AM Best has upgraded the financial strength rating to ‘A-’ (Excellent) from ‘B++’ (Good) and the long-term issuer credit rating to ‘a-’ (Excellent) from ‘bbb+’ (Good) of Saipem’s captive reinsurer, Sigurd Rück AG.
The outlook of these ratings is ‘stable’.
The ratings agency says these upgrades reflect the stabilisation of Saipem's credit fundamentals, a result of a successful strategic turnaround plan launched in 2022. The plan, initiated after a significant post-tax loss, included a €2 billion capital injection from shareholders, leading to an improvement in the company’s financial standing.
AM Best also rates Sigurd’s balance sheet strength as 'very strong’, highlighting its strong operating performance, neutral business profile, and appropriate enterprise risk management.
The rating reflects Sigurd's strong risk-adjusted capitalisation, as indicated by the Best's Capital Adequacy Ratio (BCAR), which is expected to remain at the highest level due to moderate catastrophe exposure and a solid retrocession program with high-quality partners.
Sigurd's business profile assessment benefits from its role as an important risk management tool for its parent, as well as geographic and product diversification from Saipem's wide-ranging commercial activities.
