reserves and predominant focus on short-to-medium tailed lines, and the group’s strong financial profile," said Moody's.
"These strengths are partially offset by execution risk related to the group’s ability to sustainably originate new transactions whilst remaining within its risk appetite, and risks inherent to run-off insurers, including the lack of recurring new business flows to help offset the impact of unexpected deterioration in run-off reserves, if that were to occur."
Marco Re is the second P&C legacy consolidator to secure a Moody's insurance financial strength rating after Enstar.
The reinsurer also secured an A-minus rating from AM Best in February 2024, which was affirmed in March of this year.
The Marco Re brand was unveiled early last year by legacy and services provider Marco Capital following the merger of its Guernsey subsidiaries Humboldt Re and Kelvin Re.
Commenting on the latest rating, Marco Re CEO Mark Elliott said: "Moody’s rating of Marco Re provides independent third-party validation of our business model and financial strength, which we consider to be core components of the value proposition we offer our clients."
Simon Minshall, group CEO of Marco Capital, added: "In seeking a second rating for our business Marco Re, an essential part of the wider Marco Capital Group which includes service provider PoloWorks, we are demonstrating the financial strength of our balance sheet, operational and financial benefits from diverse income sources and validation of the security we offer our clients."