AM Best affirms the Financial Strength Rating (FSR) of ‘A-’ (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of ‘a-’ (Excellent) for Enel Reinsurance - Compagnia di Riassicurazione S.p.A. (Enel Re). The ratings of the captive of multinational electric utility company Enel S.p.A. (Enel) have a ‘stable’ outlook. The ratings reflect AM Best's assessment of Enel Re’s balance sheet strength as very strong, its adequate operating performance, neutral business profile, and appropriate enterprise risk management. Enel Re’s risk-adjusted capitalisation, measured by Best’s Capital Adequacy Ratio (BCAR), remains at the strongest level at year-end 2024, and the company expects to maintain this level over the medium term. The captive benefits from good liquidity and low reinsurance dependence. A partially offsetting factor for the ratings is Enel Re’s potential exposure to large losses due to its high net retention per risk, which could introduce volatility in capitalisation levels. AM Best’s operating performance assessment reflects the expectation that the prospective combined ratio remains within the captive’s through-the-cycle target of between 95% and 100%. In 2024, Enel Re reports a profit before tax of EUR 40.3 million, driven by excellent investment income. This investment income more than offsets a negative underwriting performance, which is evidenced by a combined ratio of 104.6% (as calculated by AM Best). Enel Re is the captive insurer of the Enel S.p.A. group and plays a fundamental role in managing the group’s risk exposures.
