AM Best Affirms Credit Ratings of Eni Insurance Designated Activity Company

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) (Ireland), a captive of Eni S.p.A. (Eni), a multinational energy company based in Italy. The outlook of these Credit Ratings (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 (ERM).

AM Best assesses EID’s risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), and expects it to remain at this level prospectively. 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.

EID has a track record of strong operating profits, demonstrated by a five-year weighted average combined ratio of 49.4% (2019-2023), as calculated by AM Best. The company’s underwriting performance has remained strong during the first nine months of 2024. Prospective performance is subject to volatility due to potential large losses from EID’s property account. However, underwriting volatility on a net basis should be moderated by the captive’s comprehensive reinsurance programme.

EID 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. EID has a developed ERM framework, with a clear risk appetite and tolerance levels in place.

AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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