AM Best affirms the Financial Strength Rating of ‘A’ (Excellent) and the Long-Term Issuer Credit Rating of ‘a’ (Excellent) for Eni Insurance S.p.A. (EIS), with the outlook for both ratings deemed ‘stable’. EIS is a captive of Eni S.p.A. (Eni), a multinational energy company based in Italy. The ratings reflect EIS’ balance sheet strength, which AM Best assesses as very strong, alongside its strong operating performance, neutral business profile, and appropriate enterprise risk management (ERM). AM Best expects EIS’ risk-adjusted capitalisation to be maintained with a comfortable buffer at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). An offsetting rating factor in the balance sheet strength assessment is EIS’ reliance on reinsurance to underwrite large risks. However, the risks associated with this reliance are mitigated by long-standing relationships with reinsurers of excellent credit quality. The captive’s prospective performance is expected to be strong, in line with the historical performance of Eni’s former captive, Eni Insurance Designated Activity Company (EID). This performance is evidenced by a five-year weighted average combined ratio of 42.7% (2020-2024), as calculated by AM Best. Prospective performance is subject to volatility due to potential large losses from the property account, though underwriting volatility on a net basis should be moderated by the captive’s comprehensive reinsurance programme. As a single-parent captive, EIS is well-integrated within Eni’s risk management framework and maintains its active role in overseeing and containing the group’s insurance costs. On 1 February 2025, Eni’s former captive, EID, transferred its assets and liabilities to EIS through a cross-border merger operation, with the latter becoming the new captive insurer of Eni. The aim of the transaction was to redomicile the captive operation of Eni to Italy, where the group is based.
