AM Best has affirmed the financial strength rating of ‘A-’ (Excellent) and the long-term issuer credit rating of ‘a-’ (Excellent) of Enel Re, a captive of Italy-based multinational electric utility company Enel.
They rate the outlook of these ratings as ‘stable’.
The ratings reflect Enel Re’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile, and appropriate enterprise risk management.
AM Best expects Enel Re’s risk-adjusted capitalisation to be maintained at the strongest level. The captive benefits from good liquidity and low reinsurance dependence.
Solid investment income is expected to contribute positively to overall profitability.
However, an offsetting rating factor is Enel Re's potential exposure to large losses given its high net retention per risk, which has the potential to introduce volatility in capitalisation levels, according to AM Best.
The captive is well-integrated within the Enel group and plays a fundamental role in managing the group’s risk exposures. In January 2024, Enel Insurance, the company’s former Netherlands-based captive, transferred its assets and liabilities to Enel Re, the group’s newly established Italian entity, through a cross-border merger.
The move aimed to redomicile Enel’s captive insurance operations to Italy, aligning them with the group's headquarters.
