A.M. Best has given an A (Excellent) and an issuer credit rating of "a" to Eni Insurance Limited (EIL) in Ireland. The outlook for both ratings is stable.
EIL is the sole captive of Eni S.p.A., an Italian multinational gas and oil company with operations in more than 80 countries.
Best stated the ratings of EIL reflect its strong risk-adjusted capitalisation, comprehensive reinsurance programme and overall strong financial performance, adding that the ratings incorporate a strong integration within the parent's risk management structure.
An offsetting factor is EIL's current material fixed income exposure to peripheral European sovereigns.
EIL was formed in June 2006 and writes the industrial risks of Eni S.p.A. with fire/property damage being the main line (77 percent of gross written premiums [GWP] in 2011), whereas 66 percent of GWP is written outside of Italy.
In January 2007, industrial risks written by the ceased captive, Padana Assicurazioni S.p.A (Padana) were transferred to EIL. This portfolio is expected to continue to run off for another few years.
