A.M. Best Affirms Ratings of Eni Insurance Limited

LONDON--(BUSINESS WIRE)-- A.M. Best has affirmed the financial strength rating of A (Excellent) and the issuer credit rating of “a” of Eni Insurance Limited (EIL) (Dublin). The outlook for both ratings remains stable.

EIL is the sole captive of Eni S.p.A. (Eni), an Italian multinational gas and oil company with operations in more than 80 countries. The ratings reflect EIL’s strong underwriting profitability in recent years and excellent risk-adjusted capitalisation. The ratings also take into consideration the captive’s importance to the Eni Group as a risk management tool. These positive rating factors are partially offset by EIL’s exposure to peripheral European sovereign bonds. In addition, EIL has exposure to potentially substantial underwriting losses, due to its large maximum line size, although, large losses will be moderated by comprehensive reinsurance.

EIL’s risk-adjusted capitalisation is expected to remain excellent. Available capital and surplus is likely to increase in 2015 due to a non-recurring return premium payment of EUR 37 million to EIL from a reinsurance company, as well as good financial performance (subject to large loss experience in the remainder of the year).

EIL reported a strong technical profit of EUR 86.2 million in 2014 (2013: EUR 66.3 million), which equated to a combined ratio of 52% (2013: 46%). The reported pre-tax profit was EUR 96.8 million (2013: EUR 70 million). Prospective performance is likely to remain volatile, due to potential large losses from EIL’s property account and unrealised gains/losses from its peripheral European sovereign bond portfolio.

In 2014, EIL increased its retention on its main reinsurance programme covering fire and property risks to USD 100 million per event, from USD 50 million. The programme is placed with a strong panel of reinsurers.

A.M. 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.

In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure.

This press release relates to rating(s) 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 visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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A.M. Best

Konstantin Langowski, +(44) 20 7397 0318

Financial Analyst

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Catherine Thomas, +(44) 20 7397 0281

Director, Analytics

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Christopher Sharkey, +(1) 908 439 2200, ext. 5159

Manager, Public Relations

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Jim Peavy, +(1) 908 439 2200, ext. 5644

Assistant Vice President, Public Relations

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Source: A.M. Best