AM Best has affirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of “a” (Excellent) of Ireland-based Eni Insurance Designated Activity Company (EID).
EID is a captive of Eni S.p.A. (Eni), a multinational energy company based in Italy.
The outlook of its credit ratings is stable.
AM Best says the ratings reflect the strength of EID’s balance sheet, which it assesses as “very strong”, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).
EID’s risk-adjusted capitalisation was also assessed at the strongest level, as measured by AM Best’s capital adequacy ratio.
”An offsetting rating factor in the balance sheet strength assessment is EID’s reliance on reinsurance to underwrite large risks. However, the risks associated with this reliance are mitigated partly by long-standing relationships with reinsurers of ‘excellent’ credit quality,” according to the ratings company.
EID has a track record of strong operating profits, demonstrated by a five-year weighted average combined ratio of 51.5 per cent (2018-2022).
AM Best says the company is well-integrated within Eni group’s risk management framework and has a developed ERM framework, with a clear risk appetite and tolerance levels in place.
