AM Best has affirmed the financial strength rating of ‘A’ (Excellent) and the long-term issuer credit rating of ‘a’ (Excellent) of Eni Insurance Designated Activity Company (EID), a captive of Italy-based multinational energy company Eni.
The outlook of these credit ratings is ‘stable’.
The ratings reflect EID’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
AM Best rates EID's risk-adjusted capitalisation at the strongest level based on the Best’s Capital Adequacy Ratio, with expectations for it to remain stable, while noting reliance on high-quality reinsurers offsets risks tied to underwriting large exposures.
EID has demonstrated strong profitability with a combined ratio of 49.4 per cent over the last five years as calculated by AM Best, maintaining robust underwriting results into 2024, though its property account poses potential volatility mitigated by a comprehensive reinsurance programme.
The Ireland-based captive is well-integrated within the Eni group’s risk management framework and maintains its active role in overseeing and containing the group’s insurance costs. Additionally, the captive enables the group to centralise claims information and establish effective internal reporting for Eni.
