A.M. Best Affirms Credit Ratings of Eni Insurance Designated Activity Company
The ratings reflect EID’s balance sheet strength, which
EID’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), is categorised as strongest and is expected to remain at the strongest level over the medium term. An offsetting rating factor in the balance sheet assessment is EID’s exposure to peripheral European sovereign bonds, which accounted for approximately 22% of its fixed income portfolio in 2017, down from 30% in 2016. Additionally, the captive is reliant on reinsurance to write large risks. Although this reliance has been exacerbated in 2017 by another material increase in its gross maximum line size, associated credit risk is mitigated partly by the excellent quality of EID’s reinsurance panel.
EID has a track record of strong operating profits, evidenced by a five-year average combined ratio of approximately 56% (2013-2017). In 2017, EID produced a pre-tax profit of
EID is well-integrated within the Eni Group’s risk management framework and has an 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 clear risk appetite and tolerance levels in place.
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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