A.M. Best has assigned a financial strength rating of “A- (Excellent)” and an issuer credit rating of “a-“ to Enel Insurance. The outlook assigned to both ratings is stable.
The ratings reflect Enel Insurance’s strong risk adjusted capitalisation, robust performance record and importance within its risk management framework.
Offsetting these strengths is the company’s exposure to Italian sovereign bonds, which represented 20 percent of total invested assets at year-end 2014. The captive is in the process of reducing those holdings.
In addition, Enel Insurance could incur substantial underwriting losses, due to its large maximum line size. This risk is mitigated by a reinsurance programme, which is placed with a panel of financially strong reinsurers.
Enel Insurance’s consolidated risk-adjusted capitalisation is to remain strong in 2015, underpinned by good internal capital generation and moderate net retention.
The company’s consolidated capital base increased by about 10 percent to €197.9 million in 2014, driven by good operating results.
