Eni Insurance Designated Activity Company (EID), Eni S.p.A’s captive, has had its financial strength rating of A (Excellent) and long-term issuer credit rating of “a” affirmed by A.M. Best.
The outlook of the Irish captive’s credit ratings are stable.
The ratings are reflective of EID’s balance sheet strength, which A.M. Best categories as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
EID’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR) is categorised as strongest, with the expectation that it will remain at this level over the medium term.
One offsetting rating factor in the balance sheet assessment was EID’s exposure to peripheral European sovereign bonds, which accounted for around 22 percent of its fixed-income portfolio in 2017, down from 30 percent in 2016.
A.M. Best said EID has a track record of strong operating profits, as evidenced by its five-year average combined ratio of approximately 56 percent (2013 to 2017).
The captive is also “well integrated” within Eni Group’s risk management framework and has an active role in overseeing and containing the group’s insurance costs.
