A.M. Best has affirmed the financial strength rating of “A- (Excellent)” and the issuer credit rating of “a-“ to Enel Insurance, a captive of Enel Group, a multinational electric utility company in Italy.
The ratings reflect Enel Insurance’s risk-adjusted capitalisation as well as its performance record. In addition, the ratings reflect the captive’s importance within Enel Group’s risk management framework.
A.M. Best suggested that partially offsetting these ratings is Enel Insurance’s large maximum gross line size.
Enel Insurance’s risk-adjusted capitalisation is expected to remain “good”, according to A.M. Best.
The assessment, carried out by the ratings company, considers Enel Insurance’s underwriting approach of targeting a “modest underwriting profit” through the cycle.
The ratings company noted that the captive reported a combined ratio of 103 percent in 2015 due to “adverse reserve development on a legacy claim”.
A.M. Best said: “Going forward, it is expected that underwriting results will improve modestly. The captive reported a combined ratio of about 90 percent for the first half of 2016.”
