Marco Re Limited has retained its A- (Excellent) Financial Strength Rating and "a-" Long-Term Issuer Credit Rating from AM Best.
The ratings are based on AM Best's evaluation of Marco Re's capital strength, operational performance, and enterprise risk management framework.
AM Best considers Marco Re’s balance sheet strength to be "very strong," citing its risk-adjusted capitalization at the highest level according to Best’s Capital Adequacy Ratio (BCAR).
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The agency also highlighted Marco Re’s conservative investment approach and careful reserving strategy as key factors supporting its financial position.
The Bermuda-based Marco Re functions as the reinsurance platform for Marco Capital Holdings Limited, a European group specializing in acquiring and managing property and casualty (P&C) legacy liabilities. The reinsurer focuses on offering solutions for runoff portfolios across Europe. According to AM Best, the company maintains a substantial capital buffer to meet policyholder obligations and absorb potential losses.
The company reported a return on equity of 5.2% for the most recent financial year. AM Best indicated that this performance aligns with expectations for firms operating in the legacy reinsurance sector, where financial results typically depend on disciplined underwriting and cost-efficient claims management.
While runoff portfolios present risks due to the long-tail nature of claims, AM Best noted that Marco Re's specialized expertise and structured risk approach help mitigate potential volatility.
The rating agency also assessed Marco Re’s enterprise risk management (ERM) practices, concluding that the company’s risk framework aligns with its operational profile. The reinsurer’s ERM practices aim to monitor and control exposures while maintaining long-term financial stability.
Leadership at Marco Capital Holdings Limited has reaffirmed its commitment to a conservative approach to reserving and capital management. The company plans to continue acquiring legacy portfolios while maintaining its focus on disciplined underwriting and risk evaluation.
What impact do you think Marco Re's affirmed credit rating will have on its position in the legacy insurance market? Share your views below.
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